CHAPTER 1
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Financial reports. F 6. Fair value information. F 7. Objectives of financial reporting. F 8. Accrual accounting. T 9. Generally accepted accounting principles. T 10. Users of financial statements. F 11. Committee on Accounting Procedure. F 12. Passage of FASB standards. T 13. Financial Accounting Concepts. T 14. Creation of Accounting Principles Board. F 15. Definition of financial accounting. T 16. Code of
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3. Describe some of the challenges facing accounting.
4. Identify the objectives of financial reporting.
5. Explain the need for accounting standards.
6. Identify the major policy-setting bodies and their role in the standard-setting process.
7. Explain the meaning of generally accepted accounting principles (GAAP) and the role of the codification for GAAP.
8. Describe the impact of user groups on the rule-making process.
9. Understand issues related to ethics and financial accounting.
SUMMARY OF LEARNING OBJECTIVES BY QUESTIONS
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1. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of uncollectible accounts expense reported on the income statement?
* This results in an addition to accounting income to arrive @ taxable income in the current year, because the expense is not yet deductible.
|Q| In the surgical care unit, the nurse is attending the needs of the client who has Kock pouch for urinary diversion. Which one of the following nursing interventions is most effective in decreasing the likelihood of urinary tract infection of the client?
|M |2/07 | |Read Ch. 3, Analysis of Cost, Volume, and Pricing to Increase Profitability, pp. 106-125. (Skip the material on Multiple-Product |
3. What was the balance of Walmart’s allowance for doubtful accounts (ADA) as of January 31, 2012?
Homework These problems are not in My Accounting Lab. They can be found in the Textbook Material beginning on page 379. Complete homework using Excel or PDF Working papers (below). Check your work against the homework solutions (below). Turn in your printed homework in class. Practice Problems: Quick Check #1-10 Assigned Problems: E7-13, 19, 20, P7-26A, P7-28A (14 points) Extra Credit: P7-29A (2 points)
In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.” (FASB.org, 2009a). The FASB is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and important role in protecting the financial well being and the overall stability of our
The documents that comprise GAAP vary in format, completeness, and structure. As a result, financial statement preparers sometimes are not sure whether they have the right GAAP; determining what is authoritative and what is not becomes difficult. In response to these concerns, the FASB developed the Financial Accounting Standards Board Accounting Standards Codification. The FASB’s primary goal in developing the Codification is to provide in one place all the authoritative literature related to a particular topic. Professional accountants pay for access to the FASB. The OU Accounting Department has paid for academic access to the FASB Codification. Our Login information is:
ACC/561 Final Examination Study GuideThis study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
5. Paid $250 to have company name and advertising slogan painted on new delivery truck.
Accounting is a system of recording analysing and communicating financial information to permit informed judgement and a decision by the users of a financial statement. Accounting is important to City of Westminster College because it can help provide the college with the information they may need in the future. will help the college know what going in and out the college and ensure that they are not falling behind with their expenditure. In accounting, there are many factors that need to be considered, such as controlling and complying with the law,that will help the business build profit and expand. The following purposes will show why accounting in business is important.
The purpose of this paper is to describe what accounting convergence means and assess the likelihood of the convergence being completed and implemented in the next five (5) years. IFRS is the principle based set of standards that establish standards and dictate specific treatments. IFRS has become a global standard for companies when preparing financial statements. IFRS consist of multiple reports stated on the Wikipedia website. The two reports that will be discussed in the paper are IFRS and GAAP. GAAP is an Accounting Standard that provides guidance for financial
3. Assume that cost of goods sold for a company consists only of variable costs and gross margin is = (revenue – cost of goods sold)/revenue. Which of the following is true
ABCO Corporation has a parts division in country A. Its assembly division is in country B, which has a higher tax rate than country A. To minimize the corporation's overall income tax, how should ABCO set its transfer prices between its parts and assembly divisions?