The FASB has developed the Financial Accounting Standards Board Accounting

The FASB has developed the Financial Accounting Standards Board Accounting Standards Codification (or more simply “the Codification”). The FASB’s primary goal in developing the Codification is to provide in one place all the authoritative literature related to a particular topic. To provide easy access to the Codification, the FASB also developed the Financial Accounting Standards […]

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Every company needs to plan in order to move forward.

Every company needs to plan in order to move forward. Its top management must consider where it wants the company to be in three to five years. Like a company, you need to think about where you want to be three to five years from now, and you need to start taking steps now in […]

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In this chapter, you learned how to use many tools

In this chapter, you learned how to use many tools for performing a financial analysis of a company. When making personal investments, however, it is most likely that you won’t be buying and bonds in individual companies. Instead, when most people want to invest in stock, they buy mutual funds. By investing in a mutual […]

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The financial statements of TSMC are presented in Appendix A.

The financial statements of TSMC are presented in Appendix A. The notes accompanying the statements contain the following selected accounts. The complete annual report, including the notes to the financial statements, is available at the company’s website,  Accounts (Trade) Payable               Tax PayableAccounts (Trade) Receivable         […]

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Much information about specific companies is available on the Internet.

Much information about specific companies is available on the Internet. Such information includes basic descriptions of the company’s location, activities, industry, financial health, and financial performance. Instructions Go to the Yahoo! Finance website and then type in a company name, or use the index to fi nd company name. Choose Profi le and then perform […]

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If you haven’t already done so, in the not-too-distant future

If you haven’t already done so, in the not-too-distant future you will prepare a résumé. In some ways, your résumé is like a company’s annual report. Its purpose is to enable others to evaluate your past, in an effort to predict your future. A résumé is your opportunity to create a positive first impression. It […]

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The bookkeeper for J.L. Kang Equipment Repair made a number

The bookkeeper for J.L. Kang Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $525 to Accounts Receivable was omitted. 2. A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense. 3. A collection from a customer of $100 in payment of […]

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Selected transactions for Spring Cruises are listed below.1. Made cash

Selected transactions for Spring Cruises are listed below. 1. Made cash investment to start business. 2. Paid monthly rent. 3. Purchased equipment on account. 4. Billed customers for services performed. 5. Withdrew cash for owner’s personal use. 6. Received cash from customers billed in (4). 7. Incurred advertising expense on account. 8. Purchased additional equipment […]

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A. The following are users of financial statements.Customers …………………………….. Fin

a. The following are users of financial statements. Customers …………………………….. Financial regulatorsTax authorities ……………………… Store managerLabor unions ………………………… SuppliersMarketing manager ……………. Vice president of financeProduction supervisor Instructions Identify the users as being either external users or internal users. b. The following questions could be asked by an internal user or an external user. Can we […]

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Below is a list of concepts in the left column,

Below is a list of concepts in the left column, with a description of the concept in the right column. There are more descriptions provided than concepts. Match the description of the concept to the concept. 1. ___ Cash-basis accounting. a. Monthly and quarterly time periods. 2. ___ Fiscal year. b. Accountants divide the economic […]

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