Financial Accounting Case

The purpose of this report is discussing the case of Wilkerson Company that confronting tough competition in price cutting in pumps which caused to a big drop of pre-tax operating income from 10% to 3%. After observing the existing costing allocation, we found out there is an issue on the existing costing report that the manager could not be able to see the real situation. In light of this, there will be brought to the discussion on the feasibility of using an alternative costing method – Activity based costing (ABC) in the latter paragraphs.

Revenue recognition is one of the top causes for financial statement restatements. In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment letter process. Furthermore, revenue recognition is often prey to financial fraud.

cognizant of the fact that the choices he makes can affect the price a buyer pays

Provided Case 09-3, we, Group 7 have dutifully researched the topic, using resources at our disposal to formulate a consistent, clear and legal response. The following submission outlines the case, our conclusions with supporting evidence and the accounting issues present in the subject.

The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities.

First, we can consider the source. This data was presented in an issue of BusinessWeek magazine (Holmes & Zellner, 2004). Because the data was published in a magazine that can be accessed by the general public, we know that it does not contain any confidential data. One of the characteristics of financial accounting data is that it does not contain sensitive data that a company would not want to be publicly known.

Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,

1. The official overhead allocation rate used in the 1987 model year strategy study at the Automotive Component and Fabrication Plant (ACF) was 435% of direct

SIGNature 's pays of its creditor within a month in 28 days this good for keeping a good relationship with their suppliers, because the suppliers will trust them to pay them back and the business could afford to ask for an extension from them if they need it because of the trust.

The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.

-Maintained 100% on-hand accountability of 6,668 principal end item held on the MAL and 18 consolidated memorandum receipts valued in excess of $68 million.

Cost accounting is a type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance (Cost Accounting, n.d.).

Part II.  Refer to the latest annual financial statements for the two following companies: Apple:

In the first quarter of 2012, the beginning balance in the refund reserve account was $67.45 million while the ending balance was $81.56, which resulted in a $14.1 million excess accrued expenses. Assuming that the accrued expense for refund reserve was $100 million for the first quarter, the refund issued in 2012 would be $85.89 million (67.45+100-81.56).

A. Ratios are used to standardize numbers, facilitate comparisons, and highlight both weaknesses and strengths. In addition, ratios are important profit tools in financial analysis that help financial managers implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Managers use ratios to help them effectively run the business. Creditors use ratios