The document discusses the audit of the sales and collection cycle. It identifies key accounts, transactions, documents, and business functions in the cycle. It also describes the methodology for understanding internal controls, assessing control risk, and designing tests of controls and substantive tests of transactions for sales, cash receipts, returns and allowances, and write-offs. The effect of e-commerce and results of cycle testing are also addressed.
The document discusses the audit of the sales and collection cycle. It describes the key accounts and transactions in the cycle, including sales, accounts receivable, cash, and bad debt expense. It outlines the internal controls, documents, and business functions related to sales, cash receipts, returns and allowances, and write-offs. The document also discusses assessing control risk, designing tests of controls and substantive tests for these transactions, and how the results of testing can affect accounts in the financial statements.
Audit of the acquisition and payment cyclesellyhood
The document discusses the acquisition and payment cycle. It covers the key accounts and transactions in the cycle including acquisitions of goods and services, cash disbursements, and purchase returns and allowances. The document also describes the related business functions like processing purchase orders and cash disbursements. It discusses how e-commerce has impacted the cycle through electronic data interchange and business-to-business transactions over the internet. Finally, it outlines the audit procedures for the cycle including understanding internal controls, assessing risks, and designing tests of transactions and account balances like accounts payable.
This document discusses the audit of the sales and collection cycle. It describes the key accounts and transactions in the cycle, including sales, accounts receivable, cash, bad debt expense, and related allowance accounts. It provides details on tests of controls and substantive tests that can be used to audit each transaction and account, with the overall goal of obtaining sufficient appropriate audit evidence.
Chapter 14 Audit of the Sales and Collection Cycle.pptRikoshiJaeger
This document discusses auditing the sales and collection cycle. It covers the key accounts and transactions in the cycle, including sales, accounts receivable, cash receipts, returns and allowances, bad debts. The business functions like order processing, credit approval, billing, and cash receipt recording are described. Documentation used in the cycle like sales orders, invoices, and receipts are identified. The methodology for understanding controls, assessing control risk, and designing tests of controls and substantive transactions tests is presented. E-commerce impacts and testing approaches are also discussed.
Completing the tests in the sales and collection cycle accounts receivablesellyhood
This document discusses audit procedures for testing accounts receivable balances. It describes identifying risks and assessing inherent and control risks. Tests of controls and substantive tests are designed for the sales and collection cycle. Analytical procedures and tests of details are used to test the accounts receivable balance, including confirmations, subsequent cash receipts testing, and alternative procedures. The results are evaluated to conclude if sufficient evidence was obtained.
The document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions like hiring, timekeeping, payroll preparation, payment, and tax filings. It outlines the objectives of understanding internal controls, assessing risks, and designing tests of controls and substantive procedures to audit the payroll accounts and transactions.
The document discusses auditing the payroll and personnel cycle. It identifies key accounts in the cycle including accrued wages, cash, withheld taxes, accrued payroll tax expense, and their transactions. Business functions like hiring, timekeeping, payroll preparation, payment and tax filings are described. The audit process includes understanding controls, assessing risks, designing tests of controls and balances. Analytical procedures to identify misstatements are outlined. Tests of details are designed for liability and expense account balances cut-off and accuracy.
The document discusses the audit of the sales and collection cycle. It describes the key accounts and transactions in the cycle, including sales, accounts receivable, cash, and bad debt expense. It outlines the internal controls, documents, and business functions related to sales, cash receipts, returns and allowances, and write-offs. The document also discusses assessing control risk, designing tests of controls and substantive tests for these transactions, and how the results of testing can affect accounts in the financial statements.
Audit of the acquisition and payment cyclesellyhood
The document discusses the acquisition and payment cycle. It covers the key accounts and transactions in the cycle including acquisitions of goods and services, cash disbursements, and purchase returns and allowances. The document also describes the related business functions like processing purchase orders and cash disbursements. It discusses how e-commerce has impacted the cycle through electronic data interchange and business-to-business transactions over the internet. Finally, it outlines the audit procedures for the cycle including understanding internal controls, assessing risks, and designing tests of transactions and account balances like accounts payable.
This document discusses the audit of the sales and collection cycle. It describes the key accounts and transactions in the cycle, including sales, accounts receivable, cash, bad debt expense, and related allowance accounts. It provides details on tests of controls and substantive tests that can be used to audit each transaction and account, with the overall goal of obtaining sufficient appropriate audit evidence.
