Principles of Accounting
12th Edition
ISBN: 9781285607047
Author: NEEDLES
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 2C
To determine
Identify whether employees are considered assets in financial statement and give reason. Describe the sense that southwest considers its employees to be assets.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You are a member of the board of directors of ABC Co. Your company acquired a building to be held solely for rentals. You are tasked in selecting an appropriate accounting policy for the building. In this regard, you will most likely refer to which of the following standards? PAS 17
PAS 39
PAS 40
PAS 41
The annual reports of public corporations normally include a section on Management Discussion and Analysis (MD&A). Please examine the MD&A section of your selected company and let us know about any comments included regarding management's assessment of the company's liquidity and the availability of capital to the company. Also, please select one of the profitability ratios and calculate or find it for your company. Please let us know what this profitability ratio indicates about the financial health of your company.
Potter and Partners are a chartered accounting firm with offices in capital cities in most states. The head of the business development department is seeking to grow the firm’s revenue from non-audit services.
Required:
What non-audit services could a chartered accounting firm provide to its listed company clients? Explain why a company would buy these services from its audit firm instead of another consulting firm.
Chapter 1 Solutions
Principles of Accounting
Ch. 1 - What makes accounting a valuable discipline?Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - How are expenses and withdrawals similar, and how...Ch. 1 - How do generally accepted accounting principles...Ch. 1 - Why do managers in governmental and not-for-profit...Ch. 1 - Prob. 1SECh. 1 - Match the descriptions that follow with the...Ch. 1 - Determine the amount missing from each accounting...Ch. 1 - Use the accounting equation to answer each...
Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Prob. 6SECh. 1 - Use the following accounts and balances to prepare...Ch. 1 - Randall Company engaged in activities during the...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Prob. 1EACh. 1 - Financial accounting uses money measures to gauge...Ch. 1 - You have been asked to compare the sales and...Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Daiichi Companys total assets and liabilities at...Ch. 1 - 1. Indicate whether each of the following accounts...Ch. 1 - Listed in random order are some of Oxford Services...Ch. 1 - Dukakis Company had the following accounts and...Ch. 1 - Prob. 9EACh. 1 - Prob. 10EACh. 1 - Complete the financial statements that follow by...Ch. 1 - Prob. 12EACh. 1 - Match the terms that follow with the appropriate...Ch. 1 - Prob. 14EACh. 1 - Prob. 15EACh. 1 - Prob. 1PCh. 1 - The following three independent sets of financial...Ch. 1 - Fuel Designs financial accounts follow. The...Ch. 1 - The accounts of Frequent Ad, an agency that...Ch. 1 - Athena Riding Clubs financial statements follow.Ch. 1 - A list of financial statement items follows....Ch. 1 - Three independent sets of financial statements...Ch. 1 - Prob. 8APCh. 1 - Prob. 9APCh. 1 - Aqua Swimming Clubs financial statements follow....Ch. 1 - Costco Wholesale Corporation is Americas largest...Ch. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4CCh. 1 - Refer to the CVS annual report and the financial...
Knowledge Booster
Similar questions
- Maurice Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with IFRS but is now considering a change to ASPE. For its Year 6 financial statements, Maurice reported the following in accordance with IFRS: Net income $3,700 Total debt $25,900 Current assets 14,300 Total shareholders’ equity 22,200 Current liabilities 11,400 You have identified the following three areas in which Maurice’s accounting policies have differences between IFRS and ASPE: Impairment losses Convertible bonds Income taxes The controller at Maurice provides the following information with respect to each of these accounting differences and indicates that the Year 6 financial statements reflect the proper accounting for these items in accordance with IFRS: Impairment Losses Impairment tests were performed on the company’s equipment for Years 5 and 6 with the following results: December 31, Year 5 December 31, Year 6 Cost of…arrow_forwardOdinie has been an employee of ABC Co for the last 5 years. Recently, the CFO has asked all employees to incorporate and advised that their pay will now be received through their corporation instead. Odinie is a Canadian resident individual and is interested in what type of corporation his new company will be. It is established in Canada. A:Other corporation B:Personal services business C:Public corporation D:Specified investment businessarrow_forwardMthembu is a financial accounting student at Mancosa involved in an internship at Inca Financial Company. The supervisor want to test his knowledge of the financial statements and asked him to identify which of the statements below is false? OA. The financial result of an enterprise is a measure of the profit or loss that the enterprise made over a certain period of time O B. Assels are the possessions of a business that have monetary value OC. A Statement of Comprehensive income shows the financial position of an entity on a certain date O D. Liabilities are the obligations of an entityarrow_forward
