though this analysis‚ give a better understanding how these standards apply in the real world accounting field. This paper analyzes similarities and differences in revenue recognition‚ asset impairment‚ consolidation processes‚ contingencies‚ and depreciation. In revenue recognition‚ the definition and treatment of revenue recognition according to US GAAP and IFRS is different. GAAP recognizes revenue when all of the following criterions are made: persuasive evidence of an arrangement exists‚ delivery
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causing them to increase by $5.4 million. They changed the way they compute depreciation expense by using the straight-line method‚ resulting in an increase in net income by $11 million or $.93 per common share. The depreciation policy and residual values were changed as well of machinery‚ plants‚ and equipment‚ which caused and increase in net income by $3.2 million or $.27 per share. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change
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They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3‚000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20‚000. If Stine uses straight-line depreciation‚ annual depreciation will be $4‚100. $6‚100. $4‚072. $3‚760. Given the following account balances at year end‚ compute the total intangible assets on the balance sheet of Janssen Enterprises. Cash $1‚500‚000 Accounts Receivable 4‚000‚000 Trademarks
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Variable costs 345‚300 Depreciation 96‚000 EBIT $ 202‚500 Taxes@35% 70‚875 Net income $ 131‚625 The OCF for the company is: OCF = EBIT + Depreciation – Taxes OCF = $202‚500 + 96‚000 – 70‚875 OCF = $227‚625 The depreciation tax shield is the depreciation times the tax rate‚ so: Depreciation tax shield = TcDepreciation Depreciation tax shield = .35($96‚000) Depreciation tax shield = $33‚600 The depreciation tax shield shows us the
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unions all of the above 4. Expenses can be found in the: a. b. c. statement of owner’s equity income statement balance sheet d. e. both b and c all of the above 5. This account does not appear on the income statement: a. b. c. accumulated depreciation depreciation expense sales revenue d. e. marketing expense interest expense 6. A brand new company has a building costing $10‚000‚ machinery costing $5‚000‚ cash of $700‚ and a bank loan of $7‚850. What is the owner’s equity? a. b. c. $8‚850 $15‚700
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1) What caused the existing system at ETO to fail? This system was based on the assumption that direct costs and overhead are consumed in the same proportion for all product testing. However‚ this is not the case and therefore the system failed. For example‚ due to the implementation of the vendor certification and the just-in-time delivery‚ some products are already tested and do not need any further tests‚ and ETO faces a decreasing number of the tests performed. On the other hand‚ new components
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reduces profits. 8-2 CLASSIFYING LONG-LIVED ASSETS Actively Used in Operations Expected to Benefit Future Periods Tangible Physical Substance Intangible No Physical Substance 8-3 CLASSIFYING LONG-LIVED ASSETS Land Assets subject to depreciation Buildings and equipment Furniture and fixtures Natural resource assets subject to depletion Mineral deposits and timber Tangible Physical Substance Definite life Patents Copyrights Franchises Indefinite life Trademarks Goodwill
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quiz #1 Accumulated depreciation will be the sum of two years of depreciation expense. Annual depreciation for this asset is ($400‚000 - $10‚000)/5 = $78‚000. The sum of two years depreciation is $156‚000 ($78‚000 + $78‚000). | | | Micah Bartlett Company purchased equipment on January 1‚ 2010‚ at a total invoice cost of $400‚000. The equipment has an estimated salvage value of $10‚000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31‚ 2011‚ if
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Relevant cash flows Answer: d Diff: E . Which of the following statements is most correct? a. The rate of depreciation will often affect operating cash flows‚ even though depreciation is not a cash expense. b. Corporations should fully account for sunk costs when making investment decisions. c. Corporations should fully account for opportunity costs when making investment decisions. d. Statements a and c are correct. e. All of the statements above are correct. Relevant cash flows Answer:
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2. The net cash provided by financing activities during 2013 is a. $1‚100‚000. b. $1‚300‚000. c. $1‚600‚000. d. $1‚800‚000. e. None of the above. 3. Which of the following should be disclosed in a Summary of Significant Accounting Policies? a. Depreciation method followed b. Types of executory contracts c. Amount for cumulative effect of change in accounting principle d. Claims of equity holders e. None of the above Use the following information for the next three questions. The balance sheet data
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