Chapter 14 Audit of the Sales and Collection Cycle.pptRikoshiJaeger
This document discusses auditing the sales and collection cycle. It covers the key accounts and transactions in the cycle, including sales, accounts receivable, cash receipts, returns and allowances, bad debts. The business functions like order processing, credit approval, billing, and cash receipt recording are described. Documentation used in the cycle like sales orders, invoices, and receipts are identified. The methodology for understanding controls, assessing control risk, and designing tests of controls and substantive transactions tests is presented. E-commerce impacts and testing approaches are also discussed.
Completing the tests in the sales and collection cycle accounts receivablesellyhood
This document discusses audit procedures for testing accounts receivable balances. It describes identifying risks and assessing inherent and control risks. Tests of controls and substantive tests are designed for the sales and collection cycle. Analytical procedures and tests of details are used to test the accounts receivable balance, including confirmations, subsequent cash receipts testing, and alternative procedures. The results are evaluated to conclude if sufficient evidence was obtained.
The document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions like hiring, timekeeping, payroll preparation, payment, and tax filings. It outlines the objectives of understanding internal controls, assessing risks, and designing tests of controls and substantive procedures to audit the payroll accounts and transactions.
The document discusses auditing the payroll and personnel cycle. It identifies key accounts in the cycle including accrued wages, cash, withheld taxes, accrued payroll tax expense, and their transactions. Business functions like hiring, timekeeping, payroll preparation, payment and tax filings are described. The audit process includes understanding controls, assessing risks, designing tests of controls and balances. Analytical procedures to identify misstatements are outlined. Tests of details are designed for liability and expense account balances cut-off and accuracy.
This document provides an overview of the revenue cycle process for a company called Alpha Omega Electronics. It describes the four main activities in the revenue cycle as sales order entry, shipping, billing and accounts receivable, and cash collections. For each activity, it outlines the basic business processes, key decisions that must be made, and important information needs. The overall purpose is to explain the revenue cycle and how an accounting information system can provide operational data to support decision-making across these important business functions.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
This document discusses the revenue cycle of a company. It describes the four main activities in the revenue cycle as sales order entry, shipping, billing/accounts receivable, and cash collections. For each activity, it identifies key decisions that must be made and information needed. It also discusses threats in each part of the revenue cycle and examples of control procedures to address those threats. The overall purpose is to explain the revenue cycle process and need for internal controls.
This document discusses various types of assurance and attestation engagements that accountants can perform beyond the traditional audit. It describes review and compilation services, which involve compiling or reviewing financial statements but providing varying levels of assurance (none for compilation, limited for review). It also covers interim reviews for public companies, attestation standards, WebTrust and SysTrust services assessing online trust principles, engagements on prospective financial statements, agreed-upon procedures, and other assurance services like compilations using other bases of accounting or auditing specific elements of financial statements. The level of evidence required and assurance provided differs across these engagements.
This document provides an overview of accounting concepts and practices for small businesses. It discusses the importance of accounting, basic accounting concepts like the accounting equation and financial statements, setting up an accounting system, budgeting, and using managerial accounting techniques for planning and control. The key types of accounting are described as financial, managerial, and tax accounting. Financial statements like the income statement, balance sheet, and cash flow statement are also summarized.
The document provides information about accounting fundamentals and Tally 9 accounting software. It discusses key accounting concepts like journal entries, ledger accounts, trial balance and financial statements. It also summarizes the features and benefits of Tally 9 such as speed, real-time access to information, accurate reporting and better decision making. Tally 9 allows users to create companies, alter company information, delete companies and consolidate financial reports of multiple companies into a group.
The document discusses the objectives of conducting an audit of financial statements and internal controls. It explains that the purpose of an audit is for an auditor to provide an opinion on whether a company's financial statements are fairly presented. It also distinguishes management's responsibility for preparing financial statements and internal controls from an auditor's responsibility to verify the statements and internal controls. The auditor is responsible for obtaining reasonable assurance that financial statements are free of material misstatements but not absolute assurance.
