¶ … accounting questions while the rest centers on the characteristics of two certain companies, those being Apple and Philips.
Accounting Questions & Answers
The first accounting question is why revenue recognition is a significant issue. Recognizing when revenue comes in, what specific revenue stems from and the exact amount of all of the above is a very vital part of the accounting process because it has a direct correlation and effect on the profit/loss of a company, the income statement, the cash flow statement and, to a lesser extent, the balance sheet. Revenues are used to defray the costs of the goods/services that were disseminated and they need to be properly measured and accounted for, and in the time period to which they apply, so as to ensure that all of the affected and relevant financial statements reflect what is truly going on and when precisely it happens (McQuaig & Bille, 2008).
Revenues and how they are recorded for accounting purposes comes down to when the revenue comes in, what the revenue stems from and how that number coincides and correlates with the money spent to attain that revenue. Firms must ensure that they accurately track and add up revenue that comes in and it needs to be based on the year and quarter in which it was realized and has to be juxtaposed against when the money behind that revenue was spent. There is not always an immediate return on investment. A good example would be accounts receivable. All accounts receivable represents is the fact that money is owed to a firm for products or services rendered. It is technically an asset but that does not mean the money will ever make it to the firm, although it usually will (McQuaig & Bille, 2008).
The next question asks the author of this response to differentiate between period and product...
Accounting standards and IFRS adoption in Cambodia and Thailand The significance of accounting standards Accounting may be considered as a business language through which the statistical results can be acquired which help in analyzing how well the firm is functioning. They give out timely statements of these statistics and help the stakeholders get all the information they need. Accounting is like a separate language which has its own grammar and these outlines
Parent's Selection for Supplementary Tutoring Centre in Hong Kong - Primary School Level With reference to the above discussion, it can be apparently observed that the education industry in Hong Kong is quite expanded. However, the performance of students and educational growth in the country can be observed to be weakening which indicates that the education sector in Hong Kong requires to be facilitated significantly within a short-run period. This
Mobile Job Centers The mobile job centers will provide a positive net present value by Year 6, and will add value from that point onward. The project will be deeply in the red for most of the early years. The project has high upfront costs relating to the acquisition and outfitting of the buses. Furthermore, the ongoing cost structure is very high - costs like a Director's Assistant are absolutely unnecessary
leasing assets vs. buying. The question of whether to buy an asset or to lease an asset is quite complex. Indeed, the answer is not always a black and white, straight response. Often, there is a grey area when researching whether to purchase or lease. For instance, if one wishes to purchase a house and live within the residence for two years, the residence can then be rented out and
Accounting 201 and Finance301: Accounting 201 Discussion Question: Discuss FASB and IASB. Comment on at least two specific aspects of the two standard setting boards and their role in setting accounting standards. Also, watch 2 provided YouTube videos and post comments. FASB and IASB The Financial Accounting Standards Board (FASB) was established in 1973 to set and improve accounting and reporting standards for private sector U.S. entities (Financial Accounting Standards Board, n.d.). Though the
The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions. Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal
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