What are some of the consequences for companies in their use of estimates rather than actual...
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Answer)
1) Without proper knowledge, providing depreciation on an asset on the basis of estimation may lead to replacement of asset earlier than that of estimated which in turn have impact on cash flows of the companies.
2) Providing bad debts with out proper enquiry may lead to decline in profits.
3)Giving the Lender an estimation financials about the cash flows and profits will lead to increase in pressure from the lender when performance is below the estimate on provided by us.
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What are some of the consequences for companies in their use
of estimates rather than actual...
Discuss why accrual based accounting is used by companies throughout the world. What are some of...
Discuss why accrual based accounting is used by companies throughout the world. What are some of the consequences for companies in their use of estimates rather than actual amounts for some financial statement items?
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead...
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?
Question: Should companies limit telecommuting arrangements to some job groups rather than to all groups? Explain
Question: Should companies limit telecommuting arrangements to some job groups rather than to all groups? Explain
a)Distinguish between actual and normal costing. Why might a company use normal rather than actual costing?
a)Distinguish between actual and normal costing. Why might a company use normal rather than actual costing?
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Sometimes, rather than paying out cash dividends to stockholders, companies will issue either a stock dividend or a stock split Required: • What is the purpose of a stock dividend or stock split? • How does a stock split impact a company's financial statements? • How does a stock split impact a stockholders' individual investment? • What is a reverse stock split? (this is not covered directly in the chapter, do some online research)
Considering the differences other than personal income taxes, what companies should pay dividends rather than repurchase...
Considering the differences other than personal income taxes, what companies should pay dividends rather than repurchase shares? How important is the right choice between the two?
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Some companies may use the straight-line method of computing interest expense and amortizing the discount or premium, rather than the effective interest method. i) what is the difference between the two methods? ii) Why is the straight-line method NOT considered acceptable under US GAAP? iii) Why do some companies use it anyway, even though it is not acceptable?
Some people say that organizations are the graveyard of product innovations rather than the birthplace. Why...
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Some companies sell open source software, such as Linux. Thousands of people buy the software rather...
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Sometimes, rather than paying out cash dividends to stockholders, companies will issue either a stock dividend or a stock split Required: • What is the purpose of a stock dividend or stock split? • How does a stock split impact a company's financial statements? • How does a stock split impact a stockholders' individual investment? • What is a reverse stock split? (this is not covered directly in the chapter, do some online research)
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