organization. 4. Recognition (measure with reliability, probable flow of economic resources) - Tachdirt is allowed to use the seal of approval for four years. It meets the criteria so rather than expensing the cost, capitalized it since it is an intangible asset. Also, since it was a donation they are qualified for a tax rebate. Professional athlete - The matching principle requires to match revenue and expenses in the same period. When Tachdirt billed the $288,000 they did not match the expenses. Having
Words: 905 - Pages: 4
(Dillard’s Inc). Dillard’s current ratio is 2.275 million (current assets/current liabilities) that means that the company’s current asset should be able to satisfy near-term obligations. Asset utilization is 1.3518 million (net sales 6,226.63 (revenue)/total assets 4,606.33. Financial Leverage is 0.4225 million, which is total debts (973.50) /shareholders equity (2,304.10). This provides an indication of the long term solvency of the firm. Profit Margin is 0.0183 million, which is net income
Words: 1688 - Pages: 7
Homecare Income Statement Revenue $12,000,000 Operating Expenses: Salaries Expense $5,000,000 Supplies $ 120,000 Utilities $ 140,000 Insurance $ 750,000 Depreciation $ 1.7 million Total $ 4.3 million Net Income $ 7.7 million What were Brandywine’s 2007 net income, total profit margin, and cash flow? Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting
Words: 903 - Pages: 4
Cheat Sheet Assets are valuable resources owned by the entity. LIABILITIES AND EQUITY sources of funds that provided the entity’s assets. Liabilities are the entity’s obligations to outside parties DUAL-ASPECT CONCEPT Assets = Liabilities + Equity MONEY-MEASUREMENT CONCEPT money-measurement concept. By converting different facts to monetary amounts, we can deal with them arithmetically The money-measurement concept states that accounting reports only those facts that can
Words: 3583 - Pages: 15
1. Recognition of normal balances a. Amounts paid to a mall for rent -expense b. Amounts to be paid in 10 days- liability c. A new fax machine purchases for office use- assets d. Land held as an investment - assets e. Amounts due from customers -assets f. Daily sales of merchandise sold - revenue g. Promotional costs to publicize a concert - expense h. A long-term loan owed to Citizens Bank -liability i. The albums, tapes, and CDs held for sale to customers –assets Normal balance for:
Words: 901 - Pages: 4
financial ratios over a series of reporting periods. A horizontal analysis was conducted for Xerox and HP for the period of 1997 to 2000. Some noticeable differences were found in comparison of the two companies’ results. First, Xerox’s revenue decreased while HP’s revenue increased dramatically over the four years. Xerox was having difficulties in adapting to the competition driven by rapid technological advances. Second, due to the net losses and dramatic changes in net income, Xerox had negative cash
Words: 1168 - Pages: 5
4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted
Words: 3888 - Pages: 16
particular unit. Followed by the amount of time known as time period which is distinguished by economic life of a business divided into the artificial time period. Then after is the going concern assumptions. Principles are then put into play with revenue recognition, matching, full disclosure and cost principles. The format for IFRS and GAAP may differ from a statement of financial under IFRS or position and a balance sheet under GAAP because of the requirement caps. IFRS do not require a specific
Words: 863 - Pages: 4
4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted to make
Words: 3888 - Pages: 16
NETFLIX STATEMENT OF THE PROBLEM Netflix’s expenses are surpassing their revenues. This may be due to some of their strategies which entail a lot of expenses. OBJECTIVES To build the world’s best internet movie service & deliver a growing subscriber base & earning per share every year. AREAS OF CONSIDERATIONS * The world’s largest online subscription service for renting DVD’s * Because of the continuous innovation with technology, more consumers are gaining access to the internet
Words: 601 - Pages: 3
