ACCT 201 Saudi Electronic University Financial Reporting Standards Questions

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Business Finance

ACCT 201

Saudi electronic university

ACCT

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College of Administrative and Financial Sciences Assignment 1 Deadline: (end of week 6) 27 /02/ 2021 @ 23:59 Course Name: Financial Accounting Course Code: ACCT 201 Semester: 2 Academic Year: 2020- 21 For Instructor’s Use only Student’s Name: Student’s ID Number: CRN: Instructor’s Name: Students’ Grade: …… /5 Level of Marks: High/Middle/Low nstructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Assignment Question(s): Marks 5 Corporations need financial reporting Standards? Explain the two major standard Q1 Why do Setters? Q2. Accounting Information system takes in the whole process of accounting cycle. Explain each step in the accounting cycle with a numerical example of your own Q3. A. What do you understand by allocation to non-controlling interest and discontinued operations? Explain how are they reported in the income statement. B. Intraperiod Tax Allocation. XYZ Co. has income before income tax of SR 50,000. It has a gain of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, how would XYZ Co. present the information on the income statement, and if it has a loss of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, show the changes in Income on the income statement .Q4 Presented below are a number of statement of financial position items for ABC, Inc., for the current year, 2020. Goodwill Payroll Taxes Payable Bonds Payable Accumulated Depreciation SR 125,000 Equipment 177,591 Inventories 285,000 Rent Payable - Short-term SR 292,000 239,800 45,000 Cash Land Notes Receivable Notes Payable to Banks Accounts Payable Retained Earnings Income Taxes Receivable Unsecured Notes Payable (Longterm) 360,000 Taxes Payable 480,000 Long-term Rental Obligations 445,700 Share Capital - Ordinary, $1 Par Value Share Capital - Preference, $10 Par 265,000 Value 490,000 Prepaid Expenses 713,897 Equipment 97,630 Trading Securities 1,600,000 Accumulated Depreciation - Building Building Prepare a classified statement of financial position in good form as per IFRS. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of trading securities are the same 98,362 480,000 200,000 150,000 87,920 1,470,000 121,000 270,200 1,640,000
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College of Administrative and Financial Sciences

Assignment 1
Deadline: (end of week 6) 27 /02/ 2021 @ 23:59
Course Name: Financial Accounting
Course Code: ACCT 201
Semester: 2
Academic Year: 2020- 21
For Instructor’s Use only

Student’s Name:
Student’s ID Number:
CRN:

Instructor’s Name:
Students’ Grade: …… /5

Level of Marks: High/Middle/Low
nstructions – PLEASE READ THEM CAREFULLY

• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).


Submissions without this cover page will NOT be accepted.

Assignment Question(s): Marks 5

Q1 Why do Corporations need financial reporting Standards? Explain the two major
standardSetters?
Answer:
Corporations need financial reporting standards for the following reasons:


Financial reporting standards enhance the comparability as well as the quality of the
presented financial information. It makes financial statements transparent to prospective
investors and other stakeholders for better economic decision-making.



Financial reporting standards reduce the information gap between managers and owners
of the corporation, thus increasing management’s accountabil...


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