accounting no jutsu fanfiction

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goood story not bad great atory What is inflation accounting? • ●system of maintaining accounts just like historical cost , or Inflation accounting is the practice of adjusting financial statements according to price indexes. 2: What is inflation? ● Inflation is persistent rise in general Price level 3: What is deflation? ● Deflation is continuous fall in the general price level. 4: limitations of historical cost accounting? ● A) Financial statements fail to disclose current worth of enterprise. B) Financial statements contain non-comparable items. C) Creates problems at the time of replacement. D) Mixes holding and operating gains. D) Historical cost overstates income in times of rising prices. 5: monetary item and non monetary item? A)  monetary items is subject to the recording of a net gain or loss. Examples of monetary items include:-  Cash  Receivables  Payables  Loan Capital  Outstanding B)  Non-monetary items are those that do not carry a fixed value Examples of non-monitory items include:-  Inventory  Buildings  Machinery  Investments CHAPTER 2 1: 6 PROBLEMS or points for imporvment ? A) The real significance of accounting information and evaluation is not grasped adequately. B)  Financial accounts are prepared and often maintained for purpose of satisfying law and tax authorities. C)  Accounting methods and practices usually are outdated. D) Financial statements are prepared with excessive delay. E) Inflationary tendencies often lessen further use of FS. F) Shortage of qualified personnel and accounting and management. 2:  the conceptual frame work?  A structured theory of accounting.  States the scope and objectives of financial reporting.  Involves qualitative characteristics of financial information and basic elements of financial reports. 3: Qualitative Characteristics? 1) Understandability. 2) Relevance. 3) Reliability. 4: the emerging of international of international accounting standard ( IAS/IFRS)  ? A) Emerged from long and very political gestation process. B) Originally designed countries with ill developed systems of national GAAP to adopt an internationally verified system of accounting. c)  International Accounting standard Board (IASB) is responsible for IAS/IFRS, previously called International accounting standard Committee(IASC) (1973). D) Founding countries include professional bodies from Australia, France, Canada,, Germany, Japan, Mexico, Netherlands, UK, Ireland & USA. E) IASB was formed April 2001 to undertake standards setting responsibilities. F)  Function of IASB is to undertake standard setting of principles of accounting i) IASB is independent body,responsible to provide internationally recognized and approved accounting standards. J)  IASB partners with national standard setters to achieve convergence and comparability.  Since 1973 IASB has issued 30 International Accounting Standards (IAS). 8) Incentives for International Accounting Standards?  Accounting standards are authoritative.  Accounting standards specify how transactions and events are recognized, measured, presented and disclosed.  IAS is global standards.  Multinational companies seek international accounting harmonization.  IAS Provides reliable basis for evaluation of company performance.  Promote greater transparency.  Provide access to capital markets.  Access to information credibility and understandability.  Lower capital costs 9) the curent status ofninternational accounting  standards ? A) IAS provides common accounting language.  Most European countries adopt IAS.  Foreign investments are booming.  US Companies cross national boundaries.  The objective of EU is to harmonize global accounting standards.  EU partners with International Organization of securities Commission (IOSCO) and IASB.  France and Germany adopt not only foreign companies follow IAS but also local ones. Arab society of certified accountants ( 22 Arab countries) has supported the use of IAS.  Australia has also harmonized the global standards (2011).  In Africa many countries use directly as the basis for financial reporting.  South Africa and Kenya were the first adopters CHAPTER 3 1: social responsibility vs profit? Social responsibility and earning profits are not opposites.  Companies making loss my do the following things;  Production of substandard goods  Under weighing  Creation of artificial shortages  Paying lower wages  Evasion of taxes  Increasing Prices 2: Approaches to social accounting ?  The Inventory Approach: ☆Cost or Outlay Approach  The Programmed Management Approach  The Benefit Cost Approach 1: The environment of business? Macro-Environment- Includes Economic, political, legal, social, cultural and technological forces.  Micro-Environment – Includes Industry, Market, competitors 2: economic environment? State of economy.  Growth rate.  National income.  Price movements.