Case study on MacCloud Winery Questions 1. Applying the principles of accrual accounting‚ how should Mike treat the expenditures for the land‚ vines‚ vine planting‚ fertilizing‚ water? Be specific regarding the treatment over time‚ including amounts‚ and the rationale for the treatments. Answer: Following the key accrual accounting concepts: Conversation‚ Realization and Matching‚ we think Mike should treat the expenditures as follows: |No. |Item Description |Treatment
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Section A Under Case Study (Newspaper) HB Global 1. Types of audit opinion Qualified opinion * A qualified opinion report can result from a limitation on the scope of the audit or failure to follow generally accepted accounting principles Adverse opinion * It is used only when the auditor believes that the overall financial statements are so materiality misstated or misleading that they do not present fairly the financial position or results of operations and cash flows in conforming
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Case Analysis Cooper Industries Cooper Industries was organized in 1919 as a manufacturer of heavy machinery and equipment. By the mid-1950s it was a leading producer of engines and massive compressors used to force naturalgas through pipelines and oil out of wells. Management was concerned‚ however‚ over its heavy dependence on sales to the oil and gas industries and the violent fluctuation of earnings caused bythe cyclical nature of heavy machinery and equipment sales. Although the company’s
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statements concerning stock-based compensation. • Explain the financial statement tax effects of stock-based compensation. Refer to the 2007 financial statements of Xilinx‚ Inc.‚ and Note 3‚ Stock-Based Compensation. Note: following Xilinx’s convention‚ the case refers to the year ended March 31‚ 2007‚ as “fiscal 2007” and to the year ended April 1‚ 2006‚ as “fiscal 2006.” Concepts a. Consider the information on Employee Stock Option Plans (beginning on page 50 of Xilinx’s annual report). i. ii. Explain
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ACCOUNTING SUBSTANCE OVER FORM Substance over form is an accounting concept where the entity is accounting for items according to their substance and economic reality and not merely their legal form. It is one of the key determinants of reliable information. For most transactions there will be no difference and in some cases however‚ the two diverge and the choice of how to present the transactions can give very different results. This differences occurs when an asset or liability is not recognized
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Accounting: Topic 6: Analysis And Interpretation Of Financial Statements (Part 2) Capital Structure Analysis Proportion of debt financing relative to equity financing (=gearing or leverage) * Reflects the entity’s financing decisions * Investments in assets are funded externally by liabilities‚ or internally by owner’s as shown in accounting equation (A=L+OE) Debt to equity ratio: Total liabilities/ Total equity x 100=x% Debt ratio: Total liabilities/ Total asset x 100=x%
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Case Analysis on the Article‚ ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation‚ Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service‚ Budget‚ Limited-service‚ Premium-service Segmentation and Targeting: Psychographic‚ Behavioral‚ Geographic and Demographic Positioning: Value proposition matrix (more for more‚ less for less‚ etc.) Conclusion and Recommendations: « SIA in marginal value proposition
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Culture in Hilton Worldwide and Ritz Carlton Worldwide Ashley Couch MBA683-D4B3 Project Management Benedictine University Abstract Organizational culture is defined as a system of shared norms‚ beliefs‚ values‚ and assumptions which binds people together‚ creating shared meanings. Culture reflects the personality of the organization and similar to an individual’s personality it enables people to predict the attitudes and behaviors of organizational members. Culture is one of the defining aspects
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Chapter 8 Activity-Based Costing: A Tool to Aid Decision Making Solutions to Questions 8-1 Activity-based costing differs from traditional costing systems in a number of ways. In activity-based costing‚ nonmanufacturing as well as manufacturing costs may be assigned to products. And‚ some manufacturing costs—including the costs of idle capacity—may be excluded from product costs. An activity-based costing system typically includes a number of activity cost pools‚ each of which has its
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Case Analysis Report Clayton Industries: Peter Arnell‚ Country Manager for Italy (HBS Case # 4199) 1. Evaluate Peter Arnell’s first two months as general manager of Clayton SpA. What are the main challenges he faces? How well is he dealing with them? The biggest challenge Peter faces is the stagnant growth that Clayton SpA has experienced in recent years‚ especially with a 5.3% decline in 2008 and 19.4% drop in the first quarter of 2009 for Italy. This lack of sales directly affects
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