Account/Ave. AR–or - Sales Revenue/Ave. AR How quickly a firm collects cash from AR. Converted into “Days Outstanding for AR” 365/AR Turnover Ratio Common Changes in Ratio Inventory Turnover: CSG/Ave. Inventory How fast a firm sells inventory. Generally‚ you want a high inventory turnover. Fixed Asset Turnover: Sales/Ave. Fixed Assets The amount of sales generated from fixed assets ROCE: (Net Income – PS Dividends)/Ave. Common OE A firms ability to use & finance assets to generate earnings
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Accounting decisions Case: Accounting at MacCloud winery Methodological note We want to distinguish between Economic “facts/data” – No need to discuss them – Taken for granted Accounting “issues” – The topic of our discussion – We will follow the order of the case questions Accounting at McCloud Winery The MacCloud winery 5 acres of land One building Accounting at McCloud Winery 1: The building Worth $32‚000 Leased for 10 years for $5‚000 per year How
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Pantaloons Retail India Limited The Accounting Standards as per their 2011-12 Annual Report are- 1. AS 1: Disclosure of Accounting Policies- * It deals with disclosure of Accounting Principles and policies used for preparation of financial statements of the companies. 2. AS 2: Valuation of Inventories- * It deals with determination of amount of inventory to be shown in financial statements. It is not applicable to shares‚ debentures‚ stock etc. The cost formulae prescribed
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1. What is the FASB Accounting Standards Codification? The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. 2. When did the codification become effective? The Codification is effective for interim and annual periods ending after September 15‚ 2009. 3. The FASB had three primary goals in developing the Codification. Identify them. a.
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Chapter 02 Student Revision Quiz 1. According to Australian Accounting Standards (AAS)‚ assets are carried on the financial statements at the higher of current market value or historical cost. | True | | False | The Australian Accounting Standards state the assets are to be ’carried on the books ’ (recorded) at what the firm paid for them. 2. Suppose KLM Inc. just received a patent on a new anti-cholesterol drug. This patent is an intangible fixed asset. | True | | False |
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NATURE AND SCOPE OF ACCOUNTING TERMINOLOGIES As an introduction to the course in accounting‚ it may be useful to define the following terms : - Accounts : These are the financial records in the organization. Every business transaction‚ or accounting entity‚ may be represented in an account by itself‚ e.g. wages‚ telephone expense‚ motor vehicle‚ Cash at bank‚ Investment - Book-keeping : This is the recording of the financial transactions of a business
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Accounting Cheat Sheet Quick View of Basic Accounting Visit our website online at: http://www.AccountingCoach.com Learn more about our Master Accounting Download Package: http://www.AccountingCoach.com/ebook.html Learn more about our Master Set of 80 Business Forms: http://www.AccountingCoach.com/business-forms/ Learn more about a career in accounting: http://www.AccountingCoach.com/careers/ For personal use by the original purchaser only. Copyright © 2011 AccountingCoach®.com. Click a Category
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lets review the job and process costing sytems: Job order cost system: • Jobs are assigned to each job or batch • A job may be for a specific order of inventory Process cost system : • This cost system is generally used when a large volume of similar products are manufactured Answers: a. A custom yacht builder – job order costing b. A golf course designer – job order costing c. A potato chip manufacturer – process costing d. A business
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Purchase Method of Accounting All business combinations must be accounted for by applying the purchase method. This involves 3 key steps: a) Identifying an acquirer‚ b) Measuring the cost of the business combinations and c) Allocating the cost of the business combination to the identifiable assets and liabilities acquired. a) Identifying the Acquirer The acquirer should be identified for all business combinations‚ The acquirer is the entity which obtains controls over the other entity‚ There
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Slide 1 ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1) MODULE ONE Slide 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 - Foundation items re the course Part 2 - Present value accounting under certainty Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting Part 5 - Examination question examples Part 6 - Historical cost accounting Lecture by: Dr. A. L. Dartnell‚ FCGA Year 2009 - 2010 2 Slide 3 PART 1 Foundation Items re the Course Different Course
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