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!
You are a graduate accountant of a second-tier accounting firm and your senior partners have approached you regarding concerns from a client of the firm, Horgan's Wholefood. The Director at the client company, Mr Happy Horgan, has concerns about the objectivity of the financial reports being used when investors evaluate their company's performance. Mr Horgan's belief was that the information provided in a statement of financial position (balance sheet) was very objective, however it has been brought to Mr Horgan's attention that financial accounting requires the use of significant professional judgement. Mr Horgan is unsure what this actually means and how this can impact on the information reported in the financial reports. Mr Horgan was also of the understanding that equity was something 'real' however he has concerns that this is not possible due to the influence of accountants/managers having to rely on professional judgement and therefore this could suggest that accounting information is actually 'constructed'. Mr Horgan believes that this would ultimately present information that is unreliable. In view of these concerns from the client, Mr Horgan, your senior partner has asked you to make brief to explain how accountants/managers use professional judgement. In doing so, you need to allay any concerns expressed by the client regarding the issue of presenting unreliable information, but also present a balanced and ethical viewpoint. However, you can explain to Mr Horgan some of the potential issues with reliance on information reported in the statement of financial position as an objective measure of company's wealth. The use of examples is encouraged.
Required:
Question 1: Providing a short brief that can be distributed to your internal team and that the client can also take away.
The Mountain Springs Water Company has two departments, purifying and bottling. The bottling department received 67,000 liters from the purifying department. During the period, the bottling department completed 65,000 liters, including 3,000 liters o..
In reference to the year-end cut off of sales transactions
Give the journal entry for issuing 8% $100,000 10 year bond issued at 110. Debits and Credits and the amount to record the issue.
Compute break-even at each level and compute the margin of safety and explain the meaning of the number derived - ROI (return on investment) and residual income are two other methods that can be helpful for this type of decision.
Assume that depreciation is charged from the first year of acquisition with a full year's charge.Compute the company's depreciation charge
Prepare the journal entries to record the sale of the bonds on September 1 and the first semiannual interest payment on November 1, 2014.
Thomas Linebarger is the Chairman and CEO of Cummins Engine, Inc. What is the document, provided to shareholders each year, that provides details on Mr. Linebarger’s compensation package?
calculation of the equivalent units for conversion costs in process costing.1.nbsp roy company manufactures a product
Prepare the stockholders' equity section of Dora Corporation's balance sheet on May 31, 2011. Net income earned during the first quarter was $15,000. What effect, if any, will the cash dividend declaration?
Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. Estimate commission revenues for S..
Provide the entries for the lease in the books of XFinance Ltd as at 1 July 2019, and 30 June 2020. Prove that the interest rate implicit in the lease
Preparation of Journal entries and Prepare journal entries to record the transactions.
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