1. Calculate the following ratios for each year during the period 1980-1983. Comment on the trend indicated by each ratio with respect to the financial performance and condition of the Charter Company. A. Profitability: Return on average total assets (assume a 46% income tax rate) = EBIT/Total Assets 1983 = 133896 / 1813199 = .073845 1982 = 108180 / 1628046 = .066448 1981 = 155673 / 1541326 = .100999 1980 = 145485 / 1746260 = .083312 1979 = 446649 / 1728694 = .258373 B. Turnover:
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AN OVERVIW OF CREATIVE ACCOUNTING AND WINDOW DRESSING Introduction: Every organization is expected to operate within the confinement of best practices or core competence at least, which has tendency of leading them to distinctive competence or exceptional practice. Since business operations center basically on finance, firms therefore take the accounting records of their organizations very serious as it determines their stay in industry or extinction from the market (business operations). It is
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errors in accounting practices. The first error was an overstatement of $7.6 million in inventory over one quarter which accounted for a pre-tax income higher than actual. (Vending Market Watch, 2011) This accounting principle violated was either LIFO, FIFO or average cost as the inventory as the error was a result of an overstatement of consolidated inventory and an understatement of the cost of inventory. As a result, income is overstated, which then means that the stockholder's equity is overstated
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18-10 | b | | 18-16 | c | 18-11 | c | | 18-17 | b | 18-12 | a | | 18-18 | b | 18-13 | a | | 18-19 | b | 18-14 | a | | 18-20 | c | 18-15 | a | | 18-21 | c | 18-22 a. The auditor would issue an
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Chapter 12 - S CorporationsChapter 12 - S Corporations Student: ___________________________________________________________________________ 1. The alternative minimum tax may apply to an S corporation. True False 2. The alternative minimum tax does not apply to an S corporation. True False 3. Liabilities affect owners’ basis differently between a partnership and an S corporation. True False 4. An S election allows shareholders to realize tax benefits from losses immediately
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1. Which of the following is not a current liability on December 31, 2014? • A lawsuit judgment to be decided on January 10,2015 • A Note Payable due December 31 2015 • Accrued salaries payable from 2014 • An Accounts Payable due January 31,2015 2. Continuous monitoring, in the contemporary approach, is beneficial because_____________. • it increases the time it takes to detect changes in the competitive environment • organization response time is increased • organizational flexibility
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November 21, 2013 AC 205 Air France-KLM Case Part A: Financial Statements, Income Measurement, and Current Assets A1. Numbers were found from AirFrance’s consolidated financial statements. A. Total revenues for fiscal year ended March 31, 2011 were €23,622 million. B. Income from current operations for fiscal year ended March 31, 2011 were €122 million. C. Net income (AF equity shareholders) for fiscal year ended March 31, 2011 were €613 million. D. Total assets for fiscal year
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Practical Skills 5. Prepare trial balance. 6. Prepare adjusting entries and closing entries. 7. Prepare entry for special journals and subsidiary ledgers. 8. Prepare cash book and petty cash systems. 9. Value the stock using FIFO, LIFO and Weighted Average. 10. Prepare basic financial statements. 11. Prepare bank reconciliation. | 11. | Reading List: | Main Text:Andrew Thomas & Anne Marie Ward; Introduction to Financial Accounting (seventh edition, McGrawHill)
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Unit 1 Introduction to Financial Accounting Learning Outcome After reading this unit, you will be able to: • Explain succinctly financial accounting concepts • Elucidate on different principles of financial accounting • Explicate the importance and scope of financial accounting • Understand Generally Accepted Accounting Principles(GAAP) • Identify limitations of Financial Accounting Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading
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Literature review Budgeting Establishing a planned level of expenditures, usually at a fairly detailed level. A company may plan and maintain a budget on either an accrual or a cash basis. Business budgeting is one of the most powerful financial tools available to any small-business owner. Put simply, maintaining a good short- and long-range financial plan enables you to control your cash flow instead of having it control you. The most effective financial budget includes both a short-range
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