Asset Valuation Introduction The intent of this paper is to describe to the CEO Team B’s recommendation for reporting and valuing assets. Included in this paper is a synopsis of the company’s business plan and the related inventory control and capitalization policy. The authors’ of this paper will also justify why each policy was chosen and evaluate how the policies assists our business to meet its goals. Finally, alternative methods will be discussed with regard to why they were not chosen
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than expenses for the period, it will have a net income (loss). * The Statement of Cash Flows: * Is necessary since companies tend to use the accrual accounting method (recognizing events regardless of when cash transactions occur), making the reporting of cash inflows and outflows for the period crucial, * Lists all of the cash that went in to the company and that came out of the company, * Is divided into 3 sections: operating activities (money taken in and paid out from regular business
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AICPA BB: Resource Management AICPA FN: Measurement LO: 1 Level: Easy 4. The cost of the cushions that are used to manufacture sofas is best described as a: A) manufacturing overhead cost. B) period cost. C) variable cost. D) conversion cost. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,2,5 Level: Medium 5. A security guard's wages at a factory would
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FN-Measurement | IMA: Performance Measurement | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Knowledge NOT: 1 min. 2. Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 8-1 NAT: BUSPROG: Analytic STA: AICPA: FN-Measurement | IMA: Cost Management | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Knowledge NOT: 1 min. 3. Inventory under absorption costing includes
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UNIT 1 ACCOUNTING AND ITS FUNCTIONS Objectives After studying this unit, you should be able to appreciate the: • • • nature and role of accounting; activities of an accountant; and roles of accounting personnel and the accounting function in an organization. Accounting and its Functions Structure 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Introduction Scope of Accounting Emerging Role of Accounting Accounting as an Information System Role and Activities of an Accountant Accounting
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Chapter 3 ANSWERS TO QUESTIONS Q31 A primary objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. An accounting system is the means by which a company records and stores the financial and managerial information from its transactions so that it can retrieve and report the information in an accounting statement. A doubleentry system standardizes the method
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management accounting. When you complete your study of material in this chapter, you should be able to: • . Take a factual situation and calculate a product's indirect cost. • . Discuss the shortcomings of the traditional approach and how products may be miscosted using such an approach. • . Take a factual situation and trace the flow of costs for a product using T-accounts; also, take the same situation and make the necessary journal entries. • . Given a data set, calculate a manufacturing firm's predetermined
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the FASB Accounting Standards Codification for clarification for the reporting and presentation of the various income statement items you requested. There will need to be some changes to the income statement format. I will address each of the items separately. Net sales When Lads and lassies introduced Sassy Spa last year in 2005, they were able to consolidate the net sales in with Lads and Lassies clothing line for reporting purposes due to their percentage of sales being less than 10% of the total
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Lecture 2 (1)Costs Terms, Concepts and Classifications (2) Cost Behavior – Analysis and Use Costs Terms, Concepts and Classifications Manufacturing Costs Direct Materials Direct Labor Manufacturing Overhead The Product Direct Materials Raw materials that become an integral part of the product and that can be conveniently traced directly to it. Example: A radio installed in an automobile Direct Labor Those labor costs that can be easily traced to individual units of product
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Limited liability * Geographically diverse stockholder group * Stockholders have no direct control over day-to-day operations * Investors need timely financial information to make decisions Financial Reporting * Regulated by the Securities and Exchange Commission (SEC) * SEC does not make the actual rules but has final say * Rules developed by the Financial Accounting Standards Board (FASB) * Identifies areas that need to be
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