3101AFE TUTORIAL 1 – Semester 1 2014 Deegan Topic 1 Introduction to financial accounting theory 1.1 What is the difference between a positive theory of accounting and a normative theory of accounting? 1.6 The IASB and the FASB are currently developing a revised conceptual framework of financial reporting. If you have been asked to review the framework—which is an example of a normative theory of accounting—why would it be important for you to pay particular attention to how the objective
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external users 4. FASB – responsible for GAAP (accounting principles) 5. Accounting Equation 6. Know the 3 activities that business engage in and give examples of each activity. (These 4 questions also relate to Chapter 12‚ The Statement of Cash Flows) 7. The International Accounting Standards Board is responsible for developing a single set of worldwide accountings standards (IFRS). 8. These standards will help companies to reduce accounting costs‚ make it easier to acquire foreign companies
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BUACC5901 - Accounting & Finance A Comparative Financial Analysis for the Financial Years 2011 and 2010 of DIALOG GROUP BERHAD TABLE OF CONTENTS I. EXECUTIVE SUMMARY ......................................................................................2 II. INTRODUCTION ................................................... .............................................3 III. RATIOS CALCULATION...................................... .............................................4 IV. ANALYSIS OF
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Accounting Principles‚ Concepts and Conventions Accounting principles are guidelines & standards‚ which have been accepted by the accounting profession in preparation and presentation of accounts of the business. It is approved and normally accepted by the government bodies &controlling authorities. Accounting principles are uniform in order to understand in the same sense by those using it. Also they are not rigid (i.e. inflexible) like principle of gravity but they are flexible.
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Management accounting provides necessary information to assist management in decision making and management control. The chartered institute of management accountants (2001) describe Management accounting as :-the application of professional information in such a way as to assist the management in the formation of policies and in the planning and control of the operations of the organization. Management accounting has been considered as an integral part of the management knowledge in accounting and finance
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History of Accounting The name that looms largest in early accounting history is Luca Pacioli‚ who in 1494 first described the system of double-entry bookkeeping used by Venetian merchants in his Summa de Arithmetica‚ Geometria‚ Proportioni et Proportionalita. Of course‚ businesses and governments had been recording business information long before the Venetians. But it was Pacioli who was the first to describe the system of debits and credits in journals and ledgers that is still the basis of today’s
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What role does Accounting play in budgeting? Businesses use budgets to try to prevent from spending more money on business operations than what is deemed necessary in order to generate profits. Accounting assists in preparing budgets. The accounting department is responsible for managing the budget and tracking expenses. Concentration on sorting the numbers‚ balancing‚ recording‚ and reporting on the figures to ensure accuracy would be their specialty. What responsibilities does management
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The role of accounting is to allow business owners to make informative decisions. The main objectives of accounting are to maintain a record of business transactions‚ calculate profit and loss and depiction of financial position. Recording business transactions accurately is essential in accounting. If proper and complete records are kept‚ it will make it easier to find and correct any errors made. Different officials can also use records for different decision-making purposes. A balance sheet
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Introduction to Accounting Coursework Ratio Analysis of Tesco and Sainsbury Introduction This report details the results of a ratio analysis of two of the largest retailers in the UK: Sainsbury and Tesco based on their audited financial statements for the financial years ending 2011‚ 2012‚ and 2013. The two companies are compared with each other based on their profitability and liquidity ratios. This report then critically interprets the results of the ratio analysis calculations and then discusses
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September 10‚ 2013 The Ins and Outs of Accounting The primary focus of this text is to educate and inform readers about what it is like to live and function in the world of Accounting. Although we deal with numbers every day of our lives we often overlook what all goes into becoming a skilled Accountant. The significance of accounting plays a vast role in the financial health of an organization‚ its failure and or growth and development‚ the stock market‚ and the financial future of our lives
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