Signal of improper revenue recognition

Assignment Help Finance Basics
Reference no: EM131402209

Perpetrators of improper revenue recognition schemes often attempt to offer the defense that recognizing future periods' revenue in the current period is only a "timing" error. Discuss whether the fact the over stated revenue will likely be earned in later periods reduces the impact of the overstatement or reduces the responsibility of the perpetrator to report revenue accurately in the current period. Why is an "increase in accounts receivable as a percentage of sales" a signal of improper revenue recognition?

This only needs to be two paragraphs

Reference no: EM131402209

Questions Cloud

Who gets the revenue in the case of a price floor : In which case would the shortage resulting from a price ceiling be greater: when supply is inelastic or elastic? Explain your answer.
Compute the wacc for margo : A. Margo is considering expansion of its facilities. Use the SML to determine the cost of equity. B. Compute the WACC for Margo.
Contrapose the given propositions : Contrapose the following propositions and state whether the contrapositive is logically equivalent or not logically equivalent to the given proposition.
Explain the concept for polynomials : Problems: Answerthe following problems- Explain the concept for polynomials and Explain in a step by step process.
Signal of improper revenue recognition : Discuss whether the fact the over stated revenue will likely be earned in later periods reduces the impact of the overstatement or reduces the responsibility of the perpetrator to report revenue accurately in the current period. Why is an "increas..
Perform the operations of conversion and obversion : Perform the operations of conversion, obversion, and contraposition as indicated.- Obvert the given propositions and state whether the obverse is logically equivalent or not logically equivalent to the given proposition.
List and briefly describe different human conditions : List and briefly describe 5 different human conditions that are caused by an abnormal number of chromosomes. Provide the name of the condition and include the chromosome number of the chromosome that is not normal for humans
Determining the annual yield to maturity : Sweet Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,280. It has an annual coupon rate of 9.90 percent, paid semiannually, and has 10-years remaining until maturity. What would the annual yield to maturity be on the bond ..
What percentage will the supplier pay : Which good would an economist normally recommend taxing if government wanted to minimize welfare loss and maximize revenue: a good with an elastic or inelastic supply? Why?

Reviews

Write a Review

Finance Basics Questions & Answers

  Reinvestment risk problem

Merton is a bond portfolio manager at ABC Capital Partners. His fund recently purchased $500 million principal value of 2-year 12% coupon bonds at par value. Assume that the term structure of interest rates is flat.

  Statistics and some regression results

Here are some statistics and some regression results using GSS2006 data:

  How many euros would you receive for every yen exchanged

A currency trader observes that in the spot exchange market, one U.S. dollar can be exchanged for 114.35 Japanese yen or for 1.0611 euros. How many euros would you receive for every yen exchanged?

  What is the projects discounted payback

Masulis Inc is considering a project that has the following cash flow and WACC data. What is the projects discounted payback?

  Describe how the references are cited in the text

Locate a report in a medical journal such as Lancet or the American Journal of Drug and Alcohol Abuse, and describe how the references are cited in the text.

  Find the profitability index for set of cash flows if

calculating profitability index lo7year nbsp nbspcash flow0nbspnbspnbspnbspnbspnbsp nbsp-18100 1 nbsp nbsp nbsp

  A firm is considering a project that is expected to cost

Suppose a firm is considering a project that is expected to cost $2,115,000 (= C). The project is expected to produce cash flows for four years. Cash flow in year 1 will be $647,000 (= CF1), cash flow in year 2 will be $738,000 (= CF2), cash f..

  Te dividend is expected to rise by five percent while the

newport printing paid a 2.50 dividend over the past year. during the coming year the dividend is expected to rise by

  An accident victim has received a structured settlement

An accident victim has received a structured settlement

  What would be the amount of the deduction in this situation

A person has $3,000 in medical expenses and an adjusted gross income of $34,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5% of adjusted gross income, what would be the amount of the deduction in this situati..

  Which alternative would offer hankla higher expected return

Assume that the market's required return in five years is forecasted to be 11 percent. Which alternative would offer Hankla a higher expected return (or yield) over the five-year investment horizon?

  What is the default risk premium on the corporate bond

Assume that the liquidity premium on the corporate bond is 0.3%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd