page 2 Framework of Accounting (continued) a. accountant b. auditors c. auditor's opinion d. ARB's e. AICPA f. exposure draft 1. Emphasis on developing accounting information for use within a company. 2. Emphasis on the audit function within a firm. 3. Emphasis on combining accounting knowledge with knowledge of electronic data processing equipment 4. Has responsibility for preparing financial statements in accordance with generally accepted accounting principles 5. Review the work done by accountants 6. A specialized certification for management accountants 7. A specialized certification for internal auditors 8. New members of a public accounting firm 9. The top level of members of public accounting firm . FASB h. GAAP i. Internal Auditing j. managerial accounting k. CMA I. opinions m. partner n. IFRS 10. A label of credibility on financial statement 11. Professional organization of practicing certified public accountants in the United States 12. Responsibility for establishing generally accepted accounting principles 13. Responsibility for regulating admission into the profession o. releases 14, Preliminary statement that includes specific recommendations p. staff accountants For financial accounting and reporting q. state board of 15. Generally accepted accounting principles 16. Pronouncements of accounting principles by the Committee s. system analysis 17. Pronouncements of accounting principles by the Accounting 18. Pronouncements of accounting principles by the Financial 19. Pronouncements of accounting principles by the Securities and r. statements on Accounting Procedures Principles Board Accounting Standards Board. Exchange Commission for reporting t. CIA 20. Responsible for world-wide accounting procedures and standards accountas, rineiples, and Constraints) A number only during downturns in their wine produettis at suchtmore urer of Doug Flutie Co. wishes to prepawhich occur hat the0 crop fails. He states that it is at statements could be most easily months pass without statements being statements prepared. In no event would more than 30 of 2 The Chicago Power property, plant, decided that because the general price level has chan the years, they will issue only price-level adjusted finaa & Light Company has purchased a large am Companyhs ver and equipment over a number of years. They widgets 3. Robert Smith Manufacturing Co. decided to manufactu fo an outside because it supplier. In an attempt to make their statements more those of their competitors, Robert Smith charged its inventory what they felt the widgets from an outside supplier.( er. In an attempt to make their statements more comparable w account for would have cost if they had been purchased Do not use the revenue recognition princip Flanagan's Discount Centers buys its merchandise by the truck and train- carload. Flanagan does not defer any transportation costs in computing the cost of its ending inventory. Such costs, although varying from period to period, are always material in amount. Gab& Run, Inc., a fast food company, sells franchises for $100,000, accepting a $5,000 down payment and a 50-year note for the remainder. Grab & Run promises for 3 years to assist in site selection, building, and management training. Grab &Run records the $100,000 franchise fee as revenue in the period in which the contract is signed. 5. 6. Curtis Conway Company "faces possible expropriation (i.e., takeover) of foreign facilities and possible losses on sums owed by various customers on the verge of bankruptcy." The company president has decided that these possibilities should not be noted on the financial statements because Conway still hopes that these events will not take place Mike Singletary, manager of College Bookstore, Inc, bo for his own use. He paid for the computer by writing a check on the bookstore checking account and charged the "Office Equipment" acco 7. ught a computer unt. Curtis Enis, Inc. recently completed a new 60-story office building that houses their home offices and many other tenants. All the office 8. for the building that had a per item or per unit cost of $1,000 or as immaterial, even though the office equipment has an less was expensed page 2 Framework of Accounting (continued) a. accountant b. auditors c. auditor's opinion d. ARB's e. AICPA f. exposure draft 1. Emphasis on developing accounting information for use within a company. 2. Emphasis on the audit function within a firm. 3. Emphasis on combining accounting knowledge with knowledge of electronic data processing equipment 4. Has responsibility for preparing financial statements in accordance with generally accepted accounting principles 5. Review the work done by accountants 6. A specialized certification for management accountants 7. A specialized certification for internal auditors 8. New members of a public accounting firm 9. The top level of members of public accounting firm . FASB h. GAAP i. Internal Auditing j. managerial accounting k. CMA I. opinions m. partner n. IFRS 10. A label of credibility on financial statement 11. Professional organization of practicing certified public accountants in the United States 12. Responsibility for establishing generally accepted accounting principles 13. Responsibility for regulating admission into the profession o. releases 14, Preliminary statement that includes specific recommendations p. staff accountants For financial accounting and reporting q. state board of 15. Generally accepted accounting principles 16. Pronouncements of accounting principles by the Committee s. system analysis 17. Pronouncements of accounting principles by the Accounting 18. Pronouncements of accounting principles by the Financial 19. Pronouncements of accounting principles by the Securities and r. statements on Accounting Procedures Principles Board Accounting Standards Board. Exchange Commission for reporting t. CIA 20. Responsible for world-wide accounting procedures and standards accountas, rineiples, and Constraints) A number only during downturns in their wine produettis at suchtmore urer of Doug Flutie Co. wishes to prepawhich occur hat the0 crop fails. He states that it is at statements could be most easily months pass without statements being statements prepared. In no event would more than 30 of 2 The Chicago Power property, plant, decided that because the general price level has chan the years, they will issue only price-level adjusted finaa & Light Company has purchased a large am Companyhs ver and equipment over a number of years. They widgets 3. Robert Smith Manufacturing Co. decided to manufactu fo an outside because it supplier. In an attempt to make their statements more those of their competitors, Robert Smith charged its inventory what they felt the widgets from an outside supplier.( er. In an attempt to make their statements more comparable w account for would have cost if they had been purchased Do not use the revenue recognition princip Flanagan's Discount Centers buys its merchandise by the truck and train- carload. Flanagan does not defer any transportation costs in computing the cost of its ending inventory. Such costs, although varying from period to period, are always material in amount. Gab& Run, Inc., a fast food company, sells franchises for $100,000, accepting a $5,000 down payment and a 50-year note for the remainder. Grab & Run promises for 3 years to assist in site selection, building, and management training. Grab &Run records the $100,000 franchise fee as revenue in the period in which the contract is signed. 5. 6. Curtis Conway Company "faces possible expropriation (i.e., takeover) of foreign facilities and possible losses on sums owed by various customers on the verge of bankruptcy." The company president has decided that these possibilities should not be noted on the financial statements because Conway still hopes that these events will not take place Mike Singletary, manager of College Bookstore, Inc, bo for his own use. He paid for the computer by writing a check on the bookstore checking account and charged the "Office Equipment" acco 7. ught a computer unt. Curtis Enis, Inc. recently completed a new 60-story office building that houses their home offices and many other tenants. All the office 8. for the building that had a per item or per unit cost of $1,000 or as immaterial, even though the office equipment has an less was expensed