- GlaxoSmithKline is a global pharmaceutical and consumer health-related products company located in the UnitedKingdom. The company prepares its financial statements in accordance with International Financial ReportingStandards.Required:1. Use the Internet to locate GlaxoSmithKline’s most recent annual report. The address is www.gsk.com/en-gb/investors/. Locate the significant accounting policies disclosure note.2. How does the company value its property, plant, and equipment? Does the company have any other optionsunder IFRS for valuing these assets? How do these options differ from U.S. GAAP?3. What are the company’s policies for possible reversals of impairment losses for goodwill and for othernon-current assets? How do these policies differ from U.S. GAAP?arrow_forwardSiemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: I need to use the Internet to locate the most recent financial report for Siemens. The address is www.siemens.com. Locate the significant accounting policies disclosure note. How does the company account for research and development expenditures? Does this policy differ from U.S. GAAP?arrow_forwardHow much is the minimum revenue that a single external customer must contribute for it to be considered as a major customer under IFRS 8?arrow_forward
- You are conducting an accounting research project for your manager. Your manager has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize and value a newly purchased piece of equipment on the company's balance sheet. Your manager also wants you to determine the GAAP guidance for how the equipment should be depreciated. Your manager has a lot of knowledge and experience in accounting, and has heard about, but has never used. Directions Use the FASB Accounting Standards Codification system to conduct the research your manager has assigned to you. Use the Codification to determine how to recognize, value, and depreciate a piece of equipment. Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance Also prepare a brief memo explaining to your manager the different levels of the Codification and how to use the Codification system.arrow_forwardSiemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: 1. Use the Internet to locate the most recent financial report for Siemens. The address is www.siemens.com. Locate the significant accounting policies disclosure note. 2. How does the company account for research and development expenditures? Does this policy differ from U.S. GAAP?arrow_forwardLLL Company is listed on its country’s stock exchange. The following individuals serve on the board of directors: Asif is a non-executive director and is the chairman of the company.Bertrand is the CEO and is responsible for the day-to-day running of the company.Chan is a professional accountant and serves as a non-executive director.Donna is the finance director and is an employee of the company.Esther is a legal advocate and serves as a non-executive director.Frederik is the marketing director of a manufacturing company and serves as a non-executive director. a. Which of the following is the most appropriate composition of directors for LLL Company’s audit committee? Discuss the reasons for the recommended structure of the audit committeeA. Chan, Donna and EstherB. Asif, Bertrand and FrederikC. Asif, Esther and FrederikD. Chan, Esther and Frederikarrow_forward
- CCB Bank Berhad is one of the largest financial holding company in the country. It commenced operation on 1 April 2000 as a full-fledged commercial bank. CCB Bank provides a suite of financial products and services that is catered to both retail and corporate customers. The target business segments are categorised under key business units such as Corporate Banking, Community Banking, Enterprise Banking, and Treasury. On 1 January 2019, CCB Bank enters into hire-purchase contract with a customer for financing a motor vehicle. The customer purchases the motor vehicle from a car manufacturer at a price of RM200,000 paid in cash by the bank. The cost of the motor vehicle is RM120,000. For this contract, CCB Bank quotes a flat interest rate of 2.5% per year based on the market price of the motor vehicle. The arrangement with the customer requires an upfront payment of RM44,000 followed by four annual instalments of RM44,000 at the end of each year. The financial year end is 31 December. The…arrow_forwardMarry Ltd is the only manufacturer-involved in the manufacture of widgets in Australia. Although it is family owned, the company employs more than 100 staff (full-time-equivalent) who do not own shares in the organisation. At the end of financial year 2021, it has gross operating revenue of $50 000 000 and gross assets of $23 000 000. (i) Is Marry Ltd required to prepare financial statements that comply with accounting standards? Yes or No (ii) Justify your decision with an explanationarrow_forwardThe following statement suits best the definition of INCOME: a. Income is the amount spent by the business for recruiting the most qualified staff O b. Income is obligation contracted by the business to be honoured at specific dates O c. Income is sales revenue and other amounts received by the business through rendering services to third parties O d. Income is the amount received by the business when it issues new shares to the publicarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub