...services, or a charge against available funds in settlement of an obligation as evidenced by a source document like invoice, voucher, receipt, etc. All payments made by a company can be broadly categorized into capital expenditure and revenue expenditure. Capitol expenditure is an amount spent to acquire or enhance a productive asset to increase the capacity or efficiency of a company for more than an accounting period is defined as capital expenditure. That is, simply, capital expenditure is the expenditure made with the intension of getting the benefit from that expenditure for more than one year (usually accounting period is one year). For example, amount spent on long-term assets like machinery, plants, buildings, etc, either to improve or to acquire, is capital expenditure. Normally capital expenditure is capitalized in the books of accounts and then that amount will be depreciated over the useful life of the assets. It is also known as capital spending. It is essential to understand the differences between capital expenditure and revenue expenditure as the accounting treatments are different. Revenue expenditure is cash or resources spent on sales revenue generation or for maintaining a revenue-generating asset is defined as revenue expenditure. Revenue expenditure is an expenditure, which is made with an intension of getting some benefits within a short period of time (mostly, less than a year). Revenue expenditures are recurring in nature such as expenditure...
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...Question 1 Carelessness - Carelessness is the common reasons by which accounting errors may be occur. The person who keeping the books of account must be responsible to his/her job when he/she is careless or not serious may cause such errors happen. Lack of Knowledge - Accounting is based on certain principles and rules. Due to the lack of knowledge of the accounting principles and rules, accounting errors may be occurs. Dishonest of records - If the person who is responsible for keeping books of account is dishonest, he/she may intentionally commit errors in the books of account for the purpose of taking undue advantage. Computer and Software Errors - A professional firm keeps its account records in computer. However, defective computer program and easy access to unauthorized person to the accounting program may also result in the accounting errors. Most of the firm did not update their accounting software may cause many errors in their accounting program. Question 2 Lack of Knowledge - For accountant who is lack of knowledge must take part-time course to update their knowledge which helps in accounting. Besides that, the firm also must providing more training and practice for accountants to update their knowledge and experience to improve their efficiency in his/her job. Carelessness - For person who is newly involved in accounting firm, advice he/she must double check their account works to avoid careless in account records. Senior accountants should...
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...ABC Company ACC 206 Principles of Accounting II The ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles, introducing the new project to build cedar dollhouses by shingle scrap materials for reaching $3 million annual sales within the next 3 years. Explain the overall risk profile of the ABC Company based on current economic and industry issues. In order to help out the CEO I prepare reports that will contain the information regarding the project. These statements refer to the accompanying Excel spreadsheet as well as word documents. The statements are; Cash Flow statements, Product Cost, Net present value, Depreciation, Contribution Margins and Break-even Point of sales. In the last conclude the major risk factors in this project, management accountant responsibilities of the project and recommendations. I. An overall risk profile of the company based on current economic and industry issues that it may be facing. It’s a mystifying time to be in the manufacturing industry. After a severe global financial crisis hasten merchandise prices and flounce to the side a year detonation, a promising revival give the industry reason to hope. But the global economy has degenerated into another less severe downturn in 2011, hindering global demand and forcing down merchandise prices once again. The move of the industry focusing on all over the risk based on current economic and industry concerns. Many industry leaders...
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...Principles of Accounting II Exam 1 -2010 Version 1-16. Decentralization refers to: A. reporting for the company as a whole. B. focusing reporting on parts of the company. C. the delegation of decision-making authority throughout an organization. D. differences in organizations. 2-21. Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the: A. first work station. B. last work station. C. largest work station. D. fastest work station. E. slowest work station. 3-23. One of the steps in the lean thinking model is to organize work arrangements around the flow of the business process. This is often accomplished by: A. automating the business process. B. implementing an enterprise system. C. instituting a six sigma program. D. creating a manufacturing cell. 4-18. Managerial accounting: A. has its primary emphasis on the future. B. is required by regulatory bodies such as the SEC. C. focuses on the organization as a whole, rather than on the organization's segments. D. Responses a, b, and c are all correct. 5-20. Which of the following IS a characteristic of financial accounting? A. not mandatory B. must follow GAAP C. emphasis on relevance of data, rather than precision D. both A and C above 6-21. The corporate controller's...
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...SCHAUM’S OUTLINE OF THEORY AND PROBLEMS OF INTERMEDIATE ACCOUNTING II Second Edition BARUCH ENGLARD, M.S., M.B.A., CPA Associate Professor of Accounting The College of Staten Island The City University of New York SCHAUM’S OUTLINE SERIES New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2007, 1992 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-151048-6 The material in this eBook also appears in the print version of this title: 0-07-146974-5. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069. TERMS OF...
