Auletta 16 September 2012 Professor Shahid ACC 301 CA 7-1 (Bad-debt Accounting) A. What are the deficiencies of the direct write-off method? The deficiency of the direct write-off method is that it fails to match the costs with the revenues in a specific period. It also does not show the net realizable value of receivables in the balance sheet. The only time that the direct write-off method is appropriate is when the amount that is uncollectible is deemed immaterial. B. What
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Recent Activities at the FASB Presentation Transcript 1. Recent Activities at the FASB Corporate Reporting and Governance Conference California State University, Fullerton September 2005 Katherine Schipper, Financial Accounting Standards Board The views expressed in this presentation are my own, and do not represent positions of the Financial Accounting Standards Board. Positions of the Financial Accounting Standards Board are arrived at only after extensive due process and deliberation.
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CHAPTER 4 Accrual Accounting Concepts Study Objectives 1. Explain the revenue recognition principle and the matching principle. 2. Differentiate between the cash basis and the accrual basis of accounting. 3. Explain why adjusting entries are needed, and identify the major types of adjusting entries. 4. Prepare adjusting entries for deferrals. 5. Prepare adjusting entries for accruals. 6. Describe the nature and purpose of the adjusted trial balance. 7. Explain the purpose
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1. From the viewpoint of its business model, what do you see as some of the key revenue drivers for Amazon.com (as defined by your text)? On pg 43 of the text, Applegate defines a business model as a model that “defines how an organization interacts with its environment to define a unique strategy, attract the resources, and build the capabilities required to execute the strategy, and create value for all stakeholders.” She further goes on to explain that a business model “defines the linkages
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(FASB) have been posted on Desire2Learn in the same folder as the case. Students will receive an extra credit of 5 points for filling out a questionnaire about the case at the end of the semester. The Case of Groupon’s Revenue Recognition: The Bottom Line on Top Line Revenues Groupon is the extraordinary company that has revolutionized the world of coupon marketing. In November 2008, at the age of 27, Andrew Mason, a music major from Northwestern University, launched Groupon – a name that is
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Refer-a-Friend program is identifying how the $25 referral credit should be recorded in Runway’s income statement. Is this consideration an adjustment of the selling prices of the vendor’s products or services, and therefore characterized as a reduction of revenue, or is it a cost incurred by the vendor for assets and services received from the customer, and therefore characterized as a cost or expense? The next significant accounting issue is regarding when Runway should record the $25 referral credit as
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Contents Contents 1 Abstract 2 Introduction to Accounting 2 CSL Ltd 2 Accounting Concepts and Conventions 2 Realization Concept 3 Going Concern Principle 3 Historical Cost Principle 3 Materiality 4 Dual Aspect Concept 4 Business Entity Concept 5 Consistency and Comparability 5 Conclusion on Accounting Concepts 6 Reference 6 Abstract Nowadays, Accounting is much more important for people from inside or outside company to make financial decisions. Financial information can
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BA 3322 – Report (Lecture 4 – Auditing the Revenue Cycle) Drea Tech Company has been growing rapidly and has recently engaged your firm as its auditor. It is actively traded over the counter (OTC) and management believes it has outgrown the service capabilities of its previous auditor. However, on contacting the previous auditor, you can learn that a dispute led to the firm’s dismissal. The client wanted to recognize income on contracts for items produced but not shipped. The client believed the
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S10 1 Critical Issues In order for Best Financial Services Inc. (BFSI) to attain a growth in revenue of 5%1 per year for 4 years and for Linda Best to maintain a healthy work-life balance (35 hours/week2 and retirement in 10 years) (Grasby and Dunn, 2009), the following issues need to be addressed: • • • How to diversify the aging target market to decrease the amount of lost revenue streams How to address the current maximum capacity of clients in the extremely competitive environments
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profitable company can indicate investors that the company can get a positive ROI. The positive ROI can not only suggest potential growth but also lead to dividends for investors. Visibility and recognition: Visibility enables investors’ better understanding of the business model and increases the recognition. Growth potential: In the growing industry, the company has the higher potential to grow in the future. Solid and experienced management: The good management can act the best interests of shareholders
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