...I. Define: Historical cost principle – GAAP mandates that companies will record assets and liabilities at the acquisitions price. Unlike other methods this is the only method that is very verifiable. Going concern assumption- The assumption that a business has a long life span, it is important assumption as it crucial for both investors and lenders to review the company’s long-term assets and long-term liabilities. It is also very important from the depreciation aspects of assets and liabilities. Matching principle- Revenues and expenses are reported at the same accounting period. Monetary unit- Money is the best and most use denominator of economic activity, it is easy to understand and relevant to most if not all professionals and investors. Revenue recognition principle- this principle deals with the time period for the revenue recording, under the accrual basis of accounting revenue should be recorded whenever the organization completed the task needed for generating the revenue, under the cash basis revenue recognition accrues whenever payment received. Full disclosure principle- The full disclosure principle is the principle that suggests that companies must provide sufficient financial information to influence the judgment and decision of the end user. Financial information is available in the notes of the financial statements as well to the financial reports. Reliability characteristic- Financial reports and information must be in a form of verifiable...
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...Review of Accounting Ethics Ethics is a very important aspect of accounting and should be taken very seriously as accountant. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. The opinions of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company. Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor's reporting. “As part of the largest financial fraud in U.S. history involving mega thief Bernard Madoff, a New York auditor, David Friehling is facing jail time for deceiving investors by signing off on fraudulent financial statements. Mr. Friehling, 49 years old, worked for Mr. Madoff from 1991 to 2008, running his storefront operation out of an ordinary office in New City, a suburb of New York City, N.Y. Mr. Friehling is to convicted of charges including aiding and abetting investment adviser fraud, securities fraud and four counts filing false audit reports to the United States Securities and Exchange Commission. It was also found by the United States Securities and Exchange Commission that Friehling and his family had $14 million invested in the Mr. Madoff‘s...
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...Chapter 1: CA1-3 1. GAAP stands for: (d) generally accepted accounting principles 2. Accounting standard-setters use the following process in establishing accounting standards: (d) Research, discussion paper, exposure draft, standard. 3. GAAP is comprised of: (d) any accounting guidance included in the FASB Codification. 4. The authoritative status of the conceptual framework is as follows. (a) It is used when there is no standard or interpretation related to the reporting issues under consideration. 5. The objective of financial reporting places must emphasis on: (a) reporting to capital providers. 6. General-purpose financial statements are prepared primarily for: (b) external users. 7. Economic consequences of accounting standard-setting means: (d) accounting standards can have detrimental impacts on the wealth levels of the providers of financial information. 8. The expectations gap is: (b) what the public think accountants should do and what accountants think they can do. Chapter 2: E2-5 (a) Arises from peripheral or incidental transactions. Gains and Losses (b) Obligation to transfer resources arising from a past transaction. Liability (c) Increases ownership interest. Investments by owner, comprehensive, revenues, and gains (d) Declares and pays cash dividends to owners. Distribution to owner (e) Increases in net assets in a period from nonowner sources. Comprehensive income, revenue, gains (f) Items...
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...Untitled Document Page 1 of 12 Syllabus Course Syllabus Brent Tabor brentmtabor@bellsouth.net Office: League City, TX Office Hours: Mondays and Tuesdays at 8:00 PM Central Phone: 409-692-3081 Hello students. Welcome to Intermediate Accounting II. My name is Brent M. Tabor and I am excited to be your instructor for the class. A little about myself…..I was born in south Louisiana and currently reside in League City, TX. My wife and I have three children, which keep us extremely busy. My daughter is 9 and my twin boys are 8. I am currently a Corporate Controller in the Houston, TX area. I am also a Certified Public Accountant in Louisiana, have an MBA from Nicholls State University, and a Masters in Taxation from the University of Tulsa. I am currently a DBA student in Business Administration at Northcentral University. I have recently attained ABD (All But Dissertation) status. In my spare time, I like to grill outdoors, throw horseshoes, play Fantasy Football (Go Saints!), and listen to a wide variety of music—my favorites being vocal jazz and 90s alternative. I have been teaching here at Devry for over five years. I also have extensive course writing and development experience in the business and management field. I look forward to working with each of you for the next eight weeks. http://syllabus.next.ecollege.com/CurrentCourse/__System/__mainSyl.html&S=9373bb7ca... 3/11/2015 Untitled Document Page 2 of 12 Please feel free to e-mail...
