...Financial Reporting Problem Part II ACC290 September 16,2013 Financial Reporting Problem Part II Financial Reporting Problem, Part II The PepsiCo is a beverage distributor is known for their soda and other merchandise. The cola company started in the 1800s in a drugstore, and it was named “Brad’s Drink.” In 1898, cola introduced “Brad’s Drink” to the market. After a few years, the name changed to Pepsi. The currents assets are very important to companies like PepsiCo. In the balance sheet, “current assets are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer. For most businesses, the cut off for classification as current assets is one year from the balance sheet date” (Kimmel, Weygandt, & Kieso, 2011, p. 49). The company can use these assets to support its routine operations. For example, the company can use the assets to pay their current expenses. The common types of current assets consist of cash, marketable securities, inventory, accounts receivable, prepaid expenses, and additional liquid assets that the company can turn in to cash. However, according to Kimmel, Weygandt, and Kieso, 2011, companies normally arrange their current assets in the order in which they anticipate to convert them into cash. Therefore, the proper order for a company to have its assets listed under the current assets is as follows cash, (2) short-term investments (such as short-term U.S. government securities)...
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...business review 1.3 In a partnership, the partners make decisions collectively and are accountable to one another. This is a form of ________________ accountability. a. hierarchical b. market c. legal d. participatory 1.4 The directors are responsible for filing the company’s accounts and reports with the International Accounting Standards Board (IASB). a. True b. False 1.5 ___________________ is a network-based organisation which develops the framework for voluntary sustainability reporting. a. Global Reporting Initiative b. Global Sustainability Reporting c. Global Environmental Reporting d. Global Voluntary Reporting Questions continued over… Page 1 of 5 1.6 Which of these are the qualitative characteristics of financial information? I. Comparability II. Consistency III. Accountability IV. Understandability a. b. c. d. I and II I and III I, II and IV all of the above 1.7 Functionalists believe that the accounting profession is here to make money. a. True b. False 1.8 The financial...
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...Ch.1 [FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS] I. Essential characteristics of accounting are: a. The identification, measurement, and communication of financial information i. Financial statements b. Economic entities ii. Financial information c. Interested parties II. What is the purpose of information presented in notes to the financial statements? d. To provide disclosure required by GAAP III. Capital Allocation e. Financial reporting iii. Financial information a company provides to help users with capitol allocation decisions about the company f. Users iv. Investors and creditors use financial reports to make their capital allocation decisions v. Audience- are reasonably well-informed users g. Capital allocation vi. The process of determining how and at what cost money is allocated among competing interest vii. Interested in investors’ money to make good capital allocated decisions. h. An effective process of capital allocation is critical to a healthy economy, which… viii. Promotes productivity ix. Encourages innovation x. Provides an efficient and liquid market for buying and selling securities IV. Objective of accounting i. General purpose Financial statements xi. Provide the most useful information possible at the least cost 1. Equity investors are the primary...
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...Final Exam (3 different sets) + Discussions Financial Reporting Environment and GAAP Details of Financial Statements and Ratios Accounting EquationAccounting Cycle Accrual Accounting and Adjusting Entries Merchandising Operations and Income Statements Inventory Cost-Flow Assumptions Understanding Internal Control and Reporting Cash Accounting for and Reporting Receivables Plant Assets and Intangibles Accounting for Liabilities Accounting for and Reporting Equity Statement of Cash Flows Issues in Income Reporting Different Tools for Financial Analysis ACCT 504 Final Exam (3 different finals) ACCT 504 Week 1-7 Discussion Question ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 5 Case Study 2 Internal Control LJB Company ACCT 504 Week 5 Course Project Draft Spreadsheet ACCT 504 Week 6 Case Study 3 Cash Budgeting LBJ Company ACCT 504 Week 7 Course Project JCP Kohls ACCT 505 Week 7 Capital Budgeting Course Project (DEVRY) ACCT 505 Entire Course (DEVRY) ACCT 505 Week 1-7 All Discussion Questions Cost Terms, Classifications, and Behavior Research and Application Job Order and Process Costing Systems Research and Application Variable Costing and CVP Concepts Research and Application Budgeting Case Study Exam Review Standards, Variances, Flexible Budgets Research and Application Segment Reporting and Relevant Costs Research and Application ...
