each item stated above, and how these improvements to Morton Sales Company will help improve Morton Sales Company financial health. Lower Cost of Market The issuance of the ARB No. 43 by The American Institute of Certified Public Accountants (AICPA) and the Financial Standards Accounting Board (FASB) states that lower of cost or market rule apply to all inventories. In this standard, all inventory should be stated at cost or market, whichever is lower (Financial Accounting Standards Board [FASB]
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lower than cost, then the use of adjusting lower cost of market is accepted. There are many advocates that think that inventories should be valued at market price. The belief is assets should reflect current values. Generally Accepted Accounting Principles (GAAP) instructs that when inventories
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period. * Accounting is the art of recording, classifying and summarizing, in a significant manner and in terms of money, transactions and events which are in the part at least, of a financial character and interpreting the results there of.- AICPA * Its features are- * Financial language * Financial information * Systematic process * Functions * Information system * The Purposes of Financial Accounting The objectives of accounting are- * To maintain records-
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Memorandum To:! From:! Date:! ! ! ! Subject:! Case 3.3 — The Anonymous caller! INTRODUCTION: The purpose of this memo is to provide guidance to the anonymous caller, examine issues related to aggressive accounting and financial statement fraud, and provide descriptions of the conditions within the fraud triangle. In providing guidance to the Anonymous caller, we will compare the risks between resigning immediately and staying with the current company. Further, we will discuss other sources of advice
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Chapter 1 Introducing Financial Accounting QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports
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Business Decisions Accounting is the Language of Business Accounting Principles and Concepts The Accounting Equation The Financial Statements Relationships Among Financial Statements Account Types Getting Started on Project 1A ACCT212 Week 1 Lecture 4 TCO of the Week • TCO 1: “Given financial statements, explain the financial statements’ purpose and components relative to accounting history, assumptions, concepts, principles, and standards.” ACCT212 Week 1 Lecture 5 Key Concepts of
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This memo outlines the following questions: What is the methodology used in determining deferred taxes, what is the procedures for reporting accounting changes and error corrections, and what is the rationale behind establishing the subsidiary as a corporation. It will also detail the professional responsibilities of a CPA and what the differences between a review and an audit are. The professional responsibilities of a CPA are to uphold the rules set forth by the State board of Certified Public
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Chapter 1 Financial Statements and Business Decisions ANSWERS TO QUESTIONS 1. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance
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Client Understanding Paper ACC/541 January 30, 2012 Client Understanding Paper Dear Sir: In order to ensure that your organization is following the FASB’s generally accepted accounting principles (GAAP) it is necessary that I review the current practices being used by your organization with regards to lower of cost or market valuation, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting for goodwill impairment. It is important for me to
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Chapter 1 Accounting principle board 9, accounting research bulletin 9, accounting standards update 12, accrual basis accounting 6, aicpa 9, apb opinions 9, auditing standard board 10, committee on accounting procedure 9, decision usefulness 6, emerging issues task force 12, entity perspective 6, expectation gap 18, fasb staff position 13, financial accounting 4, financial accounting standards board 10, codifications 14, crs 14, financial reporting 4, financial statements 4 Chapter 2 Assumption
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