(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
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1. Accounting - an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about organizations business activities. 2. Recordkeeping/Bookkeeping - the recording of transactions and events, either manually or electronically. 3. External users - are not directly involved in running the organization. Including shareholders, directors, customers, suppliers, regulators, lawyers, brokers, press, and lenders. 4. Financial
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business models have failed in recent years, eBay’s business is thriving. In 2002, with more than 61 million registered users listing more than 638 million items at a total value of nearly $15 billion, eBay was able to surpass the $1 billion net revenue mark for the first time in its short history.[2] eBay’s mission is simple: “to build the world’s most efficient and abundant marketplace in which anyone, anywhere, can buy or sell
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CHAPTER 3 The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. Transaction identification. Nominal accounts. Trial balance. Adjusting entries. Questions 1, 2, 3, 5, 6, 7, 8 4, 7 6, 10 8, 11, 13, 14 3, 4, 5, 6, 7, 8, 9, 10 2, 3, 4 5, 6, 7, 8, 9, 10, 20 11, 12, 15, 22, 23 12 9 11 13, 14, 16 14, 15 1, 2, 6, 12 15, 16, 17 18 19 12 13 18, 19 20 21, 22, 23 12 11 1, 2, 7, 8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6 1, 4, 9, 10, 12 Brief Exercises 1, 2 Exercises
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While general principles of accrual accounting and cash accounting differ on the core issue of when revenues should be recognized, the FASB Accounting Standards is designed to assist firms in establishing a set of consistent and practical criteria by which to recognize revenue. The Revenue Recognition Principle dictates that revenue ought to be recognized when it is realizable and when it is earned. In the case of the transaction between Eye Vision Inc. and Holland Hospital, there are two distinct
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construction and mining equipment purchased from Kobe Steel, Ltd. (later resold by the Corporation) in net sales If the Corporation continued with the prior recognition, which was to recognize gross margin, a loss of $5.7 million would be reflected in net sales. However, under the new recognition method no loss would be recorded, instead, revenue increased by $28 million arising from such sales. No impact would be on pre-tax profits as the cost of purchase of the equipment would be recorded in Cost
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Accounting for iPhone at Apple Inc. 1. What is subscription accounting? Subscription accounting is a method in which to recognize the revenue and cost of goods sold are evenly divided over a specific period of time. The revenue is deferred into unearned revenue which would be considered as a liability account. This method also deals with the timing of a sale, in which the sale during the middle of the month will still be recognized in the full month. In this case, Apple uses a straight-line
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In today’s turbulent economy we know that revenues are needed to keep the world operating. Revenues are a vital part of our economic system. Without generated sales of goods and services there would not be any revenue. As we all have heard in the news lately that the security exchange commission is planning on switching U.S. companies accounting principles to international financial reporting standards. What this mean is that we will no longer operate our business sector the way things use to
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CHAPTER 10 Auditing Revenue and Related Accounts 1 Explain the concept of accounting cycles and their impact on audit approaches, and identify the accounts in the revenue cycle. 2 Discuss the importance of proper revenue recognition and the characteristics of revenuerelated fraud. 3 Describe the major types of fraud and misstatements that have occurred in the revenue accounts. 4 Describe how to use analytical procedures to identify possible misstatements in the revenue cycle. 5 Assess inherent
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* Step one: Identify Potential Red Flags After analyzing Wal-Mart’s annual report for 2010, attention has been brought to several items that require closer examination. A common “red flag” to questionable accounting has been found within Wal-Mart’s statement of cash flows and income statement. There is an increasing gap between the company’s reported income and the cash flow from operating activities. In the year 2008 reported income and cash flow from operating activities differed by $484 million
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