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...CHAPTER I: INTRODUCTION 1. THEME OF THE STUDY Risk management underscores the fact that the survival of an organization depends heavily on its capabilities to anticipate and prepare for the change rather than just waiting for the change and react to it. The objective of risk management is not to prohibit or prevent risk taking activity, but to ensure that the risks are consciously taken with full knowledge, purpose and clear understanding so that it can be measured and mitigated. It also prevents an institution from suffering unacceptable loss causing an institution to suffer or materially damage its competitive position. Functions of risk management should actually be bank specific dictated by the size and quality of balance sheet, complexity of functions, technical/ professional manpower and the status of MIS in place in that bank. 1.2 INTRODUCTION Risk: the meaning of ‘Risk’ as per Webster’s comprehensive dictionary is “a chance of encountering harm or loss, hazard, danger” or “to expose to a chance of injury or loss”. Thus, something that has potential to cause harm or loss to one or more planned objectives is called Risk. The word risk is derived from an Italian word “Risicare” which means “To Dare”. It is an expression of danger of an adverse deviation in the actual result from any expected result. Banks for International Settlement (BIS) has defined it as- “Risk is the threat that an event or action will adversely affect an organization’s ability...
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...CHAPTER I: INTRODUCTION 1. THEME OF THE STUDY Risk management underscores the fact that the survival of an organization depends heavily on its capabilities to anticipate and prepare for the change rather than just waiting for the change and react to it. The objective of risk management is not to prohibit or prevent risk taking activity, but to ensure that the risks are consciously taken with full knowledge, purpose and clear understanding so that it can be measured and mitigated. It also prevents an institution from suffering unacceptable loss causing an institution to suffer or materially damage its competitive position. Functions of risk management should actually be bank specific dictated by the size and quality of balance sheet, complexity of functions, technical/ professional manpower and the status of MIS in place in that bank. 1.2 INTRODUCTION Risk: the meaning of ‘Risk’ as per Webster’s comprehensive dictionary is “a chance of encountering harm or loss, hazard, danger” or “to expose to a chance of injury or loss”. Thus, something that has potential to cause harm or loss to one or more planned objectives is called Risk. The word risk is derived from an Italian word “Risicare” which means “To Dare”. It is an expression of danger of an adverse deviation in the actual result from any expected result. Banks for International Settlement (BIS) has defined it as- “Risk is the threat that an event or action will adversely affect an organization’s ability...
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...Introduction Accounting practices have been argued to reflect information quality of the firm in the market. Recently, there has been renewed interest in the relation between information asymmetry and conservative financial reporting practices. Many theorists have critiqued this aspect of information asymmetry, which has garnered significant interest in the accounting arena in the world today. This paper is set out to analyze the literature on conservative financial reporting, dissecting Akerlof’s article surrounding information asymmetry. Following this, possible motivations by firms to undertake these accounting measures will be meted out, coupled with an examination of the empirical evidence in reflection of the measurement of conservatism, with a final conclusion pertaining the relationship of information quality and financial reporting choices being ascertained. 2. Conservative Financial Reporting Conservatism is the differential verifiability required for the recognition of accounting gains versus losses that generates an understatement of net assets. (Basu, 1997) There has been evidence strongly suggesting that U.S companies had used conservative financial reporting practices since the last five decades. (Watts, 2003) It is argued that conservatism of financial reporting arises because of information asymmetry between firm managers and shareholders. While information asymmetry refers to a situation where one party has more or superior information compared to another, (Akerlof...
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...Audit Committee Material Weaknesses in Smaller Reporting Companies December 2nd, 2010 OUTLINE: I. SUMMARY OF THE ARTICLE II. PROBLEM STATEMENT III. SUGGESTIONS FROM THE AUTHORS IV. RELEVANCE TO AUDITING ENVIRONMENT V. CONCLUSION I. Summary of the Article This report summarizes the article published by Gramling, Audrey A, Hermanson, Dana R, Hermanson, Heather M in the CPA journal of 2009. The main focus of the article is to show the importance of audit committee in auditing and analyze problems of small companies face in developing effective audit committee. The critical issue of the article is material weaknesses related to audit committee and possibility of management’s override of internal control within small companies. Before, the Sarbanes-Oxley Act, audit committees in public companies were under more pressure to understand not just a company's financial statements, but to challenge management and auditors on key accounting, internal control and compliance issues. After the financial scandals that caused firms like Enron and WorldCom to collapse, audit committees have risen from relative darkness to center stage in modern corporate world. As it’s indicated in the article, the new role, the typical audit committee is charged with many duties. Because new role of audit committee increased complexity and accountability, it's easy for directors of small public companies to feel besieged when...
