a.
An accounting equation is formed by three main elements, namely, asset account, liability account and equity account. The formation is done as: Assets = Liabilities + Equity.
Every business transaction can be identified and analyzed through this accounting equation for the purpose of further analyzing the effects of each such transaction on the asset, liability and equity.
To Record: The
b.
An accounting equation is formed by three main elements, namely, asset account, liability account and equity account. The formation is done as: Assets = Liabilities + Equity.
Every business transaction can be identified and analyzed through this accounting equation for the purpose of further analyzing the effects of each such transaction on the asset, liability and equity.
To
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
FINANCIAL+MANAG.ACCT.
- Lists five measurement attributes employed in GAAP.arrow_forwardwhat is the CPR and SMM for PSA 0.75 and 1.50 in months 1, 10, 20, 30.arrow_forwardA67. What is the chronological order in the evaluation of a typical standard? A. Discussion paper, Exposure draft and Standard.Page 13 of 17B. Exposure draft, Discussion paper and Standard.C. Exposure draft, Standard and Discussion paper.D. Standard, Discussion paper, and Exposure draft.arrow_forward
- d. Discuss the evaluation of the two divisions compared to each other, using the performance measures determined in parts (a), (b), and (c).arrow_forwardContrast and compare four qualitative characteristics identified by the IASB and qualitative characteristics identified by the FASB in SFAC Number 8.arrow_forwarda)FIFO b) Weighted average Which method you would advise the management to use and why?arrow_forward
- Chapter 8 introduced the eight parts of the planning phase of anaudit. Which part is the evaluation of materiality and risk?arrow_forwardComplete a through farrow_forwardWhich of the following is a phase of the joint FASB and IASB conceptual framework project? mixed attribute measurement elements and recognition going-concern assumption period of time assumptionarrow_forward
- Which of the following is an example of an external report? Select one: a. Budget b. Plan c. Annual report d. None of the abovearrow_forwardHow do i do PR 15-4A?arrow_forward9. Explain Disaster Recovery Plan 10. What are documentation types for internal control 11. Identify the limitation and threats to internal controlarrow_forward
- Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning