Ahold: Royal Dutch Disaster Session 7 Management Accounting & Controls Date 24-Feb-03 Issue: $500 million fraud What: Global food retailer with over 9‚000 stores and 278‚000 employees in 4 continents 2002 Sales -72 billion Euros up from 66 billion in 2001 Current outstanding loans of 13 billion euros due to 7 years of acquisitions People: Cees Van der Hoeven – CEO since 1993 (joined Ahold’s executive boar as CFO in 1985) Michiel Muers 1997 – CFO graduated in business studies and economics Jim
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Acc101 – Quiz on Receivables Show your supporting computations in good form. Encircle your final answer. Problem 1 For the year ended December 31‚ 2009‚ Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts‚ 1/1/09 P51‚000 Provision for uncollectible accounts during 2009 (2% on credit sales of P2‚000‚000) 40‚000 Uncollectible accounts written off‚ 11/30/09
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Introduction Increasingly‚ today‚ globalization is a reality for organizations of almost any size. Only the smallest companies seem unaffected by the disappearance of global boundaries among organizations‚ markets‚ and people. Globalization has increased awareness of and concern for creating internationally equitable compensation systems in many companies. The complex nature of international compensation dictates that it receives special attention from organization operating in a multi-national
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ASSIGNMENT MS-EXCEL A. M/s Alpha Ltd pays to its employees the salary on the basis of Basic pay. The Gross salary of an employee consists of Basic Pay‚ Dearness Pay (D.P) and House Rent Allowance (H.R.A). The components of salary are computed according to the following terms of contract of service: Dearness Allowance is paid @10% of basic pay subject to a maximum of Rs. 5400 HRA is computed as per the following scale: Basic Pay HRA(Rs.) Up to 10‚000 5‚000 From 10‚001 to. 25‚000 7‚000 More
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within the company’s salary structure. Many deductions are also dependent on the basic – for example‚ your contribution (and the matching component by your employer) to provident fund is 12% of your basic. It is taxable. Dearness Allowance (DA) The Dearness Allowance is paid out to compensate for increase in the general cost of living due to inflation. DA is paid out every month. It is a taxable component of your salary. Incentive / Bonus Incentives or bonuses are paid out depending on your
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its allowance for uncollectible accounts‚ it also records bad debt expense in the income statement. If a company overestimates the allowance account‚ bad debt expense is too high and net income is understated. As well‚ accounts receivable (net of the allowance account) and total assets are both understated on the balance sheet. In future periods‚ the company will not need to add as much to its allowance account since it is already overestimated (or‚ it can reverse the excess existing allowance balance)
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Part A 1) a)Although a client/company is engaged to perform audits for the 2nd year‚ it does not allow sufficient time for auditor to detect material misstatement. This is due to lack of experience in understanding of the company? Repeat engagement over the years to come would reduce inherent risk Thus‚ the 2nd year of audit would increase inherent risk. b)The bank requires that a/ the company’s interest coverage ratio should be above 9‚ in order to provide loans to the client. From the extract
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discretion in accounting for deferred taxes to increase earnings and avoid reporting a loss. We find that firm-years with small scaled profits reduce (relative to the prior year) the proportion of the gross deferred tax asset reserved by the valuation allowance more than firm-years with small scaled losses. We find no evidence that the firm-years that have seemingly moved from having a small scaled loss to a small scaled profit using changes in the net deferred tax asset have greater expected future taxable
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Married # of allowance- 4 Gross Wage: $1530 weekly To find for weekly…. Take the number of allowances and times it by allowance values Example: $73.08 * 4 = $292.32--------- then take gross wage and subtract allowance amount…… 1530 – 292.32= $1‚237.68------- The look at percentage method tables to finish out Formula to finish 0.15 * (1237.68 – 490) + 33.40 = $145.55 2) Employee 2: Finley‚ R.--- Single---- 0 allowance------ $710 biweekly To find for biweekly---- There’s no allowance so go look
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are the essential features of the allowance method of accounting for bad debts? There are three essential features of the allowance method of accounting for bad debt. First‚ companies estimate uncollectible accounts receivables and match them against revenues in the same accounting period in which the revenues are recorded. Second‚ companies record estimated uncollectibles as an increase (a debit) to bad debts expense and an increase (a credit) to allowance for doubtful accounts through an adjusting
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