FROM FINACC, VALIX Definition/ Essential characteristics 1. Present obligation of a particular entity Entity liable (Payor) must be identified Payee does not have to be identified 2. Arises from past transaction or event Not recognized until incurred 3. Settlement expected to result in outflow of resources embodying economic benefits. Obligation must be to pay cash, transfer noncash asset or provide service at some future time Measurement of financial liability Initial: fair value
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John M. Olin School of Business ACCOUNTING 3610 - FALL 2008 INTERMEDIATE FINANCIAL ACCOUNTING THEORY I EXAM # 1 (100 Points) There are a total of 100 points on this exam. There are five problems, and the total amount of points allocated to each problem is as follows: Points Earned Problem 1 – 20 Points _______ Problem 2 – 30 Points _______ Problem 3 – 25 Points _______
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Danielle A. Smalls ACC 747 Advanced Topics in Auditing July 21, 2015 Case 1.1 Waste Management Case 1.1 Waste Management: The Expense Recognition Principle 1. The expense recognition principle also known as the “matching” principle is when expenses should be recognized in the same period as the revenues to which they relate. This principle is important to users of financial statements because if this principle is not followed stakeholders of a company can be deluded to thinking
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are made to ensure that the company's financial records adhere to the revenue recognition and matching principles. Adjusting entries are necessary because a single transaction may affect revenues or expenses in more than one accounting period and also because all transactions have not necessarily been documented during the period. Each adjusting entry usually affects one income statement account such as a revenue or expense account and one balance sheet account. For example if a company has a $1
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CHAPTER 3 The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. Transaction identification. Nominal accounts. Trial balance. Adjusting entries. Questions 1, 2, 3, 5, 6, 7, 8 4, 7 6, 10 8, 11, 13, 14 3, 4, 5, 6, 7, 8, 9, 10 2, 3, 4 5, 6, 7, 8, 9, 10, 20 11, 12, 15, 22, 23 12 9 11 13, 14, 16 14, 15 1, 2, 6, 12 15, 16, 17 18 19 12 13 18, 19 20 21, 22, 23 12 11 1, 2, 7, 8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6 1, 4, 9, 10, 12 Brief Exercises 1, 2 Exercises
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Basic Accounting Concepts and Business Structures Chris Walters ACC 537 May 9, 2011 James T Neuner Basic Accounting Concepts and Business Structures Sources of GAAP and Hierarchy The main sources of GAAP fall into four main categories; A, B, C, and D, with category A as the most authoritative, then B, C, and the least authoritative being D. Category A includes FASB Standards, Interpretations, and Staff Positions, APB Opinions, and AICPA Accounting Research Bulletin Category B contains
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recognize revenue at the point of sale based upon the time of shipment because the books are sold f.o.b. shipping point. Because of the return policy one might argue in favor of the cash collection basis. Because the returns can be estimated, one could argue for shipping point less estimated returns. (b) Based on the available information and lack of any information indicating that any of the criteria in FASB Statement No. 48 were not met, the correct treatment is to report revenue at the time
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The balance sheet shows the financial position of an organisation at a given point in time. The balance sheet consists of assets, liabilities and equity. An asset is something that is controlled by the organisation that will generate future economic benefits. A liability is an obligation to transfer economic benefits always from the business to third parties other than the owners of the business such as suppliers or for loans. Equity is the relationship between the shareholders, who are the owners
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the loan from Sloane’s wife and the bank. • They have to show the cost of the product and not just the time spent on it because their pricing is not the time-based pricing. • Low interest loan from Sloane’s wife means that low interest expense compare the higher loan interest that they normally
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VILLANOVA UNIVERSITY School of Business VSB2010-4 Accounting Exam (Chapters 1-4) NAME______________________ Row ____ As a community committed to the Augustinian ideals of truth, unity and love, Villanova University prides itself on maintaining the highest standards of academic integrity and does not tolerate any forms of academic dishonesty or misconduct. Accordingly, each student who takes an examination is expected to sign the following statement: I _______________________(sign your
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