Chapter 6 The annual report and accounts. The closure of the accounting cycle and Accounting information disclosed to the public
|
|
- Homer Cole
- 5 years ago
- Views:
Transcription
1 Chapter 6 The annual report and accounts The closure of the accounting cycle and Accounting information disclosed to the public 1
2 Six steps in the accounting cycle 1. Analyze transactions from the source documents 2. Journalize transactions 3. Post entries to the ledger and prepare a trial balance 4. Make end-of-period adjustments and prepare an adjusted trial balance 5. Prepare financial statements 6. Close the accounts and prepare a post-closing trial balance 2
3 Example A small company named ZiscoSys. The transactions are stated in chronological order: (1) Owner s Investment to start up the business (2) Purchase of equipment for paid in cash (3) Purchase of supplies on credit for 500 (4) 400 payment of a liability (accounts payable resulting from delivery of supplies) (5) revenues earned on credit (6) collection of accounts receivable (7) Incurring expenses of 500 for rent and 200 for utility, resp., and Prepaid Insurance of (8) reception of a down payment of for services to be performed (unearned revenue or deferred revenue), and (9) Owner s withdrawal of
4 Trial Balance ZiscoSys Magdeburg Trial Balance ZiscoSys Magdeburg Trial Balance September 30, 2003 Cash Accounts Receivable Equipment Supplies 500 Prepaid Insurance Accounts Payable 300 Unearned Revenue Owner's Investment Owner's Withdrawal 800 Revenues Expenses
5 Step 1 include all accounts with balances from ledger ZiscoSys Magdeburg Work Sheet For the month ended September 30, 2003 Trial Adjusted Income Balance Balance Adjustments Trial Balance Statement Sheet Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Equipment Supplies 500 Prepaid Insurance Accounts Payable 300 Unearned Revenue Owner's Investment Owner's Withdrawal 800 Revenues Rent Expense 500 Utility Expense 200 Totals
6 Step 2 add adjustment data ZiscoSys Magdeburg Work Sheet For the month ended September 30, 2003 Trial Adjusted Income Balance Balance Adjustments Trial Balance Statement Sheet Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Equipment Supplies Prepaid Insurance Accounts Payable 300 Unearned Revenue Owner's Investment Owner's Withdrawal 800 Revenues Rent Expense 500 Utility Expense 200 Totals Supplies Expense 200 Insurance Expense 100 Accumulated Depreciation 84 - Office Equipment Depreciation Expense 84 Totals
7 step 3 combine trial balance amounts with adjustment amounts ZiscoSys Magdeburg Work Sheet For the month ended September 30, 2003 Trial Adjusted Income Balance Balance Adjustments Trial Balance Statement Sheet Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Equipment Supplies Prepaid Insurance Accounts Payable Unearned Revenue Owner's Investment Owner's Withdrawal Revenues Rent Expense Utility Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Office Equipment Depreciation Expense Totals
8 step 4 transfer adjusted balances to appropriate statement accounts ZiscoSys Magdeburg Work Sheet For the month ended September 30, 2003 Trial Adjusted Income Balance Balance Adjustments Trial Balance Statement Sheet Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Equipment Supplies Prepaid Insurance Accounts Payable Unearned Revenue Owner's Investment Owner's Withdrawal Revenues Rent Expense Utility Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Office Equipment Depreciation Expense Totals
9 step 5 total statement accounts and compute net income/loss ZiscoSys Magdeburg Work Sheet For the month ended September 30, 2003 Trial Adjusted Income Balance Balance Adjustments Trial Balance Statement Sheet Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Equipment Supplies Prepaid Insurance Accounts Payable Unearned Revenue Owner's Investment Owner's Withdrawal Revenues Rent Expense Utility Expense Totals Supplies Expense Insurance Expense Accumulated Depreciation Office Equipment Depreciation Expense Totals Net Income Totals
10 Closing the books... means making accounts ready for the next accounting period... is done at the end of each accounting period Temporary (Nominal) These accounts are closed Permanent (Real) These accounts are not closed All revenue accounts All expense accounts Owner's drawing account All asset accounts All liability accounts Owner's capital account Source: Weygandt/Kieso/Kimmel, p
11 Purpose of closing entries zero out all nominal accounts transfer net income (loss) and owner s withdrawal into owner s capital account journalizing and posting closing entries is a required step in the accounting process closing entries are journalized in the general journal and then posted 11
12 The closing process Debit each revenue account for its balance, and credit Income Summary for total revenues. Credit each expense account for its balance, and debit Income Summary for total expenses. Closing the Income Summary account balance to the Capital account. Closing the Withdrawals account balance to the Capital account. Alternative: close revenue and expense accounts directly to the capital account 12
13 One example before we go through the whole closing process... let s close the revenue account for ZiscoSys Service Revenue Account Service Revenue Account Balance after adjustment but before closing Closing the account on September 30, yields the following Closing entry to "zero out" service revenue account 0 13
14 ZiscoSys accounts before closing Expense Accounts Revenue Withdrawals Capital
15 Closing process for ZiscoSys Expense Accounts Revenue Withdrawals Capital Income Summary 15
