Accounting - 671 Words

Landline Should Go For Net Revenue The accounting issue at hand in this case is revenue. Landline is offering call routing services for PRU and the former entity has to make some receipts from the services rendered. To put the issue at hand in context, revenue is generally the income received by any company from selling goods or services. In abroad sense, revenue is the income received by any commercial institution for the goods sold or services rendered. It is basically the incoming receipts generated from the services offered or goods sold. It is the core parameter of consideration in the event of evaluating the company’s health. There are two classifications of revenue and the situation in which Landline is requires serious†¦show more content†¦Landline is essentially being outsourced by PRU for routing the calls of the latter yet PRU does not mention it in its marketing campaigns or any other strategic communications of the business. This leaves Landline as a fully-fledged contractor of the outsour ced variety. From the relationship between the two companies where Landline submits 80% of revenue to PRU, it is clear that landline gives out commissions to PRU yet it does all the logistics of the daily running of the phone routing service. This puts Landline in a critical situation where the taxman comes calling and the customers who use primarily Landline’s infrastructure are not even aware o0f the existence of such a company. It would be wise for Landline to consider net revenues in the relationship it has with PRU. This way, landline will be able to determine the feasibility of the engagement in terms of profitability and viability much faster than if it went for gross revenue. Gross revenue would be false indictor of the financial position of Landline because 80% of the gross revenue belongs to PRU yet Landline does all the logistics of hiring and paying statutory bills. The journal entries that re important here are the number of seconds per call, the applicable statu ary tax per on each call, the hardware and software resource requirements necessary to facilitate the call every second or minute, and the human resource cost applicable to makingShow MoreRelatedAccounting1024 Words   |  5 PagesQuestion 1:   * Proficient-level:   * There are several important functions performed in an organization, among which accounting is one of them. Define the accounting function and discuss how it differs from double-entry bookkeeping. Answer: According to the Dictionary of Accounting Terms, Accounting is defined as a one step process of recording, measuring, interpreting and communicating financial data by preparing financial statements in order to reflect financial condition and operatingRead MoreAccounting753 Words   |  4 PagesCampbellsville University School of Business and Economics SYLLABUS Course Title: ACC 601 Managerial Accounting Semester/Dates: Graduate Term 1: August 29, 2011 – October 23, 2011 (Traditional MBA) Meetings: Thursday (6:00 PM – 10:00 PM), AD 25 Faculty: Dr. Sunny Onyiri Office: AD 29-b Phone: (502) 365 4424 Read MoreAccounting Analysis On Management Accounting Essay1210 Words   |  5 PagesManagement Accounting Introduction: Management accounting technique is the procedure of understanding, analyzing, exam, calculating, deciphers, and transfers the verbal data to chase of company objectives. The section of bookkeeping is called as cost accounting. The difference between the financial and managerial bookkeeping data is the goal at assist the administrators inside the corporation to create choice as per their situations. Even as economic bookkeeping is intended at giving data to gatheringRead MoreFinancial Accounting And Managerial Accounting1613 Words   |  7 PagesIntroduction: Both financial accounting and managerial accounting provide important information about the business process. On the one hand, financial accounting provides only financial information to its internal users and external users. On the other hand, managerial accounting basically communicates about financial and non-financial information with internal users such as managers, employees and owners of the company. In other words, manag erial accounting provides information to managers who directRead MoreAccounting7049 Words   |  29 PagesAcct 340-Midterm Review Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is NOT a process associated with an accounting information system? |a. |auditing existing data | |b. |collecting and recording data | |c. |providing informationRead MoreAccounting Theory And Management Accounting2580 Words   |  11 PagesThough forms of managerial accounting practices can be traced back decades, centuries even, management accounting used to be regarded as a financial tool, advantageous for the financial managers. However, over the past three decades views on management accounting have changed. As Kaplan (1994) states management accounting theory has experienced a revolution in both theory and practice with the development of new innovations. Through advances in information technology, more competitive markets andRead MoreAccounting Analysis : Management Accounting2168 Words   |  9 Pages MANAGEMENT ACCOUNTING Author’s Name Course Name Professor’s Name Due Date MANAGEMENT ACCOUNTING Accounting is a way of measuring a business s financial performance through maintaining records and analyzing them. Financial accounting system produces reports that are generally intended for external stakeholders to evaluate a business. Management accounting is used to provide internal information that management uses in order to assess performance toward goals and objectives. FinancialRead MoreAccounting Scandals And Enron Accounting Scandal1596 Words   |  7 Pages Introduction: In this research paper I will be examining accounting scandals, specifically the Enron Accounting Scandal. First, I will be exploring the history of Enron. Then I will be going into further depth on what accounting issues Enron faced and then I will be explaining what a derivative is. Finally yet importantly, I will consider the different types of Accounting Fraud following a conclusion. Accounting Scandals are born due to collective greed and corporate arrogance. InRead MoreManagerial Accounting Is A Discipline Within The Accounting1541 Words   |  7 PagesManagerial accounting is a discipline within the accounting community that focuses on providing valuable information to the leaders of their organization. The importance of the community relies on its ability to provide information that is not readily found in traditional financial statements developed in the accounting department for reporting to outside agencies. Activity-based management utilizes information developed u sing activity-based costing (ABC) to accurately determine product costs.Read MoreAccounting Practices And The Field Of Accounting1393 Words   |  6 PagesIntroduction to the authoritative resources in the field of Accounting In the era of technological advances, access to information of any subject is abundant. With this vast array of information to tap into, the credibility of the material presented becomes questionable. But throughout history, there are sources of material that have been highly regarded. These sources include Scholarly peer reviewed journals, Trade publications, and information presented by respected institutions or organizations