CHAPTER EIGHT MISREPRESENTATION A misrepresentation is an untrue statement‚ which induces the other party to enter into the contract. A misrepresentation may be fraudulent‚ negligent misstatement‚ or wholly innocent. The applicable remedy depends on the nature of the misrepresentation. In order for a representation to amount to an actionable misrepresentation it must be: a) false; b) one of fact as oppose to intention‚ opinion‚ or law; c) The statement must be addressed to the party who
Premium Misrepresentation
Financial Statements Fraud Table of Contents Introduction ........................................................................................................ 1 Definition ............................................................................................................. 1 Purpose of Financial Statements Fraud ..................................................... 1 Financial Statement Fraud Schemes
Premium Generally Accepted Accounting Principles Balance sheet Income statement
QUESTION 1 i. Current Ratio = Current Assets/Current Liability = $ 14‚651‚000/$ 19‚639‚000 = 0.750 ii. Quick Ratio = (Current Assets – Inventory) / Current Liability = ($ 14‚651‚000 – $ 6‚136‚000) / $ 19‚539‚000 = 0.436 iii. Total Assets Turnover = Sales/Total Assets = $ 167‚310‚000/$ 108‚615‚000 = 1.540 iv. Inventory Turnover = COGS/Inventory = $ 117‚910‚000/$ 6‚136‚000 = 19.216 v. Receivable Turnover = Sales/Account Receivables = $ 167‚310‚000/$ 5‚473
Premium Balance sheet Financial ratios Generally Accepted Accounting Principles
“The Selective Financial Misrepresentation Hypothesis” By Lawrence Revsine The selective misrepresentation hypothesis states that management has learned that they can manipulate the perception of their entity’s financial position. This is due‚ in part‚ to the increasing complexities of business which means that financial reporting is no longer based on direct observation of events but rather on summaries of these events. Additionally‚ financial reporting standards are often “arbitrary‚ complicated
Premium International Financial Reporting Standards FIFO and LIFO accounting Financial statements
Ethical Misrepresentation One might argue that misrepresentation of academic credentials as demonstrated by Marilee Jones‚ the dean of admissions at the Massachusetts Institute of Technology (Lewin‚ 2007) and a lie are not the same thing. She knowingly falsified information and suppressed it for several years; this is an ethical misrepresentation of epic proportions. When people misrepresent skill sets or academic accomplishments to achieve certain goals‚ they chose to play an ethical game of
Premium Morality Ethics University
In a December 28‚ 2016‚ Minnesota Supreme Court Ruled that an employer can deny a former employee unemployment benefits if their termination resulted from a misrepresentation on their job application. In a MPR News article‚ Bob Collins recounts the story of Nina Wilson‚ a woman who worked at a mortgage services company before she was fired for lying about her educational level. After five months of employment‚ the company issued a background check of Wilson and found no evidence that she had ever
Premium Employment Management Ethics
Financial Statement Differentiation Jeff Leo ACC/561 - Accounting Instructor: Grace Kalil May 27‚ 2013 University of Phoenix ACC/561 course textbook Accounting Tools for Business Decision Making Chapter One provides in-depth descriptions of financial statements generated by a business to analyze accounting information. The balance sheet‚ income statement‚ retained earnings statement and statement of cash flows reports provide a quantified view of the financial health of a business. Financial
Premium Income statement Balance sheet Financial statements
TITLE PAGE ROLE OF FINANCIAL STATEMENT IN INVESTMENT DECISION MAKING. (A CASE STUDY OF FIRST BANK OF NIGERIAN PLC) BY AMEDU‚ MERCY A. ACC/2008/502 A RESEARCH PROJECT SUBMITED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE BACHELOR OF SCIENCE (B. SC) DEGREE IN ACCOUNTANCY. FACULTY OF MANAGEMENT AND SOCIAL SCIENCES‚ DEPARTMENT OF ACCOUNTANCY‚ CARITAS UNIVERSITY AMORJI NIKE ENUGU [ AUGUST‚ 2012 CERTIFICATION It is hereby certified that the research work
Premium Net present value Financial statements Cash flow
Chapter 1: Overview—The Financial Statements Chapter 1 introduces the four financial statements--Income Statement‚ Statement of Retained Earnings‚ Balance Sheet‚ and Statement of Cash Flows. Accounting as the language of business is discussed along with an introduction of the various users of accounting information. Financial and Managerial accounting are compared. The four ways to organize a business – proprietorship‚ partnership‚ limited – liability company‚ and corporation‚ are discussed
Premium Generally Accepted Accounting Principles Balance sheet Financial statements
Conclusion This Project has been very useful to me because I learned how to prepare cash flow statements and ratio analysis. This has improved my knowledge on financial statements which is very useful in business and commerce ever day. The work I did in this project has helped me to understand the techniques‚ applications and usefulness of financial statements to understand the performance of a particular company or enterprise without much difficulty and also understand how to prepare them in future
Free Economics Financial statements Debt