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...Chapter 12 1P. |$ in millions| Investment in bonds (face amount)|80|| Discount on bond investment||14| Cash price of bonds||66| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.1|| Interest revenue at .05 x $66||3.3| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.11|| Interest revenue at .05 x ($66 + .1)||3.31| Fuzzy Monkey| Book Value| December 31, 2011| Investment in bonds|$80.00M|| Less: Discount on bond investment ($14 - .1 - .11M)|13.79M|| Amortized cost||$66.21M| If Fuzzy Monkey had the “positive intent and ability” to hold their securities until they matured, they will be classified as held to maturity and reported at the amortized cost on the balance sheet versus fair value. Operating cash flows: Cash inflow from interest - $3.2 + $3.2 = $6.4 Interest revenue using indirect method statement of cash flows- $3.3 + $3.31 = $6.61 net income Adjustment using above method - ($.21) Investing cash flows – cash outflow from buying investments of $66 3P. |$ in millions| Investment in bonds (face amount)|80|| Discount on bond investment||14| Cash price of bonds||66| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.1|| Interest revenue at .05 x $66||3.3| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.11|| Interest revenue at .05 x ($66 + .1)||3.31| Fuzzy Monkey| Book Value| December 31, 2011| Investment in bonds|$80.00M| Less: Discount on...
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...E 17-1 a.) 1.Trading d.) 2.Available-for-Sale b.) 2. Available-for-Sale e.) 3. Held-to-Maturity c.) 1.Trading f.) 2. Available-for-Sale E 17-2 Held-to-Maturity Securities 300,000 Cash 300,000 Cash (10% x 300,000) 30,000 Interest Revenue 30,000 Cash 30,000 Interest Revenue 30,000 E 17-9 a.)Fair Value Adjustment 1,300 Unrealized Holding Gain or Loss 1,300 b.) Current Assets Available-for-Sale Securities 54,500 c.) Cash 15,000 Loss on Sale of Securities 2,500 Available-for-Sale Securities 17,500 E 17-12 Situation 1 Available-for-Sale Securities ($14x20,000) 280,000 Cash 280,000 Cash (.10x75,000) 7,500 Dividend Revenue 7,500 Securities Fair Value Adjustment 20,000 Unrealized Holding Gain or Loss ($15-$14x20,000) 20,000 Situation 2 Equity Investment ({30,000x$9}x.25) 67,500 Cash 67,500 Cash (36,000x.25) 9,000 Equity Investment 9,000 Equity Investment (.25x85,000) 21,250 Revenue from Investment 21,250 E 17-16 a.) Available-for-Sale Securities 1,250,000 Cash 1,250,000 Cash ($.80x50,000) 40,000 Dividend Revenue 40,000 Cash 40,000 Dividend Revenue 40,000 Fair Value Adjustment ({$27x50,000}-1,250,000) 100,000 Unrealized Holding Gain or Loss 100,000 b.) Available-for-Sale Securities 1,250,000 Cash 1,250,000 Cash 40,000 Equity Investments 40,000 Cash 40,000 Equity Investments 40,000 Equity Investment (.20x730,000) 146,000 Revenue...
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...ACC 206 (Principles of Accounting II) Complete Class All Assignments ,DQs and Problems Click Following Link To get Entire Class http://homework-aid.com/ACC-206-Complete-Class-All-Assignments-DQs-and-Problems-617.htm You can get entire class as well as single Assignments and DQs ACC 206 Week 1 Assignment Chapter 1 Problems ACC 206 Week 1 Assignment Chapter 1 Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. and so on... Chapter 1 Exercise 4: 4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise...
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...ACC 206 (Principles of Accounting II) Complete Class All Assignments ,DQs and Problems Click Following Link To get Entire Class http://homework-aid.com/ACC-206-Complete-Class-All-Assignments-DQs-and-Problems-617.htm You can get entire class as well as single Assignments and DQs ACC 206 Week 1 Assignment Chapter 1 Problems ACC 206 Week 1 Assignment Chapter 1 Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. and so on... Chapter 1 Exercise 4: 4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise...
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...ACC 206 (Principles of Accounting II) Complete Class All Assignments ,DQs and Problems Click Following Link To get Entire Class http://homework-aid.com/ACC-206-Complete-Class-All-Assignments-DQs-and-Problems-617.htm You can get entire class as well as single Assignments and DQs ACC 206 Week 1 Assignment Chapter 1 Problems ACC 206 Week 1 Assignment Chapter 1 Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. and so on... Chapter 1 Exercise 4: 4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise...
