Download Accounting Principles , Tenth Edition by Jerry J. Weygandt PDF

By Jerry J. Weygandt

Weygandt's Accounting rules introduces demanding accounting options with examples which are prevalent to accountants. the hot variation has been up-to-date with the newest IFRS/IASB criteria. extra insurance is incorporated on foreign currencies translation and LCM. extra discussions specialise in probability administration as a result monetary problem. The examples additionally emphasize present examples with a view to aid accountants make the relationship to their daily lives.

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Sample text

Two main assumptions are the monetary unit assumption and the economic entity assumption. MONETARY UNIT ASSUMPTION The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in money terms. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records.

Effective financial reporting depends on sound ethical behavior. [4] Explain generally accepted accounting principles. Generally accepted accounting principles are a common set of standards used by accountants.

The income statement lists revenues first, followed by expenses. Finally the statement shows net income (or net loss). Net income results when revenues exceed expenses. A net loss occurs when expenses exceed revenues. Although practice varies, we have chosen in our illustrations and homework solutions to list expenses in order of magnitude. ) Note that the income statement does not include investment and withdrawal transactions between the owner and the business in measuring net income. For example, as explained earlier, Ray Neal’s withdrawal of cash from Softbyte was not regarded as a business expense.

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