related to the measurement of financial position? a. Assets‚ liabilities‚ income b. Revenues and expenses c. Assets‚ liabilities‚ equity‚ revenues and expenses d. Assets‚ liabilities and equity 3. Which of the following statements is correct? a. Assets and capital accounts are debited for increases. b. Assets‚ expenses‚ and drawing accounts are debited for increase. c. Revenues and drawing accounts are credited for increases d. The word ‘debit’ means increase and
Premium Generally Accepted Accounting Principles Balance sheet Income statement
up will not load due to a technical problem. The accountant has asked you to collate some figures into a spreadsheet to give an overview of the activity for the last year. Over the past year the monthly results have been as follows: Sales revenue January £42‚980 February £55‚980 March £92‚600 April £118‚206 May £117‚420 June £120‚115 Expenses January £15‚390 February £23‚602 March £28‚750 April £35‚060 May £37‚420 June £38‚790 Cost of sales January
Premium Spreadsheet Revenue
The optimal order quantities that Michelle Peach should use for Dado and for Wedo are 1‚270 and 730. The gross margins and expected profits would be: The annual net income has considered that all the other costs as constant. The advertising revenues are the same (fixed amount‚ not per unit ad amount). 2. Michelle finds out that Bobby Peru‚ a local recycler‚ is willing to pay a salvage value of €0.05 for each left-over unit of Dado and €0.07 for each left-over unit of Wedo. How would this
Premium Economic order quantity Revenue Income
one possible way the organization could have defined the outcome measures for some of its key objectives for the Banyan Tree expansion project: Revenue Growth – Based on the strategy of investing revenues generated by property sales (with a stunning 254% growth - S$50M in 2005 to s$130M in 2006) to fund the expansion project‚ target an estimated revenue growth of 20% in 2007 Market Share – Establish a market share of 1% in their growing Chinese property sector to catch up with market leading firm
Premium Risk Revenue Risk management
Exercises 1. Synergy Valuation a. Cost and revenue synergies Managers of an acquiring company anticipate cost savings pretax of $50 million in the first year of the deal and $100 million the next and that thereafter the savings would grow @ inflation‚ 2%. Marginal tax rate is 30%. The firm must invest $1 billion to achieve these savings and starting in the third year must spend 5% of the pre-tax savings to sustain the rate of savings. As part of rationalization of operations‚ some assets will be
Premium Revenue Cash flow Stock
seller delivers a product that the customer has not yet agreed to purchase or delivers a product that does not meet the specifications of the customer’s order - Revenue should not be recognized (sale has not occurred) a. Acceptance provisions in arrangements that purport to be for trial or evaluation purposes. In these arrangements‚ revenue should not be recognized until the earlier of when acceptance occurs or the acceptance provisions lapse. b. Acceptance provisions that grant a right of return
Premium Contract Income Revenue
performance—the formal audited financial statements‚ an earnings press release‚ pro forma earnings disclosure‚ and comparative stock charts. Google is a prime example of how good news is in the eye of the beholder! In Q4 2007‚ Google announced continued revenue growth and strong earnings. The press release was upbeat and optimistic. Yet‚ the stock plunged the following day. Evaluating how the business press interprets a firm’s performance can help build students’ confidence in their own ability to evaluate
Premium Revenue Income statement Stock market
4011 APRIL 7‚ 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9‚ 2003‚ David Maris‚ an analyst at Banc of America Securities (BAS)‚ was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm‚ Biovail Corporation. Maris didn’t like what he saw at the company‚ but he never liked writing “Sell” recommendations. In any event‚ he wanted to make
Premium Income Income statement Revenue
Salaries paid for services rendered (90‚000) (100‚000) Utilities (30‚000) (40‚000) Purchase of insurance policy (60‚000) -0- Net operating cash flow $(20‚000) $50‚000 Income Statement Year 1 Year 2 Revenues $170‚000 $220‚000 Expenses: Salaries (90‚000) (100‚000) Insurance Policy (20‚000) (20‚000) Utilities (35‚000) (35‚000) Total Expenses (145‚000) (155‚000) Net Income $25‚000 $65‚000
Premium Income statement Income Generally Accepted Accounting Principles
(FFP) benefits represents a significant liability on every major U.S. airline’s balance sheet. Major U.S. airlines employ one of two methods to account for the liabilities they incur when issuing mileage credits to traveling passengers. The Deferred Revenue Method recognizes a liability for the fair value of the outstanding mileage credits (with “fair value” defined under International Financial Reporting Standards (IFRS) as “the amount for which the award credits could be sold separately”). The Incremental
Premium International Financial Reporting Standards Generally Accepted Accounting Principles Balance sheet