Difference be- tween a manu- facturing compa- ny and a service company.
Period Costs Product Costs Service Co. Sell- ing Costs Direct Labor
... [Show More] Administrative Costs Service Overhead
Manufacturing Co Selling Costs Direct Labor Administrative Costs Manufacturing
Assets are listed in the order of liquidity. Liquidity is the amount of time it would usually take to covert an asset into cash. Obviously, cash would be listed first, followed by marketable investments (a company can quickly convert a short-term investment into cash). Accounts receivable would be listed next followed by inventory, and long-term investments, fixed assets, and intangibles.
Current assets are listed before long-term assets. Current liabilities are listed before long-term liabilities, but there is no specific order they are listed in outside of current and long-term.
There is also no specific order equity accounts are list- ed on the balance sheet; although, typically you will see paid-in-capital followed by retained earnings followed by accumulated other comprehensive income, and lastly, treasury stock.
The only difference is - a manufacturing company has direct materials (inventory).
. Role of the U.
S. Securities and
Exchange Commission (SEC) in
financial reporting.
Regulates the U.S. Stock exchanges.
Seeks to create a fair information environment in which
investors can buy and sell stocks.
Congress created the first securities act in 1933 and the
second securities act in 1934 in response to the stock
market crash of 1929.
The Securities Act of 1933 requires most companies planning to issue new debt or stock securities to the public to
submit a registration statement to the public for approval.
The Securities Act of 1934 requires a public company
to file detailed periodic reports including audited financial
statements (form 10-K is the annual report; Form 10-Q is
the quarterly report).
Granted the legal authority to establish accounting standards. Currently the SEC accepts the pronouncements set
by FASB.
The SEC can suspend trading of a company's stock, and
if hearings show that the issue failed to comply with the
securities laws, the SEC can de-list the security.
Congress strengthened the SEC through the enactment [Show Less]