gooda available for sale. -the consistency principle states that the busineses should use the same accounting methods from period to period. -under the FIFO‚ the ending inventory is based on the cost of the most recent purchases. -the value of purchases remains the same irrespective of the inventory valuation method used. -using FIFO‚ the COGS is based on the oldest purchases. -the accounting conservatism principle requires that financial statements should report LEAST favorable figures. -do
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reported as sales‚ cost is reported as merchandise sold o Sales- Cost of Merchandise Sold = gross Profit o Gross profit-operating expenses = net income o Merchandise. Inventory- merchandise on hand (not sold) at the end of the accounting period o Multi-step income statement- contains several sections‚ subsections‚ subtotals o Sales-total amount charged customers for merchandise sold – (cash sales‚ and sales on acct.) o Sales returns and allowances-granted by seller
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5 PROBLEM 28. Y‚ an S corporation formed at the beginning of the year‚ has the following information in its first year: Gross Income from services $100‚000 Net short-term capital loss (2‚200) Salary paid to F (10‚000) Medical insurance premium for F (300) Other operating expenses (54‚000) Cash distributions to F 5‚000 F‚ a 50 percent owner of Y‚ is single and has no other tax information. F’s A.G.I. is a. $21‚900 b. $26‚750 c. $26‚900 d. $35‚700 e. Some other amount‚ which is $_________
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opinion‚ why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them? In my opinion the reason for this is that accounting equations must always balance and the two sides must always be equal. Each transaction has a dual
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Table of Contents Case 1 Introduction Jill’s business is expanding while the up going GST prevent her from gaining more profits. The idea of replacing the labor with the help of new equipment will bring about an unprofitable break-even point. However Jill still insist on borrowing from bank to invest in the equipment regardless of the CVP analysis result‚ which raised some ethical issues. Analysis Question 1 Defining the stakeholders There are 5 major stakeholders arising
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Nature of Accounting and the Accounting Standard Background Accounting is an important part for business and it is dubbed “language” of business activities conducted by firms. People think it is used to communicate business transactions per se to all stakeholders. However‚ some people argue that the functions of accounting are not that easy. Except the communication tool‚ accounting acts as many other difference roles in business. When doing accounting‚ different standard may be used. There are
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variable cost is proportionate to volume; the fixed cost does not change with volume. 3.2 Theweighted average contribution margin per unit is calculated only when performing CVP analysis for multiple products. There are two ways to calculate it: (1) Calculate the total contribution of all products by subtracting total variable costs from total revenues. Then calculate the weighted average contribution margin per unit by dividing the total contribution margin by the total number of units (the
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics‚ e.g.‚ basic transaction documents‚ journals‚ ledgers‚ charts of accounts. 3. Where a G&NP organization has a business-type activity‚ e.g.‚ a municipal electric utility‚ the accounting largely parallels that
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Inventory and Waste Management System For A Gas Retail Fueling Station A thesis proposal submitted to the College of Accountancy In partial fulfillment for the requirement of the course in Internship/Accounting Thesis INTRODUCTION Any stock that a firm keeps to meet its future requirement of production and sales is called “INVENTORY”. The basic reason for holding inventory is to keep up to the production activities unhampered. It is neither physically possible nor economically justifiable
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Week 2 – MS Access Lab Requirements: Problem 4.4 Retrieve the S&S In-Chapter Database (in Microsoft Access format) from Doc Sharing or the text’s Web site (or create the tables in <link linkend="ch04table05" preference="0">Table 4-5<xref linkend="ch04table05" label="4-5"/></link> in a relational DBMS product). Write queries to answer the following questions. <emphasis>Note</emphasis>: For some questions‚ you may have to create two queries—one to calculate an
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