components of non-components of Inventory Cost? 3. Distinguish between ‘Perpetual’ and ‘Periodic’ system for recording Inventory? Show proper examples. 4. What are the Cost Flow Formulas/Assumptions allowed in IAS-2 for maintaining Inventory? Show examples. Which one should be used in what situation? 5. Explain LIFO? Why LIFO is not permitted in IAS-2. Do you think repealing LIFO was wise decision of IASB? Discuss with its advantages & disadvantages. 6. What is NRV of an asset? When
Words: 1781 - Pages: 8
not be spoken Introduction: If you can read a nutrition label box or a football score, you can learn to read basic financial statements in order to make the right investments. If you can follow a recipe or apply for a loan, you can learn basic accounting. Financial statements aren’t difficult and they aren’t rocket science. Before understanding the four types of financial statements, you must first understand the three types of business entities, there are three forms of business entities, and
Words: 3214 - Pages: 13
main accounting systems: Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). GAAP standards provide direction for almost every accounting setting, including inventory accounting methods and procedures. GAAP is used principally in the United States, although the Security and Exchange Commission (SEC) is looking to switch to IFRS by 2015, the system used in the European Union and many other countries. Many countries have their own accounting systems
Words: 933 - Pages: 4
Accounting Chapter: 1 Introduction to Accounting ▪ Bookkeeping is the detailed recording of all the financial transactions of a business. Accounting uses these bookkeeping records to prepare financial statements. ▪ It is necessary to prepare financial statements to show the profit or loss of the business and the financial position of the business and it will help in decision-making. ▪ The
Words: 3733 - Pages: 15
Chapter 1 The Accounting Information System After reading this Chapter you should understand the reasons for studying Accounting Information Systems. [pic] Video: http://www.youtube.com/watch?v=HNC1pvXwfzQ Question: Describe 5 ways these accounting systems can benefit a business. The recurring theme of this class and book is the changing role of the accountant and auditor as the trusted business advisor in the organization. The accountant no longer just prepares financial statements
Words: 2785 - Pages: 12
Human Resource Accounting Human Resource Accounting (HRA) means to measure the cost and value of the people (i.e. of employees and managers) in the organisation. It measures the cost incurred to recruit, hire, train and develop employees and managers. HRA also finds out the present economic value of its employees and managers. After measuring the cost and value of its employees and managers, the organisation prepares a report. This report is called HRA Report. It is shown to the top level management
Words: 1144 - Pages: 5
its organization in such a way that would rectify this issue. Case Analysis The divisional controller’s task was to assist the general manager in budgeting and providing performance report. Although the divisional controllers adhered to the accounting standard for budgeting and reporting performance specified by the corporate controller, it
Words: 844 - Pages: 4
small business. Because of the recession, Dub & Bradstreet reported in 2011 that “across the United States, small business failure rates rose by 40% between 2007 and 2010” Therefore, understanding not only the industry, but the legal, tax, and accounting implications is vital to securing a prosperous future. “ The dream of owning a small business has centered on starting a restaurant – full of grandma’s home cooking. Restaurants, thought of as a risky business venture, have the same failure rates
Words: 1320 - Pages: 6
future cash flows divided by its initial cost, also known as benefit-cost ratio. The index measures the value of each dollar invested in the company and is rationed from the present value of the benefits (PVB) to the present value of the costs (PVC). The index is used instead of Net Present Value, which is the present value of benefits minus present value of costs, when evaluating mutually exclusive proposals that have different costs. The advantages of using the profitability index are it
Words: 2760 - Pages: 12
in the future. The stock price will fall. The moral of these examples is that, because stock prices reflect present and future profitability, the firm should not necessarily sacrifice future prospects for short-term gains. 3. The key advantage of separating ownership and management in a large corporation is that it gives the corporation permanence. The corporation continues to exist if managers are replaced or if stockholders sell their ownership interests to other investors. The corporation’s
Words: 3282 - Pages: 14
