- •Contents
- •Introduction
- •1. The development and implementation of ifrs
- •1. Read the article and discuss
- •1) What is Accounting? Its Definition and Actual Meaning
- •2) Accounting Definition
- •3) Financial Accounting Basics
- •4) Brief ifrs Glossary
- •2. Complete the following sentences
- •3. Use «Debit» or «Credit» to complete the table below
- •4. Choose the correct answer in the table below
- •5. For each of the transactions in items 1 through 12, indicate the two (or more) effects on the accounting equation of the business or company.
- •6. Read the article and discuss
- •Is Accounting a Good Career Choice?
- •And It's an Excellent Choice.
- •Stability
- •Compensation
- •Diversity
- •7. Choose the correct answer
- •2. The Framework and the first application of ifrs
- •1. Fill in the gaps with a suitable word from the box
- •2. Use «Debit» or «Credit» to complete the table below
- •3. Sample Chart of Accounts For a Large Corporation
- •4. Match these words with their meanings
- •Types of accounts
- •5. Complete the following sentences
- •6. Complete the following sentences
- •1) Accounting Principles
- •2) Elements of Financial Statements
- •3) Financial Statements
- •4) Income Statement
- •5) Balance Sheet
- •7. Match these words with their meanings
- •Other Characteristics of Accounting Information
- •1. Reliable, Verifiable, and Objective
- •2. Consistency
- •3. Comparability
- •3. Property, plan, equipment and investment property
- •1. Read the article and discuss What is the difference between amortization and depreciation?
- •31 March 2009
- •31 March 2010
- •31 March 2011
- •Depreciation
- •Example 6
- •Accounting Entry
- •Methods of Depreciation
- •Straight Line Depreciation Method
- •Example 7
- •Reducing Balance Depreciation Method
- •Example 8
- •Units of Production Depreciation Method
- •Example 9
- •Example - Units of Usage (Activity) Depreciation
- •Considerations - Advantages and Disadvantages
- •Disposal of Fixed Assets
- •Example 10
- •4 Intangible assets
- •1. Read the article and discuss
- •2. Choose the correct answer “True” or “False” Depreciation
- •3. Choose the correct answer
- •5. Inventories
- •1. Read the article and discuss
- •1) Inventory and Cost of Goods Sold
- •Value of work in progress:
- •Value of finished goods:
- •2) Methods of calculating inventory cost
- •First In First Out (fifo)
- •Example 4
- •Last In First Out (lifo)
- •Example 5
- •Average Cost Method (avco)
- •Example 6
- •Actual Unit Cost Method
- •Accounting for Inventory
- •3) Perpetual vs Periodic Inventory System
- •Differences Between Perpetual and Periodic System
- •2. Complete the following sentences
- •3. Choose the correct answer
- •6. Biological assetS
- •6) Is the growing of plants to be used in the production of drugs an activity within the scope of ias 41?
- •7) Is the produce or harvest from a biological asset another biological asset?
- •8) Is land related to agricultural activity a biological asset in terms of ias 41?
- •9) In an integrated business, are all the activities treated as being in the scope of ias 41?
- •2. Complete the following table
- •3. Complete the following table
- •7. Cash and cash equivalents
- •1. Read the article and discuss
- •1) What is the difference between the direct method and the indirect method for the statement of cash flows?
- •2) What is the difference between net cash flow and net income?
- •3) What is the difference between cash flow and free cash flow?
- •4) How can a company have a profit but not have cash?
- •2. Complete the following sentences
- •4. For items 1 – 12 indicate whether they will have a positive or negative effect on cash.
- •5. Choose the correct answer
- •6. Use «Increases» or «Decreases» to complete the table below
- •7. Read the article and discuss
- •Cash Payments
- •8. Accounts Receivable and Revenues
- •1. Read the article and discuss What is accounts receivable?
- •Accounting for Receivables
- •Sales Tax
- •Example
- •Allowance Method for Reporting Credit Losses
- •Writing Off an Account under the Allowance Method
- •Bad Debts Expense as a Percent of Sales
- •Difference between Expense and Allowance
- •Pledging or Selling Accounts Receivable
- •2. Complete the following sentences
- •3. Choose the correct answer
- •4. Use the following information for questions 1-5:
- •4. Read the article and discuss What are the differences among accounting revenue, gain, and net income?
- •2. Example of revenue, income, gross profit, profit, net income, and gain
- •9. Stockholders' Equity
- •1. Read the article and discuss
- •1) What Is a Corporation?
- •2) What is stock?
- •3) What are the stockholders’ equity accounts?
- •4) Treasury Stock — Cost Method
- •Example
- •5) Treasury Stock — Par Value Method
- •Example
- •6) What is retained earnings?
- •Example
- •7) Does a dividend reduce profit?
- •8) What is the difference between stocks and bonds?
- •9) Does the income statement explain the change in the equity section of a balance sheet?
- •10) What is preferred stock?
- •11) Why is there a large difference between share value and stockholders’ equity?
