ACC 281 week 5 post assessment Essay example

 Financial Accounting is concerned with the past, while Managerial Accounting is concerned with the future.

The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities.

Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence

Other accounting literature, including GASB Concepts Statements; pronouncements in categories (a) through (d) of the hierarchy for nongovernmental entities when not specifically made applicable to state and local governments; FASB Concepts Statements; FASAB Statements, Interpretations, and Technical Bulletins, AICPA Issues Papers; International Accounting Standards Committee Statements, pronouncements of other professional associations or regulatory agencies; AICPA Technical Practice Aids; and accounting textbooks, handbooks, or articles.

The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities.

1) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:

Prepare general journal entries to adjust the Bank account balance in the company’s books to match the reconciled balances.

Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and

Management determines what they would like to include in the report. No authoritative body requires managerial accounting reports. Management carefully considers behavioral implications, when designing the managerial accounting system.

The accounts payable were for the purchase of merchandise. Prepaid expenses and accrued liabilities relate to the firm 's selling and administrative expenses. The company 's condensed income statement follows.

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

B. Balance Sheet - summary of accounting values of a firm’s assets and claims against those assets

While the GASB has jurisdiction over financial reporting by governmental entities, the FASB establishes rules for private sector accounting. Both boards are independent, nongovernmental bodies whose members are appointed by the trustees of the Financial Accounting Foundation (FAF).

Again, we can see the use of a core financial statement, the balance sheet for Company B [1.4 what was the equity balance for Company B at December 31, 2008?] To gain equality, the balance sheet, must provide an equation assets – liabilities = equity balance. Owners’ equity has seemingly become an important value on an entity financial statement, particularly the business entity. The equity balance for Company B the month December 31, 2008 values $31,000.

Income statements are an important element crucial to the financial records of any company. Any profit making organization is expected to have records containing its income statements. Income statements are normally recorded annually at the end of a specific financial period. The major purpose of an income statement is to show stakeholders of the company such as managers and investors whether the company made a profits or losses in the period being reported. This performance analysis provided by the income statements can help managers come up with strategies to improve on profitability and growth of the company (Alexander and Jorissen 2005).