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!
In July, 2017, Longview Ltd purchased 1,000 air conditioners from it supplier. The normal selling price from its supplier is $1,000 each. Due to the large quantity of its order, Longview Ltd is able to get 10% discount, equivalent to $100,000 off. Longview sold 500 units in the fiscal year of 2018 and the remaining units in the fiscal year of 2019. Longview Ltd booked the $100,000 discount from its supplier as revenue directly in the fiscal year of 2018. A closer look of the annual report of Longview Ltd shows that the CEO has cash bonus tied to its accounting profits. Longview Ltd has June 30 as its fiscal year end.
Required
Problem (1). Longview Ltd booked the $100,000 discount from its supplier as revenue in the fiscal year of 2018. Is this practice appropriate and why?
Problem (2). Why did the CEO of Longview Ltd choose this accounting treatment? Discuss using the related accounting theory.
Problem (3). Based on the mechanistic hypothesis, what would happen to the share price of Longview Ltd at the announcement of accounting performance for the fiscal year of 2018?
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
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 and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
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 Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
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 Framework's perspective of users and their decisions.
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
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