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...ACC 206 (Principles of Accounting II) Complete Class All Assignments ,DQs and Problems Click Following Link To get Entire Class http://homework-aid.com/ACC-206-Complete-Class-All-Assignments-DQs-and-Problems-617.htm You can get entire class as well as single Assignments and DQs ACC 206 Week 1 Assignment Chapter 1 Problems ACC 206 Week 1 Assignment Chapter 1 Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. and so on... Chapter 1 Exercise 4: 4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise...
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...E13-1 Pioneer Corporation had these transactions during 2011. | (a) | Issued $50,000 par value common stock for cash. * Cash inflow from financing activities. | | (b) | Purchased a machine for $30,000, giving a long-term note in exchange. * Noncash investing and financing activities. | | (c) | Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. * Noncash financing activities. | | (d) | Declared and paid a cash dividend of $18,000. * Cash outflow from financing activities. | | (e) | Sold a long-term investment with a cost of $15,000 for $15,000 cash. * Cash inflow from investing activities. | | (f) | Collected $16,000 of accounts receivable. * Cash inflow from operating activities. | | (g) | Paid $18,000 on accounts payable. * Cash outflow from operating activities. | | Classify transactions by type of activity Instructions Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities. E13-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. | (a) | Payment of interest on notes payable.Operating activity | | (b) | Exchange...
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...ACCT 221 Principles of Accounting II Final Exam Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-221-principles-of-accounting-ii-final-exam-answers/ ACCT 221 Principles of Accounting II Final Exam Answers Part A. On January 1, 2014, Flip Corporation had 560,000 shares of $1 par value common stock issued and outstanding. There was a $3,000,000 balance in the Retained Earnings account at the beginning of the year. During the first quarter of the year, the following transactions occurred: Jan. 8 Issued 40,000 shares of its own common stock for $400,000. Jan. 18 Declared a cash dividend of $1 per share to stockholders of record on Jan. 10. Jan. 31 Paid the $1 cash dividend declared on Jan. 18. Feb. 2 Purchased 3,000 shares of its own common stock for the treasury at $11 per share. Feb. 14 Sold 2,000 shares of the treasury stock purchased on Feb. 2 for $12 per share. March 25 Declared a 2 for 1 stock split on outstanding shares. Instructions Prepare journal entries to record the above transactions. Part B. The following information is available for Flip Corporation for the year ended December 31, 2014: Beginning retained earnings $ 340,000 Cost of goods sold 620,000 Declared cash dividends 50,000 Operating expenses...
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...Counter Party Credit Rating Under Basel II-A Challenge for Finance Managers 1 WELCOME Counter Party Credit Rating Under Basel IIA Challenge for Finance Managers 2 Discussion Summary 1. 2. 3. 4. Basel Vs. Risk Management BaselBasel-II Road Map and Objectives BB Guideline of Basel-II implementation BaselCounter Party Rating by ECAI in determining Capital Adequacy of Corporate 5. How to face ECAI by counter parties for good rating 6. Question and Answer 3 Basel Vs. Risk Management • Basel from the view point of Risk Management • Relating to Capital Adequacy of Banks • Reflecting Risk management in Operation of Banks/FIs 4 Risk Management in Banks- Why? © Banks are highly leveraged. © Bank Directors and Senior Management are the agent of shareholders. © International survey reveals that the the Bank Management does not adequately consider the risk management information in strategic decision making. 5 CEO and Directors of Financial Institutions are currently facing … Two Major Challenges 6 Two Challenges First v Creation of Value for the Shareholders v Need to deliver ever increasing returns as per the Expectation of the shareholders Second Keep the Capital without Erosion 7 First Challenge Senior management believes that Superior Risk Management can create value to the shareholders But not Sure - HOW. 84% of the managers believe that the risk management can improve price earning ratios and reduce cost of capital which again...
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...Gray’s (1988) hypothesis on the secrecy / transparency dimension should be maintained with respect to the original four cultural values. JEL Classification: G21, M41, O57 Keywords: Culture, banking disclosures, transparency 1. Introduction The objective of this paper is to report on the empirical findings of the two research questions proposed by Hooi (2004) that may improve the Gray and Vint (1995) model of cultural influence on accounting disclosures. The first proposal was that extending the Gray and Vint study with the new inclusion of Hofstede and Bond’s (1988) cultural value of long-term orientation gives the opportunity to better understand the association between national culture and accounting disclosures. The second proposal was that by focusing on only one industry, specifically banking, more significant results may be obtained - as opposed to a cross-section of industries in the Gray and Vint study. The seminal study by Gray and Vint assessed the significance of the relationship between national culture and accounting disclosures in an international context. This is an * Correspondence to: Department of...
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