Five-Step Approach to Unstructured Problems 1. Succinct Statement of the Financial Reporting Issue(s) Provide a brief statement of the accounting issue that includes the characteristics of the transaction that introduce uncertainty about how to record it. How should an expenditure, in this instance to purchase a lottery ticket, which has a risk of providing no future cash flows be reported? 2. Brief Summary of the Economic Purpose of the Transaction State the reason corporate management has entered into the transaction, or, alternatively, summarize the event that has led to the reporting controversy. (This can be difficult in some practice cases but is usually obvious in the FASB concepts cases.) Phil N. Tropic bought a …show more content…
The alternative of recording an asset for market value in the secondary market, say $90, is supported if Phil has the intention of selling the ticket before the drawing. In this instance, the $90 is a probable future economic event, given his intention to sell. He has control over this benefit as long as an active secondary market develops, and past history says this has happened in recent years. And Phil has purchased the ticket, so a past transaction has occurred. In this situation, he should record an asset of $90 and expense the other $60 as a contribution expense. Note that, although United Charities has reserved the right to cancel the drawing, the chances of a refund from cancellation are very unlikely based on past history. A refund would support an asset of $150, but I have not developed the merits of this alternative. I have not developed alternative d (the expected value of $100) because a better estimate of pre-drawing value is $90 from the secondary market. With regard to the other three recognition criteria, I am assuming the amounts are material and would be relevant to a user of the financial report. Both the $150 cost of the lottery ticket and the probability of winning the drawing (1 in 50) are definite so these amounts would meet the recognition criteria of measurable and reliable. The approximate market value in a secondary market is less measurable and
On Wednesday, January 10, 2018, Ms. Sarah Akers contacted VA Lottery Headquarters concerning a machine malfunction-claim. Ms. Akers stated that she was at the Dublin APlus Liberty Mart #90 (180929) on December 30, 2017. She purchased a 100x the Money Ticket around 1840 hours from the Game Machine (Gemini). Ms. Akers stated the ticket was a $30.00 winner. She attempted to scan it back on the machine to use the credits to purchase another 100x the Money ticket. However, when she scanned the ticket, the machine highlighted the ticket image on the screen in red and gave an error message. The machine did not dispense the ticket and the credits eventually disappeared from the screen.
DQ 1: What are the differences between the direct and indirect presentation of cash flows? What are the advantages and disadvantages of the direct and indirect methods and which does the Financial Accounting Standards Board (FASB) favor and why?
If an organization decides to offer both free and paid tickets for its raffle, the event will be classified as an “opportunity drawing”.
This course focuses on ways in which financial statements reflect business operations and emphasizes use of financial statements in the decision-making process. The course encompasses all business forms and various sectors such as merchandising, manufacturing and service. Students make extensive use of spreadsheet applications to analyze accounting records and financial statements. Prerequisites: COMP100 and MATH114 / 4-4
The Lottery point of view is third person (objective). These means the narrator is not a character in the story. Is telling us the characters thoughts and feelings. Also, the narrator shows the process of how is getting perform the lottery.
1On 28 December 1999 10,000 card swipe machines issued by HSBC and manufactured by Racal stopped processing credit and debit card transactions. When 1 January 2000 arrived there were very minor problems. Some problems caused wrong results, and some caused machines to stop working. In the United States 150 Delaware Lottery racino slot machines stopped working. In the United States the US Naval Observatory which runs the clock that keeps the country's official time gave the date on its website as 1 Jan
The lottery is one of the oldest known game of chance, dating all the way back to 205 B.C. in the Han Dynasty. Being built upon pure luck, it has garnered attention all over the world in it's various forms of existence. After money began its association with the lottery in l443, it became even more popular worldwide. While existing in multiple forms, the most popular form of lottery is the randomly selected number method, where winnings are based on the correct numbers predicted. It is estimated that nearly half of the citizens living in the United States have participated in the lettery. An alarmingly high number ef the participants have admitted to lottery as their only chance ef being financially secure. what exactly are the edde of winnieg the Lottery? new is the probability te win increased? ?his mathematical inveetigatien hepes to shed light on these queries.
When we are introduced to the lottery, we see the traditions that are currently observed. These include
How do our relationships with others define who we are? Others affect us greatly. The people who surround us everyday have a great impact on our own life. Friends and family are the people who create you, and are part of the reason of who you are today. For example, when there’s a new trend, or when someone says a mean comment, you might change something about you at one point or another. Who affects your life?
Other states lottery programs can be used as a blueprint to establish a lottery in the State of Alabama. As an example, the State of Oregon takes the lottery’s revenue and distributes it into four groups. These fours groups are “Public Education”, which receives 57%, 27% is given to the “Economic Development [and] Job Creation”, “Problem gambling treatment” receives the least, at a total of 1%, the last 15% is evenly divided into two groups of 7.5% which goes to both
In this essay I will be doing a compare and contrast between the two stories “The Lottery” by Chris Alani and “the Lottery” by Shirley Jackson. Both stories were good, and had a deep meaning behind both stories that leaves the readers wondering why the stories had to end in the way they did. Now I’ll start off by giving a summary of both stories so you can know and understand my point of view better.
It was the morning of June 27th, ten years after Tessie Hutchinson was stoned to death. So much had happened during this decade after her death. Horace Dunbar was stoned last year, and Mrs. Graves the year before. The village now consisted of about 500 citizens, and with the village growing every year the lottery became more and more necessary for the town to prosper. But still people doubted the value of the lottery and tried to preclude it. Back when the year Tessie was stoned, the Adams were talking about how other towns were giving up the lottery. Every year there were a larger amount of people opposing the lottery.
The narration and point of view in Shirley Jackson’s “The Lottery” are essential components of what has made the story controversial and cause it to stay relevant since its release in 1948. The passage where the Hutchinson family is drawing papers to see which member will be stoned, on pages 234 and 235, exemplifies the power of this kind of narration perfectly. In this section, almost all of the aspects of narration and point of view are demonstrated, including the grammatical person of the narrator and their characteristics: whether they are part of the story world, their reliability, level of knowledge, and the ethical issues that arise from how the story is told.
Feedback: A clear understanding of accounting terms and concepts is required of those who have a financial interest in an enterprise if they are to understand and communicate about the enterprise. Accounting
Describe how Peachtree Complete Accounting handles processing the accounting transactions and recording business activities for the revenue, expenditure and financing cycles. You should provide at least one detailed example of how one would record a specific accounting transaction/ business activity for each of the three transaction cycles below. Address the following