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...1. | Question : | (TCO A) The Financial Accounting Standards Board employs a "due process" system, which | | | Student Answer: | | has all CPAs in the United States vote on a new statement. | | | | enables interested parties to express their views on issues under consideration. | | | | identifies the accounting issues that are the most important. | | | | requires that all accountants receive a copy of financial standards. | | Instructor Explanation: | General Feedback: Chapter 1 | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 2. | Question : | (TCO A) Under Sarbanes Oxley, the new law does not | | | Student Answer: | | require a national CPA license for all CPAs. | | | | establish an oversight board, called the Public Company Accounting Oversight Board, for accounting practices. | | | | require a company to maintain a system of internal controls. | | | | require codes of ethics for senior financial officers. | | Instructor Explanation: | General Feedback: Chapter 1 | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 3. | Question : | (TCO A) Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information? | | | Student Answer: | | Consistency | | | | Verifiability | | | | Timeliness | | | | Comparability | |...
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...10-1 (Acquisition Costs of Realty) Item Land Land Improvements Buildings Other Accounts (a) $(275,000) Accounts Payable (b) $275,000 (c) $8,000 (d) $7,000 (e) $6,000 (f) $(1,000) (g) $22,000 (h) $250,000 (i) $9,000 (j) $4,000 (k) $11,000 (l) $(5,000) (m) $13,000 (n) $19,000 (o) $14,000 (p) $3,000 E E 10-3 (Acquisition Costs of Trucks). 1. Truck # 1………………………………$13,900 Cash……………………………………………$13,900 2. Truck # 2………………………………$14,727.27 Discount on Notes Payable……………$1,272.73 Cash…………………………………………..$2,000 Notes Payable…………………………………$14,000 Truck # 2 = 2,000 + 12,727.27 = 14,727.27 N=1 I/Y=10% PMT=0 FV=14,000 PV=-12,727.2727 Discount on Notes Payable = 16,000 – 14,727.27 = 1,272.73 3. Truck # 3………………………….. $15,200 Cost...
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...Company Name Balance Sheet As of DEC 31, 2012 Assets Current Assets Cash 42,485 Trading Securities FMV 28,250 Acct Receivable 165,824 Allowance for Doubtful Accounts (1,850) Net Realizable Value 163,974 Merchandise Inventory 499,493 Notes Receivable 23,000 Prepaid Expenses 16,252 Total Current Assets 773,454 Long Term Investments Investments in Warren Co. 87,500 Total Long Term Investment 87,500 Property, Plant and Equipment Land 125,000 Building 975,800 Accumulated Depreciation 341,200 Book Value 634,600 Total Property, Plant and Equipment 759,600 Intangible Assets Copyrights 105,000 Goodwill 100,000 Patents 125,000 Trademarks 80,000 Total Intangible Assets 410,000 Other Assets Deposits with Vendors 50,000 Total in Other Assets 50,000 Total Assets 2,080,554 Liabilities and Stockholders’ Equity Liabilities Current Liabilities Accounts Payable 197,532 Notes Payable to Banks 50,000 Salaries Payable 52,000 Income Tax Payable 62,520 Accrued Liabilities 9,500 Accrued Interest on Notes Payable 500 Rent Payable...
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...Balance Sheet December, 31 20XX Assets Current Assets Cash $42,485 Securities Available for Sale at fair market value $28,250 Accounts Receivable $165,824 Allowance for Doubtful Accounts $1,850 $163,974 Notes Receivable (due next year) $23,000 Inventories $499,493 Prepaid Expenses $16,252 Total Current Assets $773,454 Investments Investments in Warren Co $87,500 Fixed Assets Land at Cost $125,000 Building at Cost $975,800 Less Accumulated Depreciation $341,200 Total Fixed Assets $759,600 Intangible Assets Copyrights $105,000 Good Will $100,000 Patents $125,000 Trademarks $80,000 Total Intangible Assets $410,000 Other Assets Deposits with Vendors – based on long term purchase contracts $50,000 Total Assets $2,080,554 Liabilities & Stockholders’ equity Current Liabilities Notes Payable to banks $50,000 Accounts Payable $197,532 Accrued Interest on Notes Payable $500 Salaries Payable $52,000 Income Taxes Payable $62,520 Mortgage Payable – Current $18,000 Accrued Liabilities $9,500 Customer Deposits (expected to be paid next year) $420 Total Current Liabilities $390,472 Long Term Liabilities Bond – Twenty year, 12% Due 1/1/2013 $500,000 Mortgage Payable – noncurrent $290,000 Total Long Term Liabilities $790,000 Total Liabilities $1,180,472 Stockholders’...
