Statements

2017) Something that stood out to me in the beginning of the chapter was this line from the chapter; “a well-managed organization will strive to achieve diverse revenue sources, both to minimize risk and to maximize autonomy…” I agree with this statement. As a non-profit organization, having different forms of revenue can help with funding an organization even more. Having different forms revenue can help because if one form of revenue is suddenly cut off, the organization will have other forms…

STATEMENT OF THE PROBLEM After a thorough reading and understanding of the case of Biovail Corporation: Revenue Recognition an FOB Sales Accounting, first issue or problem that arise is regarding the policy of the accounting for revenue recognition. Since the stock of Biovail was listed on the New York Stock Exchange, they are complied with the U.S GAAP which mentioned that revenue must be earned and realized or realizable for it to be recognized. Under SAB 101, there are four criteria which…

and who has the final authority in executing them. 4. How should Peter Smith react when his advice is not followed by the board? Peter Smith should not take any board decisions personally. Every board member is here to support the museum’s mission statement and has the best intentions for the future of the museum. If board did not follow Smith’s advice, he needs to respect their vote power as much as he expects for his decisions to be respected in return. In my opinion Smith acted very…

your savings account is 1% per year and inflation was 2%per year. After one year how much would you be able to buy with the money in the account? a) More than today b) Exactly the same c) Less than today 3. Please tell me whether this statement is true or false: “buying a single company’s stock usually provides a safer return than a stock mutual fund” a)True b)False The model after being used concluded that the literacy levels rises steeply with education. Therefore…

requires a forensic accountant to become skilful in an ever-increasing number of professional skills and competencies. Here are some of the broad areas of expertise for a forensic accountant: • There should be an in-depth knowledge of financial statements and the capability to critically analyze them. This expertise helps forensic accountants to detect unusual patterns in accounting information and identify their source. • They should also acquire a thorough perception of fraud schemes, which…

Beyond the different software companies used for Big Data Analytics, there are other ways that Big Data affect the accountancy profession. A major effect on the field of accounting is the law that takes place while the processes are amended to adapt to the current technology age. Overseers such as: FASB and the SEC have certain laws and regulations that alter the way accountants perform the assigned tasks required by their profession. In addition to adding unprecedented rules, FASB and the SEC…

Adley- Week2 DQ2 Initial Reply Capital expenditures (CAPEX) are actual expenses incurred to purchase or maintain property assets. These cash outflows are capitalized on the balance sheet, shown as depreciable expenses on the income statement, and deducted over an IRS-specified term of 3-7 years. Explicitly regarding pro forma analysis, CAPEX are projected costs to maintain the asset in good repair, and a line-item section under improvements of the depreciation schedule, along with tenant…

pro-forma earnings are not calculated using the GAAP guidelines and can be manipulated by the company to show their future profit’s in the best light, and intentionally disregard any information or measures that may obscure the company’s financial statements, although some of the information that is excluded can be vital in evaluating a company’s future prospects. Pro forma earnings also allows management of company to expunge poor decisions from their financial reports that have been costly to…

Precision Machines is looking into the company’s future to determine their financial needs and, in order to do so, they are preparing a financial plan to see what they need and how they need to address future operations of the company. The financial plan they are creating is based upon the historical aspects of the company. This means that the company knows historically that their sales are 30% cash and 70% credit. They collect 50% of their credit sales the month after the sale and the other 50%…

appear to be a result of error. The amount of misstatement was immaterial in relation to the allotted amount in W/P 2-1. If I believed that the sales discount account wasn’t fairly stated, I would obtain more evidence through inspection of bank statements before soliciting a meeting with you to discuss my…