Is it reasonable to immediately cease operations if a business is operating at a loss? Why?
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Is it reasonable to immediately cease operations if a business is operating at a loss? Why?
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- Which of the following is not a reason for the physical inventory count to differ from what is recognized on the companys books? A. mismanagement B. shrinkage C. damage D. sale of services to customersdoes a cancellation of a service affect the companys balance sheet or book value?What is a discontinued operation? and what is the correct accounting treatment? Explain
- How does the continuity of ownership test operate with respect to company losses? What happens if a company fails the test? Explain your answer in detail with reference to the relevant provisions of the ITAA97, together with any relevant case law and ATO issued guidance.Give and explain two unethical ways in which a business may prepare its financial statementsWhat are some of the non-financial factors you would consider if you were faced with a decision related to keeping or terminating a business segment? Can you think of a time when you experienced a dropped segment? Were there consequences other than financial that affected the company?
- 1. Of the following, choose the one that describes a situation where liabilities and expenses are manipulated to make a company appear less profitable? A. Liabilities are capitalized to increase revenues. B. Failure to record insurance expense for the period. C. Failure to record employee payroll earned but not paid as of period end. D. Failure to record warranty costs when the facts suggest that disclosure is more appropriate accounting treatment. E. None of the above.What is a chance recently implemented by FASB that required a company to change its accounting principal? How did it impact the companies financial statements?People with an indirect interest in a business would use report based on GAAP. TRUE or FALSE?
- List five factors that may indicate that a client may not remain a going concern. For each indicate the degree of subjectivity and judgement that infact it may result in the company going bankruptThe following legal claims exist for a company. Identify the accounting treatment for each claim as either(a) a liability that is recorded or (b) an item described in notes to its financial statements. The company faces a probable loss on a pending lawsuit; the amount is not reasonably estimable.Do you think there are any circumstances when you should go outside the company to report financial wrongdoing? If so, to what person/organization would you go? Why? If not, why would you not take the information outside the company?
