1. For the year-end December 31, 2007, financial statement, what amount should M record as a liability? According to FASB 450-20-25-1, when a loss contingency exists, the likelihood that the future event or events will confirm the loss or impairment of an asset or the incurrence of a liability can range from probable to remote. An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met a. Information available before the financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statement.
This is consistent with FASB codification ASC250-10-45-23 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? According to ASC250-10-50-9 the participation in the tax amnesty program will cause a liability to be recorded in the current year statements and adjustments for prior periods. If comparative financial statements are issued, the prior year column will need to reflect the adjustment and a change in opening balance (retained earnings) for the current year. 3.
This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet. Formally retiring shares restores the balances in both the common stock account and paid-in capital - excess of par to how those balances would have looked if the shares never had been issued. Any net increase in assets produced from the sale and ensuing repurchase is reflected as Paid-in capital—share repurchase. On the other hand, any net decrease in assets resulting from the sale and subsequent repurchase is repeated as a subtraction of retained earnings. Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity.
2. a. Critique Ace Repair’s current method of estimating its before-tax cost of debt. b. Is the earnings yield (E/P) an appropriate measure of the firm’s cost of equity? 3. a.
D. balance sheet as an item of stockholders’ equity. 44) Which of the following statements is false? A. Cash dividends should be recorded as a liability when they are declared by the board of directors. B.
So, after business is operating, you will need to compare your actual performance (from your current financial statements) against your planned performance (from your pro forma financial statements). This financial statement analysis should be performed line item by line item. If lemonade stand had fewer sales than planned … I should know or find out why. If any costs were greater than planned again, I should know or find out why. Ever dollar received, and every dollar spent shows up on financial statements, and every dollar that is different than what you planned should be analyzed.
This drug significantly reduced cholesterol from 40 percent to 72 percent when given at two-week intervals. It was also given at four-week intervals but the effects were not nearly as significant. However, “Six patients, all receiving REGN727, stopped the therapy due to adverse events which included headache, injection site reactions, and diarrhea” (Curley, Ann, CNN, 2012). Those side effects would likely scare anyone. That is why the government needs to step in and offer a grant for these companies to dig deeper into their studies and come up with something that has less side effects.
Public Agenda posted a statistical graph that shows 68 percent of the public agrees with the testing. 27 percent is against it and five percent are not sure how they feel. As a citizen who is on welfare I would gladly do a drug test if it meant that I wouldn’t have food or clothes for my child. This program gives a person the chance to get their life back on track and a new start. It is a win/win all the way around because, It will lower the amount of people on welfare and increase the amount of people that can be personally responsible for themselves by holding a job and being drug
At one point, out of 77 deaths 1/5th were extremely healthy. The difficulty is that it is hard to prevent because it is spread by airborne droplets due to the way we live e.g. ; transport, big groups; therefore, how can it be prevented? The virus can be treated by anti-biotic called Tami-flu, however; the drug comes with a list of side effects. Some would argue that it’s not worth the risk but, really the only people that are advised against the drug are, again, children and people with
Even if the customer is at fault or negligent the bank can be liable for some of the loss if they failed to exercise ordinary care. 8. What role does the Federal Reserve System play in clearing checks? They act as a clearinghouse, a system or a place where banks exchange checks and drafts drawn on each other and settle daily balances. 9.