16 Step 1: close revenue account Expense Accounts Revenue Withdrawals Capital = Income Summary
17 Step 2: close expense accounts Expense Accounts Revenue = = Withdrawals Capital Income Summary
18 Step 3: close income summary account Expense Accounts Revenue = = Withdrawals Capital Income Summary = 18
19 Step 4: close withdrawal account Expense Accounts Revenue = = Withdrawals Capital = Income Summary = 19
20 Preparing a Post-Closing Trial Balance Why?... to prove equality of permanent account balances Post-Closing Trial Balance ZiscoSys Magdeburg Post-Closing Trial Balance September 30, 2003 Cash Accounts Receivable Equipment Supplies 300 Prepaid Insurance Accumulated Depreciation - Office Equipment 84 Accounts Payable 300 Unearned Revenue Owner's Capital note that all temporary accounts have zero balances after closing hence, they don t enter the post-closing trial balance 20
21 Summary of the Accounting Cycle 1 - Analyze transactions from source documents 2 - Journalize transactions 3 -Post entries to ledger Start of a new accounting cycle 4 - Prepare trial balance 5 - Make end-of-period adjusting entries 8 - Close accounts and prepare post-closing trial balance 7 Prepare financial statements 6 -Prepare adjusted trial balance 21
22 Reversing entries an example employer has a biweekly payroll of 8.000, salaries are paid on the 10th and 24th each month September 24, initial salary entry : of salaries earned between September 10 and September 24 are paid. September 30, adjusting entry : salaries earned between September 24 and September 30 amount to and will be paid in the October 10 payroll. October 10, subsequent salary entry : salaries paid are Of this amount, accrued in September as salaries payable and was earned in October 22
23 Illustration of reversing entries No Reversing Entry Initial Salary Entry Sept. 24 Salaries Expense Cash Adjusting Entry Sept. 30 Salaries Expense Salaries Payable Closing Entry Sept. 30 Income Summary Salaries Expense Reversing Entry Used Initial Salary Entry Sept. 24 Salaries Expense Cash Adjusting Entry Sept. 30 Salaries Expense Salaries Payable Closing Entry Sept. 30 Income Summary Salaries Expense Oct. 1 Reversing Entry no reversing entry Reversing Entry Oct. 1 Salaries Payable Salaries Expense Subsequent Salary Entry Oct. 10 Salaries Payable Salaries Expense Cash Subsequent Salary Entry Oct. 10 Salaries Expense Cash Adapted from Weygandt/Kieso/Kimmel, p
24 Correcting entries needed when errors are discovered correcting entries are journalized and posted whenever an error is detected Wrong entry Correct entry Sept. 20 Cash Sept. 20 Accounts Receivable Service Revenue Service Revenue Correcting entry Sept. 20 Accounts Receivable Cash Balance in cash account is reduced to zero by posting the correcting entry. 24
25 The contents of financial statements financial statements of (listed) enterprises have common significant subgroups certain minimum requirements for disclosure and audit USA FASB statement of financial accounting concepts 1-6; submission to SEC Europe: IAS 1 (and its revision); EU s 4th Directive Annual report Minimum disclosures Review of past year's results and financial condition Audit requirement None (consistency check Information on with regard to - post-balance sheet events annul accounts) - likely future development - R&D - purchase of own shares Annual accounts Balance sheet Income statement Notes to the accounts Yes 25
26 1. Balance Sheet Standard balance sheet classifications are: Assets Current assets Fixed assets Property, plant, and equipment Long-term financial investments Intangible assets Liabilities and Owner's Equity Current liabilities Long-term liabilities Owner's (Shareholders' ) equity classification current / non-current required under 4th directive (but not under IAS 1) if not classified, items should be listed in order of liquidity (ascending/descending) 26
27 Current Assets assets that are expected to be converted into cash within a year or within the normal operating cycle, whichever is longer operating cycle average time to go from cash to cash in producing revenues current assets are listed on the balance sheet in order of their liquidity examples: cash, marketable securities, notes receivable, accounts receivable, inventory, prepaid expenses Example: TimeWarner annual report 2007 Current assets Cash and equivalents $ 1,516 1,549 Receivables, less allowances of $ 2,410 and $ 2,271 7,296 6,064 Inventories 2,105 1,907 Prepaid expenses and other current assets 834 1,165 Deferred income taxes 700 1,050 Current assets of discontinued operations Total current assets 12,451 11,901 27
28 Fixed Assets Long-Term Investments assets that are not expected to be converted into cash within a year not intendend for use or consumption within the company sometimes just labeled investments examples: bonds and stocks of other companies, real estate held for resale Property, Plant, and Equipment tangible, long-lived assets used in production or sale of inventory, or providing of a service examples: land, buildings, and equipment assets that wear out should be reported at cost less accumulated depreciation 28
29 Intangible Assets assets without physical substance represent legal right of use for a specific period of time examples: patents, copyrights, trademarks, or trade names, goodwill Difference between price paid for an acquisition minus book value of equity Example: TimeWarner annual report 2007 Fixed assets Noncurrent inventories and film costs $ 5,304 5,394 Investments, including available-for-sale securities 1,963 3,426 Property, plant, and equipment, net 18,048 16,718 Intangible assets subject to amortization 5,167 5,204 Intangible assets subject to amortization 47,220 46,362 Goodwill 41,749 40,749 Other assets 1,928 2,389 Noncurrent assets of discontinued operations Total fixed assets 121, ,818 29
