Accounting consists of basic assumptions‚ principles‚ and constraints. There are four basic assumptions of accounting that are the fundamental basis of any set of accounts. The four basic assumptions of accounting include: monetary unit assumption‚ economic period assumption‚ time period assumption‚ and going concern assumption. Monetary unit assumption states that only transaction data that is expressed in terms of money can be included in the accounting records. Economic period assumption states
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There are three ways to analyze financial statements there is the vertical analysis‚ which uses the base percentage to express the assets or liabilities and stockholders’ equity. Horizontal analysis or the trend analysis is how someone can evaluate the financial statement over a period. With this method‚ one can determine an increase or decrease in assets liabilities or stockholders equity. This can be done in percentage or totals Horizontal analysis is used primarily with an intercompany comparison
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of employee benefits keeps employees happy‚ and makes them want to stay within the organization‚ as well as be the best they can be at the job they’re entitled to do. Especially considering the fact that both of these employers go above and beyond what is even required for them by law to provide. The main key is to make sure employees are happy with their employer‚ and that they enjoy going to their work every day. Little incentives such as having pajama parties‚ or onsite lunches are just as important
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The following are the major regulatory bodies in finance and accounting: • The Financial Accounting Standards Boards (FASB) o This body is responsible for setting standard for reporting information on finances to the public. The principles of the GAAP are used to establish the standards set by this governing body. The body is responsible to protect investors and the public from companies that may commit fraud. This brody serves as a source to resolve issues surrounding accounting and reporting
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Accounting Team Project Naomi Konen and Chue Lee 8-2 a) Joan’s first mistake is not using control of cash receipts. She is having only one person go through the whole accounting controls process. There should be other people involved in this process including Joan herself. Joan must also realize the limitations of human controls. One person going through the entire process is bound to make a human error. b) Joan initially failed by trying to joke about her employee stealing. Stealing
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If the company uses FIFO‚ what is the value of the ending inventory? a. $800 b. $832 c. $848 d. $868 6. _____ Effie Company uses a periodic inventory system. Details for the inventory account for the month of January‚ 2014 are as follows: Units Per unit price Total Balance‚ 1/1/14 200 $5.00 $1‚000 Purchase‚ 1/15/14 100 5.30 530 Purchase‚ 1/28/14 100 5.50 550 An end of the month (1/31/14) inventory showed that 160 units were on hand. If the company uses LIFO‚ what is the value of the ending inventory
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academic writing] Also [In academic writing‚ avoid starting a sentence with a conjunction ] ‚ is the person safe in reference to well being? [Unless in a quote‚ avoid rhetorical questions in academic writing] The goal is to promote the best human function as possible. As stated before‚ the patient has to take control of his/her [This awkward construction is a shortcut appropriate in a legal document‚ but avoid using it in academic writing. Write it out] own actions‚ and be responsible for their
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Financial Statement Differentiation A Financial Statement can be defined as‚ “Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders‚ and what is its current financial position” (Business Dictionary‚ 2011). The Financial information is required for various users to make an informed Decision. “The purpose of financial information is to provide inputs for decision making” (Kimmel‚ Weygandt‚ Kieso‚ 2009‚ Para 1‚ p. 6). There are four
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investment fund. * Acceptable to base pro forma estimates off of 1956 data. * The property‚ including the two plants‚ can be assumed as Plant & Equipment‚ and given the appraised value of $200‚000. * Assume that this P&E will not need major repair in the near future * Depreciation is given for 1956 at $24‚000 per year‚ or $2‚000 per month(Exhibit 3). However‚ I will assume that the property has a longer useful life than around 8 years‚ and will depreciate the property with a useful
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What are the major regulatory bodies and their functions? IRS (Internal Revenue Service): It is the oldest in the United States regulatory body also called the internal revenue service or IRS. The main goal of IRS is to manage and implement the internal revenue law. Their responsibility is to help individuals to understand their tax obligations as well as to tax collection. SEC (Security and Exchange Commission): SEC also called the Securities and Exchange Commission. Their main objective is
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