In the accounting field, some of the primary goals are to record transactions, keep financial records, perform internal audits, report and analyze financial information to the management, and advise on taxation matters. Those who are involved in the accounting management field will usually have a good understanding of the accounting process by which data relative to a business are gathered, classified, and set forth in financial reports to fully understand the basis of accounting you must first understand its terminology.
For this module case assignment, I will conduct some research on accounting terms and discuss the definitions of these accounting terms that relate to: Generally Accepted ...view middle of the document...
This cost is the actual purchase price plus incidental cost incurred in getting the fixed asset in a condition and position ready for initial use or commercial production.
For Accrual Basis vs. Cash Basis Accounting, income is reported in the fiscal period it is earned, regardless of when it was received, and expense are deducted in the fiscal period they are incurred, whether they are paid or not. The difference between the two types of accounting is when revenues and expenses are record. With the cash basis accounting, revenues are recorded when cash actually received and expenses are recorded when they are actually paid (no matter when they were actually invoiced). Accrual basis accounting is the method of accounting most businesses and professionals are required to use by law.
Accounting Standards Codification is declared to be the single source of authoritative nongovernmental U.S. generally accepted accounting principles. The Codification organizes the pronouncements that constitute U.S. GAAP into a consistent, searchable format.
After researching and viewing the financial statements for the Samsung organization, in my opinion, I would describe the general financial statement of the Samsung organization as being more useful with the Operating Activities because if you the view the yearly statements, although it dropped slightly from 2007 to 2008, it increased from 13,360 in 2008 to 19,656 for 2009. The balance sheet of this organization breaks down all the assets and specifically states in detail so there is no misunderstanding about what they have, as well as consistently groups’ assets together by category. I personally liked the consolidated sheet that has the Balance Sheet, income statement, and the statement of cash flows on one form. It provided a way to compare last year’s assets with the current year, the liabilities and the shareholders equities, and shows an investor how healthy the company was last year and if it is stronger now.
The Income Statement provided the sales, operating profit, and net income for the last three years, which can be a plus for this company. It has the same common information as other companies except that it gives a clearer picture of what really is happening in the company.
The Cash Flow Statement provided the Cash Flows Operating Activities,...