Audit of the Payroll and Personnel Cycle _ Accounting & AudtingCarl Hebeler
This document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions, documents, and internal controls. It provides guidance on assessing risks, testing controls, and performing substantive tests of transactions and account balances. These include analytical procedures to identify potential misstatements, as well as detailed tests of liability and expense accounts to ensure accurate cutoff and balances. The overall goal is to obtain sufficient evidence that payroll and personnel accounts are fairly stated in accordance with GAAP.
Topic 8 audit of revenue & receipts cycle + acc receivable (1)sakura rena
This document discusses the audit of the revenue and receivables cycle. It covers the key accounts, classes of transactions, business functions, documents, internal controls, and substantive audit procedures for accounts receivable. The accounts receivable audit procedures aim to verify that receivables are complete, accurate, properly classified, recorded in the correct period, stated at their realizable value, and that presentation and disclosures conform to GAAP requirements. Tests of details for receivables include confirmation with customers, footing trial balances, testing supporting documentation for transactions, and evaluating allowance for doubtful accounts.
The document discusses the importance of financial planning, budgeting, and financial record keeping for businesses. It covers developing budgets to forecast revenue, expenses, and profitability. Maintaining accurate financial records and statements like balance sheets and income statements is also discussed. Financial ratios can be used to analyze a business's financial performance and guide decision making. Preparing budgets, reviewing financial data, and making adjustments based on actual performance are key steps in the financial planning process.
- CPA firms provide auditing and other services like tax and consulting. They range in size from large international "Big Four" firms to small local firms.
- The Sarbanes-Oxley Act created the PCAOB to oversee audits of public companies and tightened regulations in response to accounting scandals. It aims to improve the reliability of corporate financial reporting.
- The SEC requires public companies to file forms like S-1, 8-K, 10-K and 10-Q to provide investors with financial and other important information.
- The AICPA establishes standards and rules that all CPAs must follow. It also supports research, writes the CPA exam, and provides education and publications
This document provides definitions and examples of key accounting terms. It defines real accounts as accounts for assets and liabilities like furniture, land, and machinery accounts. Nominal accounts record incomes and expenses like salary, commission, and telephone expenses accounts. Personal accounts debit the receiver and credit the giver. Real accounts debit what comes in and credit what goes out, while nominal accounts debit expenses and losses and credit incomes and revenues.
The document discusses various types of assurance services provided by accountants, including reviews, compilations, attestation engagements, and reporting on internal controls at service organizations. It covers the key standards and levels of assurance involved in review and compilation engagements. It also distinguishes attestation standards from auditing standards, describing engagements like WebTrust and SysTrust that are governed by attestation standards. Finally, it discusses service organization control reports, which were formerly known as SAS 70 reports, for reporting on the design and operating effectiveness of controls at service organizations.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
This document discusses the audit of accounts receivable. It begins by outlining the key accounts, classes of transactions, business functions, and documents related to the revenue and receipts cycle. It then describes major internal controls such as separation of duties, authorization procedures, documentation standards, and verification processes. Finally, it lists the substantive audit procedures for testing accounts receivable, including confirmation of balances, testing accuracy and cutoff, evaluating reserves, and ensuring proper presentation and disclosures.
This document provides an overview of accounting basics including:
1. Accounting involves identifying, recording, summarizing and reporting economic information to decision makers through financial statements. The key financial statements are the balance sheet and profit and loss statement.
2. Accounting follows double-entry bookkeeping where every transaction has two equal and offsetting entries - a debit and a credit. This allows for the preparation of trial balances to check accuracy.
3. Key accounting concepts include revenue recognition, matching revenues and expenses, accrual accounting and the going concern assumption. Accounting also follows principles like money measurement and accounting periods.
The document outlines a 9-point exit strategy plan for selling a business that includes gathering business documents, determining an asking price through financial analysis and market research, marketing the business for sale, managing buyer inquiries, facilitating negotiations between buyers and sellers, and finalizing the sale transaction through due diligence and closing. The plan describes each step in the process from initial meetings to learn about the business to conducting the final closing.
98C H A P T E R3 Measuring Business IncomeI ncome, o.docxevonnehoggarth79783
98
C H A P T E R
3 Measuring Business Income
I ncome, or earnings, is the most important measure of a com-pany’s success or failure. Thus, the incentive to manage, or mis-
state, earnings by manipulating the numbers can be powerful, and
because earnings are based on estimates, manipulation can be easy.
For these reasons, ethical behavior is extremely important when
measuring business income.