30 Current Liabilities liabilities that require use of current assets for their payment thus, due within a year or within the next operating cycle examples: accounts payable, wages and salaries payable, unearned revenues, bank loans payable, interest payable current assets current liabilities are assets liquidating during the current period sufficient to cover liabilities due during that period? Current ratio:=? McDonald s carries a current ratio that is less than 50 percent, with relatively little investments in cash, receivables, and prepaid expenses. Explain why McDonald s is not in danger of going bankrupt even though its current liabilities far exceed its current assets. 30
31 Long term capital Long-Term Liabilities obligations that are due after one year or an operating cycle examples: mortgages payable, bonds payable, lease liabilities Owner s Equity content of owner s equity section depends on form of business organization partnership: one capital account for each partner corporation: capital stock and retained earnings 31
32 Classified balance sheet for ZyscoSys ZiscoSys Magdeburg Balance Sheet September 30, 2003 Assets Liabilities and Owner's Equity Current Assets Current Liabilities Cash Accounts Payable 300 Accounts Receivable Unearned Revenue Supplies 300 Prepaid Insurance Total current liabilities Total current assets Owner's Equity Net Services, Capital Property, Plant, and Equipment Equipment Less: Accumulated Depreciation Total Liabilities and Total Assets Owner's Equity
33 Format of Balance Sheet (EU formats) account format Assets Fixed Assets Current assets Equity and Liabilities Shareholders Equity Long term liabilities and provisions Current liabilities statement format (1) Fixed Assets (2) + current assets (3) - current liabilities (4) net current assets [= (2) (3)] (5) Total assets net of current liabilities [=(1) + (4)] (6) - long term liabilities and provisions (7) = net assets [=(5) (6)] (8) = shareholders equity 33
34 2 Income Statement Functional basis (vertical layout) (1) Revenue from sales (2) Cost of goods sold (3) = Gross margin (4) Selling and distribution expense (5) Administration expense (6) + other operating income (7) = Operating profit or loss (8) + Investment income (9) Financial expense,net (= interest expense interest income) (10) Income tax (11) = Net profit or loss on ordinary activities (12) +/- Extraordinary gain or loss, net of tax (13) = Net profit or loss for the year 34
35 Income Statement, retail company natural basis (vertical layout) (1) Revenue from sales (2) + increase decrease in inventories (3) Cost of merchandise and services purchased (4) Personnel expense (5) Depreciation (and asset writedowns) (6) other operating expenses (7) + other operating income (8) = Operating profit or loss (9) + Investment income (10) Financial expense,net (= interest expense interest income) (11) Income tax (12) = Net profit or loss on ordinary activities (13) +/- Extraordinary gain or loss, net of tax (14) = Net profit or loss for the year instead of vertical layout also horizontal layout (account form) admissible for both natural and functional basis 35
36 Clean vs. dirty surplus accounting Net assets (End of period) net assets (Beginning of period) contributions to equity (receipts from share issues) + dividends + amount used to redeem shares = Comprehensive income usually not equal to income according to income statement difference: change in value of assets and liabilities due to exchange rate changes and other, depending on country s accounting regulations 36
CHAPTER4. The Recording Process. PreviewofCHAPTER4. Using a Worksheet. Steps in Preparing a Worksheet
CHAPTER4 The Recording Process 4-1 4-2 PreviewofCHAPTER4 Using a Worksheet Steps in Preparing a Worksheet Multiple-column form used in preparing financial statements. Not a permanent accounting record.
More informationAccounting Principles
Accounting Principles Second Canadian Edition Weygandt Kieso Kimmel Trenholm Prepared by: Carole Bowman, Sheridan College CHAPTER 4 COMPLETION OF THE ACCOUNTING CYCLE WORK SHEET A work sheet is a multiple-column
More information4-1 COMPLETING THE ACCOUNTING CYCLE
4-1 COMPLETING THE ACCOUNTING CYCLE Atanas Atanasov Assist.prof. University of Economics - Varna Steps in Accounting Cycle 4-2 134 Analyze source documents. Journalize transactions in the journal. Post
More informationAccounting Basics Introduction To Financial Accounting
Accounting Basics Introduction To Financial Accounting ILLUSTRATION 1-5 BASIC ACCOUNTING EQUATION The Basic Accounting Equation Assets = Liabilities + Owner s Equity ASSETS AS A BUILDING BLOCK Assets are
More informationFinancial Statements and Closing Entries for a Merchandising Business
Ch.10 Financial Statements and Closing Entries for a Merchandising Business o Prepare financial statements for a merchandising business o Journalize adjusting and closing entries for a merchandising business
More informationCompleting the Accounting Cycle
4 Completing the Accounting Cycle 4-1 Closing the Books At the end of the accounting period, the company gets the accounts ready for the next period. Very similar to what happens at AHS at the end of a
More informationCHAPTER 4 EXERCISES: SET B. E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows.
