International Financial Management: ACC 403: Principles Of Accounting

TUI UNIVERSITY
Mathew Shannon
Module 1 Case Assignment
ACC 403 –Principles of Accounting
Dr. Craig Mayberry
December 2015 Session

International Financial Management
I. Generally Accepted Accounting Principles (U.S. GAAP): GAAP is a combination of authoritative standards and simply the commonly accepted ways of recording and reporting accounting information. They are imposed on companies so investors have a basic understanding of the financial statements used to analyze American companies for investing purposes. Since this is a standard based report, there is room for unethical reporting; such reporting was revealed in 2001 by Enron.
International Accounting Standards (IFRS): IFRS is a set of accounting standards that was developed by a non-profit organization called the International Accounting Standards Branch (IASB). This is a universal reporting format is directed so business and

1) State the Accounting Equation: Assets = Liabilities +Owners’ Equity.
2) You will note that the Accounting Equation comprises 3 “categories”, each of which can be broken down further into accounts. For each of the three main categories of the Accounting Equation, list 5 or more accounts with actual amounts that would typically be classified into each with double entry accounting bookkeeping system. I identified five account examples in each category. Below, is a table with fictitious numbers to symbolize the credits and debits used in the double entry accounting system for the various account examples. Ideally, these accounts would have their own statement to capture the accuracy of each account.
Assets: Cash, Short-term Investments, Accounts Receivable, Inventory, and Supplies.
Liabilities: Accounts Payable, Salaries Payable, Wages Payable, Interest Payable, and Income Taxes Payable.
Owners’ Equity: Common Stock, Preferred Stock, Paid-in Capital in excess of Par Value, Paid-in Capital from Treasury Stock, and Retained