L E A R N I N G O B J E C T I V E S
LO1 Define net income, and explain the assumptions underlying
income measurement and their ethical application. (pp. 100–104)
LO2 Define accrual accounting, and explain how it is
accomplished. (pp. 104–106)
LO3 Identify four situations that require adjusting entries, and
illustrate typical adjusting entries. (pp. 107–116)
LO4 Prepare financial statements from an adjusted trial
balance. (pp. 116–119)
LO5 Use accrual-based information to analyze cash flows.
(pp. 119–120)
Making a
Statement
Revenues
– Expenses
= Net Income
INCOME STATEMENT
STATEMENT OF
OWNER’S EQUITY
Beginning Balance
+ Net Income
– Withdrawals
= Ending Balance
BALANCE SHEET
Assets Liabilities
Owner’s
Equity
A = L + OE
STATEMENT OF CASH FLOWS
= Ending Cash Balance
Operating activities
+ Investing activities
+ Financing activities
= Change in Cash
+ Beginning Balance
Adjusting entries affect the
balance sheet and income
statement but not the
statement of cash flows.
# 103261 Cust: CENGAGE Au: Needles Pg. No. 98
Title: Principles of Accounting Server: Jobs
C/M/Y/K
Short / Normal / Long
DESIGN SERVICES OF
S4CARLISLE
Publishing Services
37744_03_ch03_p098-141.indd 9837744_03_ch03_p098-141.indd 98 12/4/09 11:51:01 AM12/4/09 11:51:01 AM
Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
99
� What assumptions must Reliable
Answering Service make to
account for transactions that
span accounting periods?
� How does Reliable assign its
revenues and expenses to the
proper accounting period so
that net income is properly
measured?
� Why are the adjustments that
these transactions require
important to Reliable’s financial
performance?
DECISION POINT � A USER’S FOCUS
RELIABLE ANSWERING
SERVICE
99
Reliable Answering Service takes telephone messages for doctors,
lawyers, and other professionals and relays them immediately when
they involve an emergency. At the end of any accounting period,
Reliable has many transactions that will affect future periods. Exam-
ples appear in the company’s trial balance on the following page.
They include office supplies and prepaid expenses, which, though paid
in the period just ended, will benefit future periods and are there-
fore recorded as assets. Another example is unearned revenue, which
represents receipts for services the company will not perform and
earn until a future period. If.
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
This document provides an overview of the revenue cycle process for a company called Alpha Omega Electronics. It describes the four main activities in the revenue cycle as sales order entry, shipping, billing and accounts receivable, and cash collections. For each activity, it outlines the basic business processes, key decisions that must be made, and important information needs. The overall purpose is to explain the revenue cycle and how an accounting information system can provide operational data to support decision-making across these important business functions.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
This document discusses the revenue cycle of a company. It describes the four main activities in the revenue cycle as sales order entry, shipping, billing/accounts receivable, and cash collections. For each activity, it identifies key decisions that must be made and information needed. It also discusses threats in each part of the revenue cycle and examples of control procedures to address those threats. The overall purpose is to explain the revenue cycle process and need for internal controls.
This document discusses various types of assurance and attestation engagements that accountants can perform beyond the traditional audit. It describes review and compilation services, which involve compiling or reviewing financial statements but providing varying levels of assurance (none for compilation, limited for review). It also covers interim reviews for public companies, attestation standards, WebTrust and SysTrust services assessing online trust principles, engagements on prospective financial statements, agreed-upon procedures, and other assurance services like compilations using other bases of accounting or auditing specific elements of financial statements. The level of evidence required and assurance provided differs across these engagements.
This document provides an overview of accounting concepts and practices for small businesses. It discusses the importance of accounting, basic accounting concepts like the accounting equation and financial statements, setting up an accounting system, budgeting, and using managerial accounting techniques for planning and control. The key types of accounting are described as financial, managerial, and tax accounting. Financial statements like the income statement, balance sheet, and cash flow statement are also summarized.
The document provides information about accounting fundamentals and Tally 9 accounting software. It discusses key accounting concepts like journal entries, ledger accounts, trial balance and financial statements. It also summarizes the features and benefits of Tally 9 such as speed, real-time access to information, accurate reporting and better decision making. Tally 9 allows users to create companies, alter company information, delete companies and consolidate financial reports of multiple companies into a group.
