On the basis of this information, which of the following statements is CORRECT? (Points : 10) Prestopino had negative net income in 2010. Prestopino’s depreciation expense in 2010 was less than $150,000. Prestopino had positive net income in 2010, but its income was less than its 2009 income. Prestopino's NCF in 2010 must be higher than its NCF in 2009. Prestopino’s cash on the balance sheet at the end of 2010 must be lower than the
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billion sales revenue, which is a 143% jump from the level of the previous year. Recurring net income is P11.6 billion, which is a 41% increase from last year. Due to having certain accounting policies applied by BOC not in accordance in PFRS, an investment in associate of San Miguel Co, have made some adjustments to correct its statements. In computing for the equity in net earnings and comprehensive income for BOC, San Miguel Co. made adjustments in both statements of 2009 and 2010. The corrections
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GAAPS guidelines (Albrecht et al 2011). Violating the GAAP Principles of Revenue Recognition By recognizing the membership due as an income received the business owner will be making a mistake because the income from the fees is normally collected in advance. Also the membership can be refunded if the member cancels out the membership. Therefore the income from the membership fees should only be recognized by the business only for the period which members have spent in the club and also only
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specific pattern depending on the economic condition or their characteristic – that is, whether they are risk-averse or not. In the next few slides, I will describe four different patterns of earnings management: taking a bath, income minimization, income maximization, and income smoothing. Taking a Bath pattern can take place during period of organizational stress or when a company is undergoing major reorganization. In this pattern, managers feel that if they must report a loss, they might as well
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include information about pensions, business combinations and income taxes. The Codification is broken down into five main sections with multiple subsections. These sections are topics, subtopics, section, paragraphs, and subparagraphs. This use of a well organized approach to sorting and combining accounting standards and literature has made the Codification a primary resource for entities and other users alike. Comprehensive income is defined as “the change in equity (net assets) of a business
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Financial Statement Analysis Case Wal-Mart Instructions (a) | Discuss the expected effect on income (1) in the year that Wal‐Mart makes the changes in its revenue recognition policy, and (2) in the years following the change. | The SAB deals with various revenue recognition issues, several of which are common within the retail industry. As a result of the issuance of SAB 101, the company changed its method of accounting for SAM’S CLUBS and for Layaway transaction policy both of those are
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Robbin Churray By: Kirandeep Badesha Course: MGMT410 DeVry Online Session 2011Rob Employees will lost bit in amenities and some restriction on the raise of wage and salaries. JVA corporation will save almost 2% to 3% part of their net income that is spent on perks and other amenities. It may affect to employees as they will suffer from raises and other incentives but they will get benefit too as JVA will not lay out of current workers. The implementation of new strategy can affect JVA
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either the balance sheet or income statement and explain how the use of it may be applied to your everyday life. According to Weygandt, Kimmel, and Kieso (2010), “an income statement presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time” (p. 21). Using an income statement in one’s personal everyday life allows you to document and track monthly or annual income and expenditures for personal budgets. Income statements can be used to
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CASE 2-1 Revenue and Expense Recognition—Orthodontic Centers of America CASE OBJECTIVES The objective of this case is to evaluate the revenue and expense recognition methods used by the company. INTRODUCTION The following information was extracted from the 1999 and 2000 annual reports of Orthodontic Centers of America [OCA]. The company provides practice management services to orthodontic practices in the United States. OCA acquires and develops orthodontic centers and manages the business
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reemerged under President Barack Obama when he signed an amendment to the Fair Pay Act last year. The consequences of not acting on this important issue is plummeting tax revenues and further widened income inequality during an already starving US economy. Personal income taxes, child care taxes, earned income tax credits, payroll taxes, and state and local taxes all have aspects that affect the majority of women. Most of the tax system was drafted during the 1930s, 1940s, and 1950s when most women were
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