origination of memberships are deferred and amortized in the same way. * Dues revenue is when monthly services are provided. When prepayment is received, the prepaid portion is deferred and recognized over the applicable term. * Unearned finance charges are amortized over the term of the contracts on the sum-of-the-months-digits method, which approximates the interest method. All of the recognition policy sounds right in accordance with GAAP, and is consistent with the underlying economics
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Shortlisting Companies for Detailed Analysis This article is a part of the series of articles "Selecting Top Stocks to Buy". In the first article of this series (Getting right perspective towards Investing), we discussed about getting the right perspective towards stock investing and the requisite qualities for becoming a successful investor. In the second article of this series(Choosing the Stock Picking Approach suitable to you), we learned about different stock picking approaches available
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Questions: 1. Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquire, and use resources to maximize
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Auditing Introduction Letter October 25, 2007 Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr Lancaster, We would to thank you for choosing Anderson, Olds and Watershed for the audit of Apollo Shoes Inc. From our conversation last week we understand that your old auditors withdrew from the engagement and we very much look forward to working with you and your team through this 2007 fiscal year-end. At Anderson, Olds, and Watershed we have many years of experience working
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Introduction Starting up a business is a large and complex undertaking which can overwhelm and take a lot out of a person, financially, emotionally, and physically. This new business of an organic restaurant in Gilbert, Arizona will be particularly difficult to begin. Not only can a restaurant be one of the hardest businesses to start and keep running, the target audience is much more particular also. The first question someone will have to ask when beginning any new business is, where is the money
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Executive Summary Statement of the Problems The National Railroad Passenger Corporation (Amtrak) is a government founded rail transportation company that was created in 1970 to provide passengers with means of transportation. Beginning 2002, the government would no longer fund improvements and expansions for Amtrak. From looking at the income statement, we can see that Amtrak has never been profitable and has experienced an increasing deficit in recent years. To produce income, Amtrak decided to
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Trueblood: US GAAP - Case 15-5 ASC470-60-20 states that a “a restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider.” Although the “Restructuring” was done due to the debtor’s financial difficulty, there was no concession made by any of the creditors. The effective borrowing rate when considering all the terms of the “Modified
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Suzlon Case Analysis Qn. What are the various Risks that Suzlon was exposed to? What they could have done differently to handle the situation? Ans. The various risk Suzlon was exposed to are: 1. Compliance Risk- In 2012 government rolled back some of the incentives casting a shadow on growth and aggravated the challenges for Suzlon that had already been struggling due to slow down in overseas market. 2. Merger and Acquisition Risk- When Suzlon acquired Repower at a price much higher than what
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Genzyme and Relational Investors Case Section 1- Introduction to Genzyme and Relational Investors Case Genzyme Corporation, founded in 1981, is one of the largest biotechnology companies in the United States. Under the guidance of its long-term CEO, Henri Termeer, Genzyme has been able to grow substantially since its inception in 1981. More importantly to Termeer, because of its breakthroughs in creating medicine for rare diseases, Genzyme has also been able to change the lives of numerous individuals
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WHAT’S YOUR RISK TOLERANCE? Circle the letter that corresponds to your answer 1. Just 60 days after you put money into an investment, its price falls 20%. Assuming none of the fundamentals have changed, what would you do? a. Sell to avoid further worry and try something else b. Do nothing and wait for the investment to come back c. Buy more. it was a good investment before ;now it’s cheap investment , too 2. Now look at the previous question another way. Your investment fell 20% , but
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