Accounting Paper

In: Business and Management

Submitted By charlesemson
Words 1569
Pages 7
Junior Philippine Institute of Accountants
Philippine School of Business Administration-Manila

Accounting 1

Mid-term General Evaluation

I. Theories

1. During the lifetime of an entity, accountants produce Financial Statements at arbitrary points in time in accordance with which basic accounting concept?

a. Objectivity c. Matching Principle

b. Periodicity d. Conservatism

2. The debit and credit analysis of a transaction normally takes place

a. when the entry is posted to the ledger

b. before an entity is recorded in a journal

c. when the trial balance is prepared

d. at some other point in the accounting cycle

3. An acrrued revenue can best be described as an amount

a. not collected and not currently matched with expenses

b. not collected and currently matched with expenses

c. collected and not currently matched with expenses

d. collected and currently matched with the expenses

4. The last step in the accounting cycle is to

a. journalize and post adjusting entries

b. journalize and post closing entries

c. prepare Financial Statements

d. prepare a post closing trial balance

5. A collection of accounts other than general ledger accounts which shows the details underlying the balance of a controlling account in the general ledger

a. T-account c. ledger

b. journal d. subsidiary ledger

6. A business required P6,000 cash from charge customers to apply on account. The effect of the transaction is

a. an increase in an asset and an increase in revenue

b. an increase in an asset and a decrease in capital

c. an increase in an asset and a decrease in a liability

d. an increase in…...

Similar Documents

Accounting Paper

...RUNNING HEAD: ACCOUNTING PRACTICES AND ENTRIES PAPER Cheryl Abdur-Rahman Accounting Practices and Entries Prof: Agnes Samaniego February 13, 2010 Accounting practices and principles are at the heart of financial management (McLean, 2003). Every organization needs to have a viable accounting system in place. It is up to the organization to find the course of financial action that maximizes the well –being of the organization (McLean, 2003). Accrual principle requires that revenues be recorded in the period in which the associated service is performed, and that expenses be recorded in the period in which they are incurred regardless of whether or not cash has changed hands (McLean, 2003). On the other hand cash flow requires the investor’s initial contribution which is the same as under accrual accounting, but now is recognized as a source of cash (McLean 2003). Under cash flow accounting, a measure of a company’s financial health, equals cash receipt minus cash payments over a given period of time, or equivalently net profit plus amount charged off for depreciation, and depletion (Investor worlds.com, 2011). Fund accounting has a different concept, in which an accounting system is only used for governmental entities, including hospitals, clinics, and public health departments. Fund accountings are appropriation based, depending on appropriation from the public purse for their operating and capital funds (McLean 2003). To......

Words: 882 - Pages: 4

Accounting Paper

...rather than from bricks and mortar.” As the new intangible economy has continued to grow, so has the concern that the current system of financial reporting is incapable of providing the information its users require to assign fair value to a firm. Much research has been conducted analyzing the problems inherent in the current state of financial reporting and many solutions have been proposed. As this paper intends to display, the level of information provided to the users of financial reports regarding intangibles acquired in mergers and acquisitions has improved significantly over the last decade, however little if any progress has been made as far as improving the accounting methodology regarding internally developed intangibles. This paper aims to analyze the weakness in the current system of financial reporting in relation to intangible assets, recount the efforts to improve these weaknesses, and finally to suggest further actions that could be taken to improve the quality of accounting. Weaknesses in Financial Reporting Before we can consider the weaknesses in the accounting system we must first understand the characteristics of intangible assets as well as the processes involved in their development. The key word to consider when discussing intangible assets is innovation. In the new globalized economy, companies are in a state of constant change, they must continually innovate either to retain or gain competitive advantage. Intangible investments are the......

Words: 2420 - Pages: 10

Accounting Paper

...numbers, the rapid and accurate flow of information is vital to accountants. This is where AIS or Accounting Information Systems come in, this practice was originally handled “in house” by most businesses, but as technology changed and businesses became more web based, software packages from developers such as Microsoft and Oracle are sold to assist businesses with their accounting needs. AIS was developed for the collection, storage, and processing of financial and accounting data. In most organizations A.I.S. are made up of interrelated components that interact to achieve a common goal. Throughout this paper we will look at the history of AIS, why the A.I.S. is important to corporate America, and what future developments are necessary to move ahead with the system History of the AIS In order to understand Accounting Information Systems better it is important to break down what the term really means and why it is so important in modern day accounting. The development of AIS dates all the way back to Babylon, in the year 3600BCE, this is when the oldest known record of any business occurred. It is believed that AIS were used in many other countries before making it’s way to the U.S. Countries such as Greece, China, and Rome are all believed to have used this system during trade activities. A.I.S. were first comprised of someone jotting down notes with a pencil and paper and now years later it has developed into extensive software programs that take human error out......

