ACTG 630 – Case Assignment Due: Wednesday, December 3 Please submit one assignment per group. No more than 3 students per group. Read “Growing Pains at Groupon” by Dutta, Caplan and Marcinko (2014) and complete the questions included in the Case Requirements section (beginning on page 238). Instructions for accessing the FASB Codification database: 1. Go to http://aaahq.org/ascLogin.cfm 2. User ID: AAA51526 3. Password: x43AYtX ISSUES IN ACCOUNTING EDUCATION Vol. 29, No. 1 2014 pp. 229–245 American
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Chapter 5 Income Measurement and Profitability Analysis exercises Exercise 5-1 Requirement 1 Year Income recognized 2011. $250,000 ($400,000 - 150,000) 2012. – 0 – 2013. – 0 – 2014. – 0 – 2015. – 0 – Total $250,000 Requirement 2 | | | | | |Year |Cash Collected |Cost Recovery(37.5%)
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Apple case questions: 1. Explain GAAP, non-GAAP numbers and their impact on financial statements GAAP vs. IFRS affects financial statements in many different areas and must be adjusted accordingly. Revenue Recognition, extraordinary items, receivables, inventory, long-lived assets, and debt and equity would all have to be altered when switching between the two. For example, LIFO inventory valuation is not permitted under IFRS. Because of this, a company would have to recalculate under the
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your selection and your reasoning fully. In our opinion, Partial Revenue Recognition approach is most consistent with the actual substance of a sales transaction involving an extended warranty contract. Using partial revenue recognition, the company can recognize partial revenue at the time of sale. We can distinguish between what is earned and what is yet to be earned. At the time of sale, the company recognized a portion of the revenue that they earned on the total sales because the warranty contract
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recognize revenue at the point of sale based upon the time of shipment because the books are sold f.o.b. shipping point. Because of the return policy one might argue in favor of the cash collection basis. Because the returns can be estimated, one could argue for shipping point less estimated returns. (b) Based on the available information and lack of any information indicating that any of the criteria in FASB Statement No. 48 were not met, the correct treatment is to report revenue at the time
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accounting in the following ways: (1) One-year aspect Income Statement: Revenue and cost of sales will increase because it reverses the current period’s amortization of deferred revenue derived from iPhone and Apple TV. As the profit before tax increases, the income tax will also increase. Balance Sheet: Deferred revenue will drop to zero because under the non-GAAP method, it is recognised as either current year revenue or retained earnings, thus the retained earnings will increase by a large
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Dell’s Accounting Policies for Revenues, Expenses and Net Income: Dell includes both GAAP and non-GAAP financial measures in its 10k reports. The company claims that excluding certain items GAAP gives managers a better grasp on the financial performance of the company. Dell excludes severance and facility actions, and acquisition related costs from its GAAP financial measures, and also the amortization of intangible assets. Dell acknowledges that its non-GAAP financial measures may not be
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services. Customers may cancel the service at any time. However, amounts paid related to the devices are non-refundable. Payments for the devices are due upon completion of the installation and final acceptance by the customer. * 605 Revenue Recognition 20 Services 05 Overview and Background Product Maintenance Contracts An agreement to perform certain agreed-upon services to
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Week 8 : Final Exam - Final Exam ------------------------------------------------- Top of Form Time Remaining: | | Page: 1 2 | Page 1 1. (TCO F) The price earnings ratio is affected by _____. (Points : 3) | net income preferred dividends market price per share All of the above | 2. (TCO G) Which of the following is not a factor needed to calculate the present value of a bond? (Points : 3) | The contractual interest rate The length of time until the amounts are
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Voice Activated Device/ MD Dictation Speech recognition devices are widely used by physicians because they provide many advantages in the health care environment that they practice. Due to managed care, doctors are restricted in the amount of time they can spend with their patients because they use most of their time doing paperwork that is required of them. Speech recognition systems such as dictation programs and devices have brought a new outlook for the application of technology in healthcare
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