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Accounting

Accounting is the business discipline that studies how a company's financial information can be manipulated and presented, in a meaningful way, to enhance the decision-usefulness of that financial information. We typically think of accounting as incorporating three related disciplines: financial accounting, management accounting, and auditing

Financial accounting

Financial accounting looks to present financial information that is useful to external users, such as investors and creditors, who use this information to make resource allocation decisions between businesses.
 This information is subject to IFRS or US GAAP, is prepared using double-entry bookkeeping, and is presented in four required financial statements: the balance sheet, the income statement, the cash flow statement, and the statement of owner's equity

Management accounting

Management accounting deals with information that is used by internal users, such as a business's managers, who use this information to make resource allocation decisions within the firm. These include short-run production decisions and long-run capital budgeting decisions. (At BrainMass.com, we look at capital budgeting decisions under Corporate Finance.) 

Management accounting information comes in a variety of financial reports, including budgets. This information is not subject to accounting standards, and how this information is prepared changes based on the costs of collecting financial information and the benefits that this information has for management decision-making. As a result, a variety of different management accounting techniques are used. 


Auditing

Auditing typically refers to financial auditing of public companies. Financial audits are conducted by independant external auditors, who provide an opinion about a company's financial reports. These auditors must adhere to Generally Accepted Auditing Standards (GAAS) in the United States, and their opinions give investors reasonable assurance that financial reports are true, fair, and adhere to applicable accounting standards. The auditor must also include an opinion about the effectiveness of a company's internal controls.

In addition to the financial audit, there is a range of many different types of audit and assurance services. Many financial auditing firms also provide a range of these services, giving feedback about the effectiveness of a company's processes and procedures. These services may also be provided by in-house internal auditors that work within a single company. 
 

Categories within Accounting

Financial Accounting & Bookkeeping

Postings: 10,872

Characteristics for Operating Successful Responsibility

The president of Cold Moo Ice Cream Company, a chain of ice cream stores in the Midwest, was unhappy with the actual six-month profit figures for the company recently prepared by the CFO. The president asked the CFO for a profit breakdown, by store, of the actual six-month results. When the president received the report, he w

Exercise 20.1: Accounting Meaning

Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each

Manufacturers Murder Mystery Parlor Games

MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product: Unit sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30 Variable c

Overhead Analysis Structures

The idea of the predetermined overhead analysis is an important one for fixed costs. The first is a comparison of actual fixed to actual budget. How would this change in the given range of plant production? The actual could change by an increase in insurance costs in the year or supervisor salaries could increase causing someth

Schmeltz Industries - Job costing

Schmeltz Industries organized in January and recorded the following transactions during its first months of operation: Jan. 5 Purchased materials on account for $800,000. Jan. 9 Used materials costing $450,000 on job no. 1001. Jan. 14 Used materials costing $200,000 on job no. 1002. Jan. 18 Used materials costing $100,

Activity Based Costing Management Accountant

Assume you have just been hired as the management accountant in charge of providing your firm's managers with product cost information. Identify the activities you might undertake for the following four value chain components: a. Research and development b. Production c. Marketing d. Customer service

Equivalent Units of Production - Cutting & Coating Department

Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass through two departments: Cutting and Coating. Large sheets of synthetic material are cut to size in the Cutting Department and then transferred to the Coating Department, where each set is sprayed with a chemical coating for improved

Activity based costing accounting systems

Spear Custom Furniture uses an activity-based cost accounting system to apply overhead to production. The company maintains four overhead cost pools. The four cost pools, and their budgeted amounts for the upcoming period, are as follows: Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Computing Inventory and Overhead Balances and Operating Income

EXERCISE 16.6 The Ryde and Rowe Inc. had the following account balances as of January 1: Flow of Costs through Manufacturing Accounts Direct Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,200 Work in Process Inventory . . . . . . . . . . . . . . . . . . .

Identification of product cost (direct or indirect) and period cost.

EXERCISE 16.3 Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is "indirect product cost." Begin with item a. 0. Property taxes on factory build

Accounting Terminology Statement

Listed below are eight technical accounting terms introduced or emphasized in this chapter: EXERCISE 16.1 Accounting Terminology Work in Process Inventory Cost of finished goods manufactured Conversion costs Cost of Goods Sold Period costs Management accounting Product costs Manufacturing overhead Each of the following st

Prime cost, conversion cost and total cost

Star Repairs Co. does all the repair work for a medium-sized manufacturer of handheld computer games. The games are sent directly to Star, and after the games are repaired, Star bills the game manufacturer for cost plus a 20 percent markup. In the month of February, purchases of parts (replacement parts) by Star amounted to $

NPV IRR conflict

(a) When can the NPV and the IRR methods of evaluating investment projects provide contradictory results? (b) How can this arise? (c) Which method should then be used? Why?

