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Detecting Accounting Fraud 1st Edition by Cecil Jackson
Edition 1ISBN: 978-0133078602Detecting Accounting Fraud 1st Edition by Cecil Jackson
Edition 1ISBN: 978-0133078602 Exercise 35
XYZ Co. is an equipment leasing company. The following is an extract from its income statement for the previous three years.
The following is an extract from XYZ's notes to its financial statements:
Note: Revenues
All revenues reported are in respect of sales type leases. Included in the majority of lessees' monthly payments are amounts for financing and for servicing of equipment. The servicing fees for years 1, 2, and 3 were $400, $300, and $200 respectively. The financing revenue for years 1, 2, and 3 were $400, $600, and $800, respectively.
Calculate servicing revenue and financing revenue as a percentage of total revenue for years 1-3 and then comment on your findings.
The following is an extract from XYZ's notes to its financial statements:
Note: Revenues
All revenues reported are in respect of sales type leases. Included in the majority of lessees' monthly payments are amounts for financing and for servicing of equipment. The servicing fees for years 1, 2, and 3 were $400, $300, and $200 respectively. The financing revenue for years 1, 2, and 3 were $400, $600, and $800, respectively.
Calculate servicing revenue and financing revenue as a percentage of total revenue for years 1-3 and then comment on your findings.
Explanation
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Revenues
Revenue is the total income ea...
Detecting Accounting Fraud 1st Edition by Cecil Jackson
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