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Some of the Slideshare Presentation were created by others. All are great and well worth looking at. I am Stephen Darori on Linkedin. My profile is a Power Profile that went to all Start Status......

Some of the Slideshare Presentation were created by others. All are great and well worth looking at. I am Stephen Darori on Linkedin. My profile is a Power Profile that went to all Start Status in less than 120 days and the techniques I have used are well worth studying.. If you think we have some Synergy Now of maybe in the Future, then do send me an invitation to connect. I will never refure a Linkedin Invitation.

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  • 1. Financial Accounting Homework Help 24/7 Support Step-by-Step Solutions Detailed Explanation LEARN TO EXCEL Experienced Tutors www.classof1.com/homework-help/accounting Toll Free: 1-877-252-7763
  • 2. Sub: Financial Accounting Topic: Accrual Accounting Accrual Basis of Accounting Accrual accounting records the effect of a business transaction as it occurs. When the business performs a service, makes a sale, or incurs an expense, the accountant records the transaction even if it receives or pays no cash. Net income from this activity equals the amount of cash received from customers minus the amount of cash paid for raw materials, labor, and the services of production facilities. If the entire operating cycle occurred in one accounting period, few difficulties would arise in measuring operating performance. Net income would equal cash inflows minus cash outflows related to these operating activities. However, firms acquire raw materials in one accounting period and use them in several future accounting periods. They acquire buildings and equipment in one accounting period and use them during many future accounting periods. Firms commonly sell goods or services in an earlier period than the one in which customers pay. Firms often consume resources or incur obligations in one accounting period and pay for those resources or settle those obligations in subsequent periods. Under a cash basis of accounting, a firm recognizes revenue when it receives cash from customers and recognizes expenses when it pays cash to suppliers, employees, and other providers of goods and services. Because a firm’s operating cycle usually extends over several accounting periods, the cash basis of accounting provides a poor measure of economic performance for specific periods of time because it provides a poor matching of resources earned (revenues) with resources used (expenses). To overcome this deficiency of the cash basis, both U.S. GAAP and IFRS (International Financial Reporting Standards) require that firms use the accrual basis of accounting in measuring performance. Under the accrual basis of accounting, a firm recognizes revenue when it meets the following two criteria: It has completed all (or substantially all) of the revenue-generating process by delivering products or services to customers. http://classof1.com/homework-help/accounting-homeworkhelp/?utm_source=SlideShare&utm_medium=RA_ebook&utm_term= *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. financialaccounting&utm_content=footer&utm_campaign=%5BDoc%2BUplo
  • 3. Sub: Financial Accounting Topic: Accrual Accounting It is reasonably certain it has satisfied a liability or generated an asset that it can measure reliably. Most firms recognize revenue during the period in which they sell goods or render services. For example, Consider the accrual basis of accounting applied to a manufacturing firm. The cost of manufacturing a product remains on the balance sheet as an asset (inventory) until the time of sale. At the time of sale, the firm recognizes revenue in the amount of cash it expects to collect. It recognizes the cost of manufacturing the product as a cost of the goods sold. Most costs cannot be matched to particular revenues because they are costs of operating the business for a particular period of time (for example, the salary of the chief executive officer and rent on corporate offices.). Therefore, the firm recognizes such costs as expenses on the income statement in the period in which it consumes those resources. http://classof1.com/homework-help/accounting-homeworkhelp/?utm_source=SlideShare&utm_medium=RA_ebook&utm_term= *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. financialaccounting&utm_content=footer&utm_campaign=%5BDoc%2BUplo
  • 4. Sub: Financial Accounting Topic: Accrual Accounting For more details on Classof1 or customized academic assistance please feel free to write to us at learning@classof1.com or call our toll-free number 1- 877- 252- 7763. The list of subject areas in which we offer academic assistance is as given below: 1 Accounting 23 Engineering 45 Mass Communication 2 Actuarial Science 24 English 46 Materials Engineering 3 Anatomy 25 Environmental Engineering 47 Math 4 Anthropology 26 Environmental Science 48 Mechanical Engineering 5 Architecture 27 Essay Writing 49 Medical Science 6 Astronomy 28 Finance 50 Micro Economics 7 Biochemical Engineering 29 Financial Accounting 51 Nursing 8 Biochemistry 30 General Studies 52 Operations Management 9 Biology 31 Geography 53 Philosophy 10 Business Law 32 Geology 54 Physics 11 Business Management 33 HBS Case Studies 55 Physiology 12 Chemical Engineering 34 History 56 Political Science 13 Chemistry 35 Hospitality Management 57 Psychology 14 Civil Engineering 36 Human Resource Management 58 Religious Studies 15 Classical Studies 37 Information Systems 59 Rhetoric 16 Computer Science 38 International Economics 60 Social Studies 17 Corporate Finance 39 International Finance 61 Social Work 18 Corporate Strategy 40 Investment Portfolio Management 62 Sociology 19 Cost Accounting 41 MS-Office 63 Statistics 20 Earth Science 42 Macro Economics 64 Taxation 21 Economics 43 Management Accounting 65 Zoology 22 Electrical Engineering 44 Marketing http://classof1.com/homework-help/accounting-homeworkhelp/?utm_source=SlideShare&utm_medium=RA_ebook&utm_term= *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. financialaccounting&utm_content=footer&utm_campaign=%5BDoc%2BUplo