Words: 2098 - Pages: 9

Accounting Cycle Paper

...Accounting Cycle Paper ACC421 June 3, 2013 Accounting Cycle Paper Although I work for a major corporation, Walgreens, I have nothing to do with the accounting department or the cycle. I will however use this paper to explain the accounting cycle as well as the people that would be involved within the cycle. Generally the people involved in the accounting cycle would be record-keepers, accounting clerks; financial managers as well as staff accountants all have a hand in the parts of the accounting cycles. Bookkeepers and accounting clerks are generally the ones that record the entries and prepare statements for financial managers and staff accountants to approve. The first step of the accounting cycle would be to identify and analyze the transaction and events that need to be accounted for. Even though the generally accepted accounting principles (GAAP) has guidelines there are no rules to what events or transaction a company is required to record. A company should record every sale or purchase no matter how big or small it is. Once these transactions or events have been analyzed, they are recorded in the next step which is journalizing the transactions. There are several different places these transactions are recorded. Some of these places are the general journal, cash receipts journal, cash disbursements journal, purchases journal, sales journal and other special journals depending on the company (Kieso, Weygandt, & Warfield, 2012). Then these transactions...

Words: 746 - Pages: 3

Accounting Paper

...value can be used as the figure that is written off the taxes. The method should be explained to the Internal Revenue Service by pointing out that you must use the lower of cost or market value according to generally accepted accounting principles, or GAAP. New realizable value is your market value. You may also write off the lower of replacement cost or market floor. The market floor figure is the net realizable value minus your profit margin. If the replacement cost is less than the market floor, use the market floor value as the figure to write off. * The quarterly income statement would show the cost of repair * report the performance, net income, earnings per share, earnings from continuing operations and net sales * The CFO and president would have concerns regarding EPS since a lot of money in the past few years has been spent on repairs. There should be more earned and less spent. * How to adjust earnings: * Step 1: * Calculate ending inventory for the current reporting period. The books and records should have a reasonable value, but some inventory changes may not be recorded properly. A physical inventory is best to arrive at the correct valuation. An accurate ending inventory is critical to making the proper accounting entry and recording current operating results. * Step 2: * Compare the new inventory value with the balance already recorded in the books of account. If the balances are identical, then do nothing and......

Words: 1073 - Pages: 5

Accounting Standards Boards Paper

...Accounting Standards Boards Paper Accounting Standards Boards Paper This paper will discuss the relationship of the two accounting boards, International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). Both groups are working on a venture known as the convergent project. The convergent project is an attempt by the IASB and FASB to eliminate differences between the International Financial Reporting Standards and the US GAAP. This paper will also explain how the MSA program will help students to prepare for a career in the accounting field. The Security Exchange Commission (SEC) was established by the Security Exchange Act in 1934. The SEC is the authority to establish financial accounting standards for publically held companies in the United States. The FASB was established in 1973 as the official body charged with issuing accounting standards. It is a private organization and is documented by the American Institute of Certified Public Accountants as well as the SEC. The mission of the FASB “is to establish and improve standards of financial accounting and reporting” (FASB.ORG, 2014). The FASB also oversees that reporting from publically held companies provide useful information investors, auditors and creditors, as well as anyone else who needs the information. The FASB issues Financial Accounting Standards (FAS) and other accounting pronouncements that make up the Generally Accepted Accounting Procedure. The GAAP......

Words: 1070 - Pages: 5

Accounting Paper

...How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today Brittany M. Mendez North Greenville University Abstract This paper discusses the rise and fall of General Motors during the 21st century and documents many different managerial decisions that led to where the company is today. It also analyzes the enterprise risk management plan that General Motors was famous for. They were known for being a company that successfully implemented an ERM that was linked to its success after many failures. I will examine how an ERM was the framework to coming up with a plan of action to identify and mitigate risks, but ultimately it was up to supervisors to make the managerial decisions that now General Motors must face the consequences for. Keywords: General Motors, Enterprise Risk Management How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the U.S. market fell from 62.6% to 19.8%, and in 2009 the firm went bankrupt (Helper & Henderson, 2014). In this paper I will examine the decisions that General Motors made in regards to their Enterprise Risk Management Plan and how management decisions determined the fate of where General Motors is today. We all know General Motors......

