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

  Use of interest rate swaps- explain why some companies

use of interest rate swaps- explain why some companies that issue bonds engage in interest rate swaps in financial

  Explain the trade-offs involved in determining the number

Explain the trade-offs involved in determining the number of collection centers that a firm should use.

  Should the new equipment be purchased to replace the old

The firm has a 36 percent tax rate and a 9 percent cost of capital. Should the new equipment be purchased to replace the old?

  Consider a bond with par value of eur 1000 and maturity in

consider a bond with par value of eur 1000 and maturity in three years and that pays a coupon of 5 annually. the spot

  Define current assets what basis is used for ordering

define current assets. what basis is used for ordering individual items within the current assets

  Interest is compounded semi-annually

What is its value today if the appropriate interest rate is 8% and interest is compounded semi-annually?

  Why would this information be important

If you were President and CEO of Apple Corporation, would you want to know what the forecast for iPhones would be in the next year, 5 years, and 10 years?

  Which significance level would you choose

In a sample of 57 patients treated with the medication in 29 were in remission 6 months after taking the medication as prescribed. Test the claim that after 6 months of taking the medication, the majority of patients were in remission. Use the signif..

  Decrease the plowback ratio

Suppose you discover that Chiptech's competitor has developed a new chip that will eliminate Chiptech's current technological advantage in this market. This new product, which will be ready to come to the market in two years, will force Chiptech t..

  Calculate the current yield on this bond

What dollar amount of interest will he receive from this bond every six months? Explain or show work.

  Which set of projects would maximize shareholder wealth

XYZ Inc. has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset.

  Why should a financial decision maker such as corporate cfo

Explain why it is that in an efficient market, investments have an expected NPV of zero. Why should a financial decision maker such as a corporate treasurer or CFO be concerned with market efficiency?

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