problems may cover following topics: journal entries, adjusting journal entries, closing entries, preparation of financial statements, multiple step income statement. Chapter 1: Purpose (objective) of financial accounting; cash vs accrual accounting (net operating cash flow vs. net income); history of standard setting – SEC, AICPA (formerly AIA), CAP, APB, FASB; process of standard setting (graphic 1-4); global accounting standards – IASC, IASB, IFRS, Covergence project; Sarbanes-Oxley Act 2002
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practical in choosing the appropriate degree of precision in the accounts. Quality Attributes: Relevance vs. Reliability Relevance refers to the timeliness and usefulness of the information to its users. Reliability refers to the objectivity and verifiability of the information. Reliability is generally given precedence over relevance. Accrual Accounting: Accrual accounting attempts to record the
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adjusted balance method, the book balance and the bank balance are brought to a correct cash balance that must appear on the balance sheet. The credit memos are always added to the book balance and the debit memos are always deducted from the book balance. Book Reconciling Items: Credit Memos – Items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipt. They increase the bank balance. Debit Memos - Items not representing checks
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Financial Statements, Segments, & Interim Reporting 73 XI. Partnership Accounting 76 XII. Inventory 79 XIII. Investments 85 XIV. Leases 87 XV. Current Assets & Liabilities 91 XVI. Not-For-Profit Accounting 93 XVII. Pensions 99 XVIII. Statement of Cash Flows 101 XIX. Stockholders’ Equity 103 2 The N.I.N.J.A. Framework NAIL THE CONCEPTS Watch your CPA Review videos first – before working any assigned homework questions. The CPA Review industry says to watch a section of CPA
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smaller towns or cities, the basic guidance is that they use cash basis accounting for their activities. For larger towns or cities, the basic guidance is that they must use accrual accounting as their method. The City of Galax uses both and actually even a combination of the two. The government-wide financials and the proprietary funds financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses
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report. Explain the primary reasons for the Net Income differences between 2008, 2009 and 2010. Use the following format: 2009 2010 2011 Citigroup’ net income (loss) $billions ($1.606) 10.602 $11.067 Change $12.208 $.465 2011 vs. 2010: Citigroup and Consolidated Subsidiaries Overall, the largest change between the two years on the Income Statement is the 50.86% reduction (26,042 to 12,796) in the provisions for credit losses and benefits and claims. Net income for Citigroup
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-Lease vs. buy decision? Capital equipment is necessary for Granny’s Greenhouse to operate, the actual greenhouse. The greenhouse will have its own heating and cooling features to maintain a steady growing temperature. The cooling system works by running water down the glass panes that have fans blowing air on the water to evaporate, thus cooling the interior. (Priest, 2013) Additional equipment will include computers, pumps, tanks, etc. The total cost is $150 thousand financed at 6% which
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and ideas; namely, generally accepted accounting principles, double entry accounting, historical cost, accrual basis versus cash basis accounting, and current assets and liabilities versus non-current items. Second, I will examine recent financial statements for three companies (i.e. Samsung, Lockheed Martin, and RTL Group), specifically their balance sheet, income statement, and statement of cash flow. This examination will include a prediction of future company trends concluding with which ever
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withdrew its support to the Indian Hockey Federation," he said. Watch the Full Class Without Chapter Breaks Accounting & Finance - Full Class Video 1:23:18 Accounting & Finance for Event Companies Overview 3:31 Accounting Basics (Chart of Accounts; Cash
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The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual and cash bias methods are different ways to count revenue and will be discussed. The final area of review is the different types of business structures. Generally Accepted Accounting Principles. Generally accepted accounting principles
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