DQ 1 Week4 You notice that your accounts receivable days outstanding have doubled in the first 6 months. Do you give someone a bonus or put him or her on probation? Why? Just because the accounts receivable days outstanding have doubled in the first 6 months does not mean that someone gets a bonus or is put on probation. There is not enough information given in this question to warrant such action. This type of action is jumping to conclusions and assuming without the evidence to substantiate
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1 the two key figures that gave us this indication was the high inventory turnover ratio‚ above average accounts receivable. As an online business normally inventories move fast due to the item being shipped as soon as it has been sold. In using dell computers as an example we saw a similar high turnover ratio. As being a supplier for business as well as personal computers the account receivable figure would also match
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take an accounting course. | d. | Only to financial analysts and brokers. | __D__ 5. Which set of items below are current assets? a. | Accounts receivable‚ net income‚ inventory‚ and dividends | b. | Cash‚ accounts receivable‚ capital stock‚ and sales | c. | Net income‚ cash‚ office supplies‚ and inventory | d. | Cash‚ accounts receivable‚ inventory‚ and office supplies | __B__ 6. For several years‚ Malcom Corporation has had a current ratio that was consistent with other companies
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Customers 2.3. Policy on Granting Collection on Accounts Receivable 2.4. Treatment on Uncollectible Accounts CHAPTER 3 – RESEARCH FRAMEWORK 3.1. Theoretical Framework 3.2. Conceptual Framework 3.3. Operational Framework CHAPTER 4 – RESEARCH DESIGN AND METHODS 4.1. Description of the Research Design 4.2. Data Gathering Methods and Instruments 4.3. Sample Plan Appendix Analysis of the management of accounts receivable applied by Avon Company Inc. in Angeles City as to
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The statement of cash flow is used to illustrate the current cash position‚ liquid assets‚ and accounts receivable. This report is a good indicator of the operational management of the company and the impact of their accounts receivable collection activities. A company can appear financially sound based on the income statement and balance sheets when it is not. A cash flow statement adds context to the reports and reflects the actual cash position. The financial statement of a company provides
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SC (Service charge) CM (Credit Memo) ———————————————————————————————————————— Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from S. King‚ a customer‚ in settlement of an accounts receivable. An entry had not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $60 which has not been accrued. The bank service charge is $25.00. Instructions (a) Prepare a bank reconciliation at October
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principle of short-term debt • Calculate the cash conversion cycle • Understand the risk/return trade-off in managing working capital I. Background The business manager must continually be alert to changes in working capital accounts‚ the cause of these changes and the implications of these changes for the financial health of the company. One convenient and effective method to highlight the key managerial requirements in this area is to view working capital in terms of its major
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To: Dr. Brooks From: Team 3 Date: September 24‚ 2014 Objective: ACL Accounts Receivable Relevant Facts: The purpose of this case was to develop an audit program by using ACL audit software‚ and to identify the significance of any findings or audit discrepancies. First‚ we footed the file to the general ledger. Next‚ we checked for duplicate invoices to ensure that we did not account for the account receivable more than once. We then proceeded to create an aging schedule to find unpaid invoices over
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A. What is an account receivable? What other names does it go by? Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to
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corporation’s recorded cash balances and the amount credited to the corporation by the bank. It is the latter item that is of particular interest to us. To the extent a corporation can accelerate check collections to the bank account and slow down check payments from its bank account‚ the cash balance at the bank may exceed the recorded amount on the company books. The differential or float may be thought of as a short-term source of funds to the corporation. 7-5. Float exists because of the delay
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