CHAPTER 4 EXERCISES: SET B E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows. Complete the worksheet. LAMAR COMPANY Worksheet for the Month Ended June
More informationPrepared and solved by Cyberian www,vuaskari.com
Franchise rights, goodwill and patents are the examples of: Liquid assets Tangible assets Intangible assets Current assets Any expense that gives benefit for a period of less than twelve months is called.
More informationChapter 8. Recording Adjusting and Closing Entries
Chapter 8 Recording Adjusting and Closing Entries Adjusting Entries Adjusting Entries - journal entries recorded to update general ledger accounts at the end of a fiscal period (Supplies & Prepaid Insurance).
More informationCHAPTER 4 COMPLETING THE ACCOUNTING CYCLE
CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE LEARNING OBJECTIVES 1. PREPARE A WORKSHEET. 2. EXPLAIN THE PROCESS OF CLOSING THE BOOKS. 3. DESCRIBE THE CONTENT AND PURPOSE OF A POST-CLOSING TRIAL BALANCE. 4.
More informationCOMPLETING THE ACCOUNTING CYCLE
Chapter 04 COMPLETING THE ACCOUNTING CYCLE PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA McGraw-Hill/Irwin
More informationILLUSTRATION 12-1 TYPES OF INTANGIBLE ASSETS
ILLUSTRATION 12-1 TYPES OF INTANGIBLE ASSETS INTANGIBLE ASSETS Identifiable Intangible Assets (Rights Type) Externally Acquired Internally Developed Financial Statement Treatment Unidentifiable Intangible
More informationChapter 5 Accrual Adjustments and Financial Statement Preparation. Revenue recognition Matching expenses to revenues Expenses related to periods
Chapter 5 Accrual Adjustments and Financial Statement Preparation Revenue recognition Matching expenses to revenues Expenses related to periods 1 The Measurement of Income major function of accounting
More informationChapter 5 Accrual Adjustments and Financial Statement Preparation. Revenue recognition Matching expenses to revenues Expenses related to periods
Chapter 5 Accrual Adjustments and Financial Statement Preparation Revenue recognition Matching expenses to revenues Expenses related to periods 1 The Measurement of Income major function of accounting
More informationC H A P T E R 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS. Balance Sheet and Statement of of Cash Flows. Usefulness of the Balance Sheet
C H A P T E R 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield 5-1 5-2 Balance Sheet and Statement of of Cash Flows Balance Sheet Balance Sheet
More informationFinancial Statements
CH2404 Process Economics Unit IV Financial Statements Dr. M. Subramanian Associate Professor Department of Chemical Engineering Sri Sivasubramaniya Nadar College of Engineering Kalavakkam 603 110, Kanchipuram
More informationSection A: Multiple-Choice Questions (2 marks each; Total 30 marks)
Name: Student ID: Section A: Multiple-Choice Questions (2 marks each; Total 30 marks) Choose the one best answer. 1. The accounting process involves all of the following except ( d ) a. identifying economic
More informationFinancial Accounting
Financial Accounting Roger H. Hermanson, Ph.D., CPA Regents' Professor of Accounting Ernst & Whinney Professor School of Accountancy Georgia State University James Don Edwards^ Ph.D., CPA J. M. Tull Professor
More informationChapter 3: Double-Entry Bookkeeping
Chapter 3: Double-Entry Bookkeeping Double-entry bookkeeping underpins accounting A way of systematically recording the financial transactions of a company so that each transaction is recorded twice. Basic
More informationChapter 4: Completing the Accounting Cycle. Learning Objective 2 Prepare financial statements from adjusted account balances.
