4. Know the definitions of asset, liability, equity, revenue, and expense 5. Know what items appear under each classification in the balance sheet 6. Know how to compute Earnings per Share 7. Know the composition of a Retained Earnings statement 8. Know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account 9. Know about revenue recognition principle, matching principle, and time-period assumption
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4. Know the definitions of asset, liability, equity, revenue, and expense 5. Know what items appear under each classification in the balance sheet 6. Know how to compute Earnings per Share 7. Know the composition of a Retained Earnings statement 8. Know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account 9. Know about revenue recognition principle, matching principle, and time-period assumption
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Basic assumptions of accounting Going concern assumption proposes that the financial statements are normally prepared on the assumption that an entity will continue its operations in the foreseeable future. If this is not applicable the financial statements needs to be revised and assets and liabilities should be measured at their current net realizable value. Additional disclosures about the basis of preparation must be made in the financial statements. Accounting entity or business entity assumption
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Managers engage in different ways to manage their earnings. They take on a specific pattern depending on the economic condition or their characteristic – that is, whether they are risk-averse or not. In the next few slides, I will describe four different patterns of earnings management: taking a bath, income minimization, income maximization, and income smoothing. Taking a Bath pattern can take place during period of organizational stress or when a company is undergoing major reorganization. In
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indirectly. Their performance especially in terms of revenue growth, EBIT growth and earnings growth has been increasing over the years and this demonstrates the firm’s determination in being successful even though in 2012 they didn’t do as good as expected. P&G as mentioned above not only operates in the US market but also internationally, in other words they decided to expand even in the BRIC countries in order to achieve higher growth and revenue. If we analyze all of the calculations based
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certification and affirmation requirements for CEO’s and CFO’s. Approach Undoubtedly, the accrual idea is the most difficult of all basic accounting matters for the student to grasp. As a matter of fact, we sometimes say that the proper recognition of revenue and expense is the only important accounting problem. Although this is an exaggeration, it is not far from the truth. The text and cases in this chapter constitute only a beginning in understanding and it is to be expected that students will
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Financial Forecasting for Insight Enterprises Inc. Mona Aghamirsalim Mobolaji Akindele Yue Qi Dilada Pongpanich Oct 20, 2015 Table of Contents Introduction…………………………………………………………………………………3 Industry Overview…………………………………………………………………………..3 Industry Competition……………………………………………………………........3 Industry Products, Operations & Technology………………………………………..4 Company Overview…………………………………………………………………………4 Acquisitions…………………………………………………………………………..5 Dividend Policy………………………………………………………………………5 Company
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700 different devices. While the company has benefited from a phenomenal increase in the stock price, revenue and the amount of subscribers, a series of strategy changes and new initiatives in July of 2011 led to a downward spiral for Netflix. The major strategic issue facing Netflix is how to recover from its strategic mistakes that resulted in a significant plummet in stock value and revenues, disgruntle consumers and reduced customer loyalty in addition to a whopping amount of canceled subscriptions
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MARK K. SCHONFELD REGIONAL DIRECTOR Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION New York Regional Office 3 World Financial Center New York, NY 10281 (212) 336-1120 UNITED STATES DISTRICT COURT -SOUTHERNDISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 08 Civ. ECF CASE BIOVAIL CORPORATION, EUGENE N. MELNYK, BRIAN CROMBIE, JOHN MISZUK, and KENNETH G. HOWLING, Defendants. COMPLAINT Plaintiff Securities and Exchange Commission, for its Complaint
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Traditional Ratios a. Profit Margin = NI/Revenue In 1986 and 1987, MiniScribe’s profit margin (PM) was beyond top 25% of the industry’s PM, which indicates that MiniScribe was more profitable. However, in 1986, MiniScribe’s PM tripled PM of top 25% of the companies, which is too good to be true. The fraudulent activity was that the company increased the recorded value of inventory to defer expenses and overstate profits. The company also included revenue in 1986 inappropriately, which should be
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