GAAP- (Generally Accepted Accounting Principles) Is rules that govern the way that accountants do the financial reports. http://www.investorwords.com/2141/GAAP.html Basic accounting formula- Is the formula that is used in accounting that reveals the total assets, liabilities, and the shareholders equity. Assets= Liabilities + shareholder Equity. http://www.investopedia.com/terms/a/accounting-equation.asp Transaction, t-account- It is an analysis of a transaction being processed in an account,
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MAJOR FUNDS DETERMINATION 1 MAJ0R FUNDS CONCEPT • A COMPROMISE BETWEEN THE MINIMUM SCOPE AUDIT AND THE FULL SCOPE AUDIT! 2 MAJOR FUNDS CONCEPT • MAJOR FUNDS MUST BE REPORTED SEPARATELY • NONMAJOR FUNDS REPORTED IN THE AGGREGATE IN A SINGLE COLUMN • A BALANCE SHEET TEST OR AN OPERATING STATEMENT TEST 3 IDENTIFYING MAJOR FUNDS •THE GENERAL FUND •THIS FUND IS ALWAYS MAJOR •OTHER FUNDS (BALANCE SHEET OTHER TEST OR OPERATING STATEMENT TEST): 4 IDENTIFYING MAJOR FUNDS
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Companies should have the leeway to report all assets at either their current market value or their original purchase price For purposes of consistency, reliability and comparability, companies should not have the freedom to report their assets at either current market or cost.Such an alternative reporting methodology would make it difficult for users of financials to make informed decisions because:1). inconsistent methods could be used from year to year (consistency); 2). companies could effectively
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Thao Luong ITM3060 04/17/14 1. What are Dirt Bikes’ best- and worst-performing products? Dirt Bikes USA sells 4 types of motorcycle: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. From the year 2001 through the year 2005, the best overall performer in sales has been the Enduro 550, with total sales of $17.6 million for the five year period. The worst performer over the same period has been the Moto 450, with just $3.3 million in sales. 2. What is the proportion of domestic
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Ivan’s Balance Sheets As of the beginning Assets: Bushels of wheat 0 Seed (Wheat) 20 Fertilizer 2 Ox 40 Land (20 acres) 100 Plow 3 Total Assets 165 Liabilities: Accounts payable 3 Total Liabilities 3 Net Assets: 162 Total Equity: 162 End of the growing season Assets: Bushels of wheat 243 Seed (Wheat) 0 Fertilizer 0 Ox 36 Land (20 acres) 100 Plow 0 Total Assets
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Name: Melissa Morgan Course: Managerial Accounting * Exercises (E) * Chapter 3 – 3.12, and 3.16 3.12 ROI analysis using the Dupont model a. Firm D has a net income of $66, 640, sales of $2, 380, 000 and average total assets of $680, 000. Calculate the firm’s margin, turnover and ROI. ROI = Margin x Turnover ROI = net income/sales x sales/average total assets ROI = $66, 640/$2, 380, 000 x $2, 380, 000/($680, 000 ROI = 2.8% X 3.5 ROI = 9.8% Firm’s margin = 2.8% Turnover
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Presented below is the balance sheet for Collins Family Dentistry on January 1 of the current year. COLLINS FAMILY DENTISTRY Balance Sheet January 1, 20__ Assets Liabilities & Stockholders’ Equity Cash $ 20,000 Liabilities: Accounts receivable 31,000 Accounts payable $ 45,000 Land 190,000 Total liabilities $ 45,000 Building 225,000 Owners’ equity: Equipment 35,000 Capital stock 456,000 Total liabilities and Total assets $501
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Company. Issues: 1. Does a privately-held company transaction need to be held at fair value? 2. How to record the transaction of land and building for shares? Conclusion: 1. According to paragraph #820-10-30-2 and #820-10-50-2F of the FASB Accounting Standards Codification (ASC), Taylor Company does not need to report the transaction at fair value since a nonpublic entity company does not have to sell assets at the prices they paid to acquire them: Building and land $100,000 Company Shares
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2008 Ratio (unaudited) 2009 Ratio (unaudited) 2008 Ratio (audited) 2009 Ratio (audited) Current Ratio Current Ratio Current Ratio Current Ratio $130,026 Assets $8,380 Liabilities 15.52 to 1 $128,867 Assets $23,807 Liabilities 5.41 to 1 $130,026 Assets $8,380 Liabilities 15.52 to 1 $128,867 Assets $ 23,807 Liabilities 5.37 to 1 Quick Ratio Quick Ratio Quick Ratio Quick Ratio $41,851 $37,666 $79,517 / $8,380 9.49 to 1 $22,995 $59,787 $82,782 / $23,807
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LEASE CASE Basic Concepts: 1. On January 1, 2013, Flying High Airlines leased a new airplane for a term of 10 years. The expected life of the airplane is 20 years. There are no rights to purchase the asset at the end of the term, no bargain purchase option, and no residual value guarantee. The lease stipulates that Flying High makes annual payments of $650,000 beginning at the end of the first year (December 31, 2013). Flying High has an incremental borrowing rate of 4.5% and the fair market value
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