Accounting Essays

How sensitive is return on capital to the forecast assumptions in case Exhibit 8? An increase in cash operating expenses decrease NOPAT, which in turn makes ROC extremely sensitive when this ratio goes up; in general when total operating expenses go up NOPAT goes down, thus ROC goes down. In …

1. Arthur Young was criticized for not encouraging Lincoln to invoke the substance-over-form principle when accounting for its large real estate transactions. Briefly describe the substance over form concept and exactly what it requires. What responsibility, if any, do auditors have when a client violates this principle? Substance-over-form is an …

1.List two indicators that can assist in assessing which entity is the acquirer in a business combination. 2.Define control. 3.Name two types of business combination which are not covered by the provisions of AASB 3. 4.On 1 April 2013, Lemon Ltd acquired all of the issued shares of Orange Ltd. …

1. A fast-food restaurant asks customers to evaluate the drive-thru service as good, average, or poor. What level of data measurement is this classification? Nominal Ordinal Interval Ratio Click here to download BUS 475 Week 4 Knowledge Check 2. In order to determine the average amount spent in November on …

Management of Billy’s made several assumptions towards its newly acquired company, Little Drummer Boy. Management finally adopted the assumptions that the fair value of significant assets acquired was $865 million and that of other assets was $145 million. At the same time of the acquisition, management also decided that useful …

This is letter is to inform you of the plans for the beginning of the audit process that we plan to take to complete the audit of Apollo Shoes. There are many parts to the process and we will discuss each within this letter. The beginning of the audit process …

Thank you for taking the time to meet with Arnold Anderson, CPA (lead auditor); Darlene Wardlaw, CPA (engagement manager) and me last week. During our meeting, you and your team informed us that your “old auditors, Smith & Smith, CPAs, unexpectedly withdrew from the engagement” (University of Phoenix eCampus, ACC/546, …

Abstract This paper will be based research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits with the guidance / rules in place today with the Financial Accounting Standards Board (FASB) recently issued Statement of Financial Accounting Standards No. 158 “Employers’ Accounting for Defined …

The Olympus Corporation scandal is one of the biggest scandal’s to break. Olympus Corporation, the Japanese maker of cameras and medical imaging equipment is a huge corporation that lasted over two decades. 1- Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who …

The Greens are looking to sell Aquarius Ales, their pub located in Austin Texas as they are looking to fully retire and take up golfing and quilt making. Recently they have received their first offer to buy the business which was $450,000 from Marc Johnston and John Sheridan, two University …