45 test bank for financial accounting in an economic context 9th

... Chapter 1: Financial Accounting and Its Economic Context The Role of Financial Reporting in Investment Decisions Profit-seeking companies - managers prepare reports for owners of the companies ... affect the company and its managers  Financial Reporting and Investment Decisions Content of Financial Reports   The Management Letter The Financial Statements: – – – –  Bala...

Ngày tải lên: 24/11/2016, 11:10

... issuance of notes, debt, sale of equity, etc – Payments on notes, debt, dividends, etc 13 Classifying Financing, Investing, and Operating Transactions Financing and Investing Transactions Operating ... Chapter The Financial Statements Business Activities  Business activities are reflected in financial statements; business activities include: – Operating activities – selling goods and...

Ngày tải lên: 24/11/2016, 11:10

... in the issue of a liability to purchase the asset) 12 Principles of Financial Accounting Measurement   When transactions occur, we must decide when to recognize the transactions in the financial ... objectivity and timeliness  Alternative accounting periods include the calendar or fiscal year  Going Concern The life of an economic entity is assumed to be indefinite  Asset...

Ngày tải lên: 24/11/2016, 11:11

... Chapter 4: The Mechanics of Financial Accounting Chapter 4: The Mechanics of Financial Accounting   The first step in the accounting process is transaction analysis This process examines ... The financial statements for Kelly Supply (next slides), and other examples in text, can be used as guidelines to prepare financial statements The financials should be prepared in...

Ngày tải lên: 24/11/2016, 11:11

... Chapter 5: Using Financial Statement Information Control and Prediction  Financial accounting numbers are useful in two fundamental ways: – They help investors and creditors influence and ... Within the Industry    Financial accounting numbers can also be made more meaningful if they are compared to those of similar companies Comparison of financial accounting numbers wi...

Ngày tải lên: 24/11/2016, 11:11

... to the Allowance account to achieve the “desired ending balance.” 27 Allowance for Doubtful Accts (T-account) Allowance for Doubtful Accts Beginning Balance The allowance established in the prior ... ending balance” in the allowance account is estimated using the percentage calculation or the aging schedule 30 Allowance for Doubtful Accts (T-account) Allowance for Doubtful Accts Beginning...

Ngày tải lên: 24/11/2016, 11:11

... would then increase the Gross profit to $421 ($1,277 $856) 13 E7-6 b Error in Ending Inventory in 2008: = The 2 007 error in the Ending Inventory changes the Beginning Inventory in 2008 and the Goods ... 12 E7-6 a Error in Ending Inventory in 2 007: The $50 understated error in the Ending inventory means that the Ending Inventory should have been $268 + $50 = $318 This would ch...

Ngày tải lên: 24/11/2016, 11:11

... Equity Investments 10 The Cost Method 11 E8-8 Mystic Lakes Food Company began investing in equity securities for the first time in 2011 During 2011, the company engaged in the following transactions ... controlling interest (more than 50 percent of the voting stock) in another company If the two companies continue as separate legal entities, the investor company is referred to as th...

Ngày tải lên: 24/11/2016, 11:11

... Straight-line – (3) Double-declining balance – (4) 150 percent declining balance – (5) Sum-of-the-years digits – (6) MACRS (income tax depreciation) – Under IFRS, depreciation accounting is very ... Maintenance?  Betterments: – Increase asset’s useful life – Improve quality of asset’s output – Increase quantity of asset’s output – Reduce asset’s operating costs  Maintenance – maintain ......

Ngày tải lên: 24/11/2016, 11:12

... regarding debt limits  Management – wants to minimize debt on the balance sheet – often looks for “off-balance sheet” financing – less debt now improves ability to borrow in the future Current ... bonuses 10 Incentive Compensation 11 Contingent Liabilities  Contingent on some future event or activity in order to know the exact amount Examples: warranties, coupons and lawsuits Changes i...

Ngày tải lên: 24/11/2016, 11:12

... costs Management has strong incentive to manage the balance sheet by using “off-balance-sheet financing” Basic Definitions and Different Contractual Forms Some contracts, called interest-bearing ... the company was offering an interest rate greater than the market rate, and investors were willing to pay more for the higher interest rate 19 Problem - Amortization Schedule To recognize inte...

Ngày tải lên: 24/11/2016, 11:12

... necessary for any remaining balance (this is only necessary when we are decreasing equity) 15 Retained Earnings We will be expanding the basic retained earnings formula in this chapter Now the ... issued and outstanding at January 1, 2007 The stock had been issued at an average market price of $5 per share, and there have been no treasury stock transactions to this point Assume that, i...

Ngày tải lên: 24/11/2016, 11:12

... Net Income Fair Market Value approach: FMV Net Assets (end) - FMV Net Assets (beginning) = Net Income Financing, Investing, and Operating Transactions: A Framework 10 Classifying Operating Transactions ... company uses a multi-step income statement; more relevant for companies that are primarily retail or manufacturing (less relevant for service industries) – Income from operations indicates...

Ngày tải lên: 24/11/2016, 11:12

... Financing Activities CF from financing activities explain the changes in cash from the issue or retirement of the company’s (primarily) long-term liabilities and equity  Examples of financing ... the gain from net income 20 Indirect Method Change in Related Assets and Liabilities   The third category examines the change in the assets and liabilities that relate to the remaining incom...

Ngày tải lên: 24/11/2016, 11:12

... SeaLine should report in its current financial statements Chapter 01 Intercorporate Acquisitions and Investments in Other Entities Answer Key Multiple Choice Questions 1-16 Chapter 01 - Intercorporate ... $227,000) Retained earnings balance = $105,000 1-34 Chapter 01 - Intercorporate Acquisitions and Investments in Other Entities AACSB: Analytic AICPA:...

Ngày tải lên: 23/11/2016, 09:52