1 Chapter 4 Completing the Accounting Cycle Chapter 4: Completing the Accounting Cycle Learning Objective 2 Prepare financial statements from adjusted account balances. From chapter 3 NetSolutions Adjusted
More informationMANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING Accounting: The Language of Business Accounting - a process of identifying, recording, summarizing, and reporting economic information to decision makers in the form of financial
More informationMIDTERM EXAMINATION Fall 2009 FIN621- Financial Statement Analysis (Session - 4)
MIDTERM EXAMINATION Fall 2009 FIN621- Financial Statement Analysis (Session - 4) Time: 60 min Marks: 50 Asslam O Alikum FIN621- Financial Statement Analysis 2009 (Session 4) solved by Afaaq n Shani Bhai
More information5. Consolidated Financial Statements (1) Consolidated Balance Sheets
5. Consolidated Financial Statements (1) Consolidated Balance Sheets March 31, 2008 Assets Current assets Cash and deposits 84,224 89,218 Notes and accounts receivable-trade 230,156 234,862 Lease receivables
More informationManagement & Principles of Accounting Date: 08/11/2017 Recording transactions in the journal book and in the ledger book
Management & Principles of Accounting Date: 08/11/2017 Recording transactions in the journal book and in the ledger book Patrizia Tettamanzi Sophie Goodman Source: Kimmel/Weygandt/Kieso Financial Accounting
More informationModule 4. Instructions:
Copyright Notice. Each module of the course manual may be viewed online, saved to disk, or printed (each is composed of 10 to 15 printed pages of text) by students enrolled in the author s accounting course
More informationChapter 4: Completing the Accounting Cycle
1 Chapter 4 Completing the Accounting cycle Chapter 4: Completing the Accounting Cycle Learning Objective 1 Describe the financial statements of a proprietorship and explain how they interrelate. Financial
More informationChapter 4 Completing the Accounting Cycle 高立翰
Chapter 4 Completing the Accounting Cycle 高立翰 Study Objectives 1. Prepare a worksheet. 2. Explain the process of closing the books. 3. Describe the content and purpose of a postclosing trial balance. 4.
More informationModule 4. Table of Contents
Copyright Notice. Each module of the course manual may be viewed online, saved to disk, or printed (each is composed of 10 to 15 printed pages of text) by students enrolled in the author s accounting course
More informationACCOUNTING INTERVIEW QUESTIONS
www.globalcma.in Learning Platform for Cost Accountants (CMA) 1) Why did you select accounting as your profession? Well, I was quite good in accounting throughout but in my masters, when I got distinction
More informationPROBLEM 3-2B. (a) J1 Date Account Titles Ref. Debit Credit May 31 Insurance Expense Prepaid Insurance...
PROBLEM 3-2B (a) J1 Date Account Titles Ref. Debit Credit May 31 Insurance Expense... 722 190 Prepaid Insurance... ($2,280 X 1/12) 130 190 31 Supplies Expense... Supplies ($2,200 $)... 631 126 1,450 1,450
More informationFinancial Accounting (Corporation)
Financial Accounting (Corporation) This course covers the topics shown below. Students navigate learning paths based on their level of readiness. Institutional users may customize the scope and sequence
More information3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS
3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS (1) Consolidated Quarterly Balance Sheets September 30, 2013 and March 31, 2013 March 31, 2013 September 30, 2013 Assets Current assets Cash and deposits
More informationFinancial Results For the Fiscal Year 2016 ending January 31, 2016
Financial Results For the Fiscal Year 2016 ending January 31, 2016 March 16, 2016 Balance Sheets (Consolidated) Thousands of Yen 31 Jan., 2016 Assets Current assets: Cash & Cash equivalents 1,984,469 Accounts
More informationCENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationVISUAL #16-1 CLASSIFYING ACTIVITIES IN THE STATEMENT OF CASH FLOWS OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES
VISUAL #16-1 CLASSIFYING ACTIVITIES IN THE STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Cash inflows from Cash outflows to Customers for cash sales Collections on credit sales Borrowers for interest Dividends
More informationFinancial Accounting (Sole Proprietorship)
Financial Accounting (Sole Proprietorship) This course covers the topics shown below. Students navigate learning paths based on their level of readiness. Institutional users may customize the scope and
More informationAccounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
More informationCHAPTER 2: FINANCIAL REPORTING MECHANISMS
Department of Management and Law CHAPTER 2: FINANCIAL REPORTING MECHANISMS Prof. Sandro Brunelli, Ph.D. brunelli@economia.uniroma2.it BUSINESS ACTIVITIES AND FINANCIAL STATEMENT ELEMENTS Business Activities
More information2. Which of the following is an external user of accounting information? A) Labor unions. B) Finance directors. C) Company officers. D) Managers.
Name: Date: 1. The study of accounting is not useful for a business career unless your career objective is to become an accountant. A) True B) False 2. Which of the following is an external user of accounting
More informationFinancial Accounting. (Exam)
Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour. Table of Contents (click
More informationBalance Sheet (Thousands of yen)
Balance Sheet As of As of Assets Current assets Cash and deposits 1,948,490 2,364,338 Notes and accounts receivable - trade 877,408 854,811 Electronically recorded monetary claims - operating 3,328 11,512
More informationConsolidated Financial Results for the Fiscal Year Ended March 31, 2016 [Japanese GAAP] May 27, 2016
Consolidated Financial Results for the Fiscal Year Ended [Japanese GAAP] May 27, 2016 MARUHAN Corporation (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for
More information100 Accounting Interview Questions and Answers
100 Accounting Interview Questions and Answers 1) Why did you select accounting as your profession? Well, I was quite good in accounting throughout but in my masters, when I got distinction I decided to
More informationAccounting Principles
Accounting Principles Second Canadian Edition Weygandt Kieso Kimmel Trenholm Prepared by: Carole Bowman, Sheridan College CHAPTER 2 THE RECORDING PROCESS THE ACCOUNT An account is an individual accounting
More informationSome deferred items for which adjusting entries would be made include: Prepaid insurance Prepaid rent Office supplies Depreciation Unearned revenue
WWW.VUTUBE.EDU.PK Paper 1 MIDTERM EXAMINATION Spring 2009 FIN621- Financial Statement Analysis (Session - 1) Question No: 1 ( Marks: 1 ) - Please choose one Which of the following is the acronym for GAAP?
