group 4 answers

group 4 answers - 4 The SEC rule that applies to insider...

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GROUP 4 1. The accountant can use the matching principle. In this principle the accountant would recognize the expense or revenue during the period it occurred. We would apply this principle in the percentage of completion method for contracts. 2. Qualified opinion is when the financial statements are in accordance with GAAP however, there are minor issues that are not in accordance with GAAP. An example would be not staying consistent with the inventory method used. Example using FIFO for book purposes and LIFO for tax purposes in a time of rising prices. A company must use only one inventory method FIFO or LIFO. 3. It makes sense for the private companies, but it would not be a benefit for publically traded companies.
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Unformatted text preview: 4. The SEC rule that applies to insider trading is 10b5-1 and 10b5-2. In the situation insider trading is a factor because her knowing about the confidential information is the factor for you buying the shares. 5. Domestic corporation is a corporation doing business within the state it is incorporated in. Foreign corporation is when the corporation is doing business everywhere else but where the corporation is incorporated in. 6. To qualify to do business you have to get a “certificate of authority.” The company also must file documents within the state, list a registered agent, and pay annual fees and taxes on income generated in that jurisdiction....
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  • Fall '10
  • Shubin
  • Corporation, domestic corporation, publically traded companies, inventory method FIFO, situation insider trading

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