Ch2+Note+Posting - from its shareholders so she instructed...

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1 Chapter 2 – Financial Statements – Framework, Presentation, and Usage The conceptual framework of accounting has four main sections: 1. The objective of financial reporting 2. The qualitative characteristics of accounting information 3. The elements of financial statements 4. Recognition and measurement criteria (assumptions, principles, and constraints) Qualitative Characteristics of Accounting Information:
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2 Types of Accounts Types of Accounts Definition Sub Groups/Examples Comments
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3 Chapter 2 – Class Discussion Questions E2 2 Marietta Corp. had the following reporting issues during the year: (a) Land with a cost of $208,000 was reported at its fair value of $260,000. (b) The president of Marietta, Deanna Durnford, purchased a truck for personal use and charged it to her expense account. (c) Marietta wanted to make its net earnings look better, so it added two more weeks to the year, creating a 54 week year. Previous years were 52 weeks. (d) The president wanted to make sure that the company was not accused of hiding anything
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Unformatted text preview: from its shareholders, so she instructed the chief financial officer to disclose everything that happened during the year in the notes to the financial statements. The notes ended up being 95 pages long. 4 P2-7A You are provided with the following information for Crusaders Inc., effective as at its January 31, 2009, year end: Accounts payable $ 2,000 Income tax expense $ 2,000 Accounts receivable 8,100 Income taxes payable 250 Accumulated depreciation— building 4,500 Interest expense 4,000 Accumulated depreciation— equipment 4,800 Inventories 9,700 Building 45,000 Land 60,000 Cash 5,700 Mortgage payable 55,000 Common shares 20,000 Operating expenses 6,000 Cost of goods sold 10,000 Prepaid expenses 1,200 Current portion of mortgage payable 14,500 Retained earnings, Feb. 1, 2008 43,150 Depreciation expense 4,000 Sales 64,000 Dividends 2,500 Short-term investments 12,000 Equipment 12,000 Wages expense 27,000 Wages payable 1,000 5 6...
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This note was uploaded on 06/18/2011 for the course MGT b05 taught by Professor Liang during the Spring '11 term at University of Toronto.

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Ch2+Note+Posting - from its shareholders so she instructed...

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