WorldCom regrettably illustrates improper cost transfers designed to achieve higher profit levels. WorldCom did not transfer the cost from leases from the balance sheet to the income statement as quickly as they should have. This had the effect of overstating assets on the balance sheet and net income on the income statement. Please watch this section of American Greed: Inside the WorldCom Scam: http://www.screencast.com/t/zBXF74I1sao You can watch the entire documentary here: http://www.hulu.com/watch/46554
Premium Income statement Expense Operating expense
recorded in: General Journal: Chronological record of an organization’s transactions and how each transaction affects the balances in particular accounts General Ledger: Collection of all ledger accounts that supports an organization’s financial statements Ledger account: Listing of all the increases and decreases in a particular account Copyright © 2014 Pearson Education‚ Inc. Publishing as Prentice Hall. 3-6 General Ledger: TAccount Device used to portray individual ledger accounts in the general
Premium Double-entry bookkeeping system Balance sheet Revenue
pay for those debts‚ they were adding even more risk of ensuing failure. The income statement presents the facts that while the cost of sales had increased in each of the past two years; the gross profit had significantly decreased. With material costs increasing by 8%‚ the evidence is clear that L.A. Gear was not controlling its cost of sales‚ including the selling‚ general and administrative expenses. The income taxes had decreased‚ but that was most likely due to the decline in sales. By
Premium Generally Accepted Accounting Principles Income statement Expense
------------------------------------------------- 1.Introduction The Titas Gas Transmission and Distribution Company is the largest natural gas distributor in Bangladesh. This section includes a brief description of the company‚ the industry structure in which it belongs‚ financing and dividend policy and the industry analysis. ------------------------------------------------- 1.1Company Description Corporate Information Name of the Company | : Titas Gas Transmission and Distribution
Premium Natural gas Dividend Leverage
Residual income models take a variety of forms. Regardless of form‚ residual income is the income generated in excess of that which was expected‚ given the amount of capital invested and the cost of that capital. Residual income is often used for valuation purposes and for determining compensation for management. With clean surplus accounting‚ residual income is equivalent to the dividend discount model. However‚ by incorporating non-accounting information‚ the residual income model allows
Premium Free cash flow Income Income statement
Whose financial statements should we prepare (e.g.‚ the baron‚ vassals‚ farms‚ etc..?) Solution: The financial statements will be prepared for “Vassals” i.e. for Ivan and Frederick and additionally for “Baron”. 2. What financial statements should we prepare? Solution: The financial statements which should be prepared are as following: Income Statement Statement of Retained Earnings Statement of Cash Flows Balance Sheet 3. What period do these statements cover and why (e
Premium Generally Accepted Accounting Principles Balance sheet Income statement
financial statement‚ I would first need to know what my goals are. If I am investing for long-term capital gain‚ then I may want to evaluate if the company is reinvesting and growing. In contrast‚ if I am looking for a steady income from dividends then I may want to know what the dividend yields are along with retained earnings. For the purpose of this assignment‚ I will base my decision as if I were seeking a long-term capital gain investment. Our choices of financial statements covered in
Premium Generally Accepted Accounting Principles Income statement Balance sheet
decision. Trail Balance: Shows the assets and the claims on the assets end of the time and it didn’t show about another time.( can not provide the information that the owners want) Income statements Shows in a details way whether the business is profitable or not. New equity is organized to show the net income (or net loss) of the business for a given time. Ledger work with has single equity account- the capital account. (Record any changes equity)-(not provide sufficient) Analysis
Premium Income statement Generally Accepted Accounting Principles Double-entry bookkeeping system
Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements. PFRS for SME are intended for small and medium sized entities that help the owners-managers in making management decisions with the exception in the determination of taxable income and determination of distributable income. 1.2 What are the standards issued by the International Accounting Standard Board
Premium Balance sheet Financial statements Generally Accepted Accounting Principles
CHAPTER 2 REPORTING INTERCORPORATE INVESTMENTS AND CONSOLIDATION OF WHOLLY OWNED SUBSIDIARIES WITH NO DIFFERENTIAL ANSWERS TO QUESTIONS Q2-1 (a) An investment in the voting common stock of another company is reported on an equity-method basis when the investor is able to significantly influence the operating and financial policies of the investee. (b) The cost method normally is used for investments in common stock when the investor does not have significant influence and for investments
Premium Generally Accepted Accounting Principles Balance sheet Dividend