- •Issuance of No Par Stock Example
- •12) Issuance of Shares for Non-Cash Items
- •Example
- •13) Lump-Sum Stock Issuance
- •Example
- •14) Stock Dividends
- •Small Stock Dividend
- •Large Stock Dividend
- •Example
- •Stock Splits
- •Example
- •15) Accounting For Stockholders' Equity
- •16) Paid-in Capital or Contributed Capital
- •17) Retained Earnings
- •18) Treasury Stock
- •19) Accumulated Other Comprehensive Income
- •20) Stock Splits and Stock Dividends
- •Cash Dividends on Common Stock
- •21) Preferred Stock
- •22) Par Value of Preferred Stock
- •23) Issuing Preferred Stock
- •24) Features Offered in Preferred Stock
- •Nonparticipating vs. Participating
- •Cumulative vs. Noncumulative
- •Callable
- •Convertible
- •Combination of Features
- •25) Entries to the Retained Earnings Account
- •26) Prior Period Adjustments
- •27) Book Value
- •28) Preferred Stock's Book Value
- •29) Common Stock's Book Value
- •30) Earnings Available for Common Stock
- •31) Weighted-Average Number of Shares of Common Stock
- •32) Earnings per Share of Common Stock
- •33) Other
- •2. Complete the following sentences
- •10. Liabilities and employee benefits
- •1. Read the article and discuss
- •1) Defined Contribution Plan
- •Accounting for a defined contribution plan
- •Example
- •2) Defined Benefit Plan
- •Example
- •3) Net pension asset/liability
- •Example
- •4) Pension expense
- •Projected Benefit Obligation
- •Example
- •Plan Assets
- •Example
- •Pension Expense
- •Pension expense under defined contribution plan
- •Example
- •Pension expense under defined benefit plan
- •5) Funded Status
- •Example
- •Suggested Reading
- •International Financial Reporting Standards
- •International Accounting Standards
- •Ifric Interpretations
- •Sic Interpretations
- •Other pronouncements
- •Облік за міжнародними стандартами (іноземною мовою)
- •54020, М. Миколаїв, вул. Паризької Комуни, 9
3. Use «Debit» or «Credit» to complete the table below
Account Title |
To Increase |
Asset Accounts |
|
Cash |
|
Accounts Receivable |
|
Merchandise Inventory |
|
Supplies |
|
Prepaid Insurance |
|
Land |
|
Buildings |
|
Accumulated Depreciation - Buildings |
|
Equipment |
|
Accumulated Depreciation - Equipment |
|
Liability Accounts |
|
Notes Payable |
|
Accounts Payable |
|
Wages Payable |
|
Interest Payable |
|
Unearned Revenues |
|
Mortgage Loan Payable |
|
Owner's Equity Accounts |
|
Mary Smith, Capital |
|
Mary Smith, Drawing |
|
Operating Revenue Accounts |
|
Service Revenues |
|
Operating Expense Accounts |
|
Salaries Expense |
|
Wages Expense |
|
Supplies Expense |
|
Rent Expense |
|
Utilities Expense |
|
Telephone Expense |
|
Advertising Expense |
|
Depreciation Expense |
|
Non-Operating Revenues and Expenses, Gains, and Losses |
|
Interest Revenues |
|
Gain on Sale of Assets |
|
Loss on Sale of Assets |
|
4. Choose the correct answer in the table below
1 |
Which term is associated with «left» or «left-side»? |
Debit |
Credit |
2 |
Which term is associated with «right» or «right-side»? |
Debit |
Credit |
3 |
When cash is received, the account Cash will be |
Debited |
Credited |
4 |
When a company pays a bill, the account Cash will be |
Debited |
Credited |
5 |
What will usually cause an asset account to increase? |
Debit |
Credit |
6 |
What will usually cause the liability account Accounts Payable to increase? |
Debit |
Credit |
7 |
Entries to expenses such as Rent Expense are usually |
Debits |
Credits |
8 |
Entries to revenues accounts such as Service Revenues are usually |
Debits |
Credits |
5. For each of the transactions in items 1 through 12, indicate the two (or more) effects on the accounting equation of the business or company.
1. |
The owner invests personal cash in the business. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
2. |
The owner withdraws business assets for personal use. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
3. |
The company receives cash from a bank loan. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
4. |
The company repays the bank that had lent money to the company. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
5. |
The company purchases equipment with its cash. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
6. |
The owner contributes her personal truck to the business. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
7. |
The company purchases a significant amount of supplies on credit. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
8. |
The company purchases land by paying half in cash and signing a note payable for the other half. |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
Information for Items 1 through 4:
Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June.
9. |
In May, Company X records the transaction by a debit to Accounts Receivable for $5,000 and a credit to Service Revenues for $5,000. What is the effect of this entry upon the accounting equation for Company X? |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
10. |
In June, Company X receives the $5,000. What is the effect on the accounting equationand which accounts are affected at Company X? |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
11. |
What is the effect on Client Q's accounting equation in May when Client Q records the transaction as a debit to Consultant Expense for $5,000 and a credit to Accounts Payablefor $5,000? |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |
12. |
What is the effect on Client Q's accounting equation in June when Client Q remits the $5,000? Also, which accounts will be involved? |
|||
|
Assets: |
Increase |
Decrease |
No Effect |
|
Liabilities: |
Increase |
Decrease |
No Effect |
|
Owner's (or Stockholders') Equity: |
Increase |
Decrease |
No Effect |