More informationAdjusting the Accounts
3-1 Chapter 3 Adjusting the Accounts Learning Objectives After studying this chapter, you should be able to: 1. Explain the time period assumption. 2. Explain the accrual basis of accounting. 3. Explain
More informationAfter studying this chapter, you should be able to: adjusted account balances.
4 Completing the Accounting Cycle 1 After studying this chapter, you should be able to: 1. Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance
More informationExercises. 2) Owners Equity is ( ) (1). Occurs when Revenues exceed Expenses. (2) Debts owed by a business, (3). The excess of Assets over Liabilities
Exercises 1 Please answer the following questions 1 Please explain Assets 2 Please explain Liabilities 3 Please explain Owner Equity 4 Please explain Revenues 5 Please explain Expenses 2 Please select
More informationamenta John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia Barbara Chiappetta Nassau Community College
amenta D Dri st edition John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia Barbara Chiappetta Nassau Community College I McGraw-Hill I Irwln I Accounting in
More informationChapter 2: Main Financial Statements An overview
Chapter 2: Main Financial Statements An overview The objective of general purpose financial reporting is to provide information about the reporting entity that is useful to existing and potential investors,
More informationBalance Sheet - Form of Statement
Annex K ( SRC Rule 68 ) Balance Sheet - Form of Statement If applicable, and except as otherwise permitted by the Commission, the following line items and certain additional disclosures should appear on
More informationFinancial Statements. M. En C. Eduardo Bustos Farías
Understanding 1 Financial Statements M. En C. Eduardo Bustos Farías 2 Objectives 1. Define the elements of financial statements. 3 Balance Sheet It It also is is called a statement of of financial position.
More informationCHAPTER 3 Selected Solutions. The Accounting Information System. Brief Topics Questions Exercises Exercises Problems
CHAPTER 3 Selected Solutions The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Brief Topics Questions Exercises Exercises Problems 1. Transaction identification. 1, 2, 3, 5,
More informationAccounting Definitions. Definitions
Accounting Definitions Definitions What s Here Introduction Definitions Introduction This training contains definitions of common accounting terms. If you come across accounting or financial terms with
More informationCurriculum Document for Business Education
Curriculum Document for Business Education Course Title: Accounting I Learner Objective #1: Students will learn the accounting equation and how business activities change the accounting equation. Identify
More informationConsolidated Financial Results. Fiscal year ended June 30, 2008:
Translation Notice: This English version is a translation of the original Japanese document and is only for reference purposes. In the case where any differences occur between the English version and the
More informationPeriod Ending: 03/31/ /31/2015
Balance Sheet Assets Current assets Cash and deposits 1,798,992 1,989,414 Notes and accounts receivable - trade 871,418 1,052,104 Electronically recorded monetary claims - operating 25,052 58,320 Securities
More informationWeygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow, Atkins: Principles of Financial Accounting, Canadian Edition CHAPTER 4
CHAPTER 4 Completion of the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Prepare closing entries and a postclosing trial balance. 2. Explain the steps in the accounting cycle including
More informationPREVIEW OF CHAPTER 5-2
5-1 PREVIEW OF CHAPTER 5 5-2 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 5 and Statement of Cash Flows Statement of Financial Position LEARNING OBJECTIVES After studying this
More informationLearning Objective. LO1 Prepare an income statement for a merchandising business organized as a corporation.
Learning Objective LO1 Prepare an income statement for a merchandising business organized as a corporation. Lesson 16-1 Uses of Financial Statements LO1 A corporation prepares an income statement and a
More informationThe McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
1-1 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4 1 The Accounting Cycle Step 1 Analyze and transactions classify transactions Step 2 Journalize the transactions data about
More informationChapter 12 - Reporting and Analyzing Cash Flows. Chapter Outline
I. Basics of Cash Flow Reporting A. Purpose of the Statement of Cash Flows To report cash receipts (inflows) and cash payments (outflows) during a period. This report classifies cash flows into operating,
More informationConsolidated Financial Statements Consolidated Balance Sheet
Consolidated Financial Statements Consolidated Balance Sheet (Ended March 31, 2012) (Ended March 31, 2013) Assets Current assets Cash and deposits 34,440 64,372 Notes and accounts receivable-trade 3,595
More informationAccounting for. Sole Proprietorship. 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
appendix F Accounting for Sole Proprietorships study objectives After studying this appendix, you should be able to: 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
More information1. The primary objective of financial reporting is to provide useful information to external decision makers.
