ACCOUNTING 2101-PRINCIPLES OF ACCOUNTING I
SECTION 02 (26583) PSC 132 M 5:30 p.m. 8 p.m.
SPRING SEMESTER 2013
JANUARY 7 APRIL 30, 2013
Dr. H. McAlum, CPA
OFFICE: P S C 368
(478) 757-2576; (478) 471-2724
Assignment Two Defining Administrative Terms
Guidance: Please define the following terms according to the legal system of Afghanistan. Please also
make one real example of each term.
Sources: You can find out the definitions in the constitution, ordina
Action - for Kant, the goodness of an action was not determined by the
consequences or result of the action. Kant is not a consequentialist theorist
(Utilitarianism is consequentialist for example.) Kant decided the intention
behind an action is the measu
Major differences between U.S. GAAP and IFRS include: IFRS does
not allow LIFO inventory costing.
U.S. GAAP generally define the lower-of- cost-or-market (LCM) for
inventory as replacement cost. IFRS define LCM as net selling price,
which is generally hi
Corporate Governance Review
Understanding the causes of the business failures of the past decade
may help to prevent similar problems from occurring in the future.
Over-reliance on earnings per share is part of the problem. Some
executives manipulate earn
The operating cycle for a merchandising company: starting with cash,
the company buys inventory, sells the inventory, and collects cash from
The acquisition process is well controlled when a company requires the
use of the following documents a
FIFO First in first out.
FIFO The cost of snowboards has been rising. The FIFO method assumes
the older, less expensive items are part of cost of goods sold. A lower cost of
goods sold results in higher net income.
The cost of snowboards has been rising.
Chapter 14 Ratios
A companys gross profit ratio shows the percentage of sales dollars a
company has left after covering its cost of goods sold. It should cover a
companys other operating expenses and have something left over for
Gross profit ratio
Chapter 9 Highlights
Inventory is a current asset since it should be sold within the year.
Another name for the balance sheet is the statement of financial
Inventory is an asset until it is sold. The matching principle requires the
cost of the g
Introduction to Business
A business provides goods or services to make a profit for profit firm or
just to help people (not-for-profit organization).
A business acquires capital, equipment, inventory, supplies, and labor to
provide goods and services. Bus
Highlight for exam 1 :
corporation is considered a separate legal entity and has to pay
corporate income taxes on its profits. The shareholders must also pay
income taxes on the dividends received
Legally sole proprietors or partners are not separate
Four major financial statements:
balance sheet is timely showing status of a business at certain point. The
main equation is Assets = Liabilities + Shareholders equity.
Assets reosurces that have value and owned by the business (Land,
Advantages of the corporate structure are
-shareholders can own a small portion of the business, allowing putting
stones in different bags
-owners have limited liability.
-separation of management and ownership could lead to conflict bet