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...accounting + auditing Intro to XBRL Patricia Francis xbrL Is resHApING tHe FINANcIAL reportING LANDscApe WorLDWIDe, AND LooKs set to Do tHe sAme IN mALAYsIA oNce FuLLY ImpLemeNteD bY LocAL reGuLAtors AND busINesses. Are You xbrL reADY? The objectives of SSM’s SDP II are: • To enhance delivery and improve accuracy of information; • To achieve a standardised and consistent mode of reporting with enhanced analytical capabilities; • To promote data usability and exchange flow with external stakeholders. According to Nor Azimah, SSM also promotes the adoption of XBRL as a nationwide format to be used by key agencies such as the Inland Revenue Board (LHDN), Securities Commission (SC) and Bursa Malaysia and the building of extension taxonomies by the mentioned agencies. The said adoption will provide SSM, other regulators and businesses with detailed data which can be aggregated and made available to stakeholders in the form of industry analysis for industrial benchmarking. The move to XBRL-based reporting is also in line with plans to transform Malaysia into a digital country by 2020, as XBRL reports form part of the digital reporting chain. At the recent Digital Malaysia Press Conference held on 5 July 2012 by the Ministry of Science, Technology and Innovation (MOSTI) along with Multimedia Development Corporation (MDeC), Datuk Badlisham Ghazali, CEO of MDeC told the media that Digital Malaysia will help drive automation and technology adoption to ensure productivity and...
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...The Managerial Compensation Responding to Earnings Manipulation Ruoyu Zhang** August 10, 2012 Abstract When the true earning in each period is private information to the agent, then the performance based pay provides the agent with incentive to misallocate the earnings to get more compensation. To address the concern of earnings manipulation problem, SEC imposed a strict disclosure regulation in 1993. An optimal managerial contract should be designed not only to provide the agent with an incentive to take actions that enhance the actual profitability of the firm, but also to minimize the agent’s incentive to falsify earnings reports. This paper uses a two-period model to demonstrate that the compensation scheme contingent on reported earnings cannot provide the agent with the incentive both to maximize earnings and to report earnings honestly. In the optimal contract, the principal must still tolerate some degree of earnings management. In addition, with the increase of the misrepresentation penalty, the principal would rather lower the incentive to make the agent work less but report earnings truthfully. I thank Professor Jean-Etienne De Bettignies and Professor Olena Ivus for valuable comments and suggestions. All errors are my own. ** MSc Candidate in Business Economics, Queen’s School of Business. Email: 11rz3@queensu.ca Table of Contents Abstract ..........................................................................................................
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...Individual: Financial Reporting Problem, Part 1 University of Phoenix Individual: Financial Reporting Problem, Part 1 According to Forbes.com, they may not currently be the leading publicly traded company in the world, but Apple Inc. has definitely established themselves as the current leading publicly traded company brands in the world (Forbes.com, 2013). As of September 28th, 2013, Apple Inc. has reported $207,000,000 in total assets. This number is important because it displays how much the business owns and what it is currently worth. When comparing the total assets to the end of the previous annual reporting period of September 29th, 2012, Apple Inc. had reported $176,064,000. That was an increase of $30,936,000. The total amount of cash and cash equivalents that Apple Inc. had at the end of its most recent annual reporting period of September 28th, 2013 was $14,259,000. The total amount of accounts payable that Apple Inc. had at the end of its most recent annual reporting period of September 28th, 2013 was $22,367,000. The total amount of accounts payable that Apple Inc. had at the end of the previous annual reporting of September 29th, 2012 was $21,175,000. That was an increase of $1,192,000. Apple Inc.’s net revenues for the last three annual reporting periods were significantly different. On the most recent reporting period of September 28th, 2013, Apple Inc.’s net revenue was $170,910,000. The annual reporting period before September 28th, 2013, on September...
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...accounting standard is a guideline for financial accounting, such as how a firm prepares and presents its business income and expense, assets and liabilities. The Generally Accepted Accounting Principles is comprised of a large group of individual accounting standards. GAAP standards apply to financial reporting in the United States and may be eventually phased out in favor of the International Accounting Standards. 1. Generally Accepted Accounting Principles (GAAP) In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly traded and privately held companies, non-profit organizations, and governments. The term is usually confined to the United States; hence it is commonly abbreviated as US GAAP or simply GAAP. However, in the theoretical sense, Generally Accepted Accounting Principles encompass the entire industry of accounting, and not only the United States. Outside the academic context, GAAP means US GAAP. Similar too many other countries practicing under the common law system, the United States government does not directly set accounting standards, in the belief that the private sector has better knowledge and resources. US GAAP is not written in law, although the U.S. Securities and Exchange Commission (SEC) require that it be followed in financial reporting by publicly traded companies. Currently, the Financial Accounting Standards Board (FASB)...