Chapter 02 Investing and Financing Decisions and the Accounting System True / False Questions 1. The primary objective of financial reporting is to provide useful information to external decision makers.
More informationFAQ: Financial Statements
Question 1: What is the correct order in which financial reports must be created? Answer 1: The income statement is created first, then the owners' equity statement, and finally the balance sheet. This
More informationACCOUNTING 201. PRACTICE MIDTERM - (Covering Chapters 1-5)
Problem - I Multiple Choice (20 points) ACCOUNTING 201 PRACTICE MIDTERM - (Covering Chapters 1-5) 1. A private organization which establishes broad accounting principles as well as specific accounting
More informationCHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM. MULTIPLE CHOICE Conceptual. Test Bank Chapter 3
CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM MULTIPLE CHOICE Conceptual Answer No. Description d 1. Purpose of an accounting system. d 2. Criteria for recording events. c 3. Purpose of trial balance. b
More information4/9/2012. Recording Transactions. Learning Objectives (LO) LO 1 Double-Entry System. LO 1 Double-Entry System. LO 1 Double-Entry System
4/9/212 Recording Transactions CHAPTER 3 Learning Objectives (LO) After studying this chapter, you should be able to 1. Use double-entry accounting 2. Describe the five steps in the recording process 3.
More informationIntermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield. Slide 3-2
3-1 C H A P T E R 3 THE ACCOUNTING INFORMATION SYSTEM Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 3-2 Learning Objectives 1. Understand basic accounting terminology. 2. Explain double-entry
More informationSection 2 - Cash and Cash Equivalents & Balance Sheet
Section 2 - Cash and Cash Equivalents & Balance Sheet 12-1 Cash Currency and coins Balances in checking accounts Items for deposit such as checks and money orders from customers Cash equivalents are short-term
More informationAccounting 303 Exam 1, Chapters 1 3 & 5 Fall 2014 Section Row
1 Accounting 303 Name Exam 1, Chapters 1 3 & 5 Fall 2014 Section Row I. Multiple Choice Questions. (2 points each, 54 points in total) Read each question carefully and indicate your answer by circling
More informationFinancial Results of the Principal Subsidiaries
Financial Results of the Principal Subsidiaries Fiscal Year Ended March 31, 2018 May 15, 2018 Copyright 2018 JAPAN POST GROUP. All Rights Reserved. Table of Contents I Japan Post Holdings... 1 Year-on-Year
More informationLearning Outcomes. The Basic Accounting Cycle
Chapter 2: Review of the Accounting Process Part 3: Accounting Cycle with Emphasis on Year End Activities Intermediate Accounting 1 Dr. Chula King Learning Outcomes After completing this part, you should
More informationFinancial Statement Analysis. L4: Analyzing Investing Activities
1 Financial Statement Analysis L4: Analyzing Investing Activities 2 Content 1. Current Asset 2. Inventories 3. Long-Lived Asset 4. Intangibles 3 Current Asset Introduction Classification Current (Short-term)
More informationPage 1 of 10 Ehab Abdou ( )
Statement of Financial Position, also referred to as the balance sheet: 1. Reports assets, liabilities, and equity at a specific date. 2. Provides information about resources, obligations to creditors,
More informationAccounting Principles (203) Dr. Mishari Alfraih
1. Which of the following will cause owner's equity to increase? A. Expenses B. Owner s drawings D. loss 2. XYZ Co. provided the following information about its balance sheet: Cash K.D. 1,000 Account receivable
More informationMadison Area Technical College
Madison Area Technical College Dual Credit Course Profile 2013-2014 Academic Year Instructor Name High School Instructor Contact Information Michael Cassidy Mount Horeb High School cassidymichael@mhasd.k12.wi.us
More information3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS
3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS (1) Consolidated Quarterly Balance Sheets December 31, 2013 and March 31, 2013 March 31, 2013 December 31, 2013 Assets Current assets Cash and deposits 93,413
More information2/10/2009. The accounting ACCOUNTING TRANSACTIONS AND EVENTS. Analysing transactions. Chapter 2
Chapter 2 The accounting information system PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd ACCOUNTING TRANSACTIONS AND EVENTS Transactions are external
More informationCentury 21 Accounting, 9e Multicolumn Journal Chapter Outlines
Century 21 Accounting, 9e Multicolumn Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
More informationChapter 3 Question Review 1
Chapter 3 Question Review 1 Chapter 3 Questions Multiple Choice 1. If services are rendered on account, then a. assets will decrease. b. liabilities will increase. c. stockholders equity will increase.
