1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has thefollowing cases related to the financial reporting;a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR.0.650 in 2019. However, the company forgot to disclose this information in its annual report.b) Oman Flour Company provides its top managers with bonus on the basis of reported profit.During 2018 the management showed a decline in the final profit. In order to continue payingbonus the company attempt to adopt different accounting policies that resulted in higher profits.c) In 2019, Zain Oil company was being sued for damages the seaside because its chemicalmaterial dropped to the sea. The settlement of which could threaten the financial stability of thecompany. The company decided to choose non-disclosure with the hope that its lawyer may winthe case at court.d) In 2018 AXA Company faced serious liquidity problems. Management decided to window dressthe financial statements in a manner that improved the company's current ratios in order to hidethe liquidity problem of the situation. However, in 2019 the company came out of liquidity problemand stopped window dressing practice.You are required to identify and explain in brief the suitable qualitative characteristics of usefulfinancial information for each case.

NOTE : As per BARTLEBY guidelines, when multiple independent questions are given, then first…

1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has the following cases related to the financial reporting; a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.

1) Global Business Network LLC, is a Oman based consultancy firm in Muscat. The company has the following cases related to the financial reporting; a) Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me
How would this be recorded on an Income Statement. During 2019, Natural State's CFO noticed that bad debt expense in the 2018 income statement was $50,000 too low as a result of an accounting error made by a Natural State employee in the prior year
A company's accounts payable dated December 31, 2021, totaled P1.000,000 before any necessary year end adjustments relating to the following transactions and information: • On December 27, 2021. the company wrote and issued checks to creditors totaling P350.000. The issuance of the checks was recorded on January 3, 2022. • On December 28. 2021, the company purchased and received goods for P150.000, terms 2/10. n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3. 2022 • Goods shipped FOB Destination on December 20, 2021. from a vendor to the company were received on January 2. 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. • Goods costing P120.000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. • The P1.000,000 ledger balance of accounts payable is net of P80.000 debit balance in one…
What is the adjusted balance of Accounts Payable on December 31,2021?
1. What is the effect of the errors to the Retained Earnings at the beginning of 2019? 2. What is the effect of the errors to the Retained Earnings at the end of 2019?
Atlantic Company reported the following net income: Year 2021 - P 4,000,000, and year 2022 - P 5,000,000. During your audit for the year 2022, the following errors were revealed: A cash collection of P 100,000 was received from a customer on December 28, 2022 but not recorded until January 4, 2023. Received a supplier's invoice on December 29, 2022 for P 160,000 worth of merchandise also received on the same date but no entry was made until January 5, 2023. Inventories on December 31, 2021 and 2022 wee correctly stated. Depreciation for the year 2021 was understated by P 90,000. The office supplies purchased on November 10, 2022 amounting to P 20,000 was charged to purchases account. The company's accounting policy is to expense office supplies as expensed when incurred. Sales invoice dated December 30, 2022 amounting to P 300,000 was recorded only on January 3, 2023. What is the corrected net income for the year 2022? a. 3,910,000b. 5,140,000c. 4,540,000d. 5,460,000
PLEASE ANSWER ASAP. THANK YOU SO MUCH. During your examination of the accounting books of South Sky Company for the year ended December 31, 2022 revealed the following errors: 1. Unrecorded unpaid salaries at the end of 2021 and 2022 were P 100,000 and P 140,000, respectively. 2. The following errors were discovered in the audit of inventory at December 31, 2021: (a) over footing, P 220,000; (b) Under extension, P 30,000. 3. Unexpired insurance of P 120,000 for the year 2023 was expensed in 2022. 4. Unrecorded interest receivable at the end of 2023, P 20,000. 5. The proceeds of P 220,000 from sale of a machinery with a cost of P 400,000 was credited to Miscellaneous Income on January 1, 2022. The machinery was 60% depreciated on the date of sale. Depreciation for 2022 was recorded at the rate of 10%. The reported net income at the end of 2021 and 2022 were P 1,750,000 and P 2,000,000, respectively. QUESTIONS: 1. what is the correct net income for the year 2021? 2. What is the correct…
You audited the financial statements of PIS Corp. for the first time in 2021. The company started its operation in early 2019. Upon investigation, you discovered the following information: - The company reported the net income at P104,000, P140,000 and P160,000 in 2019, 2020, and 2021, respectively. - The company consistently omitted the following: 2019 2020 2021Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 - Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000 in 2019, 2020, and 2021, respectively. - Inventory counts were conducted on December 31 of each year before any deliveries and receipts were made on the said date. Sales were made consistently at a gross profit…
Hi, Please with question, thank you.
Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. O 1,550,000 O 1,200,000 O 1.440,000 O 1.600,000
In December of 2019, a company received consulting services of $100,000. No entry was recorded for these service in 2019. The invoice for the services was received in January 2020 and recorded by debiting consulting expense and crediting accounts payable. This error was discovered in 2020 and was determined to be a material error. What is the impact of the error on the net income of 2019 and 2020? Provide the proper correcting journal enntry assuming a 30% tax rate.
The following errors were discovered in the course of examination of the Kamuning Company's financial records: *Year 2020 wages payable for P34,000 was not recorded. *Accrued vacation pay for the year 2020 for P62,500 was not recorded because the bookkeeper "never learned that you had to do it". *Insurance for a 12-month period purchased on November 1, 2020 was charged to expense in the amount of P37,200 because "the amount of the check is about the same every year". What is the net effect of the above errors on the January 1, 2021 accumulated profits? A P127,500 over B P59,300 over P65,500 over P96,500 over