Essay about Generally Accepted Accounting Principles and...

EXERCISES AND PROBLEMS ch 1 Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with $50,000 of her own money, and she borrowed $150,000 from the bank. From this†¦show more content†¦Your friend has been in business for two years, and last year he had a loss of $2,000. How can you explain this difference in interest rate to your friend? The bank charges interest based upon risk. The probability of the automobile manufacturer defaul ting on the loan is very remote; therefore, they get a favorable interest rate from the bank. Since your friend lost money last year and since over 40 percent of all small businesses fail in the first five years, the bank’s risk is much higher and therefore they will charge a higher interest rate. EXERCISES AND PROBLEMS ch 1 1.Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with $50,000 of her own money, and she borrowed $150,000 from the bank. From this description, list each of the scarce resources that are used in Carry Yoki’s Lounge. 2.Joe Fixit has an appliance repair business. He has more business than heShow MoreRelatedGenerally Accepted Accounting Principles and Balance Sheet4310 Words   |  18 Pages A company’s fiscal year must correspond to the calendar year. T154. Accounting periods should be of equal length to facilitate comparison between periods. T155. When there is no direct connection between revenues and costs, the costs are systematically allocated among the periods benefitted. T156. Applying accrual accounting results in a more accurate measurement of profit for the period than does the cash basis of accounting. F157. Adjusting entries affect cash flows in the current period. T158Read MoreFoundational Accounting Principles and Terminology1060 Words   |  5 PagesRunning Head: Foundational Accounting Principles and Terminology 1 TUI University Eric Bollar Module 1: Case Assignment ACC501 Accounting For Decision Making Dr. Wendy Achilles January 21, 2011 Foundational Accounting Principles and Terminology 2 We all know how important the accounting aspect of any business/organization is. It is basically the most important way to manageRead MoreAcc 290 Week 3 Practice Quiz New844 Words   |  4 Pagescom/product/acc-290-week-3-practice-quiz-new/ Contact us at: nerdypupil@gmail.com ACC 290 WEEK 3 PRACTICE QUIZ NEW Question 1 The revenue recognition principle dictates that revenue is recognized in the period in which the cash is received. Question 2 The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the Question 3 Which statement is correct? 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Generally accepted accounting principles (GAAP) are a set of uniform accounting guidelines health care organizations followRead MoreComparing IFRS To GAAP Paper836 Words   |  4 Pagesï » ¿Comparing IFRS to GAAP Paper There are several differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). The IFRS is considered more of a principles based accounting standard in contrast to U.S. GAAP which is considered more rules based. By being more principles based, IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. As a team me collaborated to answer the following seven