ACC 300 Chapter 3

Question 1

Similarites of GAAP and IFRS

Answer 1

Use the same set of procedures and records to keep track of transaction data, transaction analysis is the same, trial balances are formatted the same

Question 2

Differences for GAAP and IFRS

Answer 2

Ifrs uses more fair value, gaap has more enhanced internal control standards

Question 3

Income statement

Answer 3

Helps investors and creditors predict the amounts timing and uncertainty of future cash flows

Question 4

Income statement is useful for

Answer 4

Evaluating past performance, predicting future performance, determining the risk of achieving future cash flows

Question 5

Limitations of the income statement

Answer 5

Items that cant be measured reliably are omitted from the income statement, numbers effected by the accounting methods employed, involves measurment judgement

Question 6

Earning managment

Answer 6

The planned timing of revenues expenses, gains, and losses to smooth out bumps in earnings

Question 7

Coverstion cash reciepts to service revenue

Answer 7

Cash recipts-begining ar+ending ar+begining unearned revenue-ending unearned revenue

Question 8

Converstion of cash paid to operating expenses

Answer 8

Cash paid+begining prepaid expenses-ending prepaid expenses-beinging accures liabilities+ending accrued labilities