Findwhat.Com, Inc Case (Acc230)

FindWhat.com, Inc. Case

ACC 230

March 16, 2012

FindWhat.com, Inc. Case

The general quality of sales reporting is within the standards of the Financial Accounting Standards Board (FASB). The annual report lays out the methods used in the reporting of revenues and expenses, as well as any prepaid or deferred revenues (Fraser & Ormiston, 2006). The premature revenue is recognized as deferred revenue and recorded at the cost of the bid per click for the company (Fraser & Ormiston, 2006). This is actual tracking of revenues, thus expanding upon the use of Gross as the principle revenues versus Net as the agent revenues (Fraser & Ormiston, 2006) allows the company a better controlled method of redirecting the cost of sales. By allowing the customers, also be vendors by help redirect online traffic to both sites, and paying per click fees is a method of vendor financing. By maintaining accounts which will pay on an irregular basis outside the standard of the company makes the allowance for doubtful account needed and with the explanation of the method used to determine the amount for the account. With the merger the number of accounts has increased however the price has remained constant. This keeps helps explain the increase in the need for higher amount of doubtful allowance. When the price changes the number of accounts or volume may change, which can respectfully decrease the revenue. Thus the merger increased the volume without changing the price allowing for

Statement of Financial Accounting Standards Number 5. (1975, March). Retrieved March 14, 2012, from Financial Accounting Standards Board: http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820910926&blobheader=application%2Fpdf

FASB Interepretations Number 34. (1981, March). Retrieved March 14, 2012, from Financial Accounting Standards Board:...