Q9 a.Financial accounting always discusses the events andtransactions in terms of money where as cost & managementaccounting discusses the aspects in terms of profits and losses andconcern is related to reporting to management. Thus it can beassumed that these accounting are integral part of any company orbusiness. But if discuss about various other type of organizationssuch as any NGO like Teach for India, Smile foundation, NGODarpan, it is a difficult task to use cost and managementaccounting for their non-financial measures. Could you suggestsome ways by which these organizations can utilize all branchesof accounting for their decision making process. Q9 b (ii) Do you ever wonder why these Breakeven Charts arenecessary to prepare only for manufacturing businesses not fortrading or service business? Give Real life examples for each typeof business mentioned here to justify your answer.

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Q9 a.Financial accounting always discusses the events and transactions in terms of money where as cost & management accounting discusses the aspects in terms of profits and losses and concern is related to reporting to management. Thus it can be assumed that these accounting are integral part of any company or business. But if discuss about various other type of organizations such as any NGO like Teach for India, Smile foundation, NGO

Q9 a.Financial accounting always discusses the events and transactions in terms of money where as cost & management accounting discusses the aspects in terms of profits and losses and concern is related to reporting to management. Thus it can be assumed that these accounting are integral part of any company or business. But if discuss about various other type of organizations such as any NGO like Teach for India, Smile foundation, NGO

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by...

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Financial accounting always discusses the events and transactions in terms of money where as cost & management accounting discusses the aspects in terms of profits and losses and concern is related to reporting to management. Thus it can be assumed that these accounting are integral part of any company or business. But if discuss about various other type of organizations such as any NGO like Teach for India, Smile foundation, NGO Darpan, it is a difficult task to use cost and management accounting for their non-financial measures. Could you suggest some ways by which these organizations can utilize all branches of accounting for their decision making process.
True (T) or False (F): T F1. Management accounting provides economicand financial information for external userssuch as shareholders, creditors and banks. 2. Financial accounting provides information formanagers and other internal users. 3. Financial accounting reports past results.  4. Management accounting is future oriented.  5. Management accounting is required to followgenerally accepted accounting principles. 6. Financial accounting examines monetary andnon-monetary events. 7. Cost accounting is used as a means of fixinga selling price. 8. Cost accounting looks at the company as awhole and not at the various units, jobs orprocesses. 9. Financial accounting is concerned with howand why profits arise. 10. Cost accounting depends entirely on historical
B. Respond to the following statements and questions in thediscussion forum. Try to do this without looking back at the text.True (T) or False (F): T F1. Management accounting provides economicand financial information for external userssuch as shareholders, creditors and banks. 2. Financial accounting provides information formanagers and other internal users. 3. Financial accounting reports past results.  4. Management accounting is future oriented.  5. Management accounting is required to followgenerally accepted accounting principles. 6. Financial accounting examines monetary andnon-monetary events. 7. Cost accounting is used as a means of fixinga selling price. 8. Cost accounting looks at the company as awhole and not at the various units, jobs orprocesses. 9. Financial accounting is concerned with howand why profits arise. 10. Cost accounting depends entirely on historicalinformation 
PLEASE ANSWER ALL 13. Which of the following is a true statement?a. Neither financial nor management accounting are mandatory.b. Both financial and management accounting emphasize relevance and flexibility.c. Both financial and management accounting place more emphasize on past.d. Both financial and management accounting are based upon the concept of stewardship. 14. Financial accounting is concerned with:a. The company as a whole rather than with segments of a company.b. The needs of stockholders and creditors.c. Meeting the requirements of internal users only.d. Recording the financial history of an organization. 15. The basic difference between management accounting and financial accounting is that:a. Financial accounting is a division of accounting that is Concerned with providing information to stockholders whereas management accounting is concerned with providing information to managers for their use in directing the activities of the organization.b. Financial accounting relies…
Undeniably, profitability is the ultimate goal of companies and readers of a company’s financialstatements are very much interested in the reported profit figure. The profit figure is achieved by thepreparation of the statement of profit or loss and the statement of financial position. If the foregoing is the4case, why then bother about the statement of cash flows?(5 marks)B. Globally, accounting standards are developed based on different methods. It is generally agreed that thenature of accounting standards depends on the systems of regulation. It has been argued that there are twomain systems of regulation.Required:Identify and explain the difference between the two systems of regulation, stating clearly which systemyou believe describes the International Financial Reporting Standards (IFRS)(5 marks)C. On 1st January 2018, Global Drilling Ltd entered into a GHS22million contract for the construction of anoffice complex at Tema. The building was completed at the end of December 2018.…
Which statement is most accurate? Accounting and finance are not related. Financial managers keep the books for a firm. Financial managers need to understand accounting. Nonprofit organizations need accounting but not finance.
115-Assume that you are a consultant in a private accounting firm that provide consultancy to the companies by charging fee. There is seminar where you are given the task to explain the main purpose of the conceptual framework related to financial statements only. So, which of the following points you will choose to present? a. It helps in international accounting standard board in overall development b. It helps in setting national standards in developing countries c. It helps auditor about making any opinion about various statements d. All of the options
A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.Required:1. What are the two primary qualitative characteristics of accounting information?2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.
Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or months
Why Does It Matter? ECOTOUR EXPEDITIONS, INC., Jamestown, Rhode Island You probably have never imagined the possibility of being an accountant who could have a direct impact on improving global ecosystems. Accountants who work for Ecotour Expeditions, Inc., an ecotourism company, might manage accounting details for guest air travel and accommodations, tour guide compensation, expedition revenue, and a variety of expenses. What type of accounting transactions would Ecotour Expeditions have? List 3 to 4 transactions and then record the journal entry for each transaction. Example: Purchase safari jeep with cash, 42,500. Safari Jeep42,500 Cash42,500
PROBLEM Below is a list of the qualitative characteristics identified in FASB Statement of Financial Accounting Concepts No. 2. Following the list is a series of descriptive phrases. a. feedback value b. relevance c. decision usefulness d. reliability e. comparability f. predictive value g. varifiability h. consistency i. representational faithfulness j. timeliness k. neutrality _____ 1. When information can make a difference in a decision. _____ 2. Making information available when it is needed. _____ 3. When accounting policies and procedures are unchanged from period ro period. _____ 4. When information is verifiable and neutral. _____ 5. Occurs when the measurement results can be duplicated. _____ 6. The overall qualitative characteristics accounting information should possess. _____ 7. When information enables decision makers to confirm prior expectations. _____ 8. When accounting information is reported the same way by different companies. Required: Match each characteristic…
Direction: Identify what describes the following statement. Write your answer on the blank before the number. ____________________1. It pertains to the state of one’s personal monetary affairs. ____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3. It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4. It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6. It presents the financial statement amounts as a percentage of a base number. ____________________7. It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8. These users of financial information are…