are more relevant for different users. A bank may be concerned with the revenue and earnings of a company to determine if the lender will be able to fulfill the debt obligations without a problem. While a stockholder may be concerned with how much income they can make when investing in the company. The influence of the misstatements has different influences on different users of the financial statements. [b] Why are different materiality thresholds relevant for different audit engagements?
Words: 316 - Pages: 2
10 x 50% = | 400,000 | Energy | 80,000 x 12 x 50% = | 160,000 | | | (4,160,000) | Contribution Margin | | 7,840,000 | Impact of dropping Grill A on Profit Before Tax: Budgeted Income Before Tax For The Year 2016 | $ 6,680,000 | Reduction in Profit Before Tax if Grill A is dropped | (7,840,000) | Budgeted Loss if Grill A is dropped | | (1,160,000) | The product line Grill A contributes
Words: 1550 - Pages: 7
Stock 24,000 Prepaid Insurance (Debit) Landscaping Supplies (Debit) 1-Jul Prepaid Insurance 2,400 Landscaping Equipment (Debit) Cash 2,400 Accum Depr -Equipment (Credit) 1-Jul Rent Expense 2,080 Liabilities Cash 2,080 Accounts Payable (Credit) Income Tax Payable (Credit) 3-Jul Landscaping Equipment 8,800 Cash 1,200 Stockholders Equity Accounts Payable 7,600 Common Stock (Credit) Retained Earnings (Credit) 8-Jul Landscaping Supplies 780 Dividends (Debit) Accounts Payable 780 Revenue 12-Jul
Words: 514 - Pages: 3
a 1. Positive * Both the buying and selling divisions have participated in the negotiations and are likely to believe they have agreed on the best deal possible * Negotiating and determining transfer prices will enhance the autonomy/ independence of both divisions b Negative * The result of a negotiated transfer price between divisions may not be optimal for the firm as a whole and therefore will not be goal congruent The negotiating process may cause harsh feelings
Words: 1252 - Pages: 6
How can we solve the UK deficit? I think that the way to solve the deficit is to cut spending and to generate more income for the Government through tax. The main sectors for Government spending in 2013 were social protection, education and the UK healthcare system. However I think that the sectors that are cut back on need to be chosen carefully because if some sectors are chosen then it will do more damage to the country than good. For example, if the Government cut back on education then
Words: 293 - Pages: 2
per share amounts) Year ended December 31, Operating results: Revenues Net income: Income from continuing operations Discontinued operations, net of income taxes: Income (loss) from operations Loss on divestiture of operations Net income Diluted earnings per common share: Income from continuing operations Discontinued operations: Income (loss) from operations Loss on divestiture of operations Net income 2009 2008 $4,270,007 $4,093,864 $62,612 $60,460 931 (23,432)
Words: 1815 - Pages: 8
Gentle Lentil Case Solutions Following information is provided in the case which will be used in following three solutions: Seating Capacity of the restaurant = 50 Non-Labor fixed cost (per month) = $3,995 Variable cost of food (per meal) = $11 There are three uncertain variables that tend to dominate the Profit: Number of meals sold (per month) Fixed Labor cost (per month) Revenue (per meal) follows a discrete distribution as below: Scenario Very Healthy Market
Words: 346 - Pages: 2
included in cost of goods sold is determined as follows: $1,337,000 x 90% = $1,203,300 Alternatrive computation for the same result follows : ($1,337,000 ÷ 4,000) X 3,600 = $1,203,300 Problem 1-20B Event | | Assets | = | Equity | | Income Statement | | | | | | | | Manuf. | | Office | | Com. | | | | | | | | | | No. | | Cash | + | Invent. | + | Equip*. | + | Furn.* | = | Stk. | + | Ret. Ear. | | Rev. | – | Exp. | = | Net Inc. | | 1. | |
Words: 360 - Pages: 2
From the perspective of a fixed income investor examine the critical issues to make a" buy "or "pass" Decision. Positive points: UST was one of the most profitable companies in America. Average ROA is 54%, average ROE is 103% and GPM is 80%.EBITDA/Interest Coverage 105.6. UST is the first and leading producer of moist smokeless tobacco. UST has very conservative debt policy and stably growing free operational cash flows. Should UST undertake a billion $ recapitalization? Calculate the marginal
Words: 291 - Pages: 2
MERIT SYSTEM SERVICES - SAMPLE ELIGIBILITY WORKER I - ITEMS READING AND UNDERSTANDING WRITTEN MATERIALS DIRECTIONS:Read each question carefully. Select the best answer and darken the proper space on the answer sheet. 1. Through advertising, manufacturers exercise a high degree of control over consumersdesires. However, the manufacturer assumes enormous risks in attempting to predict what consumers will want and in producing goods in quantity and distributing them in advance of final selection
Words: 1082 - Pages: 5
