does not have to accrue the liability because the exact amount of the liability cannot be reasonably estimated. The company has to make a note disclosure and state all the facts of the case and the high chance of losing the case because this lawsuit (and the possibility of 20more) is relevant to the future financial position of the company and thus the users of the financial statement should know about the situation. Part C - 5 Marks i.) Lower of cost and net realizable value method (LCNRV) is a method of inventory valuation in which the company reports its cost of goods sold as either the cost or the net realizable value depending on which is lower (in accordance with the relevance and prudence criteria of accounting). This is in order to ensure that their inventory and income statement are not overstated.
ACC 548 Week 5 Learning Team Assignment Reporting Requirements M to purchase http://allmysolution.com/ACC-548_c119.htm Product Description One issue in accounting is the qualifications of an accountant when working for a client. It is expected that a CPA will not engage in an assignment without proper qualifications. Your firm has the ability to bid on two projects: the first is engagement and examination work—not consulting or audit—for a small county hospital. The second is work for a private, not-for-profit nursing
Going concern principle: The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless the evidence shows that it will not continue. Objectivity principle: The accounting guideline that requires financial statement information to be supported by independent , unbiased evidence rather than someone’s opinion; objectivity adds to the reliability, verifiability, and usefulness of accounting information. Cost principle: The accounting principle that requires financial statement information to be based on actual costs incurred in business transactions; it requires assets and services to be recorded initially at the cash or cash equivalent amount given in exchange. Revenue recognition principle: Provides guidance on when revenue should be reflected on the income statement; the rule states that revenue is recorded at the same time it is earned regardless of whether cash or another asset has been exchanged. Business Organizations Single proprietorship: A business owned by one individual, which is not organized as a corporation; also called a sole
One could argue though, that receiving a five year employment borderlines financial benefits especially given the worsening financial position of Pharma. Adams and Barker also lacked diligence in investigating the proposal, decision, and transaction and never consulted outside experts. “Directors’ and officers’ decision-making procedures must be set up in a way that allows careful decisions to be made regarding the best interests of the corporation”. (The Legal Environment of Business, 2011) The argument could be made both ways about protection by the business judgment rule concerning rational belief. For Pharma to survive and become viable it was obvious that some decisions had to be made, but was the sale of the assets in the best interest of the corporation, or was it in the best interest of Adams and Barker?
How much of the minimum payment goes towards the principal? If you do not want to share an actual balance or do not have a credit card, calculate these amounts using an imaginary credit card balance. Now, examine the terms of one of your credit cards or other revolving debt. Are there other charges that the credit card company is applying to your account? Are you receiving a special rate for a limited time?
Financial Statement Paper P Agnes Pierre Louis ACC/280 September 26, 2011 Minh Truong Financial Statement Paper In today’s business world it is required to keep an accurate account for assets and liabilities of each company. Good and ethical accounting practices can build the base for a strong and profitable company if the information is used properly. The definition of accounting is obvious but one most know the purpose of accounting which will be covered in the following paragraphs. There are four financial statements that are prepared by companies in today’s society as a form of reporting accounting companies. Those statements are income statement, retained earnings statement, balance sheet, and statement of cash flows.
A US multinational company is required to report its financial results in US dollars. How does this create currency exchange risk for the company? What is the term which most accurately describes this particular risk? a. Currency risk- if unexpected changes in currency values affect the value of the firm 4.
The abacus was created about 5,000 years ago, to do basic calculations such as addition and subtraction (The history of, 2010). Accounting is very different today; I am only limited by my education and experience. To start my career in accounting the first step is to gain my associates degree. Once I have my degree I would like to acquire my Certified Public Accountant (CPA) license. Growing a business in accounting will take special characteristic, like self-confidence, but not over barring, integrity, time, patience, and organization (Cohn, M.).
Cash Flow 1 Cash Flow Steven Harris 8/16/15 XACC/291 Thomas Ruth Cash Flow 2 Cash Flow Companies are required to prepare a statement of cash flows, because there is information contained within these statements that are beneficial to those who may be interested in investing in the company, stockholders who are interested in the performance of the company, and lenders who are considering giving the company a loan and cannot be sure they are able to fulfill their contractual obligation Financial Accounting
Banc One Corp: Asset and Liability Management; HBS 294079 1. If Banc One wanted to manage its interest rate risk without using interest rate swaps, what could it do? Specifically, could it move from being asset-sensitive to neutral or even mildly-liability sensitive without using interest rate swaps? What are the pros and cons of using interest rate swaps versus other means of addressing the bank’s interest rate sensitivity? What impact does these interest rate swaps have on the bank’s interest rate sensitivity, liquidity, accounting ratios and capital ratios?