experienced a tremendous increase in its business. However‚ its financial performance has not kept pace with its growth. The current system‚ which is partly manual and partly automated‚ doesn’t track accounts receivables sufficiently‚ and the company is finding it difficult to determine the reasons why the receivables are so high. The company runs frequent specials to attract customers but has no idea whether these efforts are profitable or if the benefit—if there is one—comes from associated sales. Especially
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Bradmark Comprehensive Case Chapter 9 – Revenue Cycle Questions Read the Bradmark Case located in the “Bradmark Case Description” folder and answer the following questions: 1) From the case description and the associated flowcharts‚ assess Bradmark’s internal controls over its revenue cycle procedures. 2) Using the case description‚ the flowchart‚ the file structures‚ and the selected financial data below‚ specify an audit objective (that can be achieved using ACL™) for each management
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Design/Methodology: The study employed trend and econometric analyses using an unbalanced panel data of 11 Ghanaian oil marketing firms form 2001 to 2008. For the econometric analysis‚ the study adopted the number of days inventory‚ number of day accounts receivable‚ number of days accounts
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2012 Instructor Name Introduction The following will outline the procedures and steps necessary to detect irregularities that can occur in the accounts receivable‚ inventory and fixed assets of Apollo Shoes. The flowcharts will show how the use of internal controls is integral to the overall success of the organization. In the accounts receivable‚ the sales and billing processes are an area that would require attention. With the inventory representing a large portion of the assets at Apollo
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current asset financing strategy because of the inherent risks of using short-term financing. a. True b. False(15-4) Cash conversion cycle F S Answer: b EASY 8. If a firm takes actions that reduce its days sales outstanding (DSO)‚ then‚ other things held constant‚ this will lengthen its cash conversion cycle (CCC). a. True b. False (15-4) Cash conversion cycle
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1/2/20X3 Purchases on account: 500 units @ $6 = $3‚000 Dr Merchandise Inventory 2‚000 Cr Accounts Payable 2‚000 • 1/15/20X3 Sales on account: 300 units @ $8.50 = $2‚550 Dr Accounts Receivable 2‚550 Cr Sales 2‚550 Dr Cost of Goods Sold 1‚200 (300 x $4) Dr Merchandise Inventory 1‚200 • 1/20/20X3 Purchases on Account: 200 units @ $5 = $1‚000 Dr Merchandise Inventory 1‚000 Cr Accounts Payable 1‚000 • 1/25/20X3 Sales on Account: 300 units @ $8.50 = $2‚550 Dr Accounts Receivable 2‚550 Cr Sales
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Completion of Accounting Cycle Part 1 Chapter 4 – Adjusting the accounts and preparing financial statements Discussion Question 4.1 How is profit determined under (a) the cash basis of accounting and (b) the accrual basis of accounting? Discussion Question 4.2 Explain why the purchase of supplies is usually recorded in an asset account rather than in an expense account. If supplies were expensed when purchased‚ which accounts should be debited and which credited at the end of the period in order
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456 Chapter Eleven Appendix 11B Illustrative Audit Case: Keystone Computers & Networks‚ Inc. Part III: Substantive Tests—Accounts Receivable and Revenue This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments
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AC 210 – Spring 2012 Exam 2 Version A Name: CWID: Score: /100 1. McKinney‚ Inc has a debt-to-assets ratio of 0.45. This means that: A. stockholders’ equity is 55% of total assets. B. stockholders’ equity is 45% of total assets. C. the asset turnover ratio also is 0.55. D. the asset turnover ratio also is 0.45. 2. A company files a Form 10-K with the SEC to submit its: A. quarterly report. B. annual report. C. press releases. D. report
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TABLE OF CONTENT 1. MERCHANDISING BUSINESS a. Examples b. New Account on Income Statement c. Income Statement of Merchandising Business 2. DIFFERENCE: MERCHANDISING‚ MANUFACTURING & SERVICE RENDERING BUSINESS a. Service Business b. Merchandise Business c. Manufacturing Business 3. RECORDING SYSTEM OF MERCHANDISING BUSINESS a. Perpetual Inventory System i. Journal Entries 1. Purchases 2. Sales 3. Inventory Shrinkage Loss b. Periodic Inventory System i. Journal Entries 1. Purchases
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