A Case Study: Oracle Systems Corporation EXECUTIVE SUMMARY In 1977‚ Lawrence J. Ellison founded System Development Laboratories to sell a database management system he had developed in a CIA project. It was only in 1982 that the company was renamed to Oracle Systems Corporation‚ to reflect the success of their first product‚ Oracle Database. Oracle used the C programming language to create its products‚ which was a big part of
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needs C) To analyze the balance between debt and common stock financing D) To analyze the balance of accounts receivable on the last day of the accounting period 5. A business organized as a separate legal entity is a A) corporation. B) proprietor. C) government unit. D) partnership. 6. The right to receive money in the future is called a(n) A) account payable. B) account receivable. C) liability. D) revenue. 7. Gibson Company recorded the following cash transactions for the
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its accounts receivable (i.e.‚ invoices) to a third party (called a factor) at a discount. In "advance" factoring‚ the factor provides financing to the seller of the accounts in the form of a cash "advance‚" often 70-85% of the purchase price of the accounts‚ with the balance of the purchase price being paid‚ net of the factor’s discount fee (commission) and other charges‚ upon collection from the account client. In "maturity" factoring‚ the factor makes no advance on the purchased accounts; rather
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principal methods used to conceal receivables skimming? * 1. Lapping – is when someone tries to conceal the theft of cash designated for accounts receivable by crediting one account while abstracting money from a different one. * 2. Force balancing – is when the fraudster falsifies account totals to conceal the theft of funds (also known as “plugging”). The fraudster will steal a customer’s payment but nevertheless post it to the customer’s account so that the account does not age past due.
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incurred operating losses‚ which meant that generating cash from operations was at best limited or insufficient. The second major factor is the inefficient use or mismanagement of some of the current assets accounts‚ namely Accounts Receivable and Inventories. When it comes to Accounts Receivable‚ it can be seen that in 1985‚ which is the most recent full year of operation‚ the company’s Days Sales Outstanding is 70.9 days versus the industry’s average of 55.1 days. This indicates that customers are
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September 17‚ 2011 Direct Method If the accountant prepares the cash flow statement by using the information in the income statement‚ she is using the direct method. Under such a scenario‚ she identifies and adds up all cash sales and collections of receivables from credit sales during previous periods. She subtracts all cash payments to arrive at the net cash flow from operating activates. The accountant disregards all cash movement from non-operating activities‚ such as bank loans or distribution of
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SHEILA SHAW CONSULTING Balance Sheet August 31‚ 2007 Assets Liabilities Current assets: Current liabilities: Cash $ 21‚300 Accounts payable $ 1‚250 Accounts receivable 3‚800 Prepaid rent 2‚050 Supplies 875 Unearned fees 1‚150 Salaries payable 150 Total liabilities $ 4‚450 Prepaid insurance 1‚670 Total current assets $ 27‚795 Property‚ plant‚ and equipment: Owner’s Equity Office equipment $ 21‚250 Sheila Shaw‚ capital 47‚720 Less accum. depr
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Washing Inc. on July 1‚ 2012. During July the following transactions were comple July 1 Issued 12‚000 shares of common stock for $12‚000 cash. 1 Purchased used truck for $8‚000‚ paying $2‚000 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account. 5 Paid $1‚800 cash on 1-year insurance policy effective July 1. 12 Billed customers $3‚700 for cleaning services. 18 Paid $1‚000 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid
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Keystone Computers & Networks Accounting Issues Case By Martin Esquivias (1331134) Econ 112 Auditing Attestation Ringo Company Receivable: After reviewing the account receivable for Ringo Pistachio Company‚ I have determined that the account is now a loss contingency. After close consideration‚ I have concluded that FASB ASC 450-20 is applicable to this situation. The codification requires the accrual of a loss when it is probable that an asset has been impaired at the date of the
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delay in finalising the auditor’s report. It is involving the possibility of fraud in a financial audit engagement. On February 5 of 2006‚ Kencana & Associates had just been informed by his subordinates that there had been inconsistencies in the accounts of Flat Cargo Berhad (FCB)‚ and they cannot deal with another client scandal. The team has to report to the audit committee of FCB in two weeks. Thus in order to do so‚ Mr Chuah has to work through the company’s information to assess the possibility
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