The Accounting Cycle and Accrual Accounting Concepts Accounting Information System | Journal, Ledger Accounts, and Trial Balance | Cash-Basis Versus Accrual-Basis Accounting | Accrual Accounting Concepts | Adjusting Entries, Adjusted Trial Balance, and Closing | Self-Assessment After learning about the income statement and the balance sheet in Chapters 1 and 2, we are now being introduced to the accounting cycle and certain underlying accounting concepts that influence the contents of those two
Words: 3427 - Pages: 14
FASB Statement No. 13: Accounting for Leases Asim Yunus ACC 632 – Critique of Accounting Theory Professor Lynch October 16, 2012 FASB Statement 13: Accounting for Leases FASB Statement 13, Accounting for Leases, was established by the FASB and made effective starting January 1st, 1977. As early as 1949, leasing was recognized as an important financial tool by the accounting business when the American Institute of Certified Public Accountants (AICPA) issued Accounting Research Bulletin No
Words: 3954 - Pages: 16
WGU - FNC1 FNC1 Exam Question | Answer | Which of the following transactions is not possible | Increase both liabilities and Equity for the same account | A transaction that increases Liabilities and Equity at the same time. | Is not possible | Identifying Transactions, Recording transactions, and communication transactions should be performed in what order? | Identifying, recording, and communicating | The proper order for these transactions are Identifying, recording, and communication
Words: 1427 - Pages: 6
warning signs of shenanigans: extended end date, sharp jump in accounts receivable, especially long-term and unbilled ones, using percentage-of-completion accounting or aggressive assumptions, inappropriately low discount rate, premature revenue recognition policy, Inappropriate use of mark-to-market or bill-and-hold accounting, consignment arrangements, incorrect shipping or liberalizing customer collection terms. Recording Bogus Revenue To accelerate its revenue, companies may create fake revenue
Words: 1149 - Pages: 5
equality involving a company’s assets liabilities and equity, assets equal liability plus equity/ aka balance sheet equation Assets- resources a business owns or controls that are expected to provide current and future benefits to the business Auditors- An individual who checks the accuracy, fairness, and general acceptability of accounting records, an external auditor would attest to those checks Balance sheet- Financial statement that lists types and dollar amounts of assets, liabilities, and equity
Words: 2015 - Pages: 9
2 Carryover material • All material from Chapters 1-4 • Accounting Equation (increase/decrease questions) • Debits/Credit Rules and normal balances • Financial statements: Income Statement, Statement of Retained Earnings and Classified Balance Sheet - know how each is composed and how they are affected by journal entries • Application of Revenue Recognition, Matching Principle, Cost Principle Chapter 5 • Perpetual Inventory Systems • Recording all transactions involving Inventory under
Words: 818 - Pages: 4
“in balance,” meaning the left side should always equal the right side. The balance is maintained because every business transaction affects at least two of a company’s accounts. For example, when a company borrows money from a bank, the company’s assets will increase and its liabilities will increase by the same amount. For instance, if the company borrows $10,000, Cash (a normal debit balance account) would be increased (debited, left side) for $10,000, and Notes Payable (this is a normal credit
Words: 1030 - Pages: 5
are transferred between companies electronically without the need for a check. Compensating balances-a required deposit to the bank for compensating them for granting the loan. Current assets- receivables expected to be collected within one year or the current operating cycle, whichever is longer, the rest is classified as Noncurrent. Trade receivables- the majority of a company’s total receivable balance. Account receivable- non-written promises by customers to pay for goods or services. Notes receivables-
Words: 1541 - Pages: 7
SOLUTIONS TO QUESTIONS AND PROBLEMS 1. P.V. Ltd. Income Statement for Year 2 Accretion of discount (10% × 286.36) $28.64 P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash $315.00 Shareholders’ Equity Opening balance Net income Capital Asset Present value 0.00 $315.00 $315.00 $286.36 28.64 Note that cash includes interest at 10% on opening cash balance of $150. 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then
Words: 9627 - Pages: 39
Conceptual Framework 1. Two of the fundamental qualitative characteristics of accounting information as outlined in conceptual framework are ‘relevance’ and ‘representational faithfulness’. Provide a brief description of the meaning of these two characteristics. Do you think faithful representation is more important than relevance for accounting information? [ 3+3=6 marks] [Word limit 300] Suggested solution: The fundamental qualitative characteristics identified in the New
Words: 2093 - Pages: 9
