Financial Statement Part 1: The Home Depot, Inc. Brenda Ocampo ACC 497 November 25, 2013 Rick Kwan The Home Depot, Inc Annual Report The Home Depot, Inc. had their retail sales decline by 7.8 percent. Even though there was a bad economic time for all stores this store strived to provide better customer service, invested in the sales associates, and rebuilt their supply chain. These decisions helped optimize their capital allocation and allowing them to concentrate more on
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Good accounting gone bad Principal of Accounting 1 1. Anatomy of a financial sheet a. Assets b. Revenue c. Expenses 2. Financial statement errors a. Enron b. WorldCom c. North Babylon Union Free School District 3. Sarbanes Oxley Act 4. Corporate Accountability Accounting has been defined as "the language of business" because it is the basic tool for recording, reporting, and evaluating economic events and transactions that affect organizations. For the financial
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of Balance sheet differences will vary between varying types of businesses. The income statement, balance sheet and cash flow statement are all interrelated. The income statement describes how the assets and liabilities were used in the stated accounting period. The cash flow statement explains cash inflows and outflows, and it will ultimately reveal the amount of cash the company has on hand,
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case provides students with an understanding of the criteria for revenue recognition and the role of accrual accounting in reflecting timing differences between cash receipts and product/service delivery, especially in situations where there are multiple deliverables. The case also enables students to reflect on (a) the use of supplementary non-GAAP disclosures, (b) the impact of accounting on firm value and (c) the role of companies in the standard setting process. Reading assignment: Pages
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Financial Accounting Ch. 8: Questions 3 & 4 3. What are the essential features of the allowance method of accounting for bad debts? The essential features of the allowance method of accounting for bad debts are: A) Obtaining approximates for uncollectible accounts receivables and comparing them to revenue in the same accounting period where revenue occurred. B) To subtract estimated collectibles from bad debts expense and credit to payment for doubtful accounts by adjusting the entries
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MODULE: INTRODUCTION TO ACCOUNTING DECEMBER 2013 Title: Introduction to Accounting Assignment topic: Part A of the Assignment: a) The following represents a trend percentage analysis of the Income statement of ABC Ltd. over a four year period. Year 1 is the base year and equal to 100 Account | Year 1 $ | Year 2 | Year 3 | Year 4 | Sales | 296,700 | 100 | 125 | 150 | Cost of sales | 176,900 | 112 | 130 |
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Patrice Rogers BA220 Financial Accounting Grantham University Ex 1-6A Components of the accounting equation Lang Enterprises was started when it acquired $4000 cash from creditors and $6000 from owners. The company immediately purchased land that cost $9000. a. Record the events under an accounting equation. Assets = Liabilities + Capital | Assets |= | Liabilities
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Revenue Recognition Dilemma U.S. GAAP Authoritative Guidance Accounting Standards Codification (ASC) 605-10-25-1 The recognition of revenue and gains of an entity during a period involves consideration of the following two factors, with sometimes one and sometimes the other being the more important consideration: a. Being realized or realizable. Revenue and gains generally are not recognized until realized or realizable. Paragraph 83(a) of FASB Concepts Statement No. 5, Recognition and Measurement
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2009 Hoyle, Schaefer, Doupnik, Advanced Accounting, 9/e 3-1 CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of
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earnings: The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet. Question 4. What is the basic accounting equation? Assets = Liabilities + Owner's Equity What a company owns must always equal (=) what it owes to its creditors plus (+) what it owes to the owner or
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