competitive environment • organization response time is increased • organizational flexibility is reduced • It reduces time lags 3. The acquisition of treasury stock by a corporation: • requires that a gain or loss be recognized on the income statement. • increases its total assets and total stockholders’ equity. • has no effect on total assets and total stockholders’ equity. • decreases its total assets and total stockholders’ equity. 4. You work in marketing for a company that produces
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Deferred Taxes 51 VII. Derivatives, Hedging, & Translation 53 VIII. Fixed Assets 57 IX. Governmental Accounting 63 X. Personal Financial Statements, Segments, & Interim Reporting 74 XI. Partnership Accounting 77 XII. Inventory 80 XIII. Investments 86 XIV. Leases 88 XV. Current Assets & Liabilities 92 XVI. Not-For-Profit Accounting 94 XVII. Pensions 100 XVIII. Statement of Cash Flows 102 XIX. Stockholders’ Equity 104 2 The N.I.N.J.A. Framework NAIL THE CONCEPTS Watch your CPA Review videos
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analyze, and explain a A company’s Balance Sheet to other decision makers and use the knowledge and skills to make business decisions. Key Concepts Understand the environment of financial reporting in the United States and explain the importance of generally accepted accounting principles. Explain the meaning and purpose of a balance sheet and the items that appear in the balance sheet. Determine the interrelationship among the basic financial statements. Analyze the relationship between
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planning and profit planning. Cash planning requires preparation of the cash budget, while profit planning involves preparation of a pro forma income statement and balance sheet. The text illustrates through example how these budgets and statements are developed. The weaknesses of the simplified approaches (judgmental and percent-of-sales methods) of pro forma statement preparation are outlined. The distinction between operating cash flow and free cash flow is presented and discussed. Current tax law regarding
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Cheat Sheet Assets are valuable resources owned by the entity. LIABILITIES AND EQUITY sources of funds that provided the entity’s assets. Liabilities are the entity’s obligations to outside parties DUAL-ASPECT CONCEPT Assets = Liabilities + Equity MONEY-MEASUREMENT CONCEPT money-measurement concept. By converting different facts to monetary amounts, we can deal with them arithmetically The money-measurement concept states that accounting reports only those facts that can
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Executive summary Cash Flow Statement and Disclosure are potentially significant means for management to communicate company’s performance and governance to outside investors. Demand for Cash Flow Statement and disclosure arise from information asymmetry and agency problem between owners and management. The 1st chapter of this report is Introduction. It remain Origin of the project and thesis work, Background of the Report, Objective of the report, General objective, Project objective, Scopes,
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STUDY MATERIAL Integrated Professional Competence Course PAPER : 1 ACCOUNTING VOLUME – I BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA This study material has been prepared by the faculty of the Board of Studies. The objective of the study material is to provide teaching material to the students to enable them to obtain knowledge and skills in the subject. Students should also supplement their study by reference to the recommended text books. In case students need
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proportionate share of interdepartmental projects. 4. Will additional resources be available? 5. Will this budget accomplish the appropriate managerial objectives for the organization? Checklist A-3 Balance Sheet Review 1. What is the date on the balance sheet? 2. Are there large discrepancies in balances between the prior year and the current year? 3. Did total assets increase over the prior year? 4. Did current assets increase, decrease, or stay about the same? 5. Did current liabilities increase
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(1) Uses of Accounting Information and the Financial Statements a. Accounting as an Information System i. Accounting is an information system that measures, processes, and communicates financial information about an economic entity. Accountants focus on the needs of decision makers. ii. External decision makers use financial accounting reports to evaluate how well a business has achieved its goals. These reports are called financial statements. iii. The primary external users of accounting information
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quality and customized products as well as excellent customer service and support. The steps to follow are: 1. Establish direct effective relationship with customers by allowing them direct access. Dell removes the third party by allowing customers direct access. 2. Customers are able to purchase custom-built products and custom-tailored services. 3. Dell will be the low-cost leader. 4. Dell provides a single point of accountability for its customers. 5. Non-proprietary standards-based
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