Introduction Going concern Accruals Consistency Prudence Objectivity Duality Entity Cost Monetary Measurement Materiality Realisation Stable money Conclusions Accounting Concepts and Conventions Introduction Accounting concepts and conventions as used in accountancy are the rules and guidelines by that the accountant lives. All formal accounting statements should be created, preserved and presented according to the concepts and conventions that follow. In the United Kingdom
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Multiple Choice Questions 1. In 2005, ____________ was the most significant real asset of U. S. nonfinancial businesses in terms of total value. A) equipment and software B) inventory C) real estate D) trade credit E) marketable securities Answer: C Difficulty: Easy Rationale: See Table 1.4. 2. In 2005, ____________ was the least significant real asset of U. S. nonfinancial businesses in terms of total value. A) equipment and software B) inventory
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understandable, relevant, reliable, and comparable. These statements are used by users not only to look at the current situation, but also to predict the company’s ability to continue as a going concern or functioning as a business entity in the future. The balance sheet and the valuations for assets and liabilities are a reflection of the company’s financial position for the next 12 months. If there are uncertainties or contingencies that occur they must be disclosed in the footnotes section of the statement
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True False Score: 1 of 1 ________________________________________ 3. Interest expense would be classified under operating activities. True False Score: 0 of 1 ________________________________________ 4. The balance sheet reports assets and claims to those assets at a specific point in time. True False Score: 1 of 1 ________________________________________ 5. The notes to the financial statements are not required. True False
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Memo To: Howard Grey CC: Jean Dubois BC: Division Date: September 6, 2011 Re: Comprehensive Research Simulation The purpose of this memo is to inform the comprehensive sales research report for mechanical watches division was completed and ready to move forward. Results from the study determined the cause of lagging watch sales. Market research measured response to advertising and perception in regard to chronometers, mechanical watch industry data
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recognize all grants as revenue and expenditures. State governments must report their food stamp distributions as revenue and expenditures in the general or a special revenue fund. State governments should report food stamp balances held by them or by their agents at the balance sheet date as an asset offset by deferred revenue On-behalf payments for benefits and salaries are considered direct payments made by one entity to a third-party recipient on behalf of another, legally separate, employer. Employer
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I. Introduction 2 II. Definition 3 A. Difference between translation and conversion 3 B. Role of FASB No. 52 4 1. Determine the functional currency: 4 2. Determine whether the functional currency of the subsidiary is also its home currency. 4 a) If the functional currency is the home currency, 4 b) If the functional currency of the subsidiary is not its home currency, 5 III. Reasons for Translation 5 A. Recording direct business transactions 5 B. Reporting operations conducted
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Organization Function with Forest City Residential Misty Becker November 25, 2005 MGT/330 Forest City Residential Group is proud to own, develop, and operate Military Housing under the Department of Defense’s Military Housing Privatization Initiative. This Department of Defense initiative was enacted in 1996 to provide a solution to an aging inventory of military family housing and the need to build and renovate homes as efficiently and quickly as possible. The privatization enables the department
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utilized. Other things would remain the same, which could lead to a reduction in expenses and an increase in firm value. Also, he would continue to use the same type of accounts receivable control system [(n30 (or n60) with interest on the unpaid balance at 1.5 percent monthly (18 percent annually) after the initial 30 days have elapsed. Such terms let the borrower have the “free” use of credit for 30 days (60 days if the terms are n60)] because the lenders
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CHAPTER 1 QUESTIONS 1. The function of cost accounting is to provide the cost accounting information that is the basis for planning and controlling current and future operations. It provides the cost figures and analyses that management needs in order to find the most efficient methods of operating, achieving control of costs, and determining selling prices. 2. Originally issued for companies marketing products in Europe, a set of international standards for quality management
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