Accounting Theory Questions 1. what is positive accounting theory? how does it differ from normative accounting theory? what was/were the major dissatisfaction(s) with normative accounting theory which led to the development of a positive theory accounting? 2. Explain the meaning of an efficient market. what is meant by the following terms: weak-form efficiency‚ semistrong-form efficiency‚ strong-form efficiency? which form is the most important to accounting research? why? 3 Explain the important
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building was $30 million and its tax basis was $20 million. At December 31‚ 2013‚ the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1‚ 2010‚ Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31‚ 2012‚ the carrying
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Part A: DIFFERENCES BETWEEN MANAGEMENT ACCOUNTING & FINANCIAL ACCOUNT 1. Managerial Accounting: The activity involves ‘decision making’ whether to purchase parts already assembled or individual parts. 2. Financial Accounting: It shows that the President is reminding Aminah to prepare a presentation stating an income statement and balance sheet information for last year‚ which the information already exist. 3. Managerial Accounting: Planning‚ controlling‚ evaluating and continuous
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purchased for $960 on July 1‚ 20-1. On December 31‚ 20-1‚ it had an unexpired value of: a. $240. b. $480. c. $560. d. $400. e. none of the above. 2) The accountant did not prepare an entry to adjust the Supplies account at the end of the accounting period and‚ as a result: a. the Supplies account was overstated. b. the total expenses were understated. c. the net income was overstated. d. the owner’s equity was overstated. e. all of the above are true. 3) On the basis of the following
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Chapter 02 Reporting Intercorporate Interests Multiple Choice Questions On January 1‚ 2007‚ Rotor Corporation acquired 30 percent of Stator Company ’s stock for $150‚000. On the acquisition date‚ Stator reported net assets of $450‚000 valued at historical cost and $500‚000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported net income of $25‚000 and $15‚000 and paid dividends of $10
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1.. A company earned $3‚960 in net income for October. Its net sales for October were $22‚000. Its profit margin is: 1.8%. 18%. 180%. 556%. $18‚040 2. On June 30 of the current calendar year‚ Apricot Co. paid $8‚200 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include: A debit to an
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Line (N‚ D) summaries neglect as a process where someone is not being cared for properly. Neglect is when you don’t have access to the most basic level of needs introduced by Abraham Maslow. In 1943 Abraham Maslow published a paper on ‘A Theory of Human Motivation’ (Poston; 2009) where he produced the Hierarchy of Needs theory. (Figure 1) This theory states that all humans must have certain basic human requirements met in order to live effectively. Physical abuse is the deliberate injuries and hurt
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reputation with the public (exacerbated by Credit Union advertisements etc). By making this voluntary disclosure to the public‚ ANZ is trying to "win over" customers by showing their concerns for the community. This is an example of Positive Accounting Theory (PAT) - a theory which attempts to explain and predict how groups in an organisation (eg. management‚ owners‚ creditors; stakeholders) will interact with one another. In this case‚ ANZ has made a voluntary social disclosure to the public (ie. its customers)
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SOLUTIONS TO EXERCISES EXERCISE 4-1 BRISCOE COMPANY Worksheet For the Month Ended June 30‚ 2008 Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 2‚320 2‚320 2‚320 Accounts Receivable 2‚440 2‚440 2‚440 Supplies 1‚880 1‚580 300 300 Accounts Payable 1‚120 1‚120 1‚120 Unearned Revenue 240 140 100 100 Common Stock 3‚600 3‚600 3‚600 Service Revenue 2‚400 140 2‚540 2‚540 Salaries Expense 560 280 840 840
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EXERCISES AND PROBLEMS ch 1 Carry Yoki’s Lounge consists of the following. Carry‚ the owner believed that people would come to hear a band play on Friday‚ Saturday‚ and Sunday evening. During the remainder of the week‚ she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders‚ three servers‚ two assistant servers‚ two cooks‚ one dishwasher and a clean-up person. She had a bar‚ 15 barstools‚ 4 tables‚ 40 chairs
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