中级财务会计英文课件Accouting_Principles-----Financial_Accounting.pptVIP

\ Makes a difference in a decision. Has predictive value and feedback value. Is timely. Only transaction data that can be expressed in terms of money be included in the accounting records. The activities of the entity are to be kept separate and distinct from the activities of the owner and all other economic entities. The economic life of a business can be divided into artificial time periods The enterprise will continue in operation long enough to carry out its existing objectives. Expenses are matched with revenues in the period in which efforts are made to generate revenues. Operating expenses contribute to the revenues of the period but their association with revenues is less direct than for cost of goods sold. Business insight on page 298. Is the more disclosure the better? e Business insight on page 299. What are some criticism of cost principle? Examples of materiality constraint? Examples of conservatism constraints we learned? How do the balance sheet of a proprietorship and partnership look like? Adjusting entry for income tax? Using the following information, compute operating expenses and income tax expense. EPS is reported below net income. Three major characteristics are evaluated Is current ration the higher the better? Profitability ROS- Profit margin percentage Business insight on page 307 Solvency Asset liability management World markets are becoming increasingly intertwined. Firms that conduct operations in more than one country through subsidiaries, divisions, or branches in abroad are referred to as multinational corporations. International transactions must be translated into U.S. dollars. International insight on page 309. Uniformity in standards (IASB) Demonstration problem 1 Demonstration problem 2 Homework Problems: P7-1A Exercises To be relevant, accounting information must a. improve the company’s internal control. b. be presented on the balance sheet. c. be recorded at historical cost. d. be capable of making a differe