business is not about to go broke or be liquidated (i.e. where the business closes and sells all the assets for whatever price they can get). So, unless there is significant evidence to the contrary, accountants will base their valuations and their reporting of financial data on the assumption that the business will remain in existence for an indefinite period. An indefinite period means the foreseeable future or long enough for the business to meet its objectives and to fulfill its commitments. It
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accepted accounting principles (GAAP)? | | | | The generally accepted accounting principles (GAAP) are a | | collection of rules and/or standards, having authoritative support, and | | | recognized as a general guide for financial reporting | | | | | | | | | | | | | | | | | | | | | | 1. (b) What bodies provide authoritative support for GAAP? | | | | | The bodies that provide authoritative support for GAAP are the | | | | Financial Accounting Standards
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in making informed business decisions. Sound economic management and prudent use of available resources is directly an offshoot of good understanding of fundamental accounting principles and appropriate entry of business transactions in accordance with established professional ethics. In today’s dynamic world and increasingly competitive environment, accurate reporting and sound accounting practices, as recommended by GAAP are critical to sustainable growth, increased investors’ confidence and break-through
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products. It is a publicly traded company with a reputation as a good corporate citizen. Although GPC has been audited many times in the past by external CPA firms, this is the first year your firm has conducted the audit. GPC’s total revenue for 2011 is $80 million. In examining the revenue for the year, you notice that $3 million of the revenue does not come from GPC’s primary operations (i.e., revenue from sales of paper goods). This $3 million in revenue is labeled as timber revenue in GPC’s
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Depreciation expense in current method uses average rate and in temporal method, historical rate is used. Sales revenue uses average rate in either method. 2. C In translating the financial statements of a foreign subsidiary into the parent’s reporting currency under the current rate method, the translation adjustment is a function of the foreign subsidiary’s net asset. 3. C Because functional currency is local currency, therefore, we should us current rate. And we will have to report translation
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In today's society, the retail industry is one of the fastest growing industries. It is considered as a vital part of our economy. The purpose of this industry is to provide goods and merchandise to the consumers. Retail industries receive their products directly from the manufacturer or a wholesaler. Grocery stores are considered as a part of the retail industry. They sell a variety of food and non-food products, such as meat, produce, cereal, dairy products, health and beauty aids and cleaning
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Introducing … Accounting Accounting Financial Accounting Accounting Analysis Generating Financial information Using the Financial information Recording, Classifying & Summarising Used for Reporting Analyze, Interpret & Communicate Provides Information for Planning & Control Audience: Internal (Managers, Employees & Owners) and External (Investors, Government Bodies, Society, Customers, etc) ( , , y, , ) FAM 3e @RamKakani 2 Financial Accounting –
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Generally Accepted Accounting Principles GAAP Securities and Exchange Commission SEC Financial Accounting Standards Board FASC Issue Statements of Financial Accounting Standards SFASs 10-K, annually filed with SEC Quality of Financial Reporting Many opportunities for management to affect quality Timing of revenue and expense recognition Discretionary items Balance Sheet Summaries what firm owns and what firm owes to outsiders and to internal owners Shows financial condition
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office into a division. You will be reporting to Maureen Pistana, the Chief Financial Officer of Greenwood industries. On your first day, Maureen called you into her office and informed you that you have to prepare a report for her. You are required to head down to Birchtree to speak to Michael Fowler, the manager of the division to discuss some planning issues. You are then to head to Pinetree, where Gordon Stapleton is having some issues with reporting requirements and finally to Oaktree
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NINJA CPA REVIEW® NINJA Notes 2015 Financial Accounting & Reporting Table of Contents The N.I.N.J.A. Framework I. IFRS 8 II. Accounting Changes 19 III. Financial Reporting 20 IV. Bonds & Debt Restructure 38 V. Consolidations 47 VI. Deferred Taxes 50 VII. Derivatives, Hedging, & Translation 52 VIII. Fixed Assets 56 IX. Governmental Accounting 62 X. Personal Financial Statements, Segments, & Interim Reporting 73 XI. Partnership Accounting 76 XII. Inventory 79 XIII. Investments
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