[Word limit 300] Suggested solution: The fundamental qualitative characteristics identified in the New Zealand Framework are ‘relevance’ and ‘faithful representation’. Relevance is a fundamental qualitative characteristic of financial reporting. Under the IASB Conceptual Framework, information is regarded as relevant if it is considered capable of making a difference to a decision being made by users of the financial statements. There are two main aspects to relevance. For information to
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One Global GAAP: IFRS vs. US GAAP Acct 522 Current Topics in Financial Reporting Zhipeng Cao CIN: 300443421 Introduction The most influential accounting reporting criteria today is the International Financial Reporting Standards (IFRS) by and U.S Generally Accepted Accounting Principles (U.S. GAAP). These two different accounting standards have various emphases. In short, IFRS states principles and it leaves the decision-making in everyday questions for accountants, while US GAAP consists
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Interested in information which enables them to determine whether their loans and interest thereon will be paid when due. a. Suppliers/ Trade creditors b. Lenders c. Customers d. Investors *Answer: B- Lenders 3. Term which means process of reporting an asset, liability, income, or expense on the face of the financial statements of an equity. a. Auditing b. Realization c. Recognition d. Measurement *Answer: C- Recognition 3. Which one is not a general feature of financial statement?
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of products in the lumber industry. Nevertheless, occasionally such a common denominator is missing. As an alternative, several companies use the relative sales value method for allocating joint costs. The relative sales value method can also be used when one or more of the joint products cannot be sold at the split-off point (Horngren, C, Sundem, G ,Stratton, W, and Burgstahler, D. 2008). Q12-20 What are by-products and how do we account for them? A product that, like a joint product, is
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Topics: Income from continuing operations * Income from continuing operations includes the revenues, expenses, gains and losses that will probably continue in future periods. * In general, gains and losses result from changes in equity that do not result directly from operations but nonetheless are related to those activities. * INCOME TAX EXPENSE is shows as a separate expense in the income statement. * TAXABLE INCOME comprises revenues, expenses, gains, and losses
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Functional: Reporting 2) The statement of cash flows is an optional statement that can be prepared along with the income statement, balance sheet, and statement of retained earnings. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 3) The statement of cash flows shows the relationship of assets to cash flows. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 4) For reporting purposes, a
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Cap 2. Job Order Costing Cost accounting involves the procedures for measuring, recording, and reporting product cost. From the data accumulated, companies determine the total cost and the unit cost of each product. The two basic type of cost accounting system are job order cost and process cost. Under a job order cost system the company assigns cost to each job or to each batch of goods. A company uses process cost system when it manufactures a large volume of similar products. Production
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unit) $3,000 $3,600 Variable Costs: Beginning Inventory $ 0 $ 200 Variable cost of goods manufactured 700 500 Cost of goods available for sale 700 700 Deduct ending inventorya (200) (100) Variable cost of goods sold 500 600 Variable operating costs 1,000 1,200 Variable costs 1,500
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Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally accepted accounting principles (GAAP). Financial accounting focuses on reporting to external parties such as investors, government agencies, and banks. It measures and records business transactions and provides financial statements that are based on generally accepted
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Solution of the Case: a) If a company uses LIFO, the value of closing stock will be lesser than the value calculated under FIFO method and the closing stock will be lesser in LIFO due to the higher cost of sales which in turn would result in lesser gross profit. This is transferred to Profit & Loss Account/Income Statement/Statement of Financial Performance which in turn would result in lesser net profit & high tax savings as tax would be levied on lesser Net Profit. Here Golf Challenge
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