Nobody downloaded yet

Financial accounting - Research Paper Example

Comments (0) Cite this document
Accounting is often called the "language of business" because it provides a means of communicating financial information to different parties. (Wild, 2005) These parties include almost all stakeholders of a business such as shareholders, lenders (creditors), suppliers, employees, customers, auditors, labor unions, government agencies and regulating bodies…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Financial accounting Research Paper
Read TextPreview

Extract of sample "Financial accounting"

Download file to see previous pages Practice 3-1
a. The accounts impacted by the transaction are 'Cash' and 'Notes Payable'
b. Both 'Cash' and 'Notes Payable' accounts increased.
c. 'Cash' and 'Notes Payable' accounts increased by $5,000.
d. Total Assets increased by $5,000, Total Liabilities increased by $5000, Total Equity, however remained unchanged.

Practice 3-2
a. The accounts impacted by the transaction are 'Cash' and 'Land'
b. 'Cash' account decreased while 'Land' account increased.
c. 'Cash' decreased by $45,000. 'Land' increased by $45,000.
d. Total Assets, Total Liabilities and Total Equity remained unchanged.

Practice 3-11 Solution
May 1 Cash.. . 125,000
Notes Payable.. 125,000
Borrowed from Far West Bank signing a 2-yearnote at 14%

Practice 3-12 Solution
May 14 Land.. 45000
Cash.. 45000
Bought land on west side of Hatu Lake

Practice 3-16 Solution
Refer to Practice 3-11
Notes Payable
May1 Beg. Bal. 0

May1 Cash 125000

May30 End. Bal. 125000

May1 Beg. Bal. 0
May1 Notes Payable 125,000

May30 End. Bal. $125,000

Refer to Practice 3-12

May1 Beg. Bal. 0
May14 Cash 45000

May30 End. Bal. $45000

May1 Beg. Bal. 0

May 14 Land 45000

May30 End. Bal....
These are called "generally accepted" because they are widely accepted by business community. Otherwise, these rules will have no application in business.
In the USA, Financial Accounting Standard Board (FASB) develops GAAP. It is a private body that sets both broad and specific rules (Wild, 2005). Securities and Exchange Commission (SEC) is another government entity that sets reporting requirements for companies that issues stock to general public.
In addition to above-mentioned two bodies, there is another board called International Accounting Standards Board (IASB) that establishes International Financial Reporting Standards. This is an attempt to establish a harmonious and consistent system of accounting throughout the globe. However, IASB cannot impose these rules to organizations.
The main objective of GAAP is to make financial information "relevant, reliable and comparable" (Wild, 2005). Managers' decisions are highly affected by the relevant financial information. Adherence to GAAP offers reliability to financial information and wins the trust of the user. Good understanding of these principles is necessary especially when you are comparing the performance of two or more companies, especially when the companies belong to different industries or countries.
An adjusting entry is necessary to bring assets/ liabilities and revenu ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financial accounting Research Paper Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from
(Financial Accounting Research Paper Example | Topics and Well Written Essays - 1500 Words)
“Financial Accounting Research Paper Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial accounting Research Paper

The Impact Of Technology On Financial Accounting

...?THE IMPACT OF TECHNOLOGY ON FINANCIAL ACCOUNTING Accounting profession has encountered a drastic change because of the technological advancements over the past few years. Initially, a lot of paperwork was involved in the accounting process, but gradually, with the advent of technology, there has been a huge decline in the level of paperwork in accounting procedures. It has been observed that, while, on one hand, technology proves to be an asset for a business organization, it leads to the increase in liability for the accountants. Some of the technological tools like manufacturing of products through computer integrated systems,...
11 Pages(2750 words)Research Paper

Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis

...? GASB and FASB ID Lecturer Governmental Accounting Standards Board or GASB for short standsfor the group which is authorized by the accounting profession and its professionals to actually establish a generally accepted set of accounting principles (GAAP) which are applicable to state as well as local governmental entities. On the other hand, Financial Accounting Standards Board, called FASB in short is the independent, private and non-governmental group, which has to its authority the role of accounting profession and professionals to undergo the establishment of a generally accepted set of accounting principles in the...
2 Pages(500 words)Research Paper

Introduction to Financial Accounting

...Solution: (a) (In the books of Helen) Trading, Profit and Loss Account For the year ending 31 May 2006 Dr. Cr. Particulars Amount Amount Particulars Amount Amount To opening stock To purchases 168220 Less: purchase returns 0 To Assistants wages To Security guard wages 12400... ...
4 Pages(1000 words)Research Paper

