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Problem Solving - Case Study Example

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The financial statements of ACLU reflect the activities of their local affiliates because there is an accounting for the local affiliate transactions. That is the indicator that has been used to show that they reflect such transactions. ACLU received donations of endowment type…
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Problem Solving
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Download file to see previous pages The short term liquidity of ACLU improves with time and that is a good indicator for the company.
The return on assets of the company shows the ability of the company to increase profits as a result of the productivity accruing from the net assets. The measure will show the productivity of the company. The productivity of the company will affect the ability of the company to increase profits and, hence, the financial position of the company. The company mainly relies on donations as opposed to loans. That means that it will have no financial obligation to external firms or financial institutions (Finkler 2010).
If I were a fund raising manager, I would mainly focus on the current members as opposed to new members. If a person wants to make donations and would want to know the amount of money that will be put in the major activities of the company, I would advise on the use of efficiency ratios.
All the chapters were audited because the final report was given by the company. The financial statements are not free of error because auditing is an exercise that involves sampling and that could be subject to some approximation error. The donation of land and buildings should be treated differently as capital items and they should be capitalizing in the recording of their receipt.
If wish sued LIFO method, the net assets would have increased as opposed to the use of FIFO. The service that qualifies as a program service is management and general services. The decrease in net assets could be as a result of the losses from the stock market because the investments have been incorporated as part of assets of the company. Wish does not include any provisions for a law suit because they have not indicated such an instance. The overall assessment of the finances of wish shows that the company is doing well but has the potential of doing much ...Download file to see next pagesRead More
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