Generally Accepted Accounting Principles

If a company earns net income of $25 million in Year 8, has 10 million shares of stock, pays a dividend of $1.00 per share, and has annual interest costs of $10 million, then | | |[pic]|[pic]|the company would have Year 8 earnings per share of $1.50. | | |[pic]| | |[pic]|[pic]|the company’s retained earnings for

Financial Statement Analysis: Costco Wholesale (COST) Executive Summary Costco Wholesale is recognized as the largest wholesale club operator in the US. Over the three-year time period of 2002-2004, this company has expanded its membership base while increasing its number of warehouses both in the U.S. and internationally. In 2004 alone, net sales increased 13.1% over the prior year, driven by an increase in comparable sales of 10% and the opening of twenty new warehouses; net income

Generally Accepted Accounting Principles Amy Santus RN BSN HCS/571 October 3, 2011 Debra Vaughn Increasing pressures of cutting costs and improving the quality of care in health care services influences the management of the health care organization to implement the generally accepted accounting principles (GAAP) within their daily routines. Generally accepted accounting principles (GAAP) are a set of uniform accounting guidelines health care organizations follow

fall-out of Accounting Period concept. This concept requires that expenses incurred for a particular accounting period should be reckoned in the same period, irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues, i.e., revenues earned in a specific accounting period are construed as incomes of the same period, irrespective of their receipts. This concept is also known as the accrual theory of accounting or accrual accounting. This

GAAP or Generally Accepted Accounting Principles are set by the Financial Accounting Standards Board (FASB) and is generally used in the United States. GAAP specifics include concepts and principles and industry specific rules. A company’s financials would need to follow a certain framework and GAAP allows for uniformity among companies. However, there are differences in GAAP concepts throughout the various geographic regions of the United States. “International Financial Reporting Standards (IFRS)

to over $450 million. Carlton’s system designs enable their mini-computer systems to measure up to the power of mainframes with small cost outlays. The accounting practices at Carlton normally permit revenue recognition after the shipment of the computer systems. Peale, Gower and Quill, Carlton’s auditors, are worried about the accounting practices regarding revenue recognition of certain transactions during the

1. According to the cost allocation methods used in the company's accounting system that are described in the Production Cost Report, if a company employs 100 PATs at a total labor cost of $15,000,000 (including wages, fringes, incentives, overtime, training, and severance expenses), assembles and ships 800,000 entry-level cameras and 200,000 multi-featured cameras over the course of a year, has revenues of $100 million from sales of entry level cameras, and revenues of $150 million from the sale

PRAIRIE TECHNOLOGY PARTNERS Planning Memo December 31, 2011 We have been retained as continuing auditors for Prairie Technology Partners (PTP) for the year ending December 31, 2011 Engagement Objectives * Provide our report on the examination of PTP's financial statements by February 5, with year-end fieldwork to begin January 14, 2012 * Issue our management letter comments by February 10

PRACTICE EXAM 1 Multiple Choice. Circle the best answer. Use the following information to answer questions 1 and 2. Aristotle Corporation reports the following information for the current year: Net income Dividends paid on common stock Interest expense paid on bonds payable Dividends paid on preferred stock 400,000,000 120,000,000 20,000,000 30,000,000 Aristotle had 20 million shares outstanding from January 1 – June 30 of the current calendar year. On July 1, Aristotle issued another 20 million

Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2011, the organization had the following account balances: [pic] .:. The following took place during 2012: 1. Additional supplies were purchased on account in the amount of $15,000. 2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 5 percent is expected to be uncollectible. The remainder