The document discusses the objectives of conducting an audit of financial statements and internal controls. It explains that the purpose of an audit is for an auditor to provide an opinion on whether a company's financial statements are fairly presented. It also distinguishes management's responsibility for preparing financial statements and internal controls from an auditor's responsibility to verify the statements and internal controls. The auditor is responsible for obtaining reasonable assurance that financial statements are free of material misstatements but not absolute assurance.
Audit of the Payroll and Personnel Cycle _ Accounting & AudtingCarl Hebeler
This document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions, documents, and internal controls. It provides guidance on assessing risks, testing controls, and performing substantive tests of transactions and account balances. These include analytical procedures to identify potential misstatements, as well as detailed tests of liability and expense accounts to ensure accurate cutoff and balances. The overall goal is to obtain sufficient evidence that payroll and personnel accounts are fairly stated in accordance with GAAP.
Topic 8 audit of revenue & receipts cycle + acc receivable (1)sakura rena
This document discusses the audit of the revenue and receivables cycle. It covers the key accounts, classes of transactions, business functions, documents, internal controls, and substantive audit procedures for accounts receivable. The accounts receivable audit procedures aim to verify that receivables are complete, accurate, properly classified, recorded in the correct period, stated at their realizable value, and that presentation and disclosures conform to GAAP requirements. Tests of details for receivables include confirmation with customers, footing trial balances, testing supporting documentation for transactions, and evaluating allowance for doubtful accounts.
The document discusses the importance of financial planning, budgeting, and financial record keeping for businesses. It covers developing budgets to forecast revenue, expenses, and profitability. Maintaining accurate financial records and statements like balance sheets and income statements is also discussed. Financial ratios can be used to analyze a business's financial performance and guide decision making. Preparing budgets, reviewing financial data, and making adjustments based on actual performance are key steps in the financial planning process.
- CPA firms provide auditing and other services like tax and consulting. They range in size from large international "Big Four" firms to small local firms.
- The Sarbanes-Oxley Act created the PCAOB to oversee audits of public companies and tightened regulations in response to accounting scandals. It aims to improve the reliability of corporate financial reporting.
- The SEC requires public companies to file forms like S-1, 8-K, 10-K and 10-Q to provide investors with financial and other important information.
- The AICPA establishes standards and rules that all CPAs must follow. It also supports research, writes the CPA exam, and provides education and publications
This document provides definitions and examples of key accounting terms. It defines real accounts as accounts for assets and liabilities like furniture, land, and machinery accounts. Nominal accounts record incomes and expenses like salary, commission, and telephone expenses accounts. Personal accounts debit the receiver and credit the giver. Real accounts debit what comes in and credit what goes out, while nominal accounts debit expenses and losses and credit incomes and revenues.
The document discusses various types of assurance services provided by accountants, including reviews, compilations, attestation engagements, and reporting on internal controls at service organizations. It covers the key standards and levels of assurance involved in review and compilation engagements. It also distinguishes attestation standards from auditing standards, describing engagements like WebTrust and SysTrust that are governed by attestation standards. Finally, it discusses service organization control reports, which were formerly known as SAS 70 reports, for reporting on the design and operating effectiveness of controls at service organizations.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
This document discusses the audit of accounts receivable. It begins by outlining the key accounts, classes of transactions, business functions, and documents related to the revenue and receipts cycle. It then describes major internal controls such as separation of duties, authorization procedures, documentation standards, and verification processes. Finally, it lists the substantive audit procedures for testing accounts receivable, including confirmation of balances, testing accuracy and cutoff, evaluating reserves, and ensuring proper presentation and disclosures.
This document provides an overview of accounting basics including:
1. Accounting involves identifying, recording, summarizing and reporting economic information to decision makers through financial statements. The key financial statements are the balance sheet and profit and loss statement.
2. Accounting follows double-entry bookkeeping where every transaction has two equal and offsetting entries - a debit and a credit. This allows for the preparation of trial balances to check accuracy.
3. Key accounting concepts include revenue recognition, matching revenues and expenses, accrual accounting and the going concern assumption. Accounting also follows principles like money measurement and accounting periods.
