Earnings Management Teaching Module is designed to help faculty teach how companies might manipulate earnings to maximize revenues‚ minimize expenses‚ and/or create reserves by setting aside some earnings in the current period that can be released into income at a later period. The result is to overstate earnings and mislead shareholders and creditors about the success of the company during one or more years. Often times the motivation to manipulate earnings is to meet financial analysts’ earnings estimates
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| | | | HR | | | Accounting | | | | Financial | Manager | | | | Analyst | | | | | | | Accounting | | | | | Clerk | | | | | 3. On the following pages are the annual financial statements of Target. Please utilize the financial statements to calculate the following: (16 points) a) EBITDA for 2011 5‚322 + 2‚131 = 7‚453 b) Current Ratio for January 29‚2011 17‚213/10‚070 = 1.71 c) Gross margin as a % of sales for 2011 (exclude credit card revenues
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30‚ 31 |35‚ 36‚ 37‚ 38‚ 39‚ |43‚ 45 | |LO3 – Introduce the four key financial statements | | |40‚ 41‚ 42 | | |including the balance sheet‚ income statement‚ | | | | | |statement of stockholders’ equity and statement of | | | | | |cash flows
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Topic 1 Examples document Draft Statement of Comprehensive Income for the year ended Profit or loss OCI Total Comprehensive Income $ Draft Statement of Changes in Equity for the year ended Opening equity i.e. from slide 46 = equity1 Closing equity i.e. from slide 46 = equity2 $ Example 2: A new accounting policy involving retrospective application Information:
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Waterways Continuing Problem 1 Waterways Continuing Problem WCP1 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms‚ parks‚ commercial projects‚ and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission
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pay its obligations? Chief Financial Officer Creditors Investors in common stock Marketing managers Multiple Choice Question 99 Which of the following financial statements is divided into major categories of operating‚ investing‚ and financing activities? The income statement. The balance sheet. The statement of cash flows.
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recorded in: General Journal: Chronological record of an organization’s transactions and how each transaction affects the balances in particular accounts General Ledger: Collection of all ledger accounts that supports an organization’s financial statements Ledger account: Listing of all the increases and decreases in a particular account Copyright © 2014 Pearson Education‚ Inc. Publishing as Prentice Hall. 3-6 General Ledger: TAccount Device used to portray individual ledger accounts in the general
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opinion on the financial statements? On page 53 of the Green Mountain Coffee Roasters‚ Inc 10-K Annual Report‚ they state that PricewaterhouseCoopers LLP‚ an independent registered public accounting firm‚ has audited the effectiveness of the Company’s internal control over financial reporting. They provide a clean opinion on the financial statements. On page F-2‚ the auditor had written a note stating‚ “In our opinion‚ the accompanying consolidated financial statements present fairly‚ in all material
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WorldCom regrettably illustrates improper cost transfers designed to achieve higher profit levels. WorldCom did not transfer the cost from leases from the balance sheet to the income statement as quickly as they should have. This had the effect of overstating assets on the balance sheet and net income on the income statement. Please watch this section of American Greed: Inside the WorldCom Scam: http://www.screencast.com/t/zBXF74I1sao You can watch the entire documentary here: http://www.hulu.com/watch/46554
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Financial Statement Analysis: • the process of properly establishing the relationships between the items of the IS & BS‚ correlating them until hidden meanings are unraveled; interpreting the information to identify the financial strengths and weaknesses of the firm in comparison to other firms in the same industry. Understanding the Financial Statements: Income Statement • Basically‚ the income statement shows how much money the company generated (revenue)‚ how much it spent (expenses) and
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