Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Far from being an exact science, accounting involves estimation and judgment. Consider the case of Dwight Nelson, chief financial officer of Pilot Enterprises. Pilot is a relatively young, privately held company with thoughts of going public in the near future. The owners of the business would like to include in the prospectus (a document containing information about the company and its past performance) financial statements that support their assertion that Pilot is a successful company with a bright future. And the problem is this-the income statement for the past year shows a slight decrease in income from the prior period. When Dwight presented this information to the board of directors of Pilot, he was told that the income statement would have to be revised. He was specifically counseled to review his estimates associated with bad debt expense, warranty expense, and estimated useful life of depreciable assets. He was invited to present his "revised" income statement to the board of directors when it showed a 5% increase over last period's net income-anything less would not do. After reviewing the assumptions made regarding uncollectible, warranties, and depreciation, Dwight found that he could revise his estimates and obtain the 5% target increase in income. But he did not feel that the revised income statement properly reflected the performance of Pilot for the period.
1. What are the risks to Dwight of revising the income statement to meet the target figure?
2. What are the risks to Dwight of not revising the income statement to meet the target figure?
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
The following data are available for a product manufactured and sold by Logan Company:
If depreciation expense is $20,000 and the beginning and ending accumulated depreciation balances are $100,000 and $110,000, respectively, how much cash was paid for depreciation?
why does a company perform ratio analysis? what are the profitability ratios? describe the formula for one
question 1.jackson companyrsquos credit history indicates that 60 percent of revenue is collected in the quarter the
Determine if each of the above transactions should be classified as an operating, investing, or financing activity.
scoresby co. uses 3 machine hours and 1 direct labor hour to produce product x. it uses 4 machine hours and 8 direct
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
calculate the missing amounts for each of the following firms do not round your intermediate calculations. negative
After examining the statement, Moy said to Stein, "Sol, the statement seems to be well done, but what I need is why I don't have enough cash to pay my bills this month. You show that I earned $120,000 in 2010, but I have only $24,000 in the bank. ..
Overhead applied to Standard using traditional costing using direct labor hours is:
1. In March 2013, the Phillips Tool Company signed two purchase commitments.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd