Describe the effects on roa of the error over the three year

Assignment Help Financial Accounting
Reference no: EM132946287

Problem 1: When a firm incurs costs on an item to be used in operations, management must decide whether to treat the cost as an asset or an expense. Assume that a company used cash to acquire machinery expected to contribute to the generation of revenues over a three year period and the company erroneously expensed the cost to acquire the machine. Describe the effects on ROA of the error over the three year period. Explain how the error would affect the statement of cash flows. How might one be able to spot such an error by inspecting financial ratios over those three years?

Reference no: EM132946287

Questions Cloud

How can ikea implement the blue ocean strategy : HOW can IKEA implement the "Blue Ocean Strategy" to build a better (winning) competitive strategy?
Explain how do procedures differ from procedure followed : Explain How do procedures differ from the procedure followed for testing the impairment of a patent, which is an intangible asset with a definite life?
Demonstrate an understanding of project failure : Demonstrate an understanding of project failure and its implications.
Describe the four types of segmentation strategies : Select one advertisement for a global product Describe the four types of segmentation strategies
Describe the effects on roa of the error over the three year : Describe the effects on ROA of the error over the three year period. Explain how the error would affect the statement of cash flows.
Sarbanes oxley whistleblower protection law : Please watch the video "Sarbanes Oxley Whistleblower Protection Law "
Explain the impact of new technology on the demand : Explain the impact of new technology on the demand and supply curves of the labor market
What is vast search : a. What is 'vast search' and why is it a problem? Does having too much data (Big data) contribute to this issue? Does combining predictors with a predictive mod
Find What is the average annual operating income from asset : Conrad Manufacturing Co. is considering investing in specialized equipment costing $970,000. What is the average annual operating income from the asset?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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