1. The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7‚000 cash in his new design services business. 2. The business paid the first month’s rent with $700 cash. 3. The business purchased equipment by paying $2‚000 down and executing a note payable for $4‚500. 4. The business purchased supplies for $850 cash. 5. The business billed its clients a total of $4‚000 for design services rendered. 6. The business collected $3‚000 on account from one
Premium Generally Accepted Accounting Principles Balance sheet Liability
Charles Brack 26 June 2010 ACC-101 Written Assignment I 1.2) Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle‚ Washington. Explain why each of the following individuals or organizations would be interested in financial information about the company. a. California Public Employees Retirement System. One of the world’s largest pension funds. They would be interested in Boeing’s financials to see how much the
Premium Balance sheet Generally Accepted Accounting Principles Finance
+++++*-- .+-+ =]=]]-]\]_\\|)=\ =- \= -}\ \\\\\\\[9 90 Modified Accrual Full Accrual Accounts Payable In the absence of an applicable modification‚ accounts payable are recognized in the fiscal year in which the agency incurs the liability Recognize a payable in the fiscal year in which the agency incurs the liability. Prepaid Items Under GAAP‚ it is optional to use either the purchases method or the consumption method. Recognize an asset when an item is purchased and an expense
Premium Generally Accepted Accounting Principles
Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization ’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting‚ management
Premium Enron Accountant Enron scandal
for the transactions a. Company A paid $2‚500 cash to satisfy a previously recorded account payable. b. Mr A‚ one owner of the company withdrew $ 100 to pay to company X for his personal use. c. On December 3‚ the Matador Company paid $5‚400 cash in salaries to office personnel. d. On February 5‚ Textron Stores purchased a van that cost $35‚000‚ but not paid to the supplier. e. Company X bought $ 5000 inventories by cash. 3. Flora Accounting Services completed these transactions in February:
Premium Generally Accepted Accounting Principles Liability Accounts receivable
Comparing IFRS to GAAP Essay ACC/290 November 24‚ 2014 Comparing IFRS to GAAP Paper Although the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) have a lot of similar guidelines and expectations‚ they also differ in many ways. The IFRS employs more of a “principles based” accounting standards whereas GAAP utilizes more of a “rules based” approach. Even though there are differences between terminology‚ revenue recognition‚ gains and/or losses
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
QUESTIONS 1. The cash basis of accounting reports revenues when cash is received while the accrual basis reports revenues when they are earned. The cash basis reports expenses when cash is paid while the accrual basis reports expenses when they are incurred (and matched with revenues they generated). 2. The accrual basis of accounting generally provides a better indication of company performance and financial condition than does the cash basis. Also‚ the accrual basis increases the comparability
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
Accruals and the Prediction of Future Cash Flows: evidence from China Background Predicting the company’s future cash flows is of high significance in accounting and finance areas alike‚ due to the fact that the ability of company generating cash flows substantially influences its securities value. For this purpose‚ Financial Accounting Standards Board (FASB) states that the primary objective of financial reporting is to provide information to help investors‚ creditors‚ and others in assessing
Premium Generally Accepted Accounting Principles International Financial Reporting Standards
8.21 (1) MA‚ I/P (2) FFR‚ O (3) FFR‚ I/P (4) MA‚ O (5) MA‚ R (6) FFR‚ I/P (7) FFR/ O (8) FFR‚ R (9) FFR‚ R (10) MA‚ I/P (11) MA‚ R (12) FFR‚ O 8.27 Fraud risk (a) Fraud risk factors ASA 240 - high degree of competition in the market - Domination by Rob Bigbucks (CEO&chairman) - Threatened employees with no pay rises - Significant portion of sales managers salaries are paid in bonuses - The industry is in a recession and it is starting to affect the company – Potentially leading
Premium Auditing Audit Internal control
He said he will ask either a petty cash question or a bank reconciliation one but not both. The question will also probably test us on e-controls or cash control for cash receipts and cash payments. What is internal control? It is the organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational efficiency * ensure accurate and reliable accounting records. It is either an administrative
Premium Depreciation Balance sheet Expense