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...Company Name Balance Sheet As of December 31, 2013 Assets Current assets Cash Account Receivable Allowance for doubtful accounts Net accounts receivable Inventories Securities (available for sale)-at fair Market value Notes Receivable (due next year) Prepaid Expenses Total current assets Non-Current assets Investments in Warren Co. Land Building Accumulated Depreciations Net building Goodwill Patents Copyrights Trademarks Deposits with Vendors Total noncurrent assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts Payable Income Taxes Payable Salaries Payable Notes Payable to Banks Mortgage payable - current portion Accrued Liabilities Accrued Interest on Notes Payable Customer Deposits (expected to be paid next year) Total current liabilities Noncurrent liabilities Mortgage Payable Twenty-year, 12% Bonds, due 1/1/2013 Total noncurrent liabilities Total liabilities Stockholders equity Preferred Stock, 7% Common Stock $42,485 $165,824 1,850 163,974 499,493 28,250 23,000 16,252 $773,454 $87,500 125,000 $975,800 341,200 634,600 100,000 125,000 105,000 80,000 50,000 $1,307,100 $2,080,554 $197,532 62,520 52,000 50,000 18,000 9,500 500 420 $390,472 $290,000 500,000 $790,000 $1,180,472 $300,000 400,000 Additional Paid-in Capital Retained Earnings Total stockholders' equity Total liabilities and stockholders equity Company Name Income statement For the year ended December 31, 2013 Sales Revenue Sales Discounts Net sales revenue Cost...
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...ACCT 550 Week 3 Homework Assignment To Buy This material Click below link http://www.uoptutors.com/acct-550/acct-550-week-3-homework-assignment E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company’s balance sheet. (a) Current assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible assets. (e) Other assets. (f) Current liabilities. (g) Noncurrent liabilities. (h) Capital stock. (i) Additional paid-in capital. (j) Retained earnings. E5-4 (Preparation of a Classified Balance Sheet) Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. Common Stock. 2. Discount on Bonds Payable. 3. Treasury Stock (at cost). 4. Notes Payable (short-term). 5. Raw Materials. 6. Preferred Stock Investments (long-term). 7. Unearned Rent Revenue. 8. Work in Process. 9. Copyrights. 10. Buildings. 11. Notes Receivable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accumulated Depreciation—Buildings. 15. Restricted Cash for Plant Expansion. 16. Land Held for Future Plant Site. 17. Allowance for Doubtful Accounts. 18. Retained Earnings. 19. Paid-in Capital in Excess of Par—Common Stock. 20. Unearned Subscriptions Revenue. 21. Receivables—Officers (due in one year). 22. Iventory (finished goods). 23. Accounts Receivable. 24. Bonds Payable (due in 4 years). 25. Noncontrolling Interest. Instructions. Prepare a classified balance sheet in good form. (No monetary...
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...ACCT 550 Week 2 Homework Assignment To Buy This material Click below link http://www.uoptutors.com/acct-550/acct-550-week-2-homework-assignment E4-4 (Multiple-Step and Single-Step) Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2012 information related to Webster Company ($000 omitted). Administrative expense | | Officers’ salaries | $ 4,900 | Depreciation of office furniture and equipment | 3,960 | Cost of goods sold | 63,570 | Rent revenue | 17,230 | Selling expense | | Transportation-out | 2,690 | Sales commissions | 7,980 | Depreciation of sales equipment | 6,480 | Sales revenue | 96,500 | Income tax expense | 7,580 | Interest expense | 1,860 | Instructions (a) Prepare an income statement for the year 2012 using the multiple-step form. Common shares outstanding for 2012 total 40,550 (000 omitted). (b) Prepare an income statement for the year 2012 using the single-step form. (c) Which one do you prefer? Discuss. E4-12 (Earnings per Share) At December 31, 2011, Schroeder Corporation had the following stock outstanding. 8% cumulative preferred stock, $100 par, 107,500 shares | $10,750,000 | Common stock, $5 par, 4,000,000 shares | 20,000,000 | During 2012, Schroeder did not issue any additional common stock. The following also occurred during 2012. Income from continuing operations before...
