According to our textbook, Fundamental of Advanced Accounting, it states that when financial statements represent more than one corporation, we refer to them as consolidated financial statements. So how does consolidated financial statements play a role in corporations? What are the reasons and benefits for the consolidation of financial statements? What are the steps that are necessary to ensure the proper accounting? What are a few excerpts from Accounting Standards Codification? Thus, these are
Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served. The source of revenue comes from net income, which comes from a sale of goods or services
International that amount of cash at the date of transfer of the ownership. Ownership is treated as an intangible asset in this case. Intangible assets are non-physical assets that are acquired from others or developed internally by a company. Assets are the probable future economic benefits controlled by the company from past events or transactions. Intangible assets have similar characteristics with assets. Bust-a-Knee has control over MD International since equity had been transferred and will gain future
CHAPTER 16 THE DEMAND FOR MONEY Chapter Outline • The Components of the Money Stock • Financial Innovation • The Functions of Money • The Demand for Money: Theory • Transactions Demand • The Precautionary Motive • The Speculative Demand for Money • Empirical Results for M2 Demand • The Income Velocity of Money • Working With Data Changes from the Previous Edition The material in this chapter has been updated, but the basic organization has not changed.
Based on the information in this case analysis, what are the types of threats DBR may be facing? DBR is facing various kinds of threats like one from its competitors who could try to steal the intellectual property of DBR and other from the advanced hackers who may be against the offshore oil drilling projects and could target DBR for their role in those projects. Corporate Theft & Sabotage Recently DBR released their advanced robotic prototype at an international tradeshow. Industry experts have
Lesson 1: The Accounting Process (Textbook Libby et al. Chapters 1 and 2). Objectives: When you have successfully completed this lesson, you will be able to... Define accounting and explain its purpose Define business and identify the different types of businesses Explain the accounting equation: Assets = Liabilities + Owner's Equity Visualize the start of a business, create accounting transactions for it, and prepare simple financial statements Reading Assignment Please read chapters
The accounting treatment for leases can be easily manipulated by self interested managers. Another accounting theory that can tie into the accounting treatment of leases is the positive accounting theory. The positive accounting theory is defined in our textbook as being “concerned with predicting such actions as the choice of accounting policies by firm managers and how managers will respond to proposed new accounting standards” (Scott, 2009, p.284). We are concerned with predicting what managers
and produce a new product. ROE is a popular measure, that determines the rate of return that company is producing for the stockholders. ROE, is used as a performance measure and generally the higher the ROE the better. The higher the ROE the more likely they are able to generate cash within the organization, and raise money for
organization, the other one being family (Schaefer, 461). We are all part of a community, and in many cases, we are a part of multiple ones. In chapter 20 of our textbook, we are looking at communities and urbanization. It discusses urbanization and how communities originate. It also looks at the different types of communities. Communities are defined as “a spatial or political unit of social organization that gives people a sense of belonging” (Schaefer, 548). It can be based on a place of residence, such
When financial statements represent more than one corporation, we refer to them as consolidated financial statements. So, how does consolidated financial statements play a role in corporations? What are the reasons and benefits for the consolidation of financial statements? What are the steps that are necessary to ensure the proper accounting? What are a few excerpts from Accounting Standards Codification? Thus, these are a few of various questions that are asked to further understand Consolidated