Accounting

Northwest Bank Analytical Procedures  Interest Income Answers to the Questions in Par A Q. As part of the year-end audit and using the analytical-procedure approach similar to last years audit (average loan volume multiplied by weighted average interest rate), determine if Northwest Banks interest income from loans reported at December 31, 2008 appears fairly stated. Do the results of the analytical procedures indicate that you accept 2008 interest income as reported A. Initially, no, until...

There has been a lot of efforts made by the European Union so that there can be improvement in the financial market. To achieve this, they have seen it necessary to have transparency so that the investors can have the knowledge which is necessary while changing hands of financial assets. One professor from the school of Economics of Solvay Brussels believes that transparency is never there in the business field. He believes that the information that is released when transparency is demanded is just...

Q2. Which standard-setting bodies have reasonability for establishing accounting and report standards for the following State and local Governments Ans Governmental  Governmental Accounting Standards Board (GASB) Business Organizations Ans Financial Accounting Standards Board (FASB) Not-for-profit organizations Ans Governmental  Governmental Accounting Standards Board (GASB) Nongovernmental - Financial Accounting Standards Board (FASB) The federal government, its agencies and its departments Ans...

Auditing Perspective In accordance with the technological revolution that has taken place throughout the globe, even the simplest of business and commercial transactions are performed within the parameters of an automated computer system. Information technology has aligned itself with commercial activity in such a way that it has become an integral part of the international business community. Hence, with benefits such as convenience, enhanced data management and augmented information sharing etc,...

PepsiCo Inc. is one of the worlds largest manufacturers of soft drinks and snack foods. While many of the PepsiCo brands are over 100 years old, the corporation itself is relatively young. The company was formed in 1965 with the merger of the Pepsi-Cola Co. and Frito-Lay Inc. at the time, this merger created one of the largest consumer products in the markets. Traditionally Pepsi-Cola had been in the business of sale of soft drink concentrates to licensed independent and company-owned bottlers that...

The concept of Corporate Governance is as old as the foundations of publicly traded companies. However, the emergence of its importance gained hype during period of severe economic losses faced during Asian crisis and fraudulent activities by major companies around the world and especially in U.S. The huge losses of investors as well as employees and embezzlement streaming through top management in firms like Enron, WorldCom and Tyco, led financial authorities into formation of more stringent rules...

Exercise 7-29 1. Billed on 5th of Month of July (800,0002) 400,000 Pay within 10 days (400,000 x 80) 320,000 Discount Granted (320,000 x 2) (6,400) Net Money Received 313,600 Billed on 20th of Month of July (900,0002) 450,000 Pay within 10 days (450,000 x 80) 360,000 Discount Granted (360,000 x 2) (7,200) Net Money Received 352,800 Billed on 5th of Month of June (750,0002) 375,000 After 30 days billing (375,000 x 18) 67,500 Billed on 20th of Month of June...

Describe how accounts receivable arise and how they are accounted for, including the use of a subsidiary ledger and an allowance account. Accounts receivable arise from sales on credit and represent future cash collections. When a sale on credit is made Accounts Receivable is increased and when customers make payments on their accounts it is decreased (Meigs, 1999). Suppose ABC Company made sales of 1 million all on credit and after a while company received 750,000. The following accounting entry...

This paper explore the various aspects of Crazy Eddies fraud operation and how they played a role in the activities of this business. Furthermore, it also talks about how this fraud could have been prevented with respect to the fraud triangle. The elements of the fraud triangle that we are looking for in this case are i) The motivation to commit the fraud, ii) The rationalization of the fraud that the committer gives to himherself iii) and the opportunity  to commit fraud. Crazy Eddies fraud...

Home ownership is one of the major decisions that a tax payer my need to make in hisher investment plans.  The homeowner may get about three tax benefits.  These include, interests on mortgages may be deductible, taxes on real estates may also be deductible, and tax exclusions are gained on the resident capital resident. The cost of owning a home is reduced up on the reception of the tax gains mentioned.  The law provides for such exclusive benefit each of which has a certain percentage...

Opinion on the Article Beyond the Numbers In his article Ken Schermann has spoken in great favor of Statement 34 which is a Governmental Accounting Standard. Statement 34 emphasizes the importance of management reporting as part of the financial reporting for government organizations. As mentioned in the article, Statement 34 mentions eight different areas which should be incorporated in a managements discussion and analysis. These areas add considerable value to the information being provided...