Lesson 1 Chapter 1 LIFA 1.1 WHAT IS ACCOUNTING? · Accounting- an information system that identifies, measures, records and communicates understandable, relevant, reliable, and comparable information about an organization’s economic activities. · Recordkeeping, or bookkeeping, is the recording of financial transactions, either manually or electronically, for the purpose of creating a reliable bank of data · Primary objective of accounting- to provide useful info for decision-making · Accounting
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CHAPTER 1 ANSWERS TO QUESTIONS 1. Yes, this is correct. Virtually every organization and person in our society uses accounting information. Businesses, investors, creditors, government agencies, and not-for-profit organizations must use accounting information to operate effectively. 3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other decision makers. (b) To assist management, managerial accounting provides internal reports
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Chapter 1 Self Test, Question 1 | | | | Correct. | | | The financial statements most frequently provided include all of the following except the: | statement of stockholders' equity. | | balance sheet. | | statement of cash flows. | | statement of retained earnings | Self Test, Question 2 | | | | Correct. | | | An effective process of capital allocation is critical to a healthy economy, which: | promotes productivity. | | encourages
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TB_599810_Mishkin_TP.qxd:Layout 1 6/4/09 9:45 AM Page 1 Test Bank to accompany Richard G. Stahl University of Texas, Arlington Louisiana State University Pearson Addison-Wesley Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris Cape Town Hong Kong Montreal p an rot d ect is e fo d b T r i y hi ns U s w tr S c o uc o rk to py is rs rig ’u h se t l on aw ly s . Kathy Kelly TB_599810_Mishkin_TP.qxd:Layout
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SUMMARY OF CHAPTER 9 BUDGET PREPARATION Nature of Budget Budgets are an important tool for effective short-term planning and control in organization. An Operating Budget usually covers one year and states the revenue and expenses planned for that year. It has certain characteristics like: * A budget estimates the profit potential of the business unit. * It is stated in monetary terms, although the monetary amounts may be backed by the non-monetary items like units produce and sold.
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economic benefits 3. Stable monetary unit – usually it is the currency. It is assumed that it has the same purchasing power throughout the time. 4. Time period 5. Concervatism / Prudence – расчетливость, практичность 6. Materiality Principles of accounting 1. Reliability 2. Historical Cost Basis – assets and rights of the Company are accounted for at their historical or production cost 3. Revenue – the company should establish rules when the revenue must be recognized and subsequently
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Financial Reporting Council (FRC) Australian Securities & Investment Commission (ASIC) 12 4 8/13/2014 SOME PRINCIPLES AND ASSUMPTIONS Time period •Economic information can be captured and communicated over short periods of time Monetary unit assumption •Only data that can be expressed in terms of money is included in the accounting records Economic entity assumption •Can be any organisation or unit in society •Activities of the entity must be kept separate and distinct from activities
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Answers to eThemes of the Times for Krugman/Obstfeld International Economics: Theory and Policy, 7e Chapter 1: Introduction "U.S. and Trade Partners Maintain Unhealthy Long-Term Relationship" By Louis Uchitelle, New York Times, Saturday, September 18, 2004 1. The subject of this article centers on the current account balance. Does this seem like an "international trade" or an "international money" issue? Answer: Aspects of the issue seem to overlap with both areas of international
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Answers to eThemes of the Times for Krugman/Obstfeld International Economics: Theory and Policy, 7e 2 Krugman/Obstfeld, International Economics 7e Chapter 1: Introduction "U.S. and Trade Partners Maintain Unhealthy Long-Term Relationship " By Louis Uchitelle, New York Times, Saturday, September 18, 2004 1. The subject of this article centers on the current account balance. Does this seem like an "international trade" or an "international money" issue? Answer: Aspects of the issue seem
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schmittgrohe@columbia.edu. 3 Columbia University. E-mail: martin.uribe@columbia.edu. ii Contents 1 Global Imbalances 1.1 Balance-of-Payments Accounting . . . . . . . . . . . . . . . . 1.2 The Current Account . . . . . . . . . . . . . . . . . . . . . . 1 1 5 1.3 The Current Account and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.4 Valuation Changes and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . .
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