Chapter 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false‚ explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB
Premium Balance sheet Generally Accepted Accounting Principles Income statement
not an agent. Recording revenue in this manner means that Groupon was recording a “cost of goods sold” entry with each “revenue” entry on every sale it made. These entries heavily inflated the amount of revenue Groupon was reporting. Although net income was not affected by this‚ many other things were such as revenue growth rates and gross profit margins (Hilton‚ 2013). Herein lies the problem‚ Groupon is an agent‚ not a principal. To be considered a principal‚ a few criteria must be met. These
Premium Revenue Generally Accepted Accounting Principles Income statement
Integrated Case 3-16 D¡¦Leon Inc.‚ Part I Financial Statements and Taxes Donna Jamison‚ a 2000 graduate of the University of Florida with 4 years of banking experience‚ was recently brought in as assistant to the chairman of the board of D¡¦Leon Inc.‚ a small food producer that operates in north Florida and whose specialty is high-quality pecan and other nut products sold in the snack-foods market. D¡¦Leon¡¦s president‚ Al Watkins‚ decided in 2004 to undertake a major expansion and to ¡§go
Premium Balance sheet Depreciation Generally Accepted Accounting Principles
CASE STUDY #2 – DARDEN RESTAURANTS‚ INC. – TRANSACTIONS AND ADJUSTMENTS Concepts a. To prepare accrual-based financial statements‚ a company must adjust its accounts. This is accomplished with periodic adjustments (also known as adjusting journal entries or accounting adjustments). For each account below‚ explain the types of transactions or events that necessitate periodic adjustments to the account for the typical company. i. “Inventories‚ net.” – If a company purchases products to be resold
Premium Balance sheet Generally Accepted Accounting Principles Income statement
consideration. This report analyzes the new project based on the estimated WACC to decide if Flash memory should accept or reject this project. Furthermore‚ the report prepares three years pro-forma for 2010‚ 2011‚ 2012 to show the impact on the income statement with and without the new project so that financing requirements based on each scenario can be determined. Additionally‚ this report lists the pros and cons of three financing alternatives: obtaining external financing through factoring group
Premium Corporate finance Balance sheet Finance
financial statements and information to determine an organization’s financial position and health by applying analytical models used to evaluate financial performance. iii) In controlling and monitoring the financial activities to ensure the achievement of financial goals. Course Contents 1. Financial Planning An Overview of Financial Planning‚ Developing a Long-term Financial Plan‚ Developing a Short-Term Financial Plan. Preparation of Cash budget‚ pro-forma Balance Sheet and pro-forma Income Statement
Premium Generally Accepted Accounting Principles Financial statements Balance sheet
provides an early exercise in financial statement analysis and lays the foundation for two important financial themes: the concept of financial health‚ and the financial-economic definition of value and its determinants. Suggested Questions for Advance Assignment 1. What are the definition and purpose of an income statement‚ as shown in case Exhibit 1? What are the definition and purpose of a balance sheet as shown in case Exhibit 2? How are the two statements related? In answering the questions
Premium Balance sheet Income statement Financial statements
How to Conduct Tax Audit – Part 1 Analysis of Certain Clauses Audit under Section 44AB of the Income Tax Act By Raman Jokhakar‚ Chartered Accountant Objective To understand the purposes of this Form To learn nuances of the clauses To understand audit risk To effectively carry out attestation To document adequately To disclose standard notes‚ limitations and stands To know inter links between clauses To be aware of important stands taken by Courts To understand the objective of the
Premium Audit Indirect tax Value added tax
distributing the balance funds to all regions in Indonesia. Renewal of local financial management in the era of regional autonomy‚ characterized by a very fundamental change‚ ranging from the budgeting system‚ treasury up to the responsibilities financial statements. Before the passing of autonomy‚ accountability regional financial reports to be prepared by the Local Government Budget Calculation just a report and Calculation Memorandum and the system used to generate the report is MAKUDA (Regional Financial
Premium Generally Accepted Accounting Principles Financial statements Income statement
Module 3 – Chapter 12 Problem 12-1A Part 1 KAZAAM COMPANY Statement of Cash Flows For Year Ended December 31‚ 2011 Cash flows from operating activities Net income $73‚750 Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable ($49‚625 - $65‚000) (15‚375) Increase in inventory ($252‚500 - $273‚750) (21‚250) Decrease in prepaid expenses ($6‚250 - $5‚375) 875 Decrease in
Premium Dividend Generally Accepted Accounting Principles Accounts receivable