GAAP is a set of rules and regulations which have been developed to ensure that companies keep all the financial statements and reports in line with the needs of the users. The GAAP ensures that the reports of the company are reliable and comparable and also easily understood by…
Double Entry system of accounting is a standard used to record all the transactions at least in two accounts. This results in the one or more accounts being debited as well as credited. This system of accounting is very effective as it permits more accuracy in checking and also permits more balanced accounts. This is mainly because all the accounts with a debit balance need to equal the credit balance of the accounts as well (Burke & Litwin).
The original monetary value of a good is referred to as the historical cost. This has been criticized for a number of inaccuracies. Historical costing does not take into account the gains or losses unless they have been realised. However use of historical costing is very helpful and provides the management with a better view of the fair value of the item or also the market value. This helps the management make more informed decisions and make more educated strategies as well. Although historical costs have been very helpful for the management, there are a number of criticisms that relate to the same as well. It has been noted that historical costs only considers the cost allocations and does not consider the value of the assets.
Accrual basis accounting is one where all the transactions, i.e. the incomes and expenses are recorded when the transactions occur. On the other hand, cash basis accounting refers to the transactions that are recorded when the income or expenditure is received or paid. There is no focus on the date of the transaction. However the accrual basis is one of the most popular systems of accounting and is followed by most companies and is also required to be followed by law. The accrual basis of accounting provides a clear picture of the financial state of the business.
Current assets and liabilities refer to the short terms assets and liabilities, i.e. those that need to be settled within one year. On the other hand, a non current asset or ...
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This paper is an attempt to review the status, objective and effects of the project. Intent of the Project The accounting standard followed by the companies is varied from one another. This creates problems for the stakeholders of the companies for making the decisions, sometimes the companies used to give the extra effort that they make the financial statements according to both the standards US GAAP and IFRS.
Provide support for your answer. 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. 3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment.
An income statement provides one with an accurate description of the company’s profitability over a set period of time. It could be described as an accounting statement that matches a company’s revenues with its expenses over a given period of time usually a quarter or a year.
For the purpose of such mergers or business combinations financial statements are required to studied and analyzed. Mergers may be accounted for under ‘pooling of interest method’ (wherein assets and liabilities of
Examples of assets accounts to be affected by this transaction include accounts receivables, inventories, cash or balance at bank, prepayments, land and building, plant and machinery, furniture and fixtures, goodwill etc.
b) Liabilities: Since acquiring company also acquires
The clientele of the organization are the firms operating in more or less every industry and services sectors, possessing the nature of both public as well as private enterprises (BioJerusalem, 2011). Kesselman & Kesselman is
The statements provide all the necessary details regarding the financial structure and position of a given entity. The financial statements of an entity usually include an income statement, balance sheet, cash flow statement and statement of ratio calculations. Firms may also prepare other types of statements such as the statement of retained earning.
e employees the renumerations of sale directors made other directors to fell there is need for an increase in line with the sales directors renumeration.The system is based on feelings. There is no balance of interests as the directors have varied renumerations opinions. The
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