Tài liệu Kế Toán - Kiểm Toán

Companies under U.S. GAAP and IFRS may choose to use the fair market value option vs. the effective interest method. Most companies choose to disclose the fair market value of the debt in the notes to the financials rather than to revalue the liability. Companies also disclose in the notes other financial instruments such as the guarantee of cre...

49 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 537 | Lượt tải: 0

Warranties A promise by a manufacturer or seller to ensure the quality or performance of the product for a specific period of time Record estimated expense and liability when products are sold (matching concept): Warranty Expense xx Contingent Warranty Liability xx As costs are incurred (usually in subsequent periods), charge expenditure to w...

40 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 521 | Lượt tải: 0

Acquisition cost is the fair market value (FMV) of the acquired asset or the FMV of what was given up to acquire the asset. FMV of what is given up is typically used as this is frequently cash. General Rule: Capitalize (add to an asset account) the costs to acquire the asset and bring it to its serviceable or usable condition and location. Dr. A...

49 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 511 | Lượt tải: 0

Companies may purchase equity securities in small amounts to earn investment income and not exert influence. These are passive investments. Passive investments use the mark-to-market rule. Assets are carried at their current market value. Changes in value of securities are recorded as income or loss on the income statement.

39 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 541 | Lượt tải: 0

Applying the lower-of-cost-or-market rule to ending inventory is accomplished by comparing the cost allocated to ending inventory with the market value of the inventory. If the market value exceeds the cost, no adjustment is made and the inventory remains at cost. If the market value is less than the cost, the inventories are written down to market...

45 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 499 | Lượt tải: 0

Note that we do not know in any given period which A/Rs will not be collected. Therefore, we must estimate uncollectibles. There are two methods: 1. Percentage of sales 2. Aging schedule of accounts receivable Both methods are used to estimate for an adjusting journal entry at the end of the period. This entry ensures that bad debt expenses a...

40 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 501 | Lượt tải: 0

Which of the following ratios would be of primary importance to a supplier in deciding to extend credit for goods delivered. a. Earnings per share b. Debt to equity ratio c. Accounts receivable turnover d. Quick ratio

62 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 575 | Lượt tải: 0

Example: purchase of equipment. Journal Entry at time of purchase: Equipment xx Cash xx Adjustment at end of the period (for the portion that has been used): Depreciation Expense xx Accumulated Depr. xx

61 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 528 | Lượt tải: 0

a. When uncertainty exists, understating assets, overstating liabilities, accelerating recognition of losses, and delaying recognition of gains is preferred. b. The measurement of an event is verifiable and reliable. c. Different firms use identical accounting measurement methods for similar events. d. Objectives are laid out that are conservati...

46 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 535 | Lượt tải: 0

Operating revenues Inflows of assets or decrease of liabilities Commonly sales and/or service revenues Key to successful business is to generate revenue from ongoing core operations Operating Expenses Outflows of assets or increase of liabilities required to generate operating revenues Cost of goods sold is the original cost of inventory ite...

46 trang | Chia sẻ: huyhoang44 | Ngày: 26/03/2020 | Lượt xem: 538 | Lượt tải: 0