CHAPTER 07 REVIEW 1. One of the most difficult issues facing accountants concerns the recognition of revenue by a business organization. Although general rules and guidelines exist, the significant variety of marketing methods for products and services make it difficult to apply the rules consistently in all situations. Chapter 7 is devoted to a discussion and illustration of revenue transactions that result from the sale of products and the rendering of services. Throughout the discussion
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Explanation of the components of Profit and Loss and Balance Sheet Profit and Loss A profit and loss allows a business to work out whether they have made a profit or loss after taking away all the expenses from their sales revenue. Purpose and Use: The purpose of a profit and loss account if correct is to be able to show how much profit or loss a business has/ will make. It includes the sales, costs and profit over a set amount of time normally yearly. Its use is that it could help measure
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Provisions – Define Contingent Assets & Liabilities and apply relevant measurement and recognition rules – Apply IAS 37 Disclosure Requirements CURRENT LIABILITIES LIABILITY – Claims against the business arising out of a past transaction that will cause an outflow of resources e.g. loans, notes payable • Long-Term Liability - Obligations that a company does not reasonably expect to liquidate within the normal operating cycle Current Liability - Obligations that a company reasonably expects to
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IFRS Section 1 As a result to the 1988 policy statement that the Securities and Exchange Commission (SEC) issued, regarding the establishment of a common international accounting standards, there has been a growing acceptance of International Financial Reporting Standards (IFRS) for a basis of U.S. financial reporting. The number of countries adapting to this convergence has increased since its first suggestion. Within the United States, the SEC is taking its first steps as to whether or not
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presents Humanoid Robots, one of the applications of electronics engineering. Humanoid Robots are basically the robots with their overall appearance similar to that of a normal human body, which allows it to interact with the tools made for human or its environment. In general humanoid robots have a structure same as that of a normal human body consisting of one face, two hands, two legs, etc. Index Terms- Humanoid Robots, Robotic Components, Robotics, Types of Humanoid robots. I. INTRODUCTION
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Board) 2. The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except (Points: 4) eliminate inconsistencies in conceptual guidance on revenues replace principle-based accounting with rule-based accounting for revenues establish a single comprehensive standard on revenue recognition fill voids in revenue recognition guidance 3. Certain U.S. accounting standards have been, and will be, amended to aid in the international
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21. Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these 22. The balance sheet is useful for analyzing all of the following except a. liquidity. b. solvency. c. profitability. d. financial flexibility. 23. Balance sheet information is useful for all of the following except
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1. IAS 16 PROPERTY PLANT AND EQUIPMENT This standard regulates the measurement, recognition, derecognition and disclosure requirements of non-current assets and its related expenditure or income in the financial statements. It also defines the scope of it by stating clearly all assets falling within it. 1.1. Definition Property, plant and equipment refer to all tangible non-current assets used in the production or supply of goods and services, for administrative purpose or for rental to others
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* Lease payment typically covers both interest and principal payments (just like a mortgage) * Balance sheet * Recognise an asset item (for pre-payments) or liability item (accrual for lease) due to the timing differences between cash payments and lease expense. Accounting in Operating Leases as Lessor * Continue to hold the asset in its books and depreciate as per normal. * Recognise the rental as income, accrual item on the income statement. * Differences in timing
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earnings by manipulating the recognition of revenue. Among the most common methods of doing this are the bill-and-hold transaction and a long list of sham transaction involving shipping, billing and/or related-party involvements. Both the SEC and the AICPA seek to increase independent auditors' awareness of problems associated with these practices. Full Text: | Copyright American Institute of Certified Public Accountants Oct 1999 | [Headnote] Where there's revenue-recognition deviation, there could
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