- Jacob Company settled a lawsuit in February for an amount that was significantly different from the amount that was originally accrued as an estimate of potential loss. The company’s year-end is December 31 and its financial statements are issued in March. This is an example of:
a. A subsequent event that must be disclosed, but because it happened after the balance sheet date no adjustment is needed
.b. A subsequent event that provided evidence of a condition that did not exist at the balance sheet date
.c. A subsequent event that need not be disclosed because it did not occur before the company’s yearend
.d. A subsequent event that provided further evidence of conditions that existed on the balance sheet.
2-Who would be considered subject to a black out period as defined by the SEC?
a. Vice Presidents and key employees of a company’s whose stock is publicly traded
b. Stock Analystc.
Pension Plan Administratorsd.
All the above
3-The Securities and Exchange Commission’s fraud rule prohibits trading on the basis of inside information of a business corporation’s stock bya
Officers and directorsc.
All officers, directors, and stockholdersd.
Officers, directors, and beneficial holders of 10 percent of the corporation’s stock
- Niagara Corp. is evaluating a contract to determine proper revenue recognition. The contract is for construction of 10 yachts for a total price of $20,000,000. The customer needs the boats in its showrooms by March 1, 2020, for the yacht purchase season; the customer will provide a bonus payment of $200,000 if all yachts are delivered by the March 1 deadline. The bonus is reduced by $50,000 each week that the boats are delivered after the deadline until no bonus is paid if the boats are delivered after March 22, 2020. Niagara frequently includes such bonus terms in it contracts and thus has good historical data for estimating the probabilities of completion at different dates. It estimates an equal probability (25%) for each full delivery outcome. Please calculate the amount of revenue Niagara should recognize as a result of this transaction price under FASB ASC 606.
On March 2nd, Year 4, Highman discovered that it had incorrectly expensed a $250,000 machine purchased on January 2, Year 1. Highman estimated the machine’s original useful life to be 10 years and its salvage value is $10,000. Highman uses the straight-line method of depreciation and is subject to 30% tax rate. In its December 31 Year 4 financial statements what amount should Highman report as a prior period adjustment?
to the brands target audience, social media helps this happen because they can approach the right people. An example of this happening recently is after the ITV program ‘Love Island’ where everyone who was on the program came out with a huge following and were not long after, seen to be promoting all sorts of brands all over their Instagram. The importance of building relationships with a target audience is so that they can remain loyal and will always be interested in the latest products that are available. Using the participants from a program like love island to promote products is a clever idea because they know that the fame will be quick and the attention will come all at once for a short period of time, meaning a lot of people will see the brand quickly. Pretty Little Thing as they are constantly using influencers and bloggers to promote and wear their clothes, as they know that their audience is young and fashion forward. This also means that they are constantly bringing out clothes that are very much on trend and ‘the in thing’ to wear. Another tactic used by these online brands is to give these influencers discount codes for their audiences as a way of enticing people to shop on their website. “Social media is an incredible tool at the fashion industry’s disposal for marketing. By leveraging social media brands can take control of public perception which is one among the many important factors in fashion marketing.” (Recklies, 2006). By having the control over the marketing process, brands can pick and choose who they want to promote the products and think about who will appeal most to a target audience. By doing this the brand are also able to control opinion and perception meaning that by showing the best parts of the brand and its products it will mean that more people will want to not only purchase the products but also support the brand. Some may say that the industry is manipulative and encourages conspicuous consumption by doing this. Pretty Little Thing promotes several different influencers and bloggers on their Instagram. A reoccurring face would be the ever-growing fashion influencer, Emily Shak. She has a platform where she shows off her never-ending amount of clothes and her desirable style. Emily Shak has been known to collaborate with many brands and has even had a few of her own collections with some of them. Her Instagram has a mixture of high end and high street brands all over it, from Balenciaga to Pretty >GET ANSWER