depreciation expense for 2011. No adjustment of the balance in accumulated depreciation at the beginning of the year would be made. Instead, the remaining depreciable cost would be divided by the estimated remaining life. This is not a change in accounting principle, but rather a change in an estimate, which requires a prospective treatment. Disclosure in the notes to the financial statements is appropriate, if material. 2. The additional assessment should be shown on the current period's income
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1.) Wholesome, Inc. starts a pension plan for its 10 employees on 1/2/20A. All are 53, and will retire at age 65 (in 12 yrs) on 12/31/20J. All are expected to live 10 yrs past retirement. Each is given credit for 15 years prior service at inception of the plan. The plan calls for payments at the beginning of each retirement year. Wholesome will make a lump sum payment of $250,000 on 1/2/20A to partially fund the prior service cost of $453,246. Funding is to be set at a level payment each period
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these rules, where can a person find them, and which ones are more important?” One of the most common rules for financial reporting is GAAP, which is Generally Accepted Accounting Principles. GAAP are and is a combination of authoritative standards and simply the common accepted ways of recording and reporting accounting information from companies. GAAP can be found and imposed by companies so that investors have minimum level of consistency in the area of financial statements when analyzing
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Derek Greenfield Intermediate Accounting I 3/2/2012 CA1-1.) 1. True 2. False, must comply with all standards and interpretations including disclosure requirements 3. True 4. False, FASB must operate in full view of public through a “due process” system that gives interested parties ample opportunity to make their views known CA1-3.) 1. D 2. A 3. D 4. B 5. A 6. B 7. A 8. B E2-5.) Assets- F Liabilities- B Equity- I Investment by owners-
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Carolyn Gaudioso 8-29-12 Intermediate Accounting Homework 1 CAC: a) Coca cola b) Coca cola- 34% Pepsi-32% c) Pepsi co had more depreciation and amortization expense, there is a difference in these amounts because coca cola had a higher percentage increase from 2008 to 2009 and also a greater 5 year average growth rate which shows that coca cola is a more popular company and there is a reduction in a capital account of the value of an asset over time. Also their equipment that they
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Essay 10: Earnings per Share Dividends or dividend requirements can either positively or negatively affect the computation of basic EPS. Basic EPS is calculated by subtracting preferred dividends from net income and dividing the result by the weighted-average of shares outstanding.(5) If preferred dividends are a larger amount it will result in a smaller EPS and vice versa. The treasury stock method of computing dilutive EPS assumes that the options or warrants are exercised at the beginning of
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CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial statements would have to familiarize themselves with every company’s peculiar accounting and reporting practices. As a result, it would be almost impossible
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Theoretical Structure of Financial Accounting AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 7e with the following AACSB learning
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Company A Income Statement December 31, 20XX Sales Sales Revenue 2,000,000 Less Sales Discount (120,000) Net Sales 1,880,000 Cost of Goods Sold 1,000,000 Gross Profit 880,000 Operating Expenses Selling Expenses Selling Expenses 300,000 Depreciation Expense 40,000 Total Selling Expenses 340,000 Administrative Expenses Administrative Expenses 350,000 Depreciation
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SCHAUM’S OUTLINE OF THEORY AND PROBLEMS OF INTERMEDIATE ACCOUNTING II Second Edition BARUCH ENGLARD, M.S., M.B.A., CPA Associate Professor of Accounting The College of Staten Island The City University of New York SCHAUM’S OUTLINE SERIES New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2007, 1992 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America
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