as from a depreciation standpoint. Another dispute that occurs between the players and the owners is the notion that a good portion of the players’ compensation becomes a deferred expenditure rather than showing the whole amount as a current expense. However, our class reading points out that deferred compensation must be expensed once earned. The
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Prepare a master budget and use the information in it to analyze the results of operations. This chapter will examine in detail the preparation of a master budget, including schedules for sales, collections, cost of sales, payments, operating expenses, a cash budget, and budgeted income statement and balance sheet. It will discuss the purposes and uses of budgets for managers. Profit planning involves the preparation of a number of budgets, integrated as the master budget, that outline what
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DQ4. 9 The basic point is that accounting records and financial statements need not be complex or expensive to be useful. Every manager needs to know how the business is performing and to be able to explain that to bankers and others. This performance goes beyond mere sales records, even if sales are the lifeblood of the firm. The accounting system provides information about profitability, cash flows, debts and other factors important to the business besides sales. Bankers
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ACC 304: Financial Reporting 1 Additional Class Problems Chapters 10-12 & 6 Chapter 10: EXERCISE 10-1 Item | | Land | | Land Improvements | | Building | | Other Accounts | (a) | | | | | | | | ($275,000) Notes Payable | (b) | | | | | | $275,000 | | | (c) | | $ 8,000 | | | | | | | (d) | | 7,000 | | | | | | | (e) | | | | | | 6,000 | | | (f) | | | | | | (1,000) | | | (g) | | | | | | 22,000 |
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00 KWD Operating Cost = 40,977,870.00 KWD Operating Profit= Operating revenue – Operating cost = 65,558,805.00 - 40,977,870.00 = 24,580,935 KWD Net profit = Revenue – Expenses = 16,673,405.00 KWD 3. a ) 2012 Aljazeera net income 13,943,379 KWD 2013 Aljazeera net income 16,678,405 KWD Net Income increased by 2013 by the result of : N.I/2013-N.I/2012= 16,678,405
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excluding their marketing cost from their operating income, which it should be included in there. This act is causing them to make their profits look extremely bigger and growing much more rapid than it is. 1. They were understating their operating expenses by deferring the marketing cost, which in turn, overstates their net income. Article #3- Groupon is reducing the previously stated income in half. Groupon was recording there entire sale as revenue and not taking into account that the business the
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inventory, separate from the salesgirls who will work on the transactions. Advantages: - Lesser possibility of fraud - Effective control - Enables updated stock card postings Disadvantage: - Human factor causes effectiveness to diminish - It adds more expenses - More employees will make it difficult to handle 2: Use a tear-off tag system: Salesladies will detach a paper/stub attached to every item. Each item has a unique code. Advantages: - Helps salesladies to keep track of items sold and be able to
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separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach. Transaction Where Reported Cash Inflow, Outflow, or No Effect? Depreciation expense on the plant assets Noncash (NC) Inflow Paid interest expense. Investing (I) Outflow Cash from a sale of plant assets. Investing (I) Inflow Acquired land by issuing common stock. Noncash (NC) No Effect Paid a cash dividend Financing (F) Inflow Distributed
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347,360 $1,410,000 $1,470,115.20 11.73% Gross Margin (Gross Profit) $877,200 $898,240 $940,000 $980,076.80 11.73% SG&A $307,020 $494,032 $470,000 $465,536.48 51.63% Depreciation expenses $28,000 $24,000 $15,000 $10,000 -64.29% Operating Profit $542,180 $380,208 $455,000 $504,540.32 -6.94% Interest expense $55,500 $65,500 $45,500 $78,500 41.44% Taxes $189,763 $133,072.80 $159,250 $176,589.11 -6.94% Net Income $296,917 $181,635.20 $250,250 $249,451.21
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accordance with GAAP. The Company has the following assets and liabilities. * A bank account with $1,000 at the beginning of the year. * The company collected $12,000 in cash from selling services to customers and paid $11,500 in operating expenses. The bank account had an ending balance of $1,500. * Unimproved land with a fair value and cost of $24,000 at the beginning of the year and $25,300 at the end of the year. * A machine that is used to generate income was purchased and valued
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