over the selection and application of accounting principles generally accepted in the United States (“GAAP”) related to revenue recognition and restricted cash.” (Bridgepoint Education (BPI) to Restate 2013 Financial Statements). The error that occurred in the financial statements for the year ended December 31, 2013 is an error in analyzing the collectability criterion for revenue
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60% of Microsoft’s research and development expenses were incurred after technological feasibility was established, that the average product life was two years, and that the company begins amortizing software costs at the beginning of the following year. Estimate the effect of capitalizing software costs on Microsoft’s fiscal 1997, 1998, and 1999 income statements and balance sheets. [pic] b. Why do you think Microsoft chose to expense all software costs as incurred rather than
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not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. 1. Construct Brandywine’s 2007 income statement. Brandywine Homecare Income statement Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation
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Chapter 1 Self Test, Question 1 | | | | Correct. | | | The financial statements most frequently provided include all of the following except the: | statement of stockholders' equity. | | balance sheet. | | statement of cash flows. | | statement of retained earnings | Self Test, Question 2 | | | | Correct. | | | An effective process of capital allocation is critical to a healthy economy, which: | promotes productivity. | | encourages
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CHAPTER 18 Revenue Recognition – 2014 Update ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics | Questions | Brief Exercises | Exercises | Problems | Concepts for Analysis | 1. Current Environment; 5-Step Model. | 1, 2, 3, 4, 5, 6 | | | 8 | 1, 2, 3 | 2. Contracts; Contract modifications. | 7, 9 | 1, 3 | 1, 2, 3, 4, 17, 18 | 1, 2 | 1 | 3. Performance Obligations | 10, 11, 12 | 3, 4, 19, 20 | | | | 4. Transaction Price | 8, 13 | | 5, 8, 9 | 4
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True / False Questions 1. | The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises. True False | 2. | Accrual accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow. True False | 3. | The FASB is currently the public-sector organization responsible for setting accounting standards in the United States. True False
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Week 8 : Final Exam - Final Exam ------------------------------------------------- Top of Form Time Remaining: | | Page: 1 2 | Page 1 1. (TCO F) The price earnings ratio is affected by _____. (Points : 3) | net income preferred dividends market price per share All of the above | 2. (TCO G) Which of the following is not a factor needed to calculate the present value of a bond? (Points : 3) | The contractual interest rate The length of time until the amounts are
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8/4/13 Chapter 1 Results 36% (9 out of 25 correct) Responses to questions are indicated by the symbol. 1. Corporations generally receive more favorable tax treatment than sole proprietorships and corporations. A. True B. False Correct! Sole proprietorships and partnerships generally receive more favorable tax treatment than corporations. 2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation This
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Other | 1.64% | 1.46% | 1.19% | Total assets | 100.00% | 100.00% | 100.00% | | | | | Current Liabilities: | | | | Short term borrowings | 26.61% | 20.22% | 0.00% | Accounts payable | 10.35% | 11.41% | 14.55% | Accrued expenses | 1.46% | 2.07% | 3.60% | Income taxes payable | 0.11% | 0.30% | 0.13% | Current maturities of | | | | long term debt | 0.56% | 0.72% | 0.96% | Total current liabilities | 39.09% | 34.73% | 19.25% | | | | | Long term debt and
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and unusual amounts of components 1 1.2 Major types of liabilities and unusual amounts of components 2 1.3 Major types of Equities and unusual amounts of components 2 Part 2: Overview of the Income Statement 3 2.1 Major sources of revenues, expenses, gains and losses 3 2.2 Unique Items for Income Statement for recreational goods 3 2.3 Unusual amounts changes in the Income Statement 3 Part 3: Overview of Statement of Cash Flow 4 3.1 Analysis for operating cash flows 4 3
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