as well as the amount invested by the shareholders. 3.What is the difference between accounts payable and accounts receivable? Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. Accounts payable are liabilities. Accounts receivable are assets. 4.DEFINITION OF ’DERIVATIVE’ A security whose price is dependent
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------------------------------------------------- Top of Form Problem 3-1A Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Post entries in the order of journal entries posted in the previous part of the question.) Cash | | | | No. 101 | Date | Explanation | Ref | Debit | Credit | Balance | June 30 | Balance | √ | | | | Accounts Receivable | | | | No. 112 | Date | Explanation | Ref | Debit | Credit | Balance | June 30 |
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C 5.Prenumbering of documents for accounting sequences C 6.Internal verification of documents C C C C C 7.Chart accounts C 8.Processing for procedures C 9.Monthly reconciliation of Accounts Payable Master file with the general ledger C Deficiencies* 1. 2. 3. Assessed control risk Low Low Low Low Low Low * Note:
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facing a serious cash flow issue. The company was virtually stopped operation due to another overdraw from its bank account. Pundir must get additional loans from Bank to keep the company operating. In this paper‚ we will assist Pundir to figure out the issues Kota Fibres is confronting‚ and to workout a plan to deal with the issues by cutting inventories‚ reducing account payable‚ gaining new sales revenue‚ and the most important of all‚ to work out a reasonable cash receipts and disbursements schedule
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achieve these objectives‚ SAPP has the following characteristics 1. Basis of accounting 2. Double entry system 3. Integrated and computerized system 4. Decentralized implementation of accounting 5. Standard chart of accounts SAAP divided two subsystem 1. Central accounting system (SiAP) is part of the SAPP conducted by the directorate of information and accounting (DIA) which will result in the financial statements for the accountability of the central government
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assumption supports the method used. If incorrect‚ identify which principle or assumption has been violated. E1-5 Meredith Cleaners has the following balance sheet items. Accounts payable Accounts receivable Cash Notes payable Cleaning equipment Salaries payable Cleaning supplies Common stock Answer: I was not clear on what three situations to reference since there was only one listed next to E1-5. However all the items
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possible price. It will order the goods from that vendor. It will then issue an approved purchase order and send it to the chosen vendor as the vendor’s authorization to ship the goods. The purchasing department sends a copy of the purchase order to accounts payable and to the receiving (warehouse) department that will accept the purchased goods when they arrive. In a good system‚ the quantity of order goods does not appear in the receiving department’s copy‚ forcing that department to manually count the
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1. The book store chain keeps high inventory‚ high plant and equipment assets‚ and profit per revenue is low. 2. Commercial bank has an extremely high accounts receivable and the longest receivables collection period. And their biggest part of liabilities is notes payable. It really meets the features of Commercial bank. 3 Computer software developer sells most of their products online and direct to customers‚ so most of their sales and transaction online. This explains the high receivable
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your new firm. The chart of accounts for (YOUR NAME) Accounting Services is listed below. Follow the instructions to complete the accounting records for the month of December. _____________ ACCOUNTING SERVICES Chart of Accounts ASSETS 101 Cash 111 Accounts Receivable 119 Allowance for Doubtful Accounts 121 Supplies 131 Prepaid Rent 134 Prepaid Insurance 141 Equipment 142 Accumulated Depreciation - Equipment LIABILITIES 202 Accounts Payable 211 Unearned Revenues OWNERS’
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inventory policy are measured by number of days accounts receivable‚ accounts payable and inventories‚ and the cash conversion cycle as a comprehensive measure of working capital management. He founds a significant negative relation between gross operating income and the number of days accounts receivable‚ inventories and accounts payable. Thus‚ he suggests that managers can create value for their shareholders by reducing the number of days accounts receivable and inventories to a reasonable minimum
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