800‚000. C) $1‚000‚000. D) $3‚000‚000. E) $3‚200‚000. 3. Annie ’s Attic has the following account balances for the dates given: Cash‚ Sept 1 $40‚000 Cash‚ Sept 30 60‚000 Accounts receivable‚ Sept 1 10‚000 Accounts receivable‚ Sept 30 14‚000 Capital‚ Sept 1 ? Capital‚ Sept 30 ? Supplies‚ Sept 1 30‚000 Supplies‚ Sept 30 24‚000 Accounts payable‚ Sept 1 6‚000 Accounts payable‚ Sept 30 ? Net income for September 20‚000 What would equity be on September 1 and September
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major subsystems called cycles: the revenue cycle‚ the expenditure cycle‚ and the conversion cycle. Even though each cycle performs different specific tasks and supports different objectives‚ they share common characteristics. For example‚ all three TPS cycles capture financial transactions‚ record the effects of transactions in accounting records‚ and provide information about transactions to users in support of their day-to-day activities. In addition‚ transaction cycles produce much of the raw
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opinion c. Increase the sample size for tests of controls d. Expand the substantive testing portion of the audit 4. The real-time feature normally would be least useful when applied to accounting for a firm’s a. Bank-account balances b. Property and depreciation c. Customer accounts receivable d. Merchandise inventory 5. A sample in which the characteristics in the sample are the same as those of the population is a a. Random sample c. Attributes sample b. Variables sample d. Representative sample 6. Establishing
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Identify the appropriate credit policy‚ i.e. credit terms which will attract customers‚ such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and allowances. * Short term financing. Identify the appropriate source of financing‚ given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however‚ it may be necessary to utilize a bank loan (or overdraft)‚ or
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Topic One: Accounting Information Systems: Theoretical foundation and overview Drivers for business & I.S change Globalisation o Force behind globalisation is technology. o Changed the way we communicate‚ transport goods and services‚ and travel. o Enabled organisations to interact with partners‚ suppliers and customers in virtual environment. Deregulation o Removal of constraints on competitive market forces through free trade agreements. E.g. Australia-China‚ Australia-New Zealand
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Financial Analysis Case: Peng Plasma Solutions PROFESSOR LENA C. BOOTH Objectives • The objectives of the Financial Analysis session are to analyze Peng Plasma Solutions financial performance‚ and to see why properly managing funding needs is essential for a company to pursue its corporate strategies. Professor Lena C Booth 2 Peng Plasma Solutions – Company Background • A private metal cutting company in China‚ founded by Jerry Peng‚ together • • • • with
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|MBA 502A--Financial Accounting: Accounting Cycle Project (KidKare‚ Inc. 2011) | | |General Journal | | |G15 | |Date |Account Titles & Explanations |Ref |Debit |Credit | |Dec30 |Childcare Exp.
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for 1991: The balance sheet was created by disregarding the fact that butler lumber company needs additional loan. Cash‚ accounts receivables as well as net property plant were computed based on the average % of sales of the 3 previous years. The same idea was used to determine the projected accounts payables and accrued expenses. Net worth of Butler Lumber Company was net worth from the previous year and net income from the projected income statement
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employing working capital in an optimal way in order to pursue profitability. But some authors still have different findings on how working capital management in terms of cash conversion cycle and its components such as number of day‟s inventories‚ number of day‟s accounts receivable and number of days accounts payable are related to the profitability of a firm. Deloof (2003)‚ who conducted his study on Belgian firms‚ suggests that working capital management has a vital effect on the profitability
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Audit plan – Accounts Receivable and Notes Receivable Audit Procedures Audit Objectives W/P Ref. Initials Comments Accounts Receivable 1. Obtain an aged trial balance of individual customer accounts. Recalculate the total and trace to the general ledger control account. 2. Review the aging for large and unusual items. 3. Send confirmations to all accounts over $X. Select a random sample of all remaining accounts for confirmation. a.i.1.a.i.1.a. Investigate exceptions reported by
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