Company)‚ a rapidly growing online coupon merchant was forced by the SEC to file a restated S-1 registration statement. The reason for the restatement was that the SEC objected to the accounting methods that Groupon used in the calculation of its revenue‚ causing it to be overstated. According to Villanova University (2012)‚ Groupon’s auditors at Ernst & Young stated that Groupon was not setting aside sufficient funds to cover potential refunds to customers and this was allowed to persist due to
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Account: Where transactions are recorded - A separate account is used for each asset‚ liability‚ revenue‚ expense‚ gain‚ loss and capital (owner’s equity) Permanent accounts (or “real” accounts) Asset‚ liability‚ and equity accounts Appear on the balance sheet Permanent accounts are not closed at year end Temporary accounts (or “nominal” accounts) Revenue‚ expense‚ and dividend accounts Revenue and expenses are on the income statement; dividends are on the statement of changes in shareholders
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Technologies‚ Inc.—Revenue Recognition Lucent Technologies designs and delivers networks for the world’s largest communications service providers. Backed by Bell Labs research and development‚ Lucent relies on its strengths in mobility‚ optical‚ data and voice networking technologies as well as software and services to develop next-generation networks. The company’s systems‚ services and software are designed to help customers quickly deploy and better manage their networks and create new‚ revenue-generating
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Recommendation Prior Recommendation Date of Last Change Current Price (04/19/13) Target Price (IBM-NYSE) NEUTRAL Outperform 10/08/2009 $190.00 $200.00 IBM reported a dismal first quarter missing the Zacks Consensus Estimate on both lines. Revenue growth was particularly weak‚ due to execution problem and lackluster demand. We believe that sluggish IT spending remains the major headwind in the near term. Additionally‚ increasing competition in the hardware segment is another significant concern
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and dinner.Beside that‚ the breakfast service already successful increase 9% of their regular customers. First‚ to estimate the change by the CM‚ we need to consider some key items of cost and revenue which may related to the CM. According to the offical data.This chart shows the the baisc sales revenue and expense situation. The food cost include the products which directly effect the food. For example the food ingredient cost‚ transportation fees‚ package of the food. The food cost will be affected
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the example in Exhibit 3. a) Complete the following FSET assuming the Apple follows subscription accounting to account for iPhone’s sales revenue (separately for the transaction in Quarter 1 and in Quarters 2 to 8). Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets - = Liabilities + Contrib. Capital + Earned Capital Revenues - Expenses = Net Income Q1. iPhone Sales +500 -350 Inventory +306.25 Deferred Costs - = +437.5 Deferred Rev. +62.5 -43.75
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Case 8-4: Joan Holtz (D)* Note: This case is unchanged from the Tenth Edition. Approach As with the earlier Joan Holtz cases‚ this one enables students to discuss some interesting issues‚ none of which requires a full class period. The instructor should be alert to newer situations to augment or supplant any of those described in the case. Also many of these issues tend eventually to result in an FASB‚ AICPA‚ or SEC pronouncement. Since seldom will a beginning student be aware of these pronouncements
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fund | | | | Included as revenues of the debt service fund | | | | Both A and B are correct | | | | Points Received: | 1 of 1 | | Comments: | | | | 2. | Question : | If taxes and/or special assessments are levied by the General Fund and then are subsequently transferred to the debt service fund‚ they are: | | | Student Answer: | | Recorded as revenues of the debt service fund | | | | Included in the revenues budget of the general fund and are
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the multiple deliverables be accounted for as one unit of accounting or as two or more separate units of accounting? Guidelines that assist with evaluating sales transactions that involve multiple deliverables can be found in subtopic 605-25‚ ‘‘Revenue Recognition—Multiple-Element Arrangements‚’’ in the Codification. Requirement 2: What are the separate units of accounting in the sales agreement between AOI and CMI? Use the authoritative literature to explain your answer. As the explanation
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PROBLEM 1-1B (a) VINCE’S TRAVEL AGENCY | | | | | | | | | | | | | Owner’s Equity | | | Cash | + | AccountsReceivable | + | Supplies | + | Equipment | = | AccountsPayable | + | Owner’sCapital | – | Owner’s Drawings | + | Revenues | – | Expenses | | | | | | | | | | | | | | | | | | | | 1.2.3.4.5.6.7.8.9.10. | | +$15‚000+ 15‚000+ –600+ 14‚400+ –3‚000+ 11‚400+000‚000+ 11‚400+ –800+ 10‚600– +3‚000+ 13‚600+ –500+ 13‚100+ –500+ 12‚600+ –2‚500+ 10
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