Spontaneous liabilities arise from the normal course of business. The two major spontaneous sources of short-term financing are accounts payable and accruals. As the firm’s sales increase‚ accounts payable increase in response to the increased purchases necessary to produce at higher levels. Also in response to increasing sales‚ the firm’s accruals increase as wages and taxes rise because of greater labor requirements and the increased taxes on the firm’s increased earnings. There is normally no
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FINANCIAL PLANNING AND CONTROL Part One I. Overview of the Planning Process A long-term financial plan begins with strategy. Typically‚ the senior management team conducts an analysis of the markets in which the firm competes. Managers try to identify ways to protect and increase the firm’s competitive advantage in those markets. For example‚ the first priority of a firm that competes by achieving the lowest production cost in an industry might be to determine whether it should make additional
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delay in finalising the auditor’s report. It is involving the possibility of fraud in a financial audit engagement. On February 5 of 2006‚ Kencana & Associates had just been informed by his subordinates that there had been inconsistencies in the accounts of Flat Cargo Berhad (FCB)‚ and they cannot deal with another client scandal. The team has to report to the audit committee of FCB in two weeks. Thus in order to do so‚ Mr Chuah has to work through the company’s information to assess the possibility
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flowchart (X) 7. The document flowchart symbol for a manual file (such as a file cabinet of accounts receivable invoices) is: a) b) TRIANGLE c) d) 8. A general ledger: Is a chronological listing of an organization’s transactions b) Is a listing of an organization’s transactions‚ organized by account (X) c) Does not include every account in an organization’s chart of accounts d) Is the same thing
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Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5) | Abnormally high executive compensation Targeted share repurchases Shareholder rights provisions Restricted voting rights Poison pills | 2. (TCO F) Which of the following statements is correct? (Points : 5) | The MIRR and NPV decision criteria can never conflict. The IRR method can never be subject to the multiple IRR problem‚ while
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letter that best answers the question. 1. The purpose of a trial balance is: a. b. c. d. To determine that journal entries are in balance before posting those entries to the ledger To indicate the effects of business transactions upon ledger accounts To prove the equality of debits and credits in the ledger To make certain that none of the entries has been omitted 2. Communication of economic information to those people who need it involves a. b. c. d. Identifying economic events
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ISSUES IN ACCOUNTING EDUCATION Vol. 26‚ No. 4 2011 pp. 797–806 American Accounting Association DOI: 10.2308/iace-50053 Home Heaters: A Holistic View of the Financial Statements M. Cathy Claiborne and Kirkland A. Wilcox ABSTRACT: In this case‚ two start-up companies in the same industry have identical economic transactions. Although both companies follow generally accepted accounting principles (GAAP)‚ each manager makes different choices and estimates when applying GAAP. By preparing
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first transactions that occurred during 20X3 follow: 1/2/20X3 Purchases on account: 500 units @ $6 = $3‚000 1/15/20X3 Sales on account: 300 units @ $8.50 = $2‚550 1/20/20X3 Purchases on Account: 200 units @ 5 = $1‚000 1/25/20X3Sales on Account: 300 units @ $8.50 = $2‚550 The company president examined the computer-generated journal entries for these transactions and was confused by the absence of a Purchases account. Duplicate the journal entries
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CHAPTER 7 Cash and Receivables ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. Accounting for cash. Accounting for accounts receivable‚ bad debts‚ other allowances. Accounting for notes receivable. Assignment and factoring of accounts receivable. Analysis of receivables. Petty cash and bank reconciliations. Questions 1‚ 2‚ 3‚ 4‚ 21 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12‚ 13‚ 14‚ 15 14‚ 15 16‚ 17‚ 18‚ 19 20 22 Brief Exercises 1 2‚ 3‚ 4‚ 5 Concepts Exercises 1‚ 2 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12 18‚ 19
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9002 certificate. In this company Senior Manager is the Head of the finance department. Under him there are five Deputy Managers and also there is an Account Officer‚ who is not under the direct control of Senior Manager. 1.2 SCOPE OF STUDY The field of working capital comprising of capital management‚ Inventory management‚ Receivable‚ Cash and Work in progress system. The study was confined to KS&DL only. Analysis of financial performance with reference to working capital with
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