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On volume of sales accounting procedures examples

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Unformatted text preview: rite-off of the cost of a tangible asset Systematic over its estimated useful life over Straight-line Accelerated Accounting is not an exact science Accounting not an Accounting Standards Accounting GAAP: Generally Accepted Accounting Principles GAAP: Generally FASB: Financial Accounting Standards Board SEC: Securities and Exchange Commission CPA: Certified Public Accountant IAS: International Accounting Standards IAS: International IASB: International Accounting Standards Board (London) “Pro-forma” accounting A statement of the company's financial activities while excluding statement unusual and nonrecurring expenses when stating how much money the company actually made. company restructuring costs, decline in the value of the company's investments, adjusting the current balance sheet to fix faulty accounting practices in previous years. Comparing Financial and Managerial Accounting Financial accounting is Managerial accounting is Primarily intended to provide information to external stakeholders such as stockholders, creditors, and government regulators; Prepares a standard set of financial statements; Presents financial statements on a predetermined (usually quarterly or annual) schedule; Governed by a set of generally accepted accounting principles. Primarily intended to provide information to internal stakeholders such as managers of specific divisions or departments; Prepares customized reports designed to deal with specific problems or issues; Creates reports upon request by management rather than according to a predetermined schedule; Uses procedures developed internally and is not required to follow GAAP Tools of Managerial Accounting Product Costing Activity based costing; Incremental analysis An evaluation and comparison of the financial impact different alternatives would have in a particular decision making situation; Budgeting Take-Aways Take-Aways “Financial information is the heartbeat of Financial competitive business. Accounting keeps the heartbeat stable” heartbeat Reading financial statements and annual reports Reading is a required skill in 21st century U.S. is Accounting is not an exact science. Try to Accounting understand why. understand...
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