Chapter 01 Environment and Theoretical Structure of Financial Accounting True / False Questions 1. | The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises. True False | 2. | Accrual accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow. True False | 3. | The FASB is currently the public-sector organization
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a Manufacturer. Merrimack had no presence outside the USA market. Even with high transportation cost of importing finished goods, Merrimack was cost competitive, due to low cost manufacturing in China. However, by 2007-2008 this cost competitiveness had eroded due to increased labour costs in China, the strengthening of the Chinese currency and increases oil price leading to higher transportation cost. In contrast, the competitors with manufacturing facilities in USA were not affected much by these
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CHAPTER 4 Income Statement and Related Information ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | |Concepts for Analysis| |Topics |Questions | |Exercises |Problems | | | 1. |Income measurement concepts. |1, 2, 3, 4, 5, 6, 7,| |
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Lecture 3 (Cost flows and cost terminology) In this module, we will discuss how firms accumulate costs for financial reporting purposes. We will examine the process of cost accumulation in three types of organizations: service, merchandising, and manufacturing. We will scrutinize the similarities and differences in the flow of costs in these organizations, focusing particularly on how they accumulate costs for valuing inventory and reporting income. Because cost allocations play an integral
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not affect the totals. * An error of commission is when the entries are made at the correct amount, and the appropriate side (debit or credit), but one or more entries are made to the wrong account of the correct type.[1] For example, if fuel costs are incorrectly debited to the postage account
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noncash asset or provide service at some future time Measurement of financial liability Initial: fair value plus directly attributable transaction costs Fair value: present value of future cash payment Present value: discounted amount of future cash outflow using market rate Conceptually, measure at present value Subsequent: amortized cost Measurement of current liabilities: face amount Measurement of noncurrent liabilities Interest-bearing: face amount (already the present value) Noninterest-bearing:
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| Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on an enterprise. Students will learn to examine financial information from the perspective of management. Other topics include decision making, planning, and controlling from the perspective of a practicing
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to treat an extensive advertising campaign cost for reporting purposes in Target Inc. The Controller (CFO), Steve Smith is holds that it should be reported as an expense for the current period, basing his argument on the conservative principle of accounting which had been in place in the company. However, the Vice President and the CEO disagree with him and insists that the expense be reported as part of manufacturing overhead cost until the goods are sold, then can it be recorded as an expense. If
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| Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on an enterprise. Students will learn to examine financial information from the perspective of management. Other topics include decision making, planning, and controlling from the perspective of a practicing
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127 par.4 defines the consolidated financial statement as the assets, liabilities, equity, income, expenses and cash flows in the financial statement are presented as those of a single economic entity. 2.1 Factors to determine consolidation-reporting entity Firstly, the concept of ‘Control’ is the key characteristic to determine the entity, which needs to be consolidated. AASB 127 states that control is ‘the power to govern the financial and operating
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