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Question 1: Assume that KASE receives a prepayment from cusomer1 of $1000 worth of consulting services in 20X1.Assuming no consulting services were provided in 20X1 for customer1,Is there income statement activity in 20X1 based on prepayment? when would there be Income statement activity and why?
Question 2: Assume KASEs didnt collect taxes from their employees paycheck.what impact this would have on KASEs employees in terms of their takehome pay and what subsequent impact would this have on KASEs Financial statements(would any accounts be over rated/underrated)?This one is a tougher conceptual question ,so think about what KASE has to do every year in terms of taxes and what the implications are of forgetting to do things they are held liable to do ?
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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