Part I. A. Generally Accepted Accounting Principles. GAAP is not a fixed set of rules. It is a guideline or more precisely a group of objectives and concepts that have evolved over 500 years from the basic concepts of Luca Pacioli set forth in the 1400s. It governs how financial statements are prepared and presented in the United States. The Financial Accounting Standards Boards (FASB)‚ the American Institute of Certified Public Accountants and the Securities and Exchange Commission (SEC)
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How should goodwill‚ properly recorded on the books‚ be written off in accordance with generally accepted accounting principles? Goodwill is recorded in the accounts only under the circumstances that is is acquired through a purchase of another business or combination of businesses. According to Generally Accepted Accounting Principle under these circumstances where goodwill is acquired through a purchase by another business that it is recognized as
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to serve the public interest‚ strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high quality professional standards‚ furthering the international convergence of such standards and speaking out on public interest issues where the profession’s expertise is most relevant. This publication may be downloaded free-of-charge from the IFAC website http://www.ifac.org. The approved text is published
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ACC201 … STUDY GUIDE for TEST ONE (Chapters 1‚ 2‚ 3) Test #1 will consist of 50-60 of the questions below. (Finding the “answers” to these questions is part of the review) True or False 1. Owner’s equity represents the amount of assets that can be claimed by creditors. 2. The right-hand side of an account is always the increase side. 3. A ledger is a chronological record of a business’s transactions. 4. The chart of accounts proves that all
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for the implementation of policies and the achievement of developmental objectives by supporting aggregate fiscal discipline‚ strategic allocation of resources and efficient service delivery. An open and orderly PFM system is one of the enabling elements for those three levels of budgetary outcomes: • Effective controls of the budget totals and management of fiscal risks contribute to maintain aggregate fiscal discipline. • Planning and executing the budget in line with government priorities
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Heading: Case 4 and Case 6 Studies Low Company – Standards on Auditing Disclosures Memo –Low Company List of Relevant Authorities AU 504‚ AU 9504: Association with Financial Statements Purpose Should a CPA audit major fluctuations in the fourth quarter of the financial statement made by a publicly traded company after they are disclosed in the company’s annual financial statement notes? Issue Aaron Jones‚ CPA‚ is auditing the current year’s financial statements of Low Company
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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
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accountant B. a partner C. a private accountant D. an independent accountant 3. ________ is established as a trustee body and vested with the responsibility for the oversight of the accounting practice standards setter’s performance‚ financial and funding arrangements. A. Malaysian Accounting Standards Board (MASB) B. Financial Reporting Foundation (FRF) C. Malaysian Institute of Accountants (MIA) D. Malaysian Institute of Certified Public Accountants (MICPA) 4. __________________ requires detailed
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Generally Accepted Accounting Principles (GAAP) is a standard guidelines and accounting rules that companies used to prepare‚ present‚ and report financial information. By following this framework‚ companies can ensure that any financial information presented is uniformly consistent‚ relevant‚ feasible and objective. Through this standardization‚ corporate financial information can more readily be reviewed and interpreted by investors‚ stockholders‚ banks and other potential creditors and also promotes
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E14-4 (Entries for Bond Transactions—Straight-Line) Foreman Company issued $800‚000 of 10%‚ 20-year bonds on January 1‚ 2011‚ at 102. Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following. a. The issuance of the bonds. b. The payment of interest and the related amortization on July 1‚ 2011. c. The accrual of interest and the related
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