Questions from Financial Reporting

Q: Alliant Energy just received regulatory approval for its 2017 electricity rate.

Alliant Energy just received regulatory approval for its 2017 electricity rate. The company has been authorized to charge customers $0.10 per kilowatt-hour (kwh), a rate lower than other utilities in...

Q: Whole Foods Market’s Compensation Committee determines a portion of executive bonuses qualitatively

Whole Foods Market’s Compensation Committee determines a portion of executive bonuses qualitatively. For the quantitative portion, the Committee selects from 13 performance metrics. For the fiscal yea...

Q: A feature of top executive pays at Krispy Kreme Doughnuts, Inc

A feature of top executive pays at Krispy Kreme Doughnuts, Inc., is its compensation recovery policy. The policy allows Krispy Kreme to take back annual or long-term incentive compensation paid to exe...

Q: Explain the potential conflict of interest that arises when doctors own the

Explain the potential conflict of interest that arises when doctors own the hospitals in which they work.

Q: Kleymenova Consulting, Inc., enters into a contract to provide consulting

Kleymenova Consulting, Inc., enters into a contract to provide consulting services. In each of the following independent scenarios, determine whether revenue should be recognized at a point in time or...

Q: Foot Locker, Inc., reported an $18 million loss on

Foot Locker, Inc., reported an $18 million loss on sales of $1,283 million for the quarter ended August 4, 2007. The quarterly financial filing (10-Q) also contained this warning for investors and cre...

Q: In late 2002, Frisby Technologies received a default notice from two

In late 2002, Frisby Technologies received a default notice from two of its creditors notifying the company that it was in default of the tangible net worth covenant in its loan agreements. Although t...

Q: John Brincat was the president and chief executive of Mercury Finance,

John Brincat was the president and chief executive of Mercury Finance, an auto lender pecializing in high credit-risk customers. The company’s 1995 proxy statement contained the following description...

Q: Following your retirement as senior vice president of finance for a large

Following your retirement as senior vice president of finance for a large company, you joined the board of Cayman Grand Cruises, Inc. You serve on the compensation committee and help set the bonuses p...

Q: Food Lion, Inc., operates a chain of retail supermarkets principally

Food Lion, Inc., operates a chain of retail supermarkets principally in the southeastern United States. The supermarket business is highly competitive, and it is characterized by low profit margins. F...