Words: 5435 - Pages: 22

Accounting Paper

...The Role of Accounting on Business and Our Society Strayer University Professor Powell August 27, 2014  The Role of Accounting on Business and Our Society Anyone considering accounting needs to assess whether this career fits his or her interests, abilities, and aspirations. There are certain qualities and qualifications that a person should consider before making a commitment to a particular career field. Selecting a career can take a lot of time, and many people do not choose until they are adults. Contributing to the difficulty in choosing a career is the vast number of vocations from which to choose. The field of accounting alone covers dozens of types of accountants and dozens of jobs. In trying to decide whether accounting is an appropriate career choice, a person should talk with bookkeepers and accountants that have years of experience. Ask questions about their daily work requirements, their likes and dislikes about accounting, and how they became interested in the profession. Questions such as these can give a person insight into the profession and help in considering accounting as a career. Accounting is a system used to provide financial information about a business or person. Accountants prepare and analyze financial records for individuals, companies, governments, or other organizations. Accounting is a basic need for every business, and the term business has been broadened to mean any operation that deals with money. That includes......

Words: 2287 - Pages: 10

Accounting Standards Board Paper

...Accounting Standards Board Paper Cassandra Fatchett ACC/541 Monday, March 23, 2015 Christine Errico Accounting Standards Board Paper International convergence of accounting standards is not exactly a new idea. In the 1950’s, in response to economic integration post World War II, initial efforts focused on reducing the differences among accounting principles used in major capital markets around the world. By the 1990's, 40 years later, the idea of harmonization had been replaced by the concept of convergence. Rather than all accounting principles complement each other, it was decided that a new set of internationally recognized accounting standards would be used in all major capital markets. Convergence is described as making global accounting standards as similar as possible. All users of financial information should benefit from the increased comparability of the convergence of financial accounting standards. The FASB has always been on a mission to improve the financial accounting standards in the U.S. for the benefit of investors, lenders, creditors, and all other users of financial statements. They believe that pursuing convergence is compliant with that mission. In 2008, both the FASB and the IASB issued a memorandum of understanding on the convergence of accounting standards called the The Norwalk Agreement. It outlined the agreement made by both entities to address accounting practices that were considered to be deficient in the U.S., GAAP, as well as......

Words: 1082 - Pages: 5

Accounting Cycle Paper

...Accounting Cycle Paper ACC/421 Accounting Cycle Paper In this paper I will outline the purpose of both accounting and financial reporting within an organization in general. I will also give a description of the people, processes, and systems that are a part of the accounting and financial reporting processes followed by a conclusion. Purpose of Accounting The purpose of accounting to gather and report on any financial information within the organization about things such as: the performance of the company, their financial position, and the cash flows of the company. With this information the company can then make business decisions about management of their business, investments to be made, or money they can lend. All of this information is known as the accounting records and accounting transactions and recorded as invoices for either suppliers or customers of the company. Once the financial information has been added to the accounting records it is all put together into financial statements to include the following: income statement, balance sheet, statement of cash flows, statement of retained earnings, and any disclosures. Purpose of Financial Reporting Documents, or the financial reports, are gathered in order to keep track of money going in or going out. Essentially, there is a record of how much money your business is making or losing. Anyone investing in the business has the right to know how their money is being used and can know this by looking at the......

Words: 741 - Pages: 3

Accounting Paper

...Memorandum To: Accounting Manager From: Matthew Montag (CPA) Date: 6/6/2011 Re: Resignation of CFO and SEC Investigation As you are aware, Martin McCord has resigned unexpectedly from the Newman Equity Group.  The U.S. Securities and Exchange Commission (SEC), requested documentation to initiate an investigation of company accounting practices. CFO Resignation and SEC Investigation Due to this investigation, Newman Equity Group must provide documentation requested by the SEC to uphold our legal responsibilities. As a publicly traded company, Newman Equity Group must provide public notice of the sudden vacancy to the position of Chief Financial Officer. I have included in this communication a copy of the Press Release scheduled to be sent tomorrow morning. Newman Equity Group must assess the potential impact to all stakeholders, and provide information to these parties. Ethical considerations are necessary when requests for information are made by the SEC during investigations. It is vital to provide all stakeholders with relevant information while maintaining their confidence while minimizing possible negative repercussions to company image. There is significant value in providing communications about recent events to reduce negative affects caused by other media outlets providing information. The press release is targeted at alleviating public concern over the financial stability of......

