Disclosure requirements for a change in principle. Indirect effect of an accounting change. Retrospective application impracticality. Reporting changes in accounting estimates. Change in principle vs. change in estimate. Accounting for change in depreciation method. Accounting for change in reporting entities. Example of a change in reporting entities. Accounting error vs. change in estimate. Accounting for corrections of errors. New principle created by FASB standard. Balance sheet errors. Definition
Premium FIFO and LIFO accounting Depreciation Inventory
CHAPTER 2 & 3 Top of Form Question 1 1. Below is the common equity section (in millions) of Teweles Technology’s last two year-end balance sheets: 2009 2008 Common stock $2‚000 $1‚000 Retained earnings 2‚000 2‚340 Total common equity $4‚000 $3‚340 Teweles has never paid a dividend to its common stockholders. Which of the following statements
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
Financial Statement Analysis Case Discussion Questions CASE: The Case of the Unidentified Industries - 2006 The questions are in the case. However‚ the following information might be helpful. 1. For purposes of this case the loans of the commercial bank are classified as accounts receivable and the deposits as accounts payable. 2. Unlike most business done on a credit basis where $1 of revenue creates a $1 accounts receivable‚ in advertising $1 of revenue creates $1/15% = $6.67 of accounts
Premium Balance sheet Depreciation Generally Accepted Accounting Principles
What should you know about Financial Accounting? 1. How to measure assets? How to present assets? *Assets are economic resources owned or controlled by the company and can be measured by dollars. *Measure assets by the Principle of Historical Cost. *The cost of asset includes all expenditures that make that asset in place and ready for use. * Present assets in the Balance Sheet by the rank of liquidity. 2. How to measure profits? How to present profits? * Operating
Premium Depreciation Generally Accepted Accounting Principles
Assets and Depreciation (A) Fixed Assets Fixed Assets except freehold land are carried at cost of acquisition‚ construction or at manufacturing cost‚ as the case may be‚ including pre-operative expenses in the case of self manufactured assets / plants / undertakings‚ less accumulated depreciation and amortisation. (B) Depreciation and Amortisation: (a) Leasehold land: Premium on leasehold land is amortised over the period of lease. (b) On Plant & Machinery given on Lease: Depreciation on Plant
Premium Generally Accepted Accounting Principles Depreciation
QUESTION 1 Which of these is not an advantage of the straight line method of depreciation? A It is easy to work out due to a simple formula B Calculated once for all the years C Depreciation added to maintenance costs rise as the asset ages D The cost of the asset is spread evenly through its useful life. Which of the following is not correct regarding depreciation? A It is due to the use of an asset B Is not incurred if the asset is not used C It is a portion of a long term expense D
Premium Depreciation Generally Accepted Accounting Principles
following tasks: Prepare two different depreciation schedules for the equipment one using the double-declining balance method‚ and the other using the straight-line method. (Round to the nearest dollar). Determine which method would result in the greatest net income for the year ending December 31‚ 2005. How would taxes affect management’s choice between these two methods for the financial statements? 1. Straight-line Method Depreciation expense = Acquisition cost residual
Premium Depreciation
Health Care Budget HCS/577 Health Care Budget Based upon a review of the Patton-Fuller Community Hospital 2009 operating budget variances‚ the long and short-term plans of the various hospital departments and an in-depth analysis of general economic conditions‚ the following assumptions have been concluded and will be used in the preparation of the 2010 operating budget projections. In general‚ Patton-Fuller Community Hospital should anticipate a 3% total “deflation
Premium Generally Accepted Accounting Principles Depreciation Balance sheet
ACCT2542 – Week 1 – Self Study Module Basic Journal Revision Questions & Solutions The learning objectives for this self study are: • • To test whether you have a solid understanding of basic journal entries and key concepts covered in ACCT 1501 to ensure that you are prepared for ACCT 2542. To be able to work through the exercises WITHOUT looking at the solution. Once you have completed the exercises then check your work to the solution for accuracy. Accounting for Inventory - (Reference:
Premium Balance sheet Depreciation Generally Accepted Accounting Principles
The ratio helps in boosting the effectiveness of the company to generate income at 21.78%. The common method used is the straight-line approach. In this approach‚ the depreciation is calculated annually. The method is indicated in the formula below‚ and it is very simple and easy to use. In the case scenario of Delta Airlines‚ the company depreciates the fixed assets with a straight-line approach. The approach is used
Premium Depreciation Airline Delta Air Lines