Slide 9 chapter 01: Accounting in Business Explain generally accepted accounting principles and define and apply several accounting principles Knowledge Check 04 For each of the situations described, identify the accounting principle or assumption that best governs the situation and then indicate whether it was properly applied. Principles and Assumptions: Accounting Principles and Assumptions Proper Application: Simmons Company owned a tract of land that is listed for sale at S475,000, appraised by a local realtor as having a fair market value of $450,000, and assessed for property tax purposes at S400,000. After extensive negotiations with Hilo Company Simmons sold the land to Hilo for $425,000. The land is reported on Hilo's balance sheet at $425,000 elect Revenue recognition principle Time period assumption Measurement principle On December 15, 2014, Willard Law Firm received a retainer (or deposit) of $500 from a customer for services to be performed during January 2015. On January 5, 2015, Willard performed those services. Willard reported the related $500 of revenue in its financial statements for the year ending December 31, 2014 select select submit answer & continue Slide 9
Homework Answers
ANSWER:
Option: FASB
Reason: FINANCIAL ACCOUNTING STANDARD BOARD is the private sector organisation that establishes and improves the GENERALLY ACCEPTED ACCORDING PRINCIPLES in the United States.
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Slide 8 chapter 01: Accounting in Business Explain generally accepted accounting principles and d...
1. Name the assumptions underlying generally accepted accounting principles. Comment on the validity of the stable...
1. Name the assumptions underlying generally accepted accounting principles. Comment on the validity of the stable unit of measurement assumption during periods of high inflation. 2. Identify and discuss the underlying assumptions or concepts of accounting
Name the assumptions underlying generally accepted accounting principles. Comment on the validity of the stable unit...
Name the assumptions underlying generally accepted accounting principles. Comment on the validity of the stable unit of measurement assumption during periods of high inflation. Explain and provide examples.
Under generally accepted accounting principles, the assets owned by a business are reported in the balance...
Under generally accepted accounting principles, the assets owned by a business are reported in the balance sheet at their historical cost. Identify and briefly explain two accounting principles other than the cost principle that supports the valuation of assets at cost in the balance sheet.
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption...
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption with its description. ssumptions Descriptions Economic entitya. A common denominator is needed to measure all 2.BGoing concerrn 3. D Periodicity 4. A Monetary unit business activities. particular economic body. is anticipated that a business entity will continue b. Economic events can be identified with a c. In the absence of information to the contrary, it to operate indefinitely. d. The economic life of a...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles are a.standards that indicate how to report economie events. b. prineiples that have been proven correct by academie researchers e. theories that are based on physical laws of the universe. d. income tax regulations of the Internal Revenue Service. 2. The SEC and PAD Are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that a. the EC...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles,...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles, follows (This problem requires knowledge of present value calculations. Refer to Appendix A.) P3-8 The differences between present value, book value, and liquidation value Liabilities and Shareholders' Equity Assets Cash Short-term investments Land Buildings and machinery Total assets $ 8,000 20,000 80,000 16,000 $124,000 $10,000 Current liabilities 14,000Long-term liabilities 20,000 Common stock 80,000 Retained earnings $124,000 Total liabilities and shareholders' equity
12. If you had to explain or define "generally accepted accounting principles or standards," what essential...
12. If you had to explain or define "generally accepted accounting principles or standards," what essential char- acteristics would you include in your explanation? 13. In what ways was it felt that the pronouncements issued by the Financial Accounting Standards Board would carry greater weight than the opinions issued by the Accounting Principles Board? 14. How are FASB preliminary views and FASB exposure drafts related to FASB "statements"? 15. Distinguish between FASB Accounting Standards Updates and FASB Statements of Financial...
Slide / chapter 02: Accounting for Business Transactions Define debits and credits and explain double-entry accounting....
Slide / chapter 02: Accounting for Business Transactions Define debits and credits and explain double-entry accounting. Knowledge Check 02 Indicate how to increase and decrease each account listed below. Account Increase Decrease Common Stock select ✓ select Credit Debit Professional Fees Earned lect Uneared Revenue select select Salaries Expense • Select submit answer & continue Slide 7
Accrual Accounting and Income 100 APPLY YOUR KNOWLEDGE Serial Case LO 3.4 03-77 Learning Objectives 3,...
Accrual Accounting and Income 100 APPLY YOUR KNOWLEDGE Serial Case LO 3.4 03-77 Learning Objectives 3, 4: Analyse basic financial statement information) Note: This case is part of The Cheesecake Factory serial case contained in every chapter in this The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and uses U.S. Generally Accepted Accounting Principles (GAAP) to prepare its financial statements. Its fiscal year-end is the 52. 53week period ending on the Tuesday closest to December 31. In 2016, its...
For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business...
For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business is going to continue indefinitely. Based upon the dollar amount of cash paid or received, transactions are recorded. An accountant may ignore expense accounts with low dollar balances when deciding which expense accounts, they may want to increase spending on. Benefits of a new software system should be greater than the costs to implement the new software system. Business owners should keep their personal...
E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Match each business assumption with its description. ssumptions Descriptions Economic entitya. A common denominator is needed to measure all 2.BGoing concerrn 3. D Periodicity 4. A Monetary unit business activities. particular economic body. is anticipated that a business entity will continue b. Economic events can be identified with a c. In the absence of information to the contrary, it to operate indefinitely. d. The economic life of a...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles are a.standards that indicate how to report economie events. b. prineiples that have been proven correct by academie researchers e. theories that are based on physical laws of the universe. d. income tax regulations of the Internal Revenue Service. 2. The SEC and PAD Are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that a. the EC...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles, follows (This problem requires knowledge of present value calculations. Refer to Appendix A.) P3-8 The differences between present value, book value, and liquidation value Liabilities and Shareholders' Equity Assets Cash Short-term investments Land Buildings and machinery Total assets $ 8,000 20,000 80,000 16,000 $124,000 $10,000 Current liabilities 14,000Long-term liabilities 20,000 Common stock 80,000 Retained earnings $124,000 Total liabilities and shareholders' equity
12. If you had to explain or define "generally accepted accounting principles or standards," what essential char- acteristics would you include in your explanation? 13. In what ways was it felt that the pronouncements issued by the Financial Accounting Standards Board would carry greater weight than the opinions issued by the Accounting Principles Board? 14. How are FASB preliminary views and FASB exposure drafts related to FASB "statements"? 15. Distinguish between FASB Accounting Standards Updates and FASB Statements of Financial...
Slide / chapter 02: Accounting for Business Transactions Define debits and credits and explain double-entry accounting. Knowledge Check 02 Indicate how to increase and decrease each account listed below. Account Increase Decrease Common Stock select ✓ select Credit Debit Professional Fees Earned lect Uneared Revenue select select Salaries Expense • Select submit answer & continue Slide 7
Accrual Accounting and Income 100 APPLY YOUR KNOWLEDGE Serial Case LO 3.4 03-77 Learning Objectives 3, 4: Analyse basic financial statement information) Note: This case is part of The Cheesecake Factory serial case contained in every chapter in this The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and uses U.S. Generally Accepted Accounting Principles (GAAP) to prepare its financial statements. Its fiscal year-end is the 52. 53week period ending on the Tuesday closest to December 31. In 2016, its...
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