Words: 325 - Pages: 2

Accounting Cxycle Paper

...Accounting Cycle Paper ACC/421 September 12, 2011 Accounting Cycle Paper The accounting cycle is very important to maintaining orderly transactions within an organization’s accounting records. Companies can simply not just give and receive money without recording the events that lead to the transaction otherwise they would be faced with a night mare when trying to reconcile their records. In my company the accounting cycle is used for accounting transactions that affect the comings and goings of money within the organization. This usually begins with a Source Document. Source Documents consist of a description of the accounting transaction, this can be a sales or purchase transaction. Sales transactions in my company are usually performed through the use of a Point of sale system. In a purchase transaction a cash receipt or invoice from the company providing the product or service. Source documents, whether from sales or purchase transactions serve as objective evidence that the transaction did occur and part of the audit trail. Being an early document in the accounting cycle, source documents provide the information required to analyze and classify the transaction in order to be journalized in the accounting system. The next step in the accounting cycle is to journalize the transactions. In my company this is usually the electronic journal maintained by the Point of sale system, or a purchase order created by a manager at the time a purchase is made. Sales......

Words: 763 - Pages: 4

Accounting Paper

...placing Foreign Keys in an ER Diagram: After we have eliminated the many-to-many relationships, there are two main rules for placing foreign keys. First, if there is a one-to-many relationship or many-to-one relationship, the foreign key goes into the table touching the many symbol. Second, in a one-to-one relationship, the foreign key can go into either table. However, there is one exception. If the one-to-one relationship is between 2 events, the foreign key goes into the entity with a minimum closest to zero. Explain the purpose of Foreign Keys: A foreign key is a primary key from one table that is put into another table to help show a relationship between the two tables. In essence, it links two tables together. In accounting and auditing, this is extremely beneficial because it allows an accountant or auditor to cross reference documents and other information. With the foreign key having a unique value for each record, we are able to easily verify and check databases. Explain the importance of Major Cardinalities: Major Cardinalities are important because they tell us where to put our foreign keys. After figuring out the Major Cardinalities, we can identify which relationships are N:M and break them up. Then, we can apply the rules that were mentioned above, in paragraph two, in order to place our foreign keys. Major Cardinalities essentially summarize the relationships in the ER Diagram and help make it easier to keep track of where to put the......

Words: 368 - Pages: 2

Accounting System Paper

...Accounting System Paper Jamira Perry HCS/405 July 18, 2011 Diana Schilling Accounting System Paper When it comes to accounting, people only think that it is associated with inside banking. There is more to accounting than inside banking because accounting has elements as well as any other system. It may differ from other types of systems because it is just what it says and that is accounting. Some people don’t like the accounting situation because it consists of math and that is something they are not into. I am going to discuss some of the elements of the accounting system and why accounting is important for healthcare organizations. One element of accounting is chart accounts, which is a list of each item in the system. The chart accounts are divided in to five sections and they are assets, net assets or fund balances, liabilities, expenses, and revenues. The things about chart accounts is that each account has its own individual identifying number so the system will know exactly who it belongs to. The second type of element of accounting is the general ledger, and this organizes information by the accounts. The thing about this is that the chart accounts acts like the contents to the general ledger and the general ledger maintains a year-to-date account balance for each account in the system. The data is entered into the system only once and once this happens, the data entry has to be approved by the user. The third element is journals and......

Words: 858 - Pages: 4

Accounting Standards Boards Paper

...Accounting Standards Board Accounting Standards Boards Paper Elena Thomas ACC/541 January 10, 2011 Accounting Standards Boards Paper In the 1930’s, the financial community was realizing a need for a uniform accounting standard especially for its publicly traded companies. The SEC was given the authority by the Securities Act of 1933 to create accounting standards and determine the accounting disclosures (M.E. Sharpe, 2006). The SEC deferred to the accounting profession the task of creating auditing standards. The New York Stock exchange and the now American Institute of Certified Public Accountants (AICPA) together published guidelines for audits. In 1971, the AICPA created a committee which was chaired by Francis M. Wheat and comprised of seven members to make recommendations on how to better the accounting principles ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). This committee recommended that a full time board be developed to create set accounting standards. This led to the development of the Financial Accounting Standards Board (FASB) in 1973 within the Financial Accounting Foundation ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). The function of the FASB is to establish and publish the accounting principles. The FASB issues three major types of pronouncements: 1) Standards, Interpretations, and...

Words: 294 - Pages: 2

Orly GelFX - GEL NAIL LACQUER Choose Any Color 0.3oz/9mL - series 1 | Las Vegas | Fast and Furious 8: The Fate of the Furious