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Marcia's Income Statement: Case Study

Satisfactory Essays
Step 6: 1) Name: Valmiki Loach Student number: 212816450 Section: C Course: ADMS2500 2) Account name: val.loach4@live.ca Password: yorkuni123 Date of expiration: July, 6,2015 Link : https://ca.qbo.intuit.com/app/homepage 3) A: Marcia expectations for the end of the month was to have a net profit of 2700 dollars for each month but in this case our Income statement shows us that here total profit for the month of June is 1,818 dollars. Therefore her expectations weren’t what she expected. B: As a certified accountant I only lead my customers to success I would advise Marcia in order to reach her goals of profit and beyond to try to get a better understanding of her suppliers. She should shop around for a cheaper supplier since a big…show more content…
She wanted to receive the same amount of net salary made at her previous high-end florist shop in Bay St. Her income statement shows that there was a net profit but it was not the same net profit that she was targeted to receive. Her company came into process June ,1, 2015. Two principles that are affected in this case is first Revenue Recognition principal. This accounting principle meets the needs have revenue being shown when earned on the income statement, which leads to accrual basis accounting. Each time revenue was earned it was recognized on the income statement for a certain amount, fitting the criteria of the Revenue Recognition principal. Secondly is Full Disclosure principle, this accounting principle meets the needs of important information for investing or lending decisions, which can affect the financial reports. Within the case Marcia had made an error because she had a different balance between her cash journal and the money she had on hand. She remembered that on June 12 she paid the amount for a delivery that she was unable to make. This is a prime example of the Full Disclosure principle where you look at the important information for investing and lending and everything must match in order to have correct financial
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