Accountants use generally accepted accounting principles (GAAP) to guide them in recording and reporting financial information. GAAP comprises a broad set of principles that have been developed by the accounting profession and the Securities and Exchange Commission (SEC). Two laws‚ the Securities Act of 1933 and the Securities Exchange Act of 1934‚ give the SEC authority to establish reporting and disclosure requirements. However‚ the SEC usually operates in an oversight capacity‚ allowing the FASB
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is data vis-à-vis information? When can information be deemed good and useful? How are these related/ connected to an information system? Data are facts‚ which may or may not be processed (edited‚ summarized‚ or refined) and have no direct effect on the user. By contrast‚ information causes the user to take an action that he or she otherwise could not‚ or would not‚ have taken. Information is often defined simply as processed data. This is an inadequate definition. Information is determined by the
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AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead costs. When planning fixed overhead costs‚ a company
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No. 2 2007 Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Ahmad N. Obaidat Tafila Technical University‚ Tafila‚ Jordan [Abstract] The general objective of financial reporting is to provide useful information to present and potential investors‚ creditors‚ and others to help them make investment‚ credit‚ and other decisions. The purpose of this paper is to find out whether there is an existing gap concerning the importance of accounting information qualitative characteristics
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Managerial Accounting‚ 3e (Braun/Tietz) Chapter 2 Building Blocks of Managerial Accounting 1) Service companies must carry a large amount of inventory to meet consumer demand. Answer: FALSE Diff: 1 LO: 2-1 EOC: E2-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company’s profits 2) Manufacturing companies usually have three types of inventory. Answer: TRUE Diff: 1 LO: 2-1
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“Generally Accepted Accounting Principles (GAAP) is the methods‚ rules‚ practices and other procedures that have evolved to govern the preparation of financial statements” Justify the statement with suitable examples. Accounting is the language of business and it is used to communicate financial information. In order for that information to make sense‚ accounting is based on some fundamental concepts. Transactions are recorded in accounts‚ following certain fundamentals concepts and conventions
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INFS2005 Accounting Information Systems Research School of Accounting and Business Information Systems Group Assignment (Due on 6 May 2014) 20% of overall assessment Introduction The objectives of this assignment are to assess your knowledge in (1) systems documentation; (2) analysis of internal controls; and (3) business process re-design. To complete this assignment‚ you should form groups of five to six (5‒6) students. We will not adjust the assignment marks according to the size
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Accounting Information System (AIS An accounting information system (AIS) is a system of collection‚ storage and processing of financial and accounting data that is used by decision makers. accounting information system (AIS) consists of: - People - Procedures - Data - Software - Information technology infrastructure What important functions does the AIS perform in an organization? 1. It collects and stores data about activities and transactions. 2. It processes
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will not like to update company information there‚ so just click ‘CANCEL’ Step 7: After that‚ we will be at the homepage of UBS system. To update company information we need to follow the following procedure: HOUSEKEEPING > SETUP > GENERAL SETUP Step 8: At the ‘GENERAL SETUP’ page‚ we will need to type in Company name‚ address‚ reference number. The most important thing is to maintain a right accounting year for the company. For example: if the current accounting year is from 1 January 2010 -
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ISSN 1450-223X Issue 4 (2009)‚ pp36-44 © EuroJournals Publishing‚ Inc. 2009 http://www.eurojournals.com/ajsr.htm Accounting Information Systems (AIS) and Knowledge Management: A Case Study Zulkarnain Muhamad Sori Department of Accounting and Finance‚ Faculty of Economics and Management Universiti Putra Malaysia Abstract This study seeks to examine the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd.‚ and it’s contribution to the knowledge management and strategic role of the organisation
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