Accounting Terminology Guide

In accrual accounting, an expense is recognized when the business is obligated to pay it. As goods or services are invoiced, the invoices are posted and counted as assets. Expenses are also posted at the time they are incurred. Accrual accounting is used at most mid-level and large businesses and provides a more accurate picture of the company’s current condition, it is however more expensive to implement. This type of accounting is required by GAAP. Although this type of accounting is more complex, it allows one to track receivables and payables, and match revenues to expenses, which gives more meaning to financial reports.

Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at

1. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of uncollectible accounts expense reported on the income statement?

4. In 2013, Allen Anders sold an asset which cost $70,000. Allen incorrectly claimed $40,000 depreciation over a five-year period. He should have claimed $50,000 depreciation. What was the adjusted basis when sold?

Adjusting entries have four types in which provide a method of breaking down transactions. When a business purchases supplies in order to stock, this would be considered a prepaid expense. After an adjusting entry is made for a prepaid expense, the ledger would reflect the correct portion of that expense, in this case supplies, in which was incurred during a specific time. (Editorial Board, 2012, p. 42) A depreciation expense is a sub category of a prepaid expense. This occurs when an asset is allocated over a certain amount of time. An

Entity-wide disclosures are required under Accounting Standards Codification (ASC) 280-10-50-40 through 280-10-50-42. The disclosures are required because every corporation does not report information in a similar fashion, and the disclosures would provide comparability of the financial statements among entities. For example, if a corporation uses a geographic approach in its financial statements, disclosing certain information about the products or services sold will make comparability to other companies much easier. The disclosures will also help with comparability within an entity if they decide to choose another method of reporting operating segments in the future. There are three types of entity-wide disclosures; products and services, geographic areas, and/or major customers. Every public company has to comply with the disclosures, even if the company has one reportable segment. The only exception to the entity-wide disclosures is if it is impractical to provide the information, such as it would be extremely costly to the corporation, or if the “internal reporting systems are not capable of gathering financial information by product or service by geographic area.” A disclosure should be made when entity-wide disclosures are impractical.

ChaNoel A. Torres Acevedo Intermediate Accounting I Homework: Exercise 3-1: Apr. | 2 | Cash | 30,000 | | | | Equipment | 14,000 | | | | Christine Ewing, Capital | | 44,000 | | | | | | | 2 | No entry—not a transaction. | | | | | | | | | 3 | Supplies | 700 | | | | Accounts Payable | | 700 | | | | | | | 7 | Rent Expense | 600 | | | | Cash | | 600 | | | | | | | 11 | Accounts Receivable | 1,100 | | | | Service Revenue | | 1,100 | | | | | | | 12 | Cash | 3,200 | | | | Unearned Service Revenue | | 3,200 | | | | | | | 17 | Cash | 2,300 | | | | Service Revenue | | 2,300 |

When measures of central tendency are not affected by extremely low or extremely high values?

Accrual basis accounting is the measurement of resources provided by revenues and the measure of expenses. The difference of these two measurements is net income or net loss if expenses are greater than revenues related to providing goods and services to customers. (Spiceland, Intermediate Accounting, 2011, pp. 6-7)

All healthcare organizations use the billing terminology standards will support features of medical billing. International Classifications of Diseases (ICD) is a diagnosis code set. ICD-9 is the version currently being used for billing in the U.S. while ICD-10 will become essential in October 2014. For example, of

3. Out in the business world almost all projects are completed by some type of team or collaborative group of individuals. At the University of Phoenix, you will gain experience with project collaboration in a safe and supportive environment. These skills will carry you through teamings and collaborations on future real world’s projects where success may mean more pay, a promotion, or another major reward or compensation. To assist in the areas involved in teamwork and team building the University of Phoenix provides you with the Learning Team Toolkit. This Learning Team Toolkit is your gateway to materials that will help you achieve greater professional competence as a member and leader of work teams. Go to the Library tab in your student portal and select the link, Read all Aspects of Teamwork located on the right side of the webpage under Learning Team Toolkit. Then, under the category Toolkit Essentials, open the Learning Team Handbook and select which Purpose for Learning Team Benefits is listed.

Modified basis of accounting is used by government s to recognize that budgets are based ONLY on funds that are available to provide services. Modified accrual basis is important to show to financial statement users how the resources provided in the budget have been expended in the current year. Modified basis of accounting is characterized by its determination of when revenues are recognized. The main difference of revenues being recorded, in the financial statements as revenue, is that they are only recorded when they are susceptible to accrual. As detailed in the text, this means that the revenue is both reasonably estimated of the proceeds that could be generated and it is collectible within the current accounting

IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,

There are two kinds of accounting basis which can be adopted by the company to prepare its financial position. One is accrual basis of accounting where revenue and expenses are recognized when they are received and incurred and other is cash basis where all the revenue and expenses are recognized when cash is received or paid (Cleverley, Cleverley, & Song, 2012). Generally, small businesses, not-for-profit organizations, some Government agencies and community associations use the cash-basis while larger for-profit businesses use the accrual-basis (Baskerville, 2014). This is because the cash-basis is quite simple to understand and maintain while the more complicated accrual-basis produces the more accurate assessment of the financial position and performance of the business. Tax laws and accounting standards generally give small organizations a choice as to which approach they will adopt. At the same time larger organizations and public companies are required to record their financial transactions using ONLY the accrual method.

Feedback: A clear understanding of accounting terms and concepts is required of those who have a financial interest in an enterprise if they are to understand and communicate about the enterprise. Accounting