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...ACCT 550 Week 8 Final Exam Click Link Below To Buy: http://hwaid.com/shop/acct-550-week-8-final-exam/ 1. (TCO A) Listed below are several information characteristics and accounting principles and assumptions. Each of these items is assigned a number. Match the number of each with the appropriate phrase that states its application. Note: Each answer may be used multiple times 2. (TCO B) Adjusting Entries: Minnie Smile, D.D.S. opened a dental practice on January 1, 201X. During the first month of operations the following transactions occurred: performed services for patients who had dental plan insurance. At January 31, $1,000 of such services was earned but not yet billed to the insurance companies. Salaries were incurred totaling $800 but not paid at month-end. Supplies totaling $600 were purchased on account. Prepare the adjusting entries on January 31 for a) service revenue, b) salaries expense, and c) supplies expense. Omit explanations. For each journal entry write Dr. for debit and Cr. for credit. 3. (TCO B) Adjusting Entries: Seymor Stars is the new owner of Night Computer Services. At the end of August 201X, his first month of ownership, Seymor is trying to prepare monthly financial statements. At August 31, Seymor owed his employees $2,900 in wages that will be paid on September 1. At the end of the month he had not yet received the month’s utility bill. Based on past experience, he estimated that the bill would be approximately $600. A telephone...
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...Company A Income Statement December 31, 20XX Sales Sales Revenue 2,000,000 Less Sales Discount (120,000) Net Sales 1,880,000 Cost of Goods Sold 1,000,000 Gross Profit 880,000 Operating Expenses Selling Expenses Selling Expenses 300,000 Depreciation Expense 40,000 Total Selling Expenses 340,000 Administrative Expenses Administrative Expenses 350,000 Depreciation Expense 60,000 Total Administrative Expenses 410,000 Total Operating Expenses 750,000 Income from Operations 130,000 Other Revenues and Gains Rental Income 50,000 Dividend Income 30,000 Interest Revenue 25,000 Total Other Revenues and Gains 105,000 Income before Taxes 235,000 Income Tax Expense 82,250 Net Income 152,750 Earnings per Share Per Share of Common Stock $40.00 Income from Operations $10.90 Income from Other Revenues and Gains $8.40 Income before Tax $21.40 Net Income $13.18 Company A Balance Sheet December 31, 20XX Assets Current Assets Cash 42,485 Accounts Receivable 165,824 Less: Allowance for Doubtful Accounts (1,850) 163,974 Inventories 499,493 Securities Available for Sale at Fair Market Value 28,250...
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...ACCT 550 Week 4 Midterm Set 1 Click Link Below To Buy: http://hwaid.com/shop/acct-550-week-4-midterm-set-1/ 1. (TCO A) Which of the following statements is not an objective of financial reporting? 2. (TCO A) Under Sarbanes Oxley, the new law does not: 3. (TCO A) The cash method of accounting: 4. (TCO A) The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is 5. (TCO A) The two primary qualities for accounting information are: 6. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? 7. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure? 8. (TCO A) What is the quality of information that enables users to better forecast future operations? 9. (TCO A) Accounting information is considered to be relevant when it 10. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure? 11. (TCO A) Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? 12. (TCO A) Which of the following are benefits of providing financial information? 13. (TCO D) The balance sheet is useful for analyzing all of the following except 14. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except 15. (TCO...
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...after he was murdered. His body was floating in the water with a heavy object tied to his neck anchoring his body. His killers were arrested and were put on trial but they were found not guilty for what they had done to him. Emmett’s mother saw what they had done to her child, and demanded that they would have an open cast sighting at the funeral so that everyone knew what had happened to her son.At first people ignored it like it was a normal thing but then they started to take the matter very seriously. James Dean killed in car accident by: Teseney Scales The actor James Dean, age 24, died in a car crash. James was driving to an auto rally in Salinas, California when he had crashed head-on into a 1950 Ford Tudor with his new Porsche 550 Spyder. Rebel Without a Cause was released today, which caused James Dean’s death to soar to cult status even though he was already a famous actor. James, who is forever frozen as the talented, misunderstood, rebellious youth, will always remain the symbol of teenage angst. Two hours after James Dean was pulled over by the police, Donald Turnupseed, the owner of the 1950 Ford, had pulled out in front of the Porsche. He was traveling east on Highway 466 and was tempting to turn left onto Highway 41. He had started to make his turn before he saw the roaring Porsche hurling towards him. Without time to turn the two cars crashed into each other head-on. The injuries of the victims in the accident were very critical. Turnupseed, owner of the Ford...
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