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Responses DQ1 Assumption abot Economic Entity, and DQ2 : Internal Control - Essay Example

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DQ1 The going concern assumption assumes that the company will continue in operations long enough to carry outs its objectives (Weygandt & Kieso & Kimmel, 2003). The application of the going concern assumption is very important for the functionality of an accounting system…
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Responses DQ1 Assumption abot Economic Entity, and DQ2 : Internal Control
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"Responses DQ1 Assumption abot Economic Entity, and DQ2 : Internal Control"

Download file to see previous pages When companies close down operations the best way to get rid of used asset is by selling them at liquidation values. Without the going concern assumption the current-noncurrent classifications of assets and liabilities would not matter. There would be no reason to classify anything as long term since the life of the business is limited. DQ2 Accounting is a profession that depends on the integrity of its members. Business people assume that the accounting records of corporations are free of errors. The financial system in the United States depends on the reliability of financial information. Back at the beginning of the 21st century there were some major accounting scandals, including the Enron and WorldCom debacles, which hurt the reputation of the profession as a whole. The government had to intervene and Congress passed the Sarbanes and Oxley Act (SOX) in 2002 in order to raise the confidence of the financial community (Soxlaw, 2006). SOX among other things improve the internal controls mechanism utilized by corporations. In order to raise the bar the Sarbanes Oxley Act increased accountability by creating harsher penalties for fraudulent behavior among corporate executives. A control mechanism that ensured the honesty of CEOs was making them sign the financial statements. References (2006). The Sarbanes Oxley Act. ...Download file to see next pagesRead More
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Response to Comments on DQ1 C and DQ2 KSmith,Wk3
The classified balance sheet is prepared in order to let the users distinguish among the different accounts. The statement of cash flow is very important as well. The main components of the statement of cash flow are operating, financing, and investing activities (Weygand & Kieso, Kimmel, 2003).
1 Pages(250 words)Essay
Response to Coments on DQ1 J1 and DQ2 KS
The existence of inventory creates added costs for companies such as freight costs to acquire the merchandise and the cost of maintaining a warehouse to store the inventory. Companies in the retail industry have inventory of items that are ready to sell. In a manufacturing company there are different types of inventory.
1 Pages(250 words)Essay
DB6,DQ1 Selling Receivables , and DQ2 Use of Depreciation
The information from Wall Street which states that accounting receivables are being sold in corporate America in record numbers makes a lot of sense. The reason why corporations are selling more receivables than ever before is correlated with the current economic situation the business world is experiencing.
1 Pages(250 words)Essay
Comments on DQ1 and DQ2,KS and CH
That interest rate does not even cover the yearly inflation rate of the nation. When companies are not reinvesting money in capital projects the best alternative is to invest money in the stock market. Companies invest in the stock market to have extra cash.
1 Pages(250 words)Essay
Response to Coments on DQ1 KS and DQ2 CH W9
The term liquidity in accounting refers to the ability of a company to generate cash to pay off its debt (Weygandt & Kieso & Kimmel, 2003). One of the best attributes of the statement of cash flow is that it divides the usage of cash into three categories of activities which are investing, operating, and financing.
1 Pages(250 words)Essay
Response to Coments on DQ1 Hunt and DQ2 SmithW11
The dual entry journal system was created by Luca Pacioli back in 1494 (Luc). The founding principles of accounting can be very useful for anyone in their everyday life. Understanding more about finance and accounting can help people apply that knowledge to make better financial decisions and to keep a more accurate and detail personal budget.
1 Pages(250 words)Essay
Internal Control
Two of the primary goals of internal controls are safeguarding the assets of a company and to prevent against fraud. Three of the main components of an internal control system are the control environment, control procedures, and the accounting system. Some factors that may influence the control environment are regulations, personal policies, and monitoring of responsibilities.
3 Pages(750 words)Essay
Responses DQ1TE and DQ2 PG
Tax benefits are great incentives and in the marketplace any investors that find out that a particular firm has been approved for advantageous tax benefits will be attracted to those types of common stocks. b) It makes sense for share prices to decrease in
1 Pages(250 words)Essay
DQ1 e-activity and DQ2 Competitive Advantage
43). On the other hand, Porter (2008b) noted, that industries characterized by suppliers possession of bargaining powers were less attractive (p. 13). Conversely, the bargaining power
2 Pages(500 words)Essay
Internal Control
e biggest problems that was identified in the Enron scandal was the lack of internal controls to prevent shady executives from stealing money from corporations. As a direct consequence the Sarbanes-Oxley Act created section 404 of the Act which dealt directly with the internal
1 Pages(250 words)Essay
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