would be an example of the application of: a.|going concern| b.|cost| c.|matching| d.|materiality| e.|realization| ANS: D 2. The going concern assumption: a.|is applicable to all financial statements| b.|primarily involves periodic income measurement| c.|allows for the statements to be prepared under generally accepted accounting principles| d.|requires that accounting procedures be the same from period to period| e.|none of the answers are correct| ANS: C 3. Understating
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Why would users rely on financial statements? What is an example of a financial measure that an external user might use? What is an example of a financial measure that an internal user might use? Users rely on financial statements to gauge the strength and outlook of companies. Others understand that. One would want that company to make money for them when they invest. If companies didn’t make money for you there would be no reason to buy stocks and no reason the price of a stock would ever
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| 4 | TOPIC 4CH 5 Balance Sheet | | 4.4‚ 4.6 | 4.16‚ 4‚18‚ 4.20‚ 4.21 | 4.24‚ 4.35 | | | | | | | | | | | | | | | | 5 | TOPIC 5CH 6 Income Statement and Statement of Changes in Equity | | 5.4‚ 5.5‚ 5.6‚ 5.9‚ 5.10 | 5.15‚ 5.24‚ 5.25 | 5.33 | 5.52 | 6 | TOPIC 6CH 8 Analysis and Interpretation of Financial Statements (Part 1) | Pages 312-338. | 6‚3 6.4‚ 6.8 | 6.16‚ 6.17‚ 6.20‚ 6.21‚ 6.23‚ 6.25‚ 6.26 | 6.37 | | WEEK | LECTURE | NOTES | RECOMMENDED TUTORIAL/HOME WORK |
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Activity-Based Costing in the Service Sector: The East Penn Bank ABSTRACT: This case illustrates why a major segment of the service sector banks - needs accurate cost information to make strategic decisions‚ and how more refined accounting systems help fulfill this need. East Penn Bank is a hypothetical bank that has suffered falling profits despite a shift in customer base toward retail customers‚ which the current information system reports are more profitable than business customers. Following
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THE PIRATES OF THE SILVERLAND - PALM OIL PIRACY Summary of the case: Palm Haul Sdn Bhd (PHSB) established in 2002 at Taiping Perak. It was a small and medium sized enterprise in crude palm oil (CPO) transportation business. PHSB was managed by En.H.Rossly and son in law of its founder‚ Datu S. Najeed. PHSB was facing the same problems likes others transportation companies which is drivers embroiling in oil piracy. The transportation companies will bear the responsibilities of compensation of the
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Chapter 07 … Master Budgets and Performance Planning 1. A budget is a formal statement of future plans‚ usually expressed in monetary terms. 2. Continuous budgeting is the practice of preparing a new budget for a selected number of future periods and revising those budgets as each period is completed. 3. Budget preparation is best determined in a top-down managerial approach. 4. The master budget consists of three major groups of budget components: the operating budgets
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301 Review Sheet Exam #1 – Spring 2012 Problem #1 Gerdes Psychological Services‚ Inc.‚ closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. GERDES PSYCHOLOGICAL SERVICES‚ INC. Income Statement For the Year Ended December 31‚ 2007 Revenue: Counseling revenue……………………………. | | $225‚000 | Expenses: | | | Advertising expense…………………………... | $ 1‚800 | | Salaries expense………………………………
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understand FCFs‚ you must understand n n Starts from After-tax Cash Flow from Operation (Cash Flow Statement) Income Statement Balance Sheet Statement of Cash Flows Both produce same FCFF – logic is slightly different Good idea to calculate both ways – Check errors in calculation! FCFF Calculation– the CFO Method n Free Cash Flow to the Firm (FCFF) = Net Income (Profit After Tax) + Non-Cash Expense (e.g.. Depreciation‚ Amortization) After-tax Cash – Non-Cash Revenues
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factors that are favorable and unfavorable to achieving that objective. SWOT-analysis helps to understand company’s strengths‚ weaknesses‚ opportunities‚ and possible threats against it. The Jollibee Foods Corp. financial analysis covers the income statement and ratio trend-charts with balance sheets and cash flows presented on an annual and quarterly basis. The report outlines the main financial ratios pertaining to profitability‚ margin analysis‚ asset turnover‚ credit ratios‚ and company’s long-term
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different factors that are favorable and unfavorable to achieving that objective. SWOT-analysis helps to understand company’s strengths‚ weaknesses‚ opportunities‚ and possible threats against it. The Cosco (India) financial analysis covers the income statement and ratio trend-charts with balance sheets and cash flows presented on an annual and quarterly basis. The report outlines the main financial ratios pertaining to profitability‚ margin analysis‚ asset turnover‚ credit ratios‚ and company’s
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