The following information was taken from the annual report of Sega-Venus Enterprises. a. Compute Sega-Venus's conservatism ratio,
Question:
The following information was taken from the annual report of Sega-Venus Enterprises.
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2022/11/636a68d4edd69_036636a68d4de1c7.jpg)
a. Compute Sega-Venus's conservatism ratio, and comment on how conservative the company's reporting methods are.b. Explain why the conservatism ratio provides a measure of the extent to which a company's financial accounting methods are conservative, and provide example of accounting treatment that may increase or decrease the ratio.
Transcribed Image Text:
2010 2011 BALANCE SHEET S 18,300 Deferred income tax liability $19,400 INCOME STATEMENT Income before taxes S145,500 (54,000) S 91,500 Income tax expense Net income Effective income tax rate: 34%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
a Conservatism Ratio Reported Income Before Taxes Taxable Income 145500 162059 898 Income Tax Expens...View the full answer
Answered By
Cyrus Sandoval
I a web and systems developer with a vast array of knowledge in many different front end and back end languages, responsive frameworks, databases, and best code practices. My objective is simply to be the best web developer that i can be and to contribute to the technology industry all that i know and i can do. My skills include:
- Front end languages: css, HTML, Javascript, XML
- Frameworks: Angular, Jquery, Bootstrap, Jasmine, Mocha
- Back End Languages: Java, Javascript, PHP,kotlin
- Databases: MySQL, PostegreSQL, Mongo, Cassandra
- Tools: Atom, Aptana, Eclipse, Android Studio, Notepad++, Netbeans.
Having a degree in Computer Science enabled me to deeply learn most of the things regarding programming, and i believe that my understanding of problem solving and complex algorithms are also skills that have and will continue to contribute to my overall success as a developer.
I’ve worked on countless freelance projects and have been involved with a handful of notable startups. Also while freelancing I was involved in doing other IT tasks requiring the use of computers from working with data, content creation and transcription.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
The following information was taken from the annual report of Sparky Foundation: Required Compute and interpret Sparky's receivables turnover ratio and its days-in-receivables ratio. 2012 2011 Gross...
-
The following information was taken from an annual report of Falconer Corporation, a manufacturer and wholesaler of farm equipment: Property, Plant, and Equipment (in millions): a. Compute the...
-
The following information was taken from the annual report of SC Enterprises: Required Prepare and interpret horizontal and vertical analyses of all three accounts. Round percentages to one decimal...
-
What is the difference between a market system and a market? How Can you have a market without a market system? Why or why not? How about the other way around? Can you have a market system without a...
-
High Quality Toy's projected operating income for 2012 is $1 million, based on a sales volume of 90,000 units. High Quality sells The Toy for $35 per unit. Variable costs consist of the $14 purchase...
-
In a data set of 1057 New York homes offered for sale, a histogram of the ages looks like this: We drew 1000 samples of 105 homes from this data set and found the IQR and the range of each sample....
-
4.0
-
Grodski Inc. produces and distributes fiber optic cable for use by telecommunications companies. Grodski Inc. issued $24,000,000 of 20-year, 10% bonds on April 1 at their face amount, with interest...
-
Investments in available-for-sale debt securities should be measured on the statement of financial position at A. Acquisition cost. B. Lower of cost or market for the portfolio. C. Lower of cost or...
-
A company receives a shipment of 20 hard drives. Before accepting the shipment, 5 of them will be randomly selected and tested. If all 5 meet specifications, then the shipment will be accepted;...
-
The following information was taken from the annual report of Busytown Industries. a. Compute Busytown's conservatism ratio, and comment on how conservative the company's reporting methods are.b....
-
Beth Morgan, controller of Boulder Corporation, is currently preparing the 2011 financial report. She is trying to decide how to classify the following items. 1. Account payable of $170,000 owed to...
-
A process that produces bottles of shampoo, when operating correctly, produces bottles whose contents weigh, on average, 20 ounces. A random sample of nine bottles from a single production run...
-
1. List at least three (3) ways a business can anticipate potential problems to prevent complaints. 2. Explain how to identify customer needs and expectations. 3. List at least five (5) ways to build...
-
you have taken over a company with 4 employees and you have 1 millon dollars with you.as business management student,you are expected to take 5 business decisions ensuring that the company is able to...
-
Draw the Diamond - E ( SERVO ) model of strategic management and provide ONE WORD ( or short phrase ) that best describes the relationships between the elements of the model. ( up to 1 0 points )
-
If a patient's X-ray is rejected (at the end of the 22-minute evaluation by the doctor), she has a second X-ray taken (assume that the second X-ray will always be accepted) and this new X-ray must be...
-
What are the cognitive appraisal processes involved in stress perception, and how can cognitive-behavioral techniques such as cognitive restructuring and mindfulness-based interventions help...
-
Highlands Golf Inc. was organized on July 1, 2007. Quarterly financial state- Prepare adjusting entries and ments are prepared. The trial balance and adjusted trial balance on September 30 are _...
-
Refer to the situation described inBE 18-13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...
-
In Problems 1924, perform the operations that are defined, given the following matrices: DA - 3E A = - [ D = 3 2 4 -3 1 3 4 -3 2 2 3 -2 32 B = 1 2 -3 C = [3 2 4] -5 F-141 E = -2
-
For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (a) Is it permissible to record additional depreciation on the assets if...
-
For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (a) Is it permissible to record additional depreciation on the assets if...
-
For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (a) Is it permissible to record additional depreciation on the assets if...
-
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,600,000. During 2021, costs of $2,200,000 were incurred with...
-
Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons...
-
Stockholders do not have the power to bind the corporation to contracts. This is referred to as lack of mutual agency. True false question. True False
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App