Question 1 a. Matching principle requires that expenses suffered by a business must be charged to the income statement in the accounting period with the income to which it relates. In the case of Coca Cola company, they treated shipping and handling costs in moving finished products from the manufacturer to the sales distribution centers as Cost of Goods Sold but the same cost of transportation to customer are considered as selling, general and administrative expenses in the income statement (Coca-Cola
Generally Accepted Accounting Principles (GAAP) Introduction: Generally accepted accounting principles reflect the latest accounting methodologies and are updated frequently. Generally Accepted Accounting Principles are on which companies rely on while preparing the financial statements. The standards for GAAP are set by the American Institute of Certified Public Accountants (AICPA) and the Financial Accounting Standards Board (FASB). Corporate accountants are governed by the GAAP rules and procedures
both economic profit and accounting profit and also
(2010). What are the advantages and disadvantages of cash flow accounting. Retrieved on November 21, 2015 from http://basiccollegeaccounting.com/2010/10/what-are-the-advantages-and-disadvantages-of-cash-flow-accounting/ Anonymous. (n.d.). Limitations of the Statement of Cash Flow. Retrieved on November 21, 2015 from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/overview-of-financial-statements-3/the-statement-of-cash-flows-26/limitations-of-the-statement-of-cash-flows-175-4561/
While this is so, the statements do not necessarily reflect the current value of since these can be affected by the choice of accounting principles and policies. The value of assets is illustrated in the balance sheet. The principles and policies used in the preparation of a balance sheet causes its ability to reflect the current value of assets to be limited. A balance sheet
8.6 Notes to the Financial Statements: Theses financial statements are the consolidated financial statements of First Bank Nigeria Limited and its subsidiaries, hereafter referred to as the Group. The principal activities of the Bank are mainly retail banking and corporate banking. Retail banking provides banking activities relating to individuals, such as savings accounts, investment savings products, loans and money transfers. Corporate banking includes activities relating to multinational and
The Financial Accounting Standards Board (FASB) codification for notes to the financial statements focuses on the details and usefulness of disclosures presented by an organization to investors and the public. Accounting policies should comply with (Governmental Accepted Accounting Principles (GAAP) standards to ensure fair representation of the organizations financial statements. Accounting policies adopted by an organization can significantly affect many areas of the financial statements. FASB
UNIVERSITY FACULTY OF BUSINESS DEPARTMENT OF ACCOUNTING A report done in partial fulfillment of the course required Financial Accounting (ACCT 111) Question: Explain the IAS and the IFRS. Presented By: Abigail P. Ebel ID: 2015050155 Lecturer: B. Ndiweni First written in 1973, International Accounting Standards (IAS) are issued by International Accounting Standard Board (IASB) since 2001, and its predecessor, International Accounting Standard Committee (IASC). IAS are a set
UNIVERSITY FACULTY OF BUSINESS DEPARTMENT OF ACCOUNTING A report done in partial fulfillment of the course required Financial Accounting (ACCT 111) Question: Explain the IAS and the IFRS. Presented By: Abigail P. Ebel ID: 2015050155 Lecturer: B. Ndiweni First written in 1973, International Accounting Standards (IAS) are issued by International Accounting Standard Board (IASB) since 2001, and its predecessor, International Accounting Standard Committee (IASC). IAS are a set
CHAPTER – 03 THEORETICAL BACKGROUND OF THE STUDY 3.1 GENERAL INTRODUCTION Analysis is the process of evaluating the relationship between components parts of financial statement to obtain a better understanding of position and performance .the purpose of financial performance analysis is to diagnose the information contained in it is to judge the profitability and financial status of the various financial factors in business as disclosed by a single set of statement, and a study of the trend of these