Standards Board) 2. The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except (Points: 4) eliminate inconsistencies in conceptual guidance on revenues replace principle-based accounting with rule-based accounting for revenues establish a single comprehensive standard on revenue recognition fill voids in revenue recognition guidance 3. Certain U.S. accounting standards have been, and will be, amended to aid
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Prestige Data Services’ main problem is that they have too many available hours that are not generating any revenue. In the first quarter of 2003, they have an average of 176 available hours per month of available hours. Its operations exact a huge amount of fixed costs to cover. If they could find more commercial customers for the available capacity, they could increase their commercial sales revenue by as much as $140,880 (176*800). In addition, they are also creating unnecessary expenses by having to
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How To Prepare and Present a Successful Business Funding Request EVERY BUSINESS NEEDS CAPITAL Successful businesses are well planned and well capitalized. Being well capitalized means having the ability to access capital when your business needs it. Being well planned is the first step towards being well capitalized. The Cost of Capital I have watched many entrepreneurs lose valuable opportunities because they thought the cost of capital was too high. They spent too much time negotiating over
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FIN3113 Yeo Boon Tat U081536B Case Study: America Online 1. Prior to 1995, why was America Online (AOL) so successful in the commercial online industry relative to its competitors CompuServe and Prodigy? a. Wide range of products making them more able to capture online consumer needs. b. Continuous addition and improvement to the products and services provided to retain customer. c. Extensive marketing efforts like direct mail packages and bundling AOL software into related
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Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. After reviewing the accounting policies of other corporations in similar industries, Harnischfeger decided to adjust their depreciation method. Instead of continuing to use the accelerated method for depreciating their US
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shows that the segment that gives a large amount in both revenue and operating expenses is the company stores. In the other hand, the franchise is the main segment that gives a small amount in the company’s revenue and expense. • As a conclusion, this shows that the segment in which the company is operating, company stores is the dominant factor that produce large amount of revenue and expenses while the franchise has the lesser revenue and operating expenses. • The figure shows that
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Accounting Fraud by: If you were to visit Qwest Communications website today you would find under the Code of Conduct pertaining to Ethics this quote, “…A company’s achievements are the sum of countless interactions every day, every week and every year – with colleagues, customers, and communities. If we are to carry on Qwest’s excellent reputation for ethics and integrity, all of our transactions must be based on doing the right thing. This is the only way to do business and it will remain the
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opened the first store, but it was even more important during the recent economic downturn, which seems to be coming to the end (Wal-Mart, 2010). During the recent recession Wal-Mart was one of the few businesses that have not straggled; their sales revenues were really good, mainly due to their low prices, and higher- income shoppers, which have not shopped their before the times got tough, but started during the recent troubled economy. Since the wealth started getting better and the consumer spending
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statement or statement of operations) is a company's financial statement how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of
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previous of (Sept 30 as described in Note 1). c. Changed depreciation method from Declining Balance (accelerated) to Straight-line. Declining Balance method is good for assets that quickly lose their value and leads to higer expenses (lower revenues) in earlier years following purchase. Straight line spreads the expense over the assets useful life and results in a consistent (non-accelerated) expense year over year. During this process, the firm also changed residual values and useful lives
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