Revenue recognition is covered under ASPE – section 3400 (Revenue): Private entities opting to use the ASPE for revenue recognition should use the ASPE guidance. The standard covers the sale of goods and the rendering of services by an entity in the ordinary course of business. Definition: * Revenue is the cash, receivables and other consideration coming into the business from its ordinary business activity. * The completed contract method recognizes revenue when the good or service has
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is capitalized and amortized over the periods benefited. 4. Assuming that dollars today will buy as much as ten years ago. 5. Rent paid in advance is recorded as prepaid rent. 6. Financial statements are prepared each year. 7. All significant post-balance sheet events are reported. 8. Personal transactions of the proprietor are distinguished from business transactions. Problem 2 Accounting concepts—identification. Presented below are a number of accounting procedures and practices in Ramirez Corp
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Handout Problem 1) Since the customer uses a voucher system, the auditor should ask the client to confirm individual unpaid transactions rather than the total balance owed. 2) There might be a lag in the recording of cash receipts and updating the customer’s balance because the customer sent the payment a week before the auditor sent out the confirmation. In this case, the auditor should trace the payment to the cash records. However, this could also be a lapping activity and that’s
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1 Financial Reporting Overview Chapter 1 is an overview chapter covering accounting users, financial reporting, GAAP, accounting organizations, the conceptual framework, accounting careers, and ethics. The topics are wide ranging and very heavy on the new terminology side of things. Although it is a good chapter for introductory purposes, the concepts and organizations covered are so extensive that it will make a good chapter to come back to later, or at the end of intermediate accounting
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carries with them what is in the media, news and movies about the mental health illness. But I can say after being in the mental health facility for a second time that the reality is different and these people at some points try to be normal. They try to act like normal people. My observation is that mental illness patient needs their medications, treatment and society support. I think from what I saw during these days that mental illness patients will not make it without
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Advanced Issues in Revenue Recognition CONTENT ANALYSIS OF END-OF-CHAPTER ASSIGNMENTS NUMBER TOPIC CONTENT LO ADAPTED DIFFICULTY TIME EST. AACSB AICPA BLOOM’S Q17-1 Revenue Recognition Recognition of revenue when the earnings process is not complete 1 ! Easy 5 Analytic Measurement Comprehension Q17-2 Revenue Recognition Distinguish between
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Prior to the application of the matching principle, expenses were charged to the income statement in the accounting period in which they were paid irrespective of whether they relate to the revenue earned during that period. This resulted in non recognition of expenses incurred but not paid for during an accounting period (i.e. accrued expenses) and the charge to income statement of expenses paid in respect of future periods (i.e. prepaid expenses). Application of matching principle results in the
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principles relevant to the accounting treatment of assets. Assets (2) General Principles Methods for Measuring Value Australian School of Business Measurement at Recognition: PPE The value put on the asset when first recorded. An item of property, plant and equipment that qualifies for recognition shall be measured at its cost (AASB 116, para 15) 1. Historical Cost 2. Current or Market Value (value in exchange) 3. Value in use (present value) 4. Liquidation Value
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been used for centuries. d. The practice of accounting requires considerable professional judgment. 2. Which statement is incorrect regarding Philippine Financial Reporting Standards (PFRSs)? a. PFRSs set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. b. PFRSs are based on the Framework, which addresses the concepts underlying
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preformed Invoice, the bill the seller sends to buyer Debit memorandum, inform the seller of the amount the buyer proposes to debits to the account payable due and stated the reason. a document given to an account holder informing them that the account balance has been decreased FOB shipping point, terms indicating that the buyer must pay to get the goods delivered. Trade discount, is the amount the manufacture cut to the retailer Accounting cycle, the process that begins with analyzing and journalizing
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