More informationChapter 4 Accounting Records: Structure and Terminology. Double Entry Bookkeeping
Chapter 4 Accounting Records: Structure and Terminology Double Entry Bookkeeping 1 Basic Element of Double Entry Bookkeeping The T account records the effect of transactions under one accounting aspect
More informationFUJI YAKUHIN CO., Ltd. Consolidated Financial Statements For the Year ended March 31,2017
FUJI YAKUHIN CO., Ltd. Consolidated Financial Statements For the Year ended March 31,2017 CONSOLIDATED BALANCE SHEET As of March 31,2017 ASSETS Current assets: Cash and deposits 7,156 $ 63,792 Notes and
More informationConsolidated Balance Sheet Thousands of yen
Consolidated Balance Sheet (April 30, 2015) (April 30, 2016) Assets Current assets Cash and deposits 3,404,702 4,316,071 Notes and accounts receivable trade 9,222,242 8,400,095 Electronically recorded
More informationAdjustments, Financial Statements and the Quality of Earnings
Adjustments, Financial Statements and the Quality of Earnings Chapter 4 Accounting Cycle 4-2 1 Unadjusted Trial Balance Listing of all the balance sheet and income statement accounts, usually in financial
More informationMIDTERM EXAMINATION Spring 2010 MGT101- Financial Accounting (Session - 6)
MIDTERM EXAMINATION Spring 2010 MGT101- Financial Accounting (Session - 6) Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one Double entry accounting system includes: Accrual accounting
More informationPrepare, Apply, and Confirm with MyAccountingLab
Prepare, Apply, and Confirm with MyAccountingLab Hallmark Features Personalized Learning Aids, like Help Me Solve This, Demo Docs, and instant feedback are available for further practice and mastery when
More informationConsolidated Balance Sheet Thousands of yen
Consolidated Balance Sheet (April 30, 2014) (April 30, 2015) Assets Current assets Cash and deposits 2,283,611 3,404,702 Notes and accounts receivable - trade 8,159,645 9,222,242 Electronically recorded
More informationName Type Value Description
Name Type Value Description 3 Year Annual Capital Spending Growth Rate Numeric Percent 3 Year Annual Dividend Growth Rate Numeric Percent 3 Year Annual Income Growth Rate Numeric Percent 3 Year Annual
More informationTrue / False Questions
Chapter 02 Transaction Analysis True / False Questions 1. The primary objective of financial reporting is to provide useful information to external decision makers. True False 2. In order for information
More informationTHE KOREA DEVELOPMENT BANK (BANKING ACCOUNTS) NON-CONSOLIDATED BALANCE SHEET
THE KOREA DEVELOPMENT BANK (BANKING ACCOUNTS) NON-CONSOLIDATED BALANCE SHEET Dec. 31, 2001 (Audited) ASSETS Cash and due from banks 2,673,433 US$ 2,016,012 Trading securities 1,246,645 940,084 Investment
More informationFinancial Accounting:
Financial Accounting: aking the Connection J. DAVID SPICELAND University of Memphis WAYNE THOMAS University of Oklahoma DON HERRMANN Oklahoma State University Me Grauu Hill McGraw-Hill Irwin Contents Accounting
More informationcoun rincipies f&hdfttan 1 ers 1- John Wiley & Sons, Inc. Arthur Andersen Alumni Professor of Accounting University of Wisconsin Madison, Wisconsin
f&hdfttan coun rincipies 1 ers 1- Arthur Andersen Alumni Professor of Accounting University of Wisconsin Madison, Wisconsin KPMG Emeritus Professor of Accountancy Northern Illinois University DeKaib, Illinois
More informationConsolidated Financial Statements (1) Consolidated Balance Sheet (Unit: Million yen) Previous Consolidated Fiscal Year (Ended March 31, 2011)
Consolidated Financial Statements (1) Consolidated Balance Sheet (Ended (Ended Assets Current assets Cash and deposits 27,057 34,440 Notes and accounts receivable-trade 4,538 3,595 Securities 3,654 11,967
More informationFinancial statements 1.Consolidated financial statements (1)Consolidated Balance Sheet (Millions of Yen) As of March 31,2017 As of March 31,2018
Financial statements 1.Consolidated financial statements (1)Consolidated Balance Sheet As of March 31,2017 As of March 31,2018 Assets Current assets Cash and deposits 39,720 39,913 Notes receivable, accounts
More informationThe Recording Process
2-1 Chapter 2 The Recording Process Learning Objectives After studying this chapter, you should be able to: [1] Explain what an account is and how it helps in the recording process. [2] Define debits and
More informationAccounting 1A Class Notes Chapter 3 The Adjusting Process
Source Documents General Journal General Ledger Trial Balance Adjusting Entries Difference between TRANSACTIONS and ADJUSTMENTS Transactions occur through-out the accounting cycle and normally involve
More informationSection 2 - Cash and Cash Equivalents & Balance Sheet
Section 2 - Cash and Cash Equivalents & Balance Sheet 12-1 Cash Currency and coins Balances in checking accounts Items for deposit such as checks and money orders from customers Cash equivalents are short-term
More informationPresented by: Meredith Mostochuk, CBA
Presented by: Meredith Mostochuk, CBA Types of Businesses Definition of a Business: An organization in which goods and services are exchanged for one another, or for money, on the basis of their perceived
More information