Budgetary Control 61 Information Systems 61 1.9 Ethics‚ Business‚ and the Accounting Profession 65 Defining Ethics 65 Need for Ethics 67 1.10 Summary 79 Minute Paper 80 Minute Paper 80 Glossary 82 Readings 103 Reading 1: Selling on Credit & Receivables 103 Reading 2: Control over Sales of Inventories 106 Reading 3: Receipts 110 Reading 4: Purchases and Inventory Control 114 Reading 5: Payments 122 Reading 6: Control over Payroll 123 Reading 7: Control over Non-Current Assets 130 References
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CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Explain what an account is and how it helps in the recording process. Define debits and credits and explain their use in recording business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Prepare
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company to generate funds from internal sources. • The company has been forced to forgo taking discounts on accounts payable and to borrow in increasing amounts from its bank to maintain its expansion. • Jones must decide whether to continue to expand and‚ if so‚ how to finance the growth. © Dr. C. Bulent Aybar Impact of Growth on Jones: Investment Requirements – Inventories + Accounts Receivables 2004 2005 2006 $430 $509 $643 – Investment in inventory and A/R has been growing at a rate of ~22%
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highlights certain intermediate components of income. Condensed Income Statement: A condensed income statement is one that summarizes much of the income statement detail into a few captions and amounts. Details of these captions are present in Notes to account. Retain Earning Statement: The financial statement which calculates the balance of retained earnings at the end of the period is called the statement of retained earnings. It is very similar to the statement of changes in equity however it only
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Ch.1 1. John‚ who has just completed his first finance course‚ is unsure whether he should take a course in business analysis and valuation using financial statements since he believes that financial analysis adds little value‚ given the efficiency of capital markets. Explain to John when financial analysis can add value‚ even if capital markets are efficient. The efficient market hypothesis states that security prices reflect all available information‚ as if such information could be costlessly
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results of that are becoming evident on its financial statements. Accounts payable have increased dramatically comparing 2006 and 2007. The same situation is with accounts receivables‚ showing that less of Jones’ clients are willing to pay cash for goods delivered. As a result the use of a discount thanks to fast payment to suppliers has become improbable. Further study of the increase in important components such as accounts receivables and inventory will be discussed in the 3rd section of this case
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appear below. MADRASAH CORPORATION Balance Sheets Assets Dec. 31‚ 2014 Jan. 1‚ 2014 Inc./Dec. Cash $ 20‚000 $ 13‚000 $ 7‚000 Inc. Accounts receivable 106‚000 88‚000 18‚000 Inc. Equipment 39‚000 22‚000 17‚000 Inc. Less: Accumulated depreciation—equipment 17‚000 11‚000 6‚000 Inc. Total $148‚000 $112‚000 Liabilities and Stockholders’ Equity Accounts payable $ 20‚000 $ 15‚000 5‚000 Inc. Common stock 100‚000 80‚000 20‚000 Inc. Retained earnings 28‚000 17‚000 11‚000 Inc
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reported as cash‚ explain the rationale. 1. Checking account balance $925‚000; certificate of deposit $1‚400‚000; cash advance to subsidiary of $980‚000; utility deposit paid to gas company $180. 2. Checking account balance $500‚000; an overdraft in special checking account at same bank as normal checking account of $17‚000; cash held in a bond sinking fund $200‚000; petty cash fund $300; coins and currency on hand $1‚350. 3. Checking account balance $590‚000; postdated check from customer $11
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Flash Memory‚ Inc. Investment in New Product Line University of Waterloo Prepared for Jim Gray October 11‚ 2012 TO: FROM: DATE: SUBJECT: Introduction The Board of Directors‚ Flash Memory Inc. The Finance Team October 11‚ 2012 Investment in New Product Line Flash Memory Inc. (herein referred to as “Flash” or the “firm”) is in the critical stage of planning for future operations and expansion. Competitive pressure‚ rapid market growth‚ continuous technological developments and high
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was 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
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