process. Examine the following list of accounts: Note Payable | Accumulated Depreciation: Building | Alex Kenzy‚ Drawing | Accounts Payable | Product Revenue | Cash | Accounts Receivable | Supplies Expense | Utility Expense | Which of the preceding accounts a. Appear on a post-closing trial balance? Note Payable‚ Accounts Payable‚ Cash‚ Accounts Receivable and Accumulated Depreciation: Building b. are commonly known as temporary‚ or nominal‚ accounts? Supplies Expense‚ UtilityExpense
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Examination 2010/2011) The following items (in millions) pertain to Chen Corporation: Balance as of January 1‚ 2009 $30 $10 $40 $50 $40 Balance as of December 31‚ 2009 $5 $2 $12 $30 $20 Direct materials Work in Process Finished goods Accounts receivable Accounts payable “Sebaik-baik manusia diantaramu adalah yang paling banyak manfaatnya bagi orang lain” (HR. Imam Bukhari) Meeting 1 MRF’s File Plant utilities Indirect manufacturing labor Depreciation – plant and equipment Revenues Miscellaneous
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the chapters‚ answering end of chapter exercises‚ and reviewing course notes. 1) Which one of the following groups of accounts contains only assets? a) Equipment‚ patents‚ accounts receivable b) Accounts receivable‚ building‚ retained earnings c) Accounts payable‚ notes payable‚ contributed capital d) Retained earnings‚ goodwill‚ and accounts payable 2) At the end of 2001‚ Kazlo Company has total assets and liabilities at $40‚000 and $13‚000‚ respectively
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Business factor Explanation of impact Account balance Major expansion Inventory potentially overstated as possibly recorded at more than net realizable value Overstated inventory account Poor ski environment Economic downturns can create circumstances that require write-offs of receivables or inventory‚ thus accounts receivable could be potentially overstated. Overstated receivable account Poor internal control Potential for misappropriation of assets. Overstated current asset. Government policies
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office building and a warehouse to stockpile some inventory of its own. - No Receivables/Days of Receivables: Since an online retailer caters to only individual customers‚ and since the latter pays usually by cash or credit card‚ accounts receivable will be at most a negligible amount‚ if not zero. - Unearned Revenues: Unearned Revenues can exist for an online retailer especially when the company opens up pre-order accounts for various products which are not yet released in the market. - Research
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to use statistical sampling to test the reasonableness of the recorded book value of the Key West Company’s accounts receivable Because the company’s internal control procedures over accounts receivable have been evaluated by you as excellent and you believe few misstatements will be found‚you decide to use probability-proportional-to-size sampling. The company has 4‚000 customer accounts with a total book value of $3‚000‚000. You decide $150‚000 is the maximum tolerable misstatement and anticipate
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expenses. Implementing an effective working capital management system is an excellent way for many companies to improve their earnings. This chapter discusses the management of current assets‚ particularly cash‚ marketable securities‚ inventory‚ and receivables. This chapter answers some Basic questions involving working capital management such as how much cash and inventory should be kept on hand? Will it be affect the liquidity of the firm to sell on credit or not? And how and from which sources the
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acquirer BATHURST LTD – CROKER LTD Acquisition analysis Consideration transferred = $20 000 (cash) + $40 000 (shares: 16 000 x $2.50) = $60 000 A. Ledger Accounts – Croker Ltd Liquidation $ $ Inventory 26 000 Accounts payable 20 000 Accounts receivable 20 000 Goodwill 10 000 Receivable - Bathurst Ltd 60 000 Cost of liquidation 1 000 Balance b/d 23 000 Retained earnings 80 000 80 000 24 000 Balance c/d 23 000 Shareholders’ distribution
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business on September 30‚ 2011: Accounts Payable Accounts Receivable Building Capital Stock Cash $ 8‚500 1‚250 45‚500 50‚000 7‚400 Furniture and Fixtures Land Notes Payable Retained Earnings Supplies 20‚000 $ 55‚000 ? 4‚090 3‚440 The transactions occurring during the first week of October were: Oct. 3 Additional capital stock was sold for $30‚000. The accounts payable were paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18‚000‚ to
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_____ 2. An example of a contra account is: A) Depreciation expense. B) Accounts receivable. C) Sales revenue. D) Accumulated depreciation. Answer: D _____ 3. The purpose of closing entries is to transfer: A) Accounts receivable to retained earnings when an account is fully paid. B) Balances in temporary accounts to a permanent account. C) Inventory to cost of
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