Assignment on Financial Accounting - Research Paper Example
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Since, depreciation is charged to the profit of an organization; hence the higher the depreciation expense, the lesser will be the net income. As seen from above, the depreciation for year 1 using double declining balance method is $50,000 whereas it is $22,500 using straight line method; hence, the straight line method will result in the greatest income for the year ending December 31, 2005.
Accountancy involves the analysis and recording of the business and fiscal endeavors of the company. Historical Overview According to Walker (238), in the nineteenth century many businesses did not need financial statements because corporations were in minimal numbers and most businesses were personal ventures.
The company operates with a workforce of 164,000 employees in more than 70 manufacturing units established worldwide. It is worth mentioning in this regard that recent global economic turmoil has affected various manufacturing companies across the globe, including Ford.
Accounting gives a clear picture of the performance of an organization and enables these stakeholders to make informed decisions.
Generally Accepted Accounting Principles are the set of broad and specific rules and concepts that govern financial accounting practices (Wild, 2005).
d. The valuation technique(s) appropriate for the measurement, considering the availability of data with which to develop inputs that represent the assumptions that market participants would use in pricing the asset or liability and the level of the fair value
The Governmental Accounting Standards Board is a board that governs and monitors the progress of the standards and their drafting. It also resolves the issues that are relating to the accounting standards.
The Governmental Accounting Standards