An example of accrual basis accounting would be recording a sale as soon as an invoice is issued, while a cash basis would wait to record the sale once it is paid. Also, an accrual basis company will document an expense as received, while a cash basis company would only record once the supplier has been paid. Time frame is the major difference in cash basis versus accrual basis accounting. Cash is recorded as it happens and accrual is over a period of…
7. There is no formal process in place to identify a legislative fee change for a credential fee. An update to the Master Fee Table could either not be identified, or be identified and communicated to the wrong department, causing a fee change to not be updated. There should be a clear understanding of how this process works in the Credentials Department when updating the Master Fee Table. This process should be well-communicated so that all other departments that could potentially be involved in updating fees for this area are aware of their responsibilities.…
The statement of cash flow shows the changes in the revenue stream over a recorded period of time. Conclusion Each of these will be able to give the business a clear picture of their incoming revenue stream and give them the ability to use it to make educated decision on their future endeavors. It is important to track this information so the company knows what is working well and what needs improvement giving them more information to able to formulate clear plans with…
In the present day of 2017, Americans no longer have the time for simple inconveniences. At the swipe of a card, purchases can be made in as…
1. The information presented in this case study of the city’s financial statement in the MD&A appear to meet GASB standards. • The Government-wide Financial Statement presented meets the requirement of listing both the statement of net position and statement of net activities. • The MD&A represents the use of the economic resource measurement focus as well as the accrual basis of accounting. • The two types of activities, governmental and business are reported in separate columns as they should be in order to meet GASB standards.…
In our world today, money is seen to be something that is needed to be successful or happy in life. People with less money tend to look up to those with more money in that way. In the short story, "Why, You Reckon?" Langston Hughes uses a colored man's point of view in a pre-Civil Rights Movement Era to show that even if someone has money, it doesn't mean they have a happy life. Money is the center of anything and everything today.…
Yifan Zhu Instructor: Professor Paul Sheldon Foote ACCT 302 SAP writing assignment May 1, 2017 Account payable records accounting data in a firm for all the vendors. It is a necessary portion of the purchasing system. All the deliveries and invoice information are provided and managed based on the vendor’s data.…
At the Marion County Historical Society museum, various historical items from Marion County were in the museum. Students saw various items from looms, President Harding artifacts, and even popcorn machines. Each student picked an object from the museums to do research on. I chose a 1940’s era Nation Cash Register used at the local jewelry store in town. After doing some research this cash register showed a few social traits including why this register is different from others and showed that this item was common.…
1. Looking at the bank’s balance sheet (report B01), what is your assessment of its overall situation? Do you observe any trends that appear especially favorable or unfavorable? The bank’s balance sheet shows trends that are both favorable and unfavorable.…
Question 1: A. In evaluating a company should an investor rely more on accounting profits or cash flow An investor should give his or her decisions basing on a statement of cash flows because: The greatest difference between profits and cash flows is that profits data use accrual accounting, while cash flows base on real figures. Precisely, profit data will be recorded in the current period regardless of a company received money or not. Meanwhile, the other expenses such as wages, interest and rents must be paid by cash.…
Oct. 1 Pete Hanshew begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided. 27 Pays $700 on the balance related to the transaction of October 3.…
Concepts of CVP (Cost Behaviour Analysis?) Contribution Margin Contribution margin (CM) is a cost accounting concept that allows a company to determine the profitability of individual products (Investopedia, 2015). In short, it is equivalent to the revenue less the total variable cost (Horngren, Datar, & Rajan). The CM per unit measures the amount of each unit sold contributes to cover fixed costs and increasing profit and also considers what happens when sales and production increase by one unit. The firm benefits from revenue equal to the selling price, but it also incurs increased costs equal to the variable cost per unit.…
The article that I have looked upon is on the topic of Strategic management accounting (SMA). It is an interesting article that provides an in-depth insight to the current state of SMA by focusing on its techniques, processes and future research directions. The author has provided academic references throughout the journal to support her ideas. In the introduction, the author links the widely published criticisms of management accounting practise during the 1980s and 1990s as being the reason for the surge of interest gained by SMA as it assigns strategic role for management accounting.…
1. Variable costs will vary in direct proportion to changes in the level of an activity (1. Walther & Skousen, Managerial and Cost Accounting, 2009, 37). In other words this cost can’t be the same in all periods of time. It can be for example electricity bill for company’s office or fuel for the truck in the warehouse.…
Financial reporting communicates what a company’s financial and operational condition is at any specific time. To make the reporting clear and concise, the Financial Accounting Standards Board (FASB) created the Generally Accepted Accounting Principles (GAAP) which is a set of standards that includes a set of codes that provide structure and organization. (Spiceland, Sepe, & Nelson, 2013, pg. 10) Similarly, international countries have created their own set of accounting standards. However, in the past few decades, the United States and other countries have been getting into business with each other.…