Make a balance sheet of a hypothetical (assumed/imagined) or real company that exist and operate in the world. Every student must have a separate company name and separate numerical values for assets, liabilities, and owner's equity. Explain what principles should be taken into consideration while making a balance sheet in accordance to generally accepted accounting principles.

Make a balance sheet of a hypothetical (assumed/imagined) or real company that exist and operate in the world. Every student must have a separate company name and separate numerical values for assets, liabilities, and owner's equity. Explain what principles should be taken into consideration while making a balance sheet in accordance to generally accepted accounting principles.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.15MCE

See similar textbooks

Similar questions

Course: Accounting What is reason that financial statements are prepared for a general purpose? Reflect on that and also on company's stakeholders. Please details
Answer the following: Question One: State the accounting equation and define its components with examples.
Which of the following is a major challenge facing the accounting profession? O A. Accounting for hard assets O B. Backward-looking information O. Financial measurements O D. Timeliness
Explore the relationship between accounting theory and the conceptual framework. How does the conceptual framework provide a foundation for accounting principles, and in what ways does it guide the preparation and presentation of financial statements?
You are to prepare a balance sheet for a hypothetical business entity of your choosing (or specifiedby your instructor). Include in your balance sheet the types of assets and liabilities that you thinkthe entity might have, and show these items at what you believe would be realistic dollar amounts.Make reasonable assumptions with regard to the company’s capital stock and retained earnings.Note: The purpose of this assignment is to help you consider the types of assets and liabilitiesrequired for the operations of a specific type of business. You should complete this assignmentwithout referring to an actual balance sheet for this type of business.
To understand and use accounting information in makingeconomic decisions, you must understand: a. The nature of economic activities that accounting infor-mation describes. b. The assumptions and measurement techniques involvedin developing accounting information.c. Which information is relevant for a particular type ofdecision that is being made.d. All of the above.
The following is a list of accounting assumptions and principles that have had an important impact on the development of generally accepted accounting principles and statements describing certain accounting practices. A. Reporting entity B. Going concern C. Period of time D. Historical cost E. Monetary unit F. Recognition G. Accrual accounting H. Revenue recognition I. Expense recognition J. Conservatism Required: Select the accounting assumption or principle that justifies each accounting practice and select the appropriate letter on each statement. 1. To provide timely information, companies prepare and report financial statements at the end of each year. 2. Appropriate recognition when a company consumes economic resources in conducting business operations. 3. Accounting measurements for U.S. companies are reported in dollars. 4. The financial statements represent the business, rather than its owners. 5. In the absence of evidence to the contrary, the business can be reasonably…
List the three basic questions that must be answered when analyzing the effects of a business transaction on the accounting equation.
Explain how having more than one of the accounting credentials would be beneficial to an accounting career.
Explain how the accounting equation organizes financial information using T-accounts and debits and credits.
How can financial statement users assess the quality of accounting Information?
LINE Explain the following: TEINE 1. Development of accounting rules. 2. How Generally Accepted Accounting Practices are utilized in financial statement preparation.