aggressive accounting practices. CFRA’s investigation aims at identifying potential risks in several areas, including revenue quality and recognition, inventory levels, customer and geographic diversification, warranty policies, production capacity growth, and supply chain. This case focuses on whether CFRA should flag First Solar and add it to the “biggest concern” list. The stock of First Solar has always been popular among investors considering the company’s outstanding performance. The price-to-earnings
Words: 1737 - Pages: 7
the explicit and implicit costs. The unique aspect of opportunity cost is that it also includes costs associated with making an alternate decision. The costs associated with an alternative are called implicit costs. The accounting cost of making a decision is called the explicit cost. While explicit, or accounting, costs are fairly easy to calculate, implicit costs are not as easy. Measuring the cost of the best foregone alternative can be not as easy as anticipated. By reading this Wiki right now, you are paying
Words: 2760 - Pages: 12
of earnings is derived from two separate accounting systems in order to predict prospect cash flows. The two accounting systems put into account are the accounting system found under the implementation of present accounting standards, also known as the mixed attribute system of accounting. The second accounting system is the market data where the data is used as an alternative for a fair value system of accounting. The mixed attribute system of accounting is often characterized as one that integrates
Words: 363 - Pages: 2
amount spent for final goods and services at different levels of real GDP. average propensity to consume Fraction (or percentage) of disposable income that households plan to spend for consumer goods and services; consumption divided by disposable income. average propensity to save (APS) Fraction (or percentage) of disposable income that households save; saving divided by disposable income. anticipated inflation Increases in the price level (inflation) that occur at the expected rate. aggregate
Words: 3994 - Pages: 16
Topic 1 The Scope of Economic Analysis Question 1.1 “According to the definition of opportunity cost, the more alternatives that we have given up in undertaking an action, the higher the opportunity cost.” Please comment on this statement and explain your answers using examples. Ans Opportunity cost of an action refers to the value of the best alternative that must be given up in order to undertake that action. That is, the highest-valued option forgone. The statement in the question is
Words: 13684 - Pages: 55
Accounting Ethics Accounting ethics is primarily a field of professional ethics, the study of moral values and judgements which are applied to the accountancy. “Accounting ethics can be defined as a set of distinct guidelines for a business to maintain clean balance sheets, accounting for their profits, losses and expenses incurred and prevent it from mishandling financial reports and statements” (Buzzle 2011). The nature of the work carried out by accountants and auditors requires a high level
Words: 1320 - Pages: 6
of the stock market’s high expectations about its future prospects. Enron was rated the most innovative large company in America in Fortune magazine’s survey of Most Admired Companies. Yet within a year, Enron’s image was in tatters and its stock price had plummeted nearly to zero. Exhibit 1 lists some of the critical events for Enron between August and December 2001—a saga of document shredding, restatements of earnings, regulatory investigations, a failed merger and the company filing for bankruptcy
Words: 13016 - Pages: 53
(client) level. General data is at the client level and is therefore the same for the entire enterprise. Purchasing data is created at the purchasing organization level. MRP’s are created at the plant level. * A company code is the smallest organizational unit for which accounting can be carried out. The balance sheet and income statement are generated at this level. With no cost center, there would be no accounting data. * The Organizational Structure for Financial Accounting (FI) consists
Words: 2158 - Pages: 9
1. FASB Accounting standards Codification ASC • 330-10-35-1 Basic rule for using lower of cost or market • 330-10-35-2 Regarding matching—times when utility drops below cost. Loss recognized when changes in price levels • 35-4 –real loss sustained? –Severe erosion of demand in the industry. Significant loss of profit because the value of the memory went down. • 35-5 –did prices go back to what it was originally? No it did not. Therefore we can write this as a loss. If it had recovered
Words: 274 - Pages: 2
many incentives. But recently, all that was growing was GM inventories. A slowing economy and rising gas prices have scared car buyers from the new car lots, especially the sections with lowgas-mileage, full-size vehicles and SUVs. Not surprisingly, GM and other automakers have responded with discounted prices. For example, the average sticker on a Cadillac DeVille was $54,193, but the net price after incentives was $42,211. This meant that the factory was
Words: 30350 - Pages: 122