Capital Gains and Income Tax question

Write 10 sentences on the following subject I am unclear about: Capital gains are usually considered to have preferential tax treatment. Are all capital gains treated preferentially? What about capital losses? Is there a tax advantage for the seller who carries the mortgage on the property and treats the transaction as an

Component of (cost of capital) discount rates

Components of Cost of Capital Cost of capital or discount rate or the required rate of return is an annual compounded percentage rate of return, which is used to discount back each increment of expected future return to a present value (Pratt, 2004). It is forward looking and also represents the expectations of the investors.

A comparison of Government accounting practices

Please provide detailed, accurate and comprehendible answer for the question below. Please provide no less than 300 words. Thank You What are the basic financial statements that a state or local government now use? How are these different from the financials statement in a for profit organization? Look up the financial statem

Contributions for Different Methods

Please provide at least 300 words detailed and precise information If a partner is contributing attributes to a partnership such as established clientele or a particular expertise, what methods can be used to record the contribution? Why did you choose this method? Provide examples of the journal entries you would use.

The ultimate goal of harmonization of accounting reporting

Please provide at least 300 words detailed and precise information The ultimate goal of harmonization of accounting reporting is to have all companies around the world follow one set of international accounting standards. Do you agree with this statement, why or why not? What are the advantages and disadvantages of accounting

Foreign Currency Translation: SFAS 52

Please provide at least 300 words on the following question to provide a good understanding of the information provided. Please provide a reference. Thank You Discuss SFAS 52 guidelines as to when foreign currency financial statements are to be "translated" using the current rate method and when they are to be "remeasured" us

Translation adjustment

Please provide detailed information for question below and over 250 words. Provide at least one resource. Thank You What is a translation adjustment? How is it computed? Where should it be reported in a set of consolidated financial statements? How might it differ in different companies and in different industries? Provide e

Calculating goodwill assets

Acme Corporation is buying all the assets and assuming all the liabilities of Stark Inc. The following information is available for Stark Inc. at the date of the purchase: Accounts Receivable 300,000 Inventory 100,000 Equipment

Risk Assessment Creating

Assignment 3: Final Project Risk Assessment Create a 3- to 4-page report in Microsoft Word, addressing the following: Perform a risk assessment of your new business and its information processes. Research and describe the internal control systems and activities that will be required to protect your company's as

Identify the missing internal control characteristic

1. Identify the missing internal control characteristic in each situation. 2. Identify each firm's possible problem. 3. Propose a solution to the problem. Situation a. In evaluating the internal control over inventory for the Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsibl

Resume of Accountant Preparation

Hi, I want Help for this Project. You was worked accountant in a company , and you looking to take this position ( CFO ) of a leading company in accounting. Write your Resume and Explaining in the following points: Please Write in 2 pages. R&S Educational Consultants Inc. Atlanta, USA http://www.buzzfile.com/business/R.And

Modified Accelerated Cost Recovery System

In January 20XX, JIM, purchased $350,000 of new MACRS (Modified Accelerated Cost Recovery System) 5-year property in the United States. This equipment was placed in service May 1, 20XX. JIM wants to take as much depreciation in 20XX as possible. Calculate the depreciation for 20XX. If JIM had been located in a quali

Cost Volume Profit Analysis

PLEASE SEE ATTACHMENT! The Annie Smith Dance Center The Director of Annie Smith Dance Center is asking for assistance with the financial aspects of running a professional group of performers. She wants financial information presented in an easy to read format and a better understand of the profitability of the concerts and

Government and Nonprofit organizations accounting

Hi, I want Help for this question. Taking into account that the quotation of internet. Not more than 40% . If the ratio is greater than mentioned, it will be rejected . Writing all the references at the end. • Deliverable Length: 2 pages • Description: For your assignment, discuss when the government and nonprofit

Hierarchy of GAAP : Government Accounting

Hi, I want help for this question. Taking into account that the quotation of internet. Not more than 40% . If the ratio is greater than mentioned, it will be rejected . Writing all the references at the end. • Deliverable Length: 2 pages • Description: You recently landed your dream job working for the state

Explains why REA diagrams are not appropriate

Taking into account that the quotation of internet. Not more than 45% . If the ratio is greater than mentioned, it will be rejected . Writing all the references at the end. You are a staff accountant at a large firm and are assigned to work with the IT department to update the current systems throughout the organization. An a

ERP implementation

Hi , Please I want help. for this question ,Thanks. Taking into account that the quotation of internet. Not more than 45% . If the ratio is greater than mentioned, it will be rejected . Writing all the references at the end. 1- Discuss why an organization must expect the implementation of an ERP to disrupt operations.