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...Assignment Chapter 2: Brief Exercises BE2-8, BE2- 9, and BE2-10 ACC 300 Week 2 – Learning Team Assignment. In this excel file ACC 300 Week 2 Learning Team Assignment you will find overview of the following sheets: Demonstration Case 2-1 Given Data DC2-1 Simplify with Spreadsheets 2-1 Given Data SS2-1 Coached Problem 2-1 Given Data CP2-1 Problem A 2-1 Given Data PA 2-1 ACC 300 week 2 dqs. What are the different bases of accounting? When would you use the cash basis? Accrual basis? Tax basis? Which one is better? Why? What are the financial statements? What does each one tell you? Which financial statement is more important? Why? How are the financial statements related? Why do these relationships exist? What is the impact of a miscalculation in the income statement on other financial statements? ACC 300 Week 3 – Individual Assignment Part I. In the work ACC 300 Week 3 Individual Assignment Part I you will find overview of the following parts: Cash Basis – Income Statement Accrual Basis – Income Statement ACC 300 Week 3 – Individual Assignment Part II. In this file ACC 300 Week 3 Individual Assignment Part II you will find overview of the following tables: 1. Income Statement 2. Statement of changes in Stockholders’ Equity 3. Expense recognition principle 4. Balance Sheet as of December 31, 2002 5. Statement of Cash Flows ACC 300 Week 3 – Individual Assignment Part III. In the work ACC 300 Week 3 Individual Assignment...
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...Exercises BE2-8, BE2- 9, and BE2-10 ACC 300 Week 2 – Learning Team Assignment. In this excel file ACC 300 Week 2 Learning Team Assignment you will find overview of the following sheets: 1. Demonstration Case 2-1 2. Given Data DC2-1 3. Simplify with Spreadsheets 2-1 4. Given Data SS2-1 5. Coached Problem 2-1 6. Given Data CP2-1 7. Problem A 2-1 8. Given Data PA 2-1 ACC 300 week 2 dqs. What are the different bases of accounting? When would you use the cash basis? Accrual basis? Tax basis? Which one is better? Why? What are the financial statements? What does each one tell you? Which financial statement is more important? Why? How are the financial statements related? Why do these relationships exist? What is the impact of a miscalculation in the income statement on other financial statements? ACC 300 Week 3 – Individual Assignment Part I. In the work ACC 300 Week 3 Individual Assignment Part I you will find overview of the following parts: 1. Cash Basis – Income Statement 2. Accrual Basis – Income Statement ACC 300 Week 3 – Individual Assignment Part II. In this file ACC 300 Week 3 Individual Assignment Part II you will find overview of the following tables: 1. Income Statement 2. Statement of changes in Stockholders’ Equity 3. Expense recognition principle 4. Balance Sheet as of December 31, 2002 5. Statement of Cash Flows ACC 300 Week 3 – Individual Assignment Part III. In the work ACC 300 Week 3 Individual Assignment...
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...University of Minnesota Carlson School of Management Spring 2014 ACCT 2050 - Introduction to Financial Accounting Professor Yu Gao CSOM 3-283 Tel: 612-624-1075 Email: gaoxx112@umn.edu Class: Section 003: Tuesday, Thursday: 11:50 am-01:30 pm, CSOM L-114 Section 006: Tuesday, Thursday: 03:45 pm-05:25 pm, CSOM L-110 Office Hour: Tuesday, Thursday: 3:00 pm – 3:40 pm, CSOM 3-283 or by appointment COURSE DESCRIPTION The course provides an introduction to the financial accounting and reporting process from the perspective of external decision makers. The course focuses on fundamental accounting concepts and principles. Students will learn how the economic transactions of an enterprise are reported in the financial statements and related disclosures. The goals of the course are to provide students with a basic set of skills that can be used to compile and analyze financial statements and to prepare students for more advanced financial statement analysis courses. COURSE MATERIALS |Text Book |Financial Accounting 7th edition; Robert Libby, Patricia Libby and Robert Short; McGraw-Hill Irwin;| |(Required) |2010. | | |Connect Access Code | I do not recommend old editions of this book, but you make the final decision. You are required...
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