UNIVERSITY OF NAIROBI SCHOOL OF BUSINESS MBA PROGRAMME DEPARTMENT OF ACCOUNTING AND FINANCE DAC 501: FINANCIAL ACCOUNTING ASSIGNMENT THREE - SOLUTION The assignment should be done individually and is due on 28th April 2015. ===================================================================== (a) Indicate the correct answer for each statement below (i) The primary difference between a statement of cash flows prepared in direct format and one prepared in indirect format is
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only one aspect of accounting. Accounting also involves structuring the information so that it can be used to evaluate the performance of the company and make decisions about the future. b. True. Accounting is designed around the tabulation of numerical information. Also, accounting data relate primarily to a company’s financial activities; information about personnel matters, community relations, etc. must come from other information systems. c. False. Managerial accounting information is used
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events from non-owner sources is known as comprehensive income. 20. The basic accounting equation may be expressed as assets = liabilities – owners’ equity. 21. 22. count. 23. uity. Debit means increase. A contra account is an account that is subtracted from a related acRevenues increase owners’ equity and expenses decrease owners’ eq- Income Determination True-False 1. To measure earnings under accrual accounting, revenues are recognized when they are received. 2. Revenues are earned when the
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Financial statements Financial Statements - Purpose of Accounting ACC 280 May 17, 2011 Carol Harker Financial Statements - Purpose of Accounting Every business has a need to generate profit and remain in the black. In today’s business world, it is important to have the means to track and monitor the gain or increase of income and profits within the organization. According to Weygandt, “Accounting can be defined as activity that is used to identify, record, and communicate the economic events
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Fundamentals of Accounting: Managerial verses Financial Accounting Fundamentals of Accounting acct122 Fundamentals of Accounting: Managerial verses Financial Accounting What has the organization in its focus; futuristic planning, financial control, and data based decision making affecting its reports and suggestions; and an emphasis on relevance and timeliness in its decision making (2012)? The answer to this question is managerial accounting. According to J. W. Jones (2013), a retired
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Subject: Companies Financial Statement Analysis BYP2-8 Date: September 17, 2013 Mr. Cerrillo, as the new Chief executive officer of Tomorrows Products, the Accounting Department would like to welcome you to the company. We would also like to stress how important it is for our company financial statements to be accurate as possible for our Board of Directors meetings at the end of every month. As the Chief Financial Officer, I would like to extend any help from the Accounting Department to assist
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Corporate Financial Accounting and Reporting Tim Sutton second edition Corporate Financial Accounting and Reporting We work with leading authors to develop the strongest educational materials in business and finance, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether
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Accounting Information and Predicting Financial Performance Financial ratios are often relied upon as a leading indicator of future financial performance by businesses. These accounting ratios and other company specific accounting information can be especially good predictors in the short run, but as the time horizon extends beyond a few years, these metrics lose predictive value. There are simply too many macro and external factors that the hard numbers cannot account for over the long-run
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Problem 2-3A Name: Section: Score: 0% Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds.
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Financial Accounting from a Cardiac Hospital If I were in a management position and had to create a working strategy in order for my company to gain strength, I would create a plan involving three phases: capital shortage, evaluation of the funding options for medical equipment, and the evaluation for capitol expansion. I would then run the necessary financial reports, analyze all the collected data, and then decide the best strategy for our improvement. Financial gain is important to the company
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