Dale Dickason Article #1- This article is about a software company that has switched it’s method of recording revenue from a conservative method to a sell-in method. Peregrine was originally recording revenue when the customers had received the software. They soon switched to a new method that allowed them to record revenue after shipping the software. The new method is very enticing for companies to commit a fraud to hide the fact that a quarter quota wasn’t met or to make the company appear to
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Accounting Processes’ and Financial Statements The purpose of this paper is to provide a foundation of knowledge for accounting and financial bookkeeping. To accomplish this, I will focus on two areas. First, I will provide some general definitions for common accounting processes and ideas; namely, generally accepted accounting principles, double entry accounting, historical cost, accrual basis versus cash basis accounting, and current
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Health Care Financial Accounting HCS405 Ethics Paper Financial Management is an important part of today's health care finance plans. Several financial decisions are done on a daily basis for all accounting records and even the business transactions that occur. Some of these decisions are made according with the organiation's fiscal objectives (even if some are done following generally accepted accounting principles). The question I really like
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Income taxes and financial accounting Abstract: The paper discusses the basic elements of tax allocation, analyzes extensively the principal timing difference: accelerated depreciation for tax purposes and straight-line depreciation for published financial reporting, looks into the major aspects of SFAS No. 109, and explores the difference of GAAP and IFRS on tax allocation. 1. Income tax allocation In order to comply with IRS tax code and make sense of the tax expands for income statement
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there was a need to reexamine old accounting principles in order for the transactions to be properly recorded; this accounting is known as goodwill accounting. The concept of goodwill accounting has surprisingly been present for over a hundred years, first appearing around the 1880’s (1). Since its creation however, goodwill accounting has been a source of debate and controversy due to its adverse effects on the net income of numerous firms. Goodwill accounting has undergone recent revision by the
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Groupon Inc. was forced to restate their revenue numbers on the financial statements before being able to offer an Initial Public Offer (IPO) in 2011. Groupon is a company that offers daily deals for local services of their customers. These deals can be bought one day and then used at a future date of the customer’s choosing. These offers are comprised of a set portion for the business owner and a markup commission value for Groupon. Previously Groupon would book the entire value of the sale
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CHAPTER 2 SUGGESTED SOLUTIONS TO QUESTIONS AND PROBLEMS 1. P.V. Ltd. Income Statement for Year 2 Accretion of discount (10% × 286.36) $28.64 P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash $315.00 Shareholders’ Equity Opening balance Net income Capital Asset Present value 0.00 $315.00 $315.00 $286.36 28.64 Note that cash includes interest at 10% on opening cash balance of $150. 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income
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The Difference Between Managerial Accounting and Financial Accounting ACC 560 Term Paper In this term paper the author will discuss Managerial Accounting and the components of Managerial Accounting. The author will also compare the different components of financial accounting compared to managerial accounting. According to McGraw Hill, Managerial Accounting is concerned with providing information to managers, people inside an organization who direct and control
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Table of Contents Financial Ratio 4 Return on Equity 4 Return on Assets 5 Profit Margin 7 Common Equity Leverage 8 Capital Structure Leverage 9 Debt to Equity 10 Long Term Debt to Total Assets 11 Current Ratio 12 Quick Ratio 13 Interest Coverage 14 A/P Turnover 15 A/R Turnover 16 Inventory Turnover 17 Fixed Asset Turnover 18 Asset Turnover 19 Earnings per Share Ratios 20 Price/Earnings Ratio 21 Dividend Yield Ratio 22 Stock Price Return 23 Evaluation for
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challenges involved in both financial and managerial accounting are made very clear. Financial accounting focuse on organizational-level data for presentation in a business's financial statements, and Managerial accounting focuses primarily on subunit data. Managerial accounting information is used for routine budgeting processes, allocation of managerial bonuses, and pricing decisions, all of which deal with subunits of an organization. The focus of managerial accounting is to develop information
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