2-3 Accounting and Financial Statements

Expenses cost incurred in operating a business not

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Unformatted text preview: g a business Not directly dependent on volume of sales Accounting Procedures - Examples Accounting Inventories FIFO: First In, First Out LIFO: Last In, First Out Depreciation Systematic write-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. The results for Dell in the year January 1995 – Jan...
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