to customers. A firm grants trade credit to protect its sales from the competitors and to attract the potential customers to buy its products at favourable terms. Trade credit creates accounts receivable or trade debtors that the firm is expected to collect in the near future. The customers from whom receivable or book debt have to be collected in the future are called trade debtors or simply as debtors and represent the firms claim or asset. A credit sale has three characteristics: First‚ it
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factors influencing inherent risks and acceptable audit risk. I have categorized the determinants of acceptable audit risk into three different factors: external users’ reliance on financial statements‚ likelihood of financial difficulties‚ and management integrity. All the calculations in detail are listed at the end of this report. External users’ reliance on financial statements Pinnacle is a medium-sized corporation‚ with total assets of $115‚434‚790‚ which suggests a fairly large number
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equation are assets‚ liabilities‚ and equity. Assets include Cash‚ Accounts Receivable‚ Notes Receivable‚ Prepaid Expenses‚ Land‚ Building‚ Equipment‚ Furniture‚ and Fixtures. Liabilities include Accounts Payable‚ Notes Payable‚ Accrued Liability‚ and Unearned Revenue. Equity includes Owner’s Capital‚ Owner’s Withdrawals‚ Revenue‚ and Expenses. 2. Companies need a way to organize their accounts so they use a chart of accounts. Accounts starting with 1 are usually Assets‚ 2 – Liabilities‚ 3 – Equity
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J1 Date Account Titles and Explanation Ref. Debit Credit 2014 Cash 101 20‚000 May. 1 Common stock 311 20‚000 (Issued shares of stock for cash) 3 Supplies 126 1‚500 Accounts Payable 201 1‚500 (Purchased supplies on account
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audit during the planning phase. The purpose of assessing risks early is to help auditor plan the audit by deciding which parts of the audit to emphasize and the extent of testing. It helps auditors to understand the nature‚ timing‚ extent of the accounts‚ therefore plan a right procedure and the appropriate evidence to accumulate 2. Explain how the levels of acceptable audit risk and materiality you selected in this assignment might affect the remainder of the audit. Specifically‚ what effect would
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contains the company’s unadjusted trial balance as of December 31‚ 2011. BUG-OFF EXTERMINATORS December 31‚ 2011 Unadjusted Trial Balance Cash 17‚000 Accounts receivable 4‚000 Allowance for doubtful accounts 828 Merchandise inventory 11‚700 Trucks 32‚000 Accum. depreciation-Trucks - Equipment 45‚000 Accum. depreciation-Equipment 12‚200 Accounts payable 5‚000 Estimated warranty liability 1‚400 Unearned services revenue - Interest payable - Long-term notes payable 15‚000 D. Buggs‚ Capital
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fraud. | Trace a purchase order (PO) from fulfillment to initiation to determine if the proper stakeholders approved the PO and if the order was fulfilled correctly. | 2. Independent reconciliation of the monthly bank statements | Compare accounts for discrepancies (posting and summarization). | Examine and ensure that all in house and bank data coincides to prevent and /or correct possible errors. | Obtain originals of the statements pertaining to six months of the audit period and reconcile
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ECO-02 Bachelor’s Degree Programme (BDP) ASSIGNMENT 2012-13 Elective Course in Commerce ECO-02: ACCOUNTANCY–1 For July 2012 and January 2013 admission cycle School of Management Studies Indira Gandhi National Open University Maidan Garhi‚ New Delhi-110 068 Elective Course in Commerce ECO-02: Accountancy–1 ASSIGNMENT – 2012-13 Dear Students‚ As explained in the Programme Guide‚ you have to do one Tutor Marked Assignment in this Course. Assignment is given 30% weightage in the final
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RELATED LITERATURE Receivables are one of the three primary components of working capital‚ the other being inventory and cash. Receivables occupy second important place after inventories and thereby constitute a substantial portion of current assets in several firms. The capital invested in receivables is almost of the same amount as that invested in cash and inventories. Receivables thus‚ form about one third of current assets in India. Receivables provide protection to sales from competitions
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Matthew Smith Week 2 You Decide Assignment Accounts Receivable Crisis 09/05/11 Instructor: Eric Oestman Class: HS543 I. INTRODUCTION: After conducting a meeting with the medical staff‚ various clinical departments‚ Health Information Management‚ and Business office personnel regarding Accounts Receivable issues within our facility‚ it was determined that many different areas of concern needed to be addressed. This includes problems with patient admission and registration procedures
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