number question or best lettered completion for the numbered partial statement. Record the letter next to the number. 1. __D___ The right side of an account a. is the correct side. b. reflects all transactions for the accounting period. c. shows all the balances of the accounts in the system. d. is the credit side. 2. ___A__ An account will have a credit balance if the a. credits exceed the debits. b. first transaction entered was a credit. c. debits exceed the credits. d. last transaction
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400+165‚833.33=$536‚633.33—inv.* Account Receivable /Inventory =1‚359‚000/2‚756‚000=0.49 Account Payable /Inventory =512‚000/2‚756‚000=0.19 Account Receivable*=0.49*536‚633.33(inv1)=$262‚950.33—A/C* Account Payable*=0.19*536‚633.33(inv1)=$101‚960.33—A/P* Working Capital Current assets-Current liabilities =inv.*+(A/R*-A/P*)=536‚633.333+(262‚950.33-101‚690.33)=$697‚623.33 697‚623.33*23.5%(cost rate of capital)=$163‚941.48 51435069850Account Receivable‚ Account Payable and Inventory represented here
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Risks • Cash transactions may not be recorded accurately • Cash may not exist Steps 1. Confirm selected bank accounts and special arrangements Select bank accounts for confirmation in order to obtain a moderate to low level of assurance that the aforementioned audit objectives are achieved. Bank confirmations should be sent to all banking relationships to identify accounts not included in the general ledger. Confirmation requests should be sent under our control and‚ second requests
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CHAPTER ONE: INTRODUCTION 1.1 Introduction Working capital is an important issue during financial decision making since it is being a part of investment in asset that requires appropriate financing investment (Zariyawati et al‚ 2009). However it is always being ignored by companies because it is related to short term period. The companies or managers should understand that items or transactions in short term period may give significant impact in future if the responsible managers does not
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Internal Control and Risk Evaluation Since offering suggestions for Kudler earlier this month‚ the request has been received to analyze the risks involved. Suggestions included: improving functions of inventory‚ accounts receivable‚ accounts payable‚ and the payroll system with any company. When inventory is involved‚ it is important to maintain accurate records. This will be done for Kudler through automation‚ enhancement‚ and maintenance of the inventory. The risks involved in this change
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The cash cycle is the amount of time cash is tied up between payment for production inputs and receipt of payment from the sale of the resulting finished product. Cash cycle = Average age of Inventory + Average collection period - Average Accounts Payable period Cash turnover = Number of times cash is used during the year = Number of days in a year/Cash cycle Minimum operating cash – It is the level of opening cash balance at which a firm would meet all obligations and is computed by dividing
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000 in New Inventory $5‚000‚000 – 2‚000‚000 = $3‚000‚000 The company will free up $3 million in free cash flow. 16-2 Receivables Investment Receivables = (DSO) * (Average Daily Sales) X = (17 days) ($3‚500) X = $59‚500 is the average accounts receivable 16-3 Cost of Trade Credit Nominal Cost of Trade Credit = (Discount %) / (100-Discount %) x (365) / (Days Credit is outstanding – Discount Period) X = 3 / (100 - 3) * 365 / (30-15) X = 3 / 97 * 365 / 15 X = .0309278350515464 *
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Department Jennifer Buster Bradley Lloyd LuEllen Robert Spare Sam Receiving RO RO RO RO RO F BP RO Shipping RO F RO RO F RO BP RO Sales F RO RO RO RO N BP RO Accounts Payable BP N RO N N N BP RO Jennifer’s full time position as Sales would need Sales access for her primary position. She should only have By Position access to Accounts Payable when she is working that position. She would need Read Only for Shipping and Receiving in order provide customers with information on inventory availability
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current assets‚ such as inventory and accounts receivable‚ which earn no interest income and require financing with short-term debt. The resulting cash inflows can be reinvested in interest-bearing financial instruments or used to reduce short-term borrowing‚ thus improving the profitability of the organization. PURPOSE: This study examines the relationship between hospitals’ profitability and their performance at managing two components of working capital: accounts receivable‚ measured in terms of
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1888 Press Release - Corcentric and The Accounts Payable Network (TAPN) co-host Webinar that illustrates the power of collaboration in the procure-to-pay process. McLean‚ VA - Corcentric‚ a leading provider of accounts payable automation and electronic invoicing solutions‚ will be co-hosting a free 1-hour Webinar with TAPN (which was recently acquired by the Institute of Finance & Management)‚ titled "The Future of Procure to Pay." This Webinar will take place tomorrow‚ Tuesday‚ June 24 at 2pm
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