Abstract: Creative accounting is a practice of accounting following the certain rules of it‚ but it is fluctuated from the basic spirit of those rules. Creative accounting is the ‘colorful’ representation of a company’s assets‚ liabilities and income. It is basically done to attract investors. The example of ‘the half glass of water’ maybe pulled to explain the idea. If a glass is filled with water to its half volume‚ then instead of saying ‘it is half empty’‚ the creative accountants prefer
Premium Balance sheet Financial statements International Financial Reporting Standards
HISTORY OF ACCOUNTING Primitive Accounting Traced as far as 8500 BC in Mesopotamia through the use of clay like: a. Record for paid wages b. Record purposes‚ as general Pyramids in Egypt‚ for the costs of structures Other places like China‚ Babylon‚ and Greece Middle Ages More formal account-keeping methods were developed by the merchants and banks. Double-entry records first appeared in Genoa in 1340 AD. First accounting book was written by Contrugli in Naples Summa de Arithmetica
Premium Financial statements Balance sheet Economics
Project Paper on the Title “Auditors Professional Responsibilities and Legal Liability with Regard to Private Auditors in Ethiopia”: For the Fulfillment of M.Sc Program in Accounting and Finance Adviser: Johannes Kinfu (Prof) By: Muluneh Beyene Addis Ababa University School of Gradate Studies Department of Accounting and Finance July‚ 2007 Addis Ababa Statement of Certification This is to certify that Muluneh Beyene has carried out his research work on the topic entitled “The
Premium Audit External auditor Auditing
|Term-Concepts |Definition | |Purpose of Accounting |Communicating financial information to end users so they can make informed decisions. | |Accounting Entity |The financial affairs of the business are separate and distinct from the financial affairs of the owner. | |Monetary Concept |All transactions are recorded in
Premium Generally Accepted Accounting Principles Balance sheet
Psychology or Accounting Choosing a career is one of the most important decisions a person has to make in their life. It is so important because that is what people will have to do to support their selves throughout life. For the past ten years psychology and accounting were two of the top ten potential career choices. According to the U.S. Department of Education‚ National Center for Education Statistics up to 70‚000 bachelor’s degrees in psychology were awarded‚ and up to 30‚000 in accounting all around
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
Development of Accounting Theory Based on Islamic Principles and Accounting Standards Setting Mechanism Shaukat Amer Assistant Professor COMSAT Institute of Information Technology Attock Pakistan Shaukat_amer@comsats.edu.pk Abstract The purpose of this paper to explore the possibility to look for a new accounting theory and accounting standards setting mechanism under some of Islamic principles.The paper has discussed basic Islamic principles of “Amanah” (Custody)‚ “Shahadat” (Testimony)
Premium Hadith Muhammad Qur'an
THE ACCOUNTING EQUATION The accounting equation can be described as of the basis of accounting. This is because it describes the double entry principle of book-keeping. It is a representation of how funds are raised to finance Assets. The equation is illustrated below: Asset = Capital + Liabilities For example‚ a girl needs to buy a laptop costing £500. She already had £250 in personal savings and then took a loan of £250 from her boyfriend. Here is the equation again: Asset Capital
Premium Balance sheet Generally Accepted Accounting Principles Accounting equation
ABSTRACT The accounting fraud is frequent‚ widespread and familiar in many countries and organization. It brings a loss to firms and investors. But there is no research trying to explain factors comprehensively influencing it. The obyectives of the research are to test and explain the effect of the internal control effectiveness‚ suitability of reward‚ compliance to accounting rules‚ information asymmetry‚ management morality toward unethical behavior and intention to accounting fraud. More particularly
Premium Non-profit organization Political corruption Information asymmetry
Multicontribution Activity-Based Income Statement‚ Journal of Cost Management‚ F94‚ pp. 45-54. The author outlines the development of an ABC based income statement. The multicontribution income statement reflects the individual contribution by product‚ product line‚ operations and facilities. The ABC based income statement attempts to incorporate contribution margin analysis into the income statement - making the income statement a more valuable management tool. [I] Ames‚ B. Charles and James D. Hlavacek‚
Premium Management accounting
Overview of government accounting Government accounting Government accounting refers to the different accounting systems that the different entities in the public sector use. Government Accounting Standards Board (GASB) set the accounting standards to be used by the state and local government. The role of the Governmental Accounting Standards Board (GASB) is to set up and improve the accounting standards of state and local government. It also ensures that financial reporting gives accurate and
Premium Generally Accepted Accounting Principles Balance sheet Income statement