Statement of Financial Accounting Standards No. 13 FAS13 Status Page FAS13 Summary Accounting for Leases November 1976 Financial Accounting Standards Board of the Financial Accounting Foundation 401 MERRITT 7, P.O. BOX 5116, NORWALK, CONNECTICUT 06856-5116 Copyright © 1976 by Financial Accounting Standards Board. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying
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3. Operating activities include those transactions and events that enter into the determination of net income. Cash receipts from selling goods or from providing services are the major cash inflow for most businesses. Major cash outflows include payments to purchase inventory and to pay wages, taxes, interest, utilities, rent, and similar expenses. Investing activities are the purchase and sale of land, buildings, and equipment and the purchase and sale of financial instruments not intended
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Record only one answer per question. 1. Which of the following investment options is most valuable? Assume a positive interest rate, and that all options have the same risk. a. receiving $20,000 today b. receiving 10 payments of $2,000 per year with the first payment made today c. receiving $4,000 per year for five years beginning next year d. receiving $10,000 today and $10,000 next year e. Without an interest rate there is not enough information to tell. 2. In 3 years you are
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RECOGNITION OF ASSETS Accountants define assets as resources that a firm owns or controls as a result of past business transactions, and which are expected to produce future economic benefits that can be measured with a reasonable degree of certainty. Distortions in asset values generally arise because there is ambiguity about whether: * The firm owns or controls the economic resources in question: * Are the ventures controlled? * Are the leased assets owned by the lessee
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ACC 304: Financial Reporting 1 Additional Class Problems Chapters 10-12 & 6 Chapter 10: EXERCISE 10-1 Item | | Land | | Land Improvements | | Building | | Other Accounts | (a) | | | | | | | | ($275,000) Notes Payable | (b) | | | | | | $275,000 | | | (c) | | $ 8,000 | | | | | | | (d) | | 7,000 | | | | | | | (e) | | | | | | 6,000 | | | (f) | | | | | | (1,000) | | | (g) | | | | | | 22,000 |
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per month; depreciation expense is $25,000 per month. Taxes of $20,000 and dividends of $16,000 will be paid in March. Cash at the beginning of January is $70,000 and the minimum desired cash balance is $65,000.For January, February, and March, prepare a schedule of monthly cash receipts, monthly cash payments, and a complete monthly cash budget with borrowings and repayments. Table 2 Cash Receipts Schedule Sales Credit sales (70%) Cash sales (30%) Collections (month after credit sales) 40% Collections
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closing entries, reversing entries, and a post-closing trial balance, preparing a financial statement worksheet, and to prepare a classified income statement, retained earnings statement and balance sheet. In order for a company to close the books at the end of a financial period the closing entries are made into the accounting journal based on the account balances on the adjusted trial balance. These closing entries transfer the balances of temporary accounts to permanent accounts. Reversing entries
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Problem in Financial Planning #1 (in class) Assignment: 1. Prepare a monthly cash budget for January – March. 2. Prepare a pro-forma Income Statement and Balance Sheet for the same period. Information: a. Sales are 30% for cash, 70% on open account b. Of the credit Sales, 60% are collected with a one month lag and 40% are collected with a two month lag. c. Gross profit margin on sales averages 25%. Cost of goods sold is strictly materials. d. All inventory purchases are paid one month after they
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A C C O U N TA N C Y HIGHER SECONDARY – FIRST YEAR Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman. TAMILNADU TEXTBOOK CORPORATION College Road, Chennai - 600 006. © Government of Tamilnadu First Edition - 2004 PREFACE CHAIRPERSON Dr. (Mrs) R. AMUTHA Reader in Commerce Justice Basheer Ahmed Sayeed College for Women Chennai - 600 018. REVIEWERS Dr. K. GOVINDARAJAN Reader in Commerce Annamalai University Annamalai Nagar - 608002. Dr. M. SHANMUGAM Reader
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position of the business and it will help in decision-making. ▪ The accounting equation shows that the assets are always equal to the capital plus the liabilities of the business. Assets = Capital + Liabilities ▪ A balance sheet is a statement of the financial position of a business and a certain date. Chapter: 2 Double Entry Bookkeeping- Part A ▪ Every transaction must be entered twice-on the debit side of one accounting and on the credit side of
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