The document outlines a 9-point exit strategy plan for selling a business that includes gathering business documents, determining an asking price through financial analysis and market research, marketing the business for sale, managing buyer inquiries, facilitating negotiations between buyers and sellers, and finalizing the sale transaction through due diligence and closing. The plan describes each step in the process from initial meetings to learn about the business to conducting the final closing.
98C H A P T E R3 Measuring Business IncomeI ncome, o.docxevonnehoggarth79783
98
C H A P T E R
3 Measuring Business Income
I ncome, or earnings, is the most important measure of a com-pany’s success or failure. Thus, the incentive to manage, or mis-
state, earnings by manipulating the numbers can be powerful, and
because earnings are based on estimates, manipulation can be easy.
For these reasons, ethical behavior is extremely important when
measuring business income.
L E A R N I N G O B J E C T I V E S
LO1 Define net income, and explain the assumptions underlying
income measurement and their ethical application. (pp. 100–104)
LO2 Define accrual accounting, and explain how it is
accomplished. (pp. 104–106)
LO3 Identify four situations that require adjusting entries, and
illustrate typical adjusting entries. (pp. 107–116)
LO4 Prepare financial statements from an adjusted trial
balance. (pp. 116–119)
LO5 Use accrual-based information to analyze cash flows.
(pp. 119–120)
Making a
Statement
Revenues
– Expenses
= Net Income
INCOME STATEMENT
STATEMENT OF
OWNER’S EQUITY
Beginning Balance
+ Net Income
– Withdrawals
= Ending Balance
BALANCE SHEET
Assets Liabilities
Owner’s
Equity
A = L + OE
STATEMENT OF CASH FLOWS
= Ending Cash Balance
Operating activities
+ Investing activities
+ Financing activities
= Change in Cash
+ Beginning Balance
Adjusting entries affect the
balance sheet and income
statement but not the
statement of cash flows.
# 103261 Cust: CENGAGE Au: Needles Pg. No. 98
Title: Principles of Accounting Server: Jobs
C/M/Y/K
Short / Normal / Long
DESIGN SERVICES OF
S4CARLISLE
Publishing Services
37744_03_ch03_p098-141.indd 9837744_03_ch03_p098-141.indd 98 12/4/09 11:51:01 AM12/4/09 11:51:01 AM
Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
99
� What assumptions must Reliable
Answering Service make to
account for transactions that
span accounting periods?
� How does Reliable assign its
revenues and expenses to the
proper accounting period so
that net income is properly
measured?
� Why are the adjustments that
these transactions require
important to Reliable’s financial
performance?
DECISION POINT � A USER’S FOCUS
RELIABLE ANSWERING
SERVICE
99
Reliable Answering Service takes telephone messages for doctors,
lawyers, and other professionals and relays them immediately when
they involve an emergency. At the end of any accounting period,
Reliable has many transactions that will affect future periods. Exam-
ples appear in the company’s trial balance on the following page.
They include office supplies and prepaid expenses, which, though paid
in the period just ended, will benefit future periods and are there-
fore recorded as assets. Another example is unearned revenue, which
represents receipts for services the company will not perform and
earn until a future period. If.
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
The document discusses factors that influence the development of international accounting standards and practices. It identifies 8 key factors: sources of finance, legal systems, political/economic ties between countries, inflation levels, taxation, economic development, education levels, and culture. Accounting systems vary between countries based on differences in these underlying developmental factors. Understanding how the factors shape accounting in different environments helps explain diversity and similarities between nations' accounting standards and practices.
This document provides an overview of logistics management. It defines logistics as the management of the flow of goods, resources, and information from the point of origin to the destination. The goal of logistics management is to ensure the efficient delivery of the right product, at the right cost, quantity, quality, place and time to customers. It discusses the key components of logistics including transportation, inventory planning, warehousing, and packaging. It also outlines the objectives and major functions of logistics management such as transportation management, warehouse management, and inventory management.
This document discusses two techniques for business decision making: cost-benefit analysis and SWOT analysis.
Cost-benefit analysis involves comparing the estimated costs and benefits of different project options to determine which makes the most business sense. The goal is to maximize total net profit.
SWOT analysis examines the strengths, weaknesses, opportunities, and threats of a business or project. It helps identify internal strengths and weaknesses as well as external opportunities and threats. Managers use SWOT analysis to guide strategic planning and evaluate major changes.
