are required disclosures. Answer: E 4. Current liabilities are defined as A) obligations which are incurred during the past year. B) debts at the balance sheet date which must be paid within two years. C) accounts payable and bonds payable. D) debts at the balance sheet date which are expected to be paid with the current assets listed on the same balance sheet. E) obligations (debts) related only to normal operations. Answer: D
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2010 and 2012 are both over 2.0‚ which is larger than the miscellaneous manufacturing company (1.64). This means in liquidity Mattel did better than average of manufacturing industry. 2.2 Quick Ratio |Year |Cash+Marketable Securities+Accounts Receivalbe/ Current Liabilities | |2010 |($1‚281‚123+$1‚146‚106)/$1‚350‚282=1.79 | |2011 |($1‚369
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2012 Prepared for (name of supervisor): Time spent on this opinion: What type of opinion (select options)? Accounting Standards applied: Query or issue: Whether the debit-balance account “Cash Discounts” in the Statement of Comprehensive Income should be treated the same way as the “Trade Discounts” account. Background and pertinent facts: Trade discount is allowed by the supplier of the goods to the purchaser when he buys from the supplier in bulk quantities. The purchaser is accountable for
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bad debts are: (1) Uncollectible accounts receivable are estimated and matched against revenues in the same accounting period in which the revenues occurred. (2) Estimated uncollectibles are debited to Bad Debts Expense and credited to Allowance for Doubtful Accounts through an adjusting entry at the end of each period. (3) Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time the specific account is written off as uncollectible.
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Chapter 8 Fund Flow Statement Statements of changes in Financial Position - The statement of changes in financial position‚ often referred to as the fund flow statement‚ describes the financing and investment activities of a business enterprise. Funds are defined in one of two ways - i) Funds are defined as cash. ii) Funds are defined as working capital Funds are defined as cash: The statement of changes explains the amount of cash that various financing activities provided‚
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$66‚000 Δ Bad debt expense (on incremental sales only) Policy one 1.75% ($800‚000) (14‚000) New policy 2.0% ($1‚100‚000) (22‚000) Δ Investment in accounts receivable (incremental sales only) Policy one $800‚000 × 50/365 = $109‚589 Policy two $1‚100‚000 x 65/365 = $195‚890 Δ Opportunity benefit on investment in accounts receivable at 16% Policy one: $109‚589 × 16% = (17‚534) Policy two: $195‚840 × 16% = (31‚342) Total incremental change $ 16‚466 $ 12‚658 Both
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of _ accounts receivable _______ for the company. Q 8.36: Which of the following is true of accounts receivable and notes receivable? Both accounts receivable and notes receivable represent claims that a company expects to receive in cash. Q 8.37: Notes receivable are written promises that are considered formal instruments of credit Q 8.38: Another name for trade receivables‚ which result from sales transactions‚ is accounts receivable Q 8.39: Trade receivables are accounts receivable that
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accounting concept governs the above? a. The prudence concept b. The materiality concept c. The accruals concept * d. The dual accept concept 3. Which accounting concept requires that foreseen losses should be anticipated and taken into account immediately? a. The consistency concept b. The accruals concept c. The prudence concept * d. The going concern concept 4. In times of rising prices‚ what effect does the use of the historical cost concept have on a company’s asset values
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Chapter 4 Receivables and Related Revenues MULTIPLE CHOICE – THEORY 1. D 6. D 2. C 7. B 3. C 8. B 4. B 9. A Problem 1 (Fontana Blue) a. Cost of Sales Inventory 20‚000 b. Cost of Sales Inventory 18‚000 18‚000 c. No adjustment d. Sales 20‚000 40‚000 Accounts Receivable e. 40‚000 Sales 60‚000 Accounts Receivable 60‚000 Inventory 33‚600 Cost of Sales f. 33‚600 Sales 120‚000 Accounts Receivable g. 120‚000
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company is still in the growth / infancy stage of its life cycle. They have invested large amounts of capital into the research and development‚ and marketing of its products‚ and it is too soon to see the rewards from these investments. Some of the changes that need to be made in order for a loan to be approved for AMT include improving manufacturing efficencies‚ short-term loans‚ operations‚ and managing their accounts recieveables. The manufacturing operations of AMT can be
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