Question 3: Paragraph 81 states that if the amount of consideration to which an entity will be entitled is variable‚ the cumulative amount of revenue the entity recognizes to date should not exceed the amount to which the entity is reasonably assured to be entitled. An entity is reasonably assured to be entitled to the amount allocated to satisfied performance obligations only if the entity has experience with similar performance obligations and that experience is predictive of the amount of consideration
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hospital is currently making enough to cover the debts‚ which equals to no profit. The hospital’s Revenue needs to increase to continue avoiding the debts of the hospital from increasing. I feel that providing quality service will in turn increase the amount of patients seen ultimately increasing revenue. A major push to collect on bad debts will also increase the hospitals revenue. Over the course of five years‚ reducing the amount of bad debt and increasing the quality of care received by patients
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E 6-5 (Computation of Present Value) Present value of an ordinary annuity = R (PVF -) a) Present value of an ordinary annuity = $30‚000 (PVF -) = $30‚000 (4.96764) = $149‚029.20 b) Present value of an ordinary annuity = $30‚000 (PVF -) = $30‚000 (8.31256) = $249
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Case #3 Barnes plans to use the preceding ratios as the starting point for discussions with SKI ’s operating executives. He wants everyone to think about the pros and cons of changing each type of current asset and how changes would inter-act to affect profits and EVA. Base on the data‚ does SKI seem to be following a relaxed‚ moderate‚ or restricted working capital policy? A company with a relaxed working capital policy would carry relatively large amounts of current assets in relation to
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in 2001 to the first quarter of 2002. By capitalizing these expenses‚ Worldcom managed to "produce" profits for five quarters that would have otherwise shown loses. As if that were not bad enough‚ other fraudulent accounting practices were unveiled going back to 1999. An additional $2 billion reserved for bad debts was improperly used to boost operating income. Other accounting manipulations included inflating profit-margin figures by arbitrarily reducing line costs and maintaining fake accounts on
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100‚000 (To record collection of accounts receivable) 4 Bad Debt Expense Allowance for Doubtful Accounts $92‚000 $92‚000 (To record uncollectible accounts) 5 Accounts Receivable Allowance to Doubtful Accounts Cash Accounts Receivable $28‚000 $28‚000 $28‚000 $28‚000 (To reverse write-off of debts previously considered uncollectable) (b) Enter the January 1‚ 2014
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identification of problem faced by FCB is needed and solution should be implemented which can give immediate effect in order to avoid devastating FCB reputation as well as allowing FCB remained as the nation’s leading air cargo carrier. Issue Uncollectible debts‚ improper sales transaction‚ incorrectly recorded debtors’ account and abnormal transaction had caused Air Flat Cargo involved the possibility of fraud in a financial audit engagement. Problem Identified in Flat Cargo Berhad In 2006‚ during a routine
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Part A - AIB January 2015 Course Assessment 1 Failsworth Feeds - Cash Budget for the year to 31st December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Notes Output (total number of products) - - - - 3‚000 3‚300 3‚630 3‚993 4‚392 4‚832 5‚315 5‚846 34‚308 1 Weeks per month 4 4 5 4 4 5 4 4 5 4 4 5 52 CASH IN
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to think about the pros and cons‚ distinguish between a relaxed but rational working capital policy‚ to match the maturity of its assets and liabilities‚ SKI’s payables deferral period‚ reduce its cash and securities without harming operations‚ bad debts‚ cash budget‚ company’s cash position in the short run and in the long run and risks in credit policy. The ongoing changes that may occur in the
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liquidity with the other $37.5 million of existing preferred stock. The proceeds from Summit’s investment will be used as followings: • $9.0 million will be used to redeem part of a $15 million subordinated debt held by current investors. The remaining $6 million of this debt will be converted by the current investors into the same strip of prefer stock which Summit proposes. • About $16.6 million will be used as an upfront cash to buy back FleetCor’s seven “Super Licensees”
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