01 MCQ FOR IMT 57 – FINANCIAL ACCOUNTING Test : (Journal‚ Ledger‚ Trial Balance‚ Errors) Name: _________________ Fundamentals of Accounting Max. Marks: 30 1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above. 2. A change in accounting policy is justified
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Question 1: a. 2 b. 2 c. 1 d. 2 e. 1 f. 2 g. 3 h. 3 i. 1 j. 2 k. 1 l. 3 m. 2 n. 2 o. 3 p. 4 q. 3 r. 1 s. 1 t. 2 u. 3 v. 4 w. 4 x. 1 y. 2 Question 2 a. Potential tax issues related to the payment Erin received in August: 1) For Erin: ➢ Based on the information provided‚ Erin’s employment with CCC was terminated in July 2009 and Erin was informed on July 31‚ 2009
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The Financial Accounting Standards Board employs a "due process" system which (Points: 5) 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. 2. (TCO A) The IASB: (Points: 5) governs accounting standards in the U.S. is working on a convergence project with the FASB. sets the
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Management Accounting -I Final Project Report Company – Nestlé India Submitted By Rahul –PGP25259 Praveen – PGP25258 Pratyush – PGP25257 Prachal Mehrotra – PGP25255 Prajeesh Jayaram L – PGP25256 Sanjay Dhir – FPM10013 1. About Nestlé Nestlé is a food and package multinational with its headquarters situated in Vevey‚ Switzerland. The company came into being in 1905‚ after a merger between Anglo-Swiss Milk Company and FarineLactée Henri Nestlé Company. The company now has
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Limitations of Financial Accounting: Financial accounting is the only branch of accounting and it is not perfect. There are large numbers of limitations which open new way to use other tools of accounting. To know what are the main limitations of financial accounting. It is very necessary for accountants. Accountants are often blind to these limitations. So‚ I am covering its limitation a lot of ground. Read below and understand:- 1. Financial accounting is of historical nature Net effect
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Financial accounting is one kind of accounting different from the management accounting in the accounting system. As management accounting is for “internal” whereas financial accounting is for “external”. The following is a detailed explanation and analysis of the major objective and role of financial accounting. The purpose of financial accounting is to measure the performance of the entity and therefore provides the financial information to different stakeholders. Stakeholders will have their
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• Accounting is the system that measures business activities and process information into reports. • Accountant maintain‚ audit and prepare financial records for a person or a company. • Main careers in accounting - bookkeeper‚ auditor‚ financial advisor‚ taxation‚ carbon accountant and accountant etc… • Bookkeeping is recording financial recorders and summaries of financial transaction. Accounting is measuring business activities and process information into reports. • Main professional accounting
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fair value accounting. Fair value accounting is to measure selected assets at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The objective of fair value accounting is linked with the objective of ‘decision usefulness’ of general purpose financial reporting. That is‚ to provide relevant information that is representationally faithful for users. IASB’s (and FASB’s) accounting standard
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| | Retained earnings at December 31‚ 2012 | 25‚000 | What was the economic effect of the payment of Raymond’s dividends? a. | The dividend reduced net income for 2012. | b. | The dividend should be equal to net income if the company’s accounting equation is in balance. | c. | The dividends reduce total retained earnings for the year. | d. | The dividends must be paid whenever Raymond Corp. reports net income. | __B__ 2. If a company has $152‚000 of revenues‚ declares and pays $55
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Multiple Choice: 1. In general terms‚ financial assets appear in the balance sheet at: a. Face value b. Current value c. Cost d. Estimated future sales value 2. Which of the following practices contributes to efficient cash management? a. Never borrow money – maintain a cash balance sufficient to make all necessary payments. b. Record all cash receipts and cash payments at the end of the month when reconciling the bank statements
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