The document provides guidance on properly conducting a SWOT analysis, including examples of questions to consider for each component. It also outlines how to analyze and apply the results of a SWOT analysis to identify
This chapter discusses the consolidation of financial information for business combinations. It explains that consolidated financial statements combine the financial data of a parent company and its subsidiaries. The chapter outlines the acquisition method for accounting for business combinations, where one company obtains control of another. Under this method, the consideration transferred is allocated to identifiable assets acquired and liabilities assumed based on their fair values. Goodwill arises when the consideration exceeds the fair values. The chapter also discusses how pre-existing goodwill and in-process R&D are treated under the acquisition method.
This document provides an overview of different types of charts and graphs that can be used to visualize data, including histograms, frequency polygons, ogives, pie charts, stem and leaf plots, Pareto charts, and scatter plots. It discusses the key concepts of grouped versus ungrouped data, constructing frequency distributions, calculating relative and cumulative frequencies, and provides examples of how to build each type of chart using sample data sets.
This document outlines professional standards that CPAs must follow when conducting audits and attestation engagements. It discusses the types of practice standards that govern work for different entities. Generally Accepted Auditing Standards (GAAS) are described in detail, including the general standards, standards of fieldwork, evidence considerations, and reporting standards. The document also discusses attestation standards, quality control standards for CPA firms, and the role of the Public Company Accounting Oversight Board in standard-setting and oversight of audits of public companies.
Forensic accounting refers to accounting work performed for legal purposes, such as investigating potential fraud. Forensic accountants use auditing techniques as well as investigative skills to conduct detailed analyses of financial records to detect issues like embezzlement, insurance fraud, or tax evasion. Their work is often used in litigation to quantify economic damages or losses. Key areas forensic accountants work in include fraud investigation, bankruptcy, insurance claims, and criminal or civil court cases.
This document provides an overview of managerial accounting concepts and objectives. It begins by identifying four learning objectives: 1) identify features of managerial accounting and management functions, 2) describe classes of manufacturing costs and differences between product and period costs, 3) demonstrate how to compute cost of goods manufactured and prepare financial statements for a manufacturer, and 4) discuss trends in managerial accounting. It then covers topics related to each objective, including managerial vs financial accounting, management functions, cost classifications, cost of goods manufactured calculations, and contemporary issues like just-in-time inventory and activity-based costing.
This document provides an outline for a course on principles of auditing and assurance. It introduces key topics that will be covered, including the definition of an audit, elements of an assurance engagement, appropriate evidence and reporting. An audit is defined as an independent examination and expression of an opinion on an entity's financial statements. It discusses the roles of the practitioner, responsible party and intended users. Criteria are also outlined as the benchmarks used to evaluate the subject matter of an assurance engagement.
Job-order costing is a system used when a company produces unique products in small batches. It requires tracing costs to individual jobs and maintaining separate cost records for each job. Direct materials, direct labor, and manufacturing overhead costs are charged to work in process and then transferred to finished goods as jobs are completed. Manufacturing overhead is applied to jobs using a predetermined overhead rate. Nonmanufacturing costs are expensed in the period incurred rather than assigned to jobs.
chapter- 1 inroduction to advanced financial accounting.pptxMohamedAbdi347025
This document provides an overview of accounting concepts including the framework, objectives, and standards of accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events. The key objectives of accounting are to systematically record transactions, ascertain financial results and position, and provide information to decision makers. International standards like IFRS and domestic standards like US GAAP aim to standardize accounting policies for consistency and comparability.
The document provides an overview of consolidation of financial information and business combinations. It discusses reasons why firms combine, including cost savings, market entry, economies of scale, and diversification. It describes the consolidation process, which involves preparing a single set of consolidated financial statements by bringing together subsidiaries' and the parent's financial data, eliminating reciprocal accounts and intra-entity transactions. Business combinations can be achieved through transactions that result in one entity obtaining control over one or more businesses and creating a single economic entity that requires consolidated financial statements.
Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
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Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
4 Benefits of Partnering with an OnlyFans Agency for Content Creators.pdfonlyfansmanagedau
In the competitive world of content creation, standing out and maximising revenue on platforms like OnlyFans can be challenging. This is where partnering with an OnlyFans agency can make a significant difference. Here are five key benefits for content creators considering this option:
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Dive into this presentation and learn about the ways in which you can buy an engagement ring. This guide will help you choose the perfect engagement rings for women.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.