Pupils explore the variability in gains due exclusively to the need to make estimates for several common financial statement asset-related expense items. They consider residual values and depreciable asset lives; estimated uncollectible accounts receivable; and temporary versus permanent losses on marketable equity security investments.
The case can be used as an asset module capstone case either an undergraduate- or graduate-level introductory financial reporting/accounting class. Instead, it could be used to introduce the asset module of an accounting class. A fresh medical practice is about to be found and is seeking investors. As one of the physicians puts the final touches on a pro forma income statement, he must make several estimates that are needed/permitted under generally accepted accounting principles (GAAP) to finalize the planned first year earnings amount.
Physicians for You, LLC Estimating Asset-Related Expenses case study solution
PUBLICATION DATE: October 23, 2009 PRODUCT #: UV1776-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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