Assignment on Financial Accounting

...Part 'A' Equipment Cost = $100,000 Useful Life = 4 years Salvage Value = $10,000 Double Declining Balance Method Since the useful life is 4 years, hence the factor to be used is 2/4 = 0.5 Year 1: Depreciation = (Net Book Value)(Factor) = (100,000)(0.5) = $50,000 Hence, depreciation for first year is $50,000, and New Net Book Value = $100,000 - $50,000 = $50,000 Year 2: Depreciation = (Net Book Value)(Factor) = (50,000)(0.5) = $25,000 Hence, depreciation for second year is $50,000, and New Net Book Value = $50,000 - $25,000 = $25,000 Year 3: Depreciation = (Net Book Value)(Factor) = (25,000)(0.5) = $12,500 Hence, depreciation for third year is $12,500, and New Net Book Value = $25,000 - $12,500 = $12,500... 'A'...
2 Pages(500 words)Research Paper

Financial accounting College Research Paper

...FINANCIAL ACCOUNTING Any business enterprise is financed through various sources of funds, depending upon the tenure of repayment the sources of funds can be classified as Short Term & Long Term funds. Within Long Term the sources of funds as follows: Equity Shares- These are considered "owner's capital" which shoulder the final risk and are considered the safety net for creditors. As no fixed payout is obligated, they insulate business from economic jolts. Preference Shares- Help in financing the enterprise without unduly relinquishing the controlling stake by equity holders. Bonds & Debentures- Have fixed repayment and servicing cycles and carry fixed cost for the enterprise. Help in...
10 Pages(2500 words)Research Paper

Financial accounting Master Research Paper

...FINANCIAL ACCOUNTING PROBLEM SET 2 . PART I: New York Times - Long-Term Assets How much did the NY Times originally pay for all the buildings and equipment that it owned at December 31st, 2000 In the year 2000, company originally pays for building and equipment (Opening Balance - Closing Balance of Building & Equipment) (2,216,046 - 2,128,014) = $88,032. 2. Assuming that no land was sold during the year 2000, how much did the NY Times pay to purchase additional land during the year In the year 2000, company originally pays for land (Opening Balance - Closing Balance of Land) (72,228 - 67,149) = $5,079. 3. Assume that the NYTimes had purchased $185,300 in additional equipment during the year. Also assume that the only thing... II 11 % First...
13 Pages(3250 words)Research Paper

Financial Accounting: FASB Statement of Financial Accounting Concepts

...Conceptual Framework The conceptual framework as defined by the FASB,” A coherent system of interrelated objectivesand fundamentals that can lead to consistent standards and prescribes the nature, function and limits of financial accounting and financial statements. (FASB professional view) The conceptual framework provides the structure as how the rules and standards would be defined for financial accounting. Coming to the point, the primary objective of the SFAC No.1 is Business Financial Reporting. The framework is designed to develop some objectives that would helpful in making business and economic decision. All users who are...
3 Pages(750 words)Research Paper

Financial Accounting: The rules of consolidation and Enron

...Financial Accounting: The rules of consolidation and Enron al Affiliation Financial Accounting: The rules of consolidation and Enron Consolidation refers to the process of transforming individual financial records or statements for a group of units into a single financial record. For example, in the United States of America, the process of consolidation produces a consolidated financial statement that is recognized by the US Generally Accepted Accounting Principles (GAAP). There are certain rules that dictate the consolidation process. The main function of consolidation rules is that they transform the...
3 Pages(750 words)Research Paper

You decide ( should be relevant financial accounting class ) accordance with the major accounting frameworks when the statements are intended to be supplied to the external users such as lenders and investors. This will make it easy for the external persons to be able to understand the statements without any personalized guidance. The frameworks give a leeway on how the financial statements can be structured. To this effect, statements issued by different firms in the same industry have some particular differences in appearance. Such guidelines are not normally applied when the statements are to be used strictly for internal purposes. Businesses are expected to provide income statements and balance sheets to report their monthly results or their end of the...
5 Pages(1250 words)Research Paper

Financial accounting standards board

...). However, after the approval of the amendment, entities going through mergers and acquisitions are obliged by the Financial Accounting Standards Board to implement this change in their financial reporting. This is to ensure consistency in the application of these standards among the entities affected. Accounting for any combination taking place after the approval date must be in accordance with the provisions of this standards. In addition, full implementation must be observed, that is, once an entity decides to use these standards, it must be applied fully, ensuring compliance with every paragraph of the standard and not partial compliance (FASB, p14). The board may...
3 Pages(750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Financial accounting Research Paper for FREE!

Contact Us