Download PDF by Kieso, Jerry J. Weygandt, Paul D. Kimmel: Accounting Principles (10th Edition)

By Kieso, Jerry J. Weygandt, Paul D. Kimmel

ISBN-10: 0470534796

ISBN-13: 9780470534793

Weygandt's Accounting Principles introduces not easy accounting recommendations with examples which are usual to accountants. the hot version has been up-to-date with the most recent IFRS/IASB criteria. extra assurance is integrated on foreign currencies translation and LCM. extra discussions specialize in threat administration a result of monetary main issue. The examples additionally emphasize present examples with the intention to support accountants make the relationship to their daily lives. This publication doesn't contain an entry Code to any extra content material.

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Example text

Knowing the purpose of the different assignments will help you appreciate what each contributes to your accounting skills and competencies. Summary of Study Objectives [1] Explain what accounting is. Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. [2] Identify the users and uses of accounting. The major users and uses of accounting are as follows: (a) Management uses accounting information to plan, organize, and run the business.

Measurement Principles GAAP generally uses one of two measurement principles, the cost principle or the fair value principle. Selection of which principle to follow generally relates to tradeoffs between relevance and faithful representation. Relevance means that financial information is capable of making a difference in a decision. Faithful representation means that the numbers and descriptions match what really existed or happened— it if factual. COST PRINCIPLE The cost principle (or historical cost principle) dictates that companies record assets at their cost.

In summary, owner’s equity is increased by an owner’s investments and by revenues from business operations. Owner’s equity is decreased by an owner’s withdrawals of assets and by expenses. Illustration 1-6 expands the basic accounting equation by showing the accounts that comprise owner’s equity. This format is referred to as the expanded accounting equation. Illustration 1-6 Expanded accounting equation Basic Equation: Assets 5 Liabilities 1 Owner’s Equity Expanded Equation: Assets 5 Liabilities 1 Owner’s Capital 2 Owner’s Drawings 1 Revenues 2 Expenses Do it!

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Accounting Principles (10th Edition) by Kieso, Jerry J. Weygandt, Paul D. Kimmel

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