Examples of Revenue Accounts
* Sales * Fee revenue * Interest revenue * Dividend revenue * Rent revenue Expenses – Outflows or
An association of two or more persons to carry on as co-owners of a business for profit.…
Accounting is a system for gathering data about an entity’s economic activity, processing and organizing the data and in turn, communicating that information to people who want to use it to make decisions.…
a) -Revenues are inflows of assets or settlements of liabilities or both. Revenues come from activities of the entity’s central operations.…
Financial reporting is extremely important in our everyday life. You have heard of the many…
If an item of accounting information is released by a corporation and there is no apparent change in the share price of the company, the information is not relevant to the market and therefore there is no point in disclosing such information again.…
6. Given investment details, calculate how Iong an initial investment was growing at a certain interest rate.…
1) BDO Seidman’s attorney pointed out correctly that professional standards do not prohibit auditors and client personnel from being ‘friends’. At what point does such relationship result in violation of the auditor independence rules and guidelines? Provide hypothetical examples to strengthen your answers.…
Earnings management is defined by McGraw Hill as the “reasonable and legal management decision making and reporting intended to achieve stable and predictable financial results.” Additionally, the CPA Journal states that, “Earnings management is recognized as attempts by management to influence or manipulate reported earnings by using specific accounting methods (or changing methods), recognizing one-time non-recurring items, deferring or accelerating expense or revenue…
Earnings management is not always intended to produce higher income. The manipulation’s purpose is to give the illusion of a smooth income pattern. According to our text, “Most executives prefer to report earnings that follow a smooth, regular, upward path….It is better to have two years of 15% earnings increases than a 30% gain in one year and none in the next” (Spiceland, Sepe, & Nelson, 2011).…
The world's oldest existing photograph was taken on a summer day in 1827 by a retired French army officer. He called it a Heliograph (sun drawing). It took eight hours to expose.…
following the Thursday class. For instance, for the assignment for Sept. 17, 2009 homework Q24 will be due the following Sunday, Sept. 20, 2009. The syllabus gives precise dates for each…
areas such as this of using empirical analysis of hard data, with good experimental design…
This report will identify a crisis facing BP company, the Gulf of Mexico spill, and investigate how the organization response to the society. In this report, it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer, 1975) says a corporation must act in congruence with norms and society value.…
Accounting income can be defined per word. Where “accounting measurements tend to be based on historical cost determined by reference to an exchange transaction with another party (such as a purchase or sale) and income represents "revenues" minus "expenses" as determined by reference to those transactions or events."…
Income smoothing is defined as a technique to remove volatility in earnings by leveling off the peaks and valleys of earnings over a number of years. Its primary objective is to moderate income variability by reducing income during good successful years and as a result defer them for use during the bad years. (Beidleman, C.R. 1973) It is a process that is common in the accounting practice in which it can stretch over many periods. The application of income smoothing is often referred to earnings management. Earnings management is perceived as a strategy tool that is applied in companies in order for managers to manipulate accounting information. It is defined as, “a purposeful intervention by management in the earnings determination process, usually to satisfy self objectives.” (Wild, J. et al, 2001, p.1052)…