CHAPTER 5 REVENUES AND MONETARY ASSETS Chapter 5 is about Revenue Recognition and Monetary Assets. There are different criteria used in recognizing revenue depending on the standards the company is using. In general‚ revenues should be recognized when an entity has significantly performed what is required in the agreement‚ full ownership of goods is transferred‚ and services are rendered. The Securities and Exchange Commission (SEC) have identified fraudulent cases where the companies
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Gross profit is a company’s residual profit after selling a product or service; it involves deducting the cost associated with the production and sales. To calculate gross profit it involves examining the income statement. In the income statement you take the revenue and subtract the cost of goods sold. This is also called gross margin and gross profit. Gross profit is needed in a company because it shows how efficiently management uses labor and supplies in the production process (Investopedia
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IBM 320 – Business Application Final Exam List the question Answer with 2 paragraphs‚ chart‚ paragraph‚ and company example Minimum 1.5 pages for each question Answer all 5 essays Part 1: power point on blackboard Part I: Essay (worth 50% of the grade) Essay #1: Why is the understanding of sales forecasting critical to the success of business? What method and/or tools (at least two) can one use to forecast sales? #1:Forcasting sales critical to business: setting up a budget for the
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http://www.studymode.com/essays/Case-Study-About-Ibm-1222250.html Component Check OBJECTIVES & STRATEGIES IBM is repositioning itself from a computer company to an information technology service company through a series of acquisitions and divestitures. Thirteen acquisitions of approximately $4.8 Billion were completed enabling IBM to expand its business. Since then IBM concentrated on becoming stronger in high-added businesses. It concentrates on development and manufacture of the advanced
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The issue of revenue recognition practices is an area that has received a lot of attention from regulators. Whenever there is a report of financial restatements or negative earnings‚ regulators pay extra attention to review the financial statements in order to verify that that there are not any indications of financial fraud or that the organization overstepped their boundaries in the area of managed earnings. The reason that regulators have taken a special interest in financial accounting and potential
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costing‚ which attaches only variable costs to the manufactured output and charges the fixed costs to the accounting period (referenceforbusiness.com‚ n.d.). The page 50 income statement uses the absorption format. The page 33 income statement is set using a contribution format. The contribution format centers on the idea that each unit sold provides a certain amount of contribution margin that goes to covering fixed costs. In 2004 expenses like distribution and transport (29‚988) and the sales commissions
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SPSS Statistics is a software package used for statistical analysis. It is now officially named "IBM SPSS Statistics". Companion products in the same family are used for survey authoring and deployment (IBM SPSS Data Collection)‚ data mining (IBM SPSS Modeler)‚ text analytics‚ and collaboration and deployment (batch and automated scoring services). Contents [hide] 1 Statistics program 2 Versions 2.1 Ownership history 3 Add-ons 4 Release history 5 See also 6 Notes 7 References 8 External
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(a) Analyse the methods by which Gross Domestic Product (GDP) may be measured. (10 marks) In order to effectively analyse the ways in which GDP is measured and why this is‚ we must first identify what GDP is. Gross domestic product (GDP) is the total value of output in an economy and is used to measure change in economic activity. GDP includes the output of foreign owned businesses that are located in a country following foreign direct investment. For example‚ the output produced at the Nissan
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PLATE MARGINS (TRANSFORM FAULTS): When two plates slide past each other they create a conservative plate margin. The relative movement is horizontal‚ and classified as either sinistral (moving to the left) or dextral (moving to the right). Along these margins crust (lithosphere) is not being destroyed by subduction‚ neither is it being created. There is no melting of rock‚ and‚ therefore‚ no volcanic activity or formation of new crust. Despite the absence of volcanic activity‚ these margins are tectonically
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Continuity/Change Over Time During the 1450’s to 1750’s the Americas were evolving at a constant rate. The slave trade and the use trade such as the triangular trade were very common during this time-period due to the rise in plantations‚ causing a diverse region in South America. In addition‚ forced labor was an important constant throughout the region and was controlled by Spanish and the Inca’s which also allowed for a mixture of culture and ethnicities. South America throughout the time-period from
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