Assignment Week 3 Portal Corporation Brief 2‚ MBA733--E1WW Background Portal Corporation has two plants that manufacture laser printers located in Ogden & Sandy Utah. Currently the company is expected to produce and sell120‚000 laser printers in the upcoming year. If the company produces these at its current capacity usage‚ variable manufacturing cost will increase at both plants. In order to maximize on production and keep manufacturing cost to a minimum‚ Portal Corporation needs to determine the
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Revenue recognition is a very important component of financial accounting and reporting. The accounting principles governing revenue recognition can have a big impact on corporate accounting and the way contracts are structured with customers. As a part of ongoing discussions to converge U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)‚ some proposals to change revenue recognition have been discussed. The following will discuss revenue
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Issues With Revenue Recognition within the Software Industry The Isoft Example Financial Controller-SoftWarehouse Ltd This report has been prepared for the Board of Directors of SoftWarehouse Ltd for elucidation about the contentious issues that have given rise to the publication of the article concerning Isoft’s issues with revenue recognition. Finally‚ it will also assess whether or not these issues are likely to affect SoftWarehouse Ltd. TABLE OF CONTENTS Executive Summary: 3
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Assessing Revenue Recognition Timing Explain when each of the following business should recognize revenues: a. A clothing retailer like The Limited. Revenue recognition: Sales basis method (at the time of sale). The revenue for a retail store like The Limited should recognize their revenue when the
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Revenue recognition on FASB and IASB convergence process I. CONVERGENCE OF U.S. GAAP AND IFRS Since 2002‚ Financial Accounting Standards Board (FASB) and International Accounting Standards Board’s (IASB) have been working toward “convergence” of US General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). They have made significant progress in efforts to converge critical accounting standards such as those dealing with revenue recognition‚
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Sales Promotion Promotion is the final element in the marketing mix. After the nature of product is decided‚ its price fixed and the methods of distribution decided‚ the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where‚ when how and at what prices. The products would be available. Meaning of
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Case 1 Answer 1: Company A is small and has a low profile because of low volume of sales and no advertisement expenses. This shows Proprietary Business. Company B is a large and have a high profile because sales value is high and it incurs heavy cost of advertisement expenses. Answer 2: This is possible because the sales of Company B are 3.4 times higher than the sales of Company A‚ so even the large expenditure doesn’t affect the Net Income. Answer 3: A: = $211686/$415072*100 = 50.99% or Say
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course: This week you learned about the unearned revenue account. Provide three examples of unearned revenue. Answer: Three examples of unearned revenue would be 1.Prepaid Expense - A year long insurance contract a company paid $12‚000 for at the beginning of the year. Since the insurance company owes the company service‚ the expense prepayment is recorded as an asset Journal Entries: debit Prepaid Insurance and credit Cash). 2. Unearned Revenue - A year long subscription of $12‚000 is received
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Case Study: Enron Corporation Accounting Scandal 1. What is Enron Scandal? Formed in 1985 from a merger of Houston Natural Gas and Internorth‚ Enron Corp. was the first nationwide natural gas pipeline network. Over time‚ the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets. The guiding principle seems to have been that there was more money to be made in buying and selling financial contracts linked to the value of energy
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MEMO TO: Mr. David Maris DATE: September 9‚ 2010 SUBJECT: Biovail Concerns This report discusses the concerns regarding the Biovail pharmaceutical company and the causes‚ implication and ramifications of its recently released quarterly earnings guidance. Specifically‚ this report covers Biovail’s reasons for missing previous expectations for quarterly earnings and an analysis of the validity of these reasons. The focus will be on the assertion that a recent truck accident containing
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