unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records. TRUE 5. The drawings account is a subdivision of the owner’s capital account and appears as an expense on the income statement. FALSE 6. Revenues are a subdivision of owner’s capital. TRUE 7. The trial balance has no limitations or weaknesses. FALSE 8. In an automated system‚ the entering of data and transferring of information is done by following
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Statement of Comprehensive income is a financial report that changes in equity of a business enterprise during a period transaction and other events and circumstance from non-owner sources. It is different from typical income statement which reflects profits and losses and may omit changes in net assets (IFRS.org‚ 2009). The general purpose of the statement of comprehensive income is to provide information about the companys financial position‚ performance and cash flow that is useful for economic
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Activity-Based Costing in the Service Sector: The East Penn Bank ABSTRACT: This case illustrates why a major segment of the service sector banks - needs accurate cost information to make strategic decisions‚ and how more refined accounting systems help fulfill this need. East Penn Bank is a hypothetical bank that has suffered falling profits despite a shift in customer base toward retail customers‚ which the current information system reports are more profitable than business customers. Following
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examines the income and cost information presented by Berkshire Threaded Fasteners Company from historical and projected perspectives to justify two major decisions: withdrawal of a product line‚ and reduction of the selling price of another. Furthermore‚ these decisions will lead into suggestions about the overall strategic approach of the firm. At the beginning of 1974‚ Berkshire leadership advocates withdrawal of the 300 Series product line. First glance at the income statement for the period
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for two products‚ Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow: Product Model A100 Model B900 Total Sales . . . . . . . . . . . . . . . . . . . .$700‚000 $300‚000 $1‚000‚000 Contribution margin ratio . . . . . . . 60% 70% ? The company’s fixed expenses total $598‚500 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. Compute the break-even point for
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7584/316=24 =4.7+24=28.7 March 1697/361=4.7 8664/361=24 =24+4.7=28.7 3. Create a contribution margin income statement for Salem Data Services; Assume that intra company usage is 205 hours‚ Assume commercial usage is at the March Level. Revenue Variable costs Contribution Margin Fixed Costs Operating Income (loss) From the case we know that intracompany work was billed at $400 per hour‚ and commercial sales were billed at $800 per hour. Commercial
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Question 1 Mr. Robert Paris is a salesman for Eiffel Ltd.‚ a public corporation. He provides you with the following information. Salary income $30‚000 Commission Income $45‚000 He is covered by his employer’s group term insurance plan for 2x his salary income. The premium paid by Eiffel Co. is $8 for each $1‚000 of coverage. On January 1‚ 2007‚ he received the following loan from Eiffel Co: • $80‚000 to purchase a home (he transferred from Quebec City on December 2006)
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the cash flow is damaging due to a delay of payment from retailers‚ and the margins on the products are much lower than the premium brand. Based on taking on private brands only‚ CMB’s financials would look as follows: Private Label Profit Income Statement Period ending December 31‚ 2001 Estimated 2001 2000 Revenues 52‚800‚000 56‚112‚408 Costs of goods sold 42‚918‚000 33‚233‚867 Gross margin 9‚882‚000 22‚878‚541 Marketing expenses
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com/business-forms/ Learn more about a career in accounting: http://www.AccountingCoach.com/careers/ For personal use by the original purchaser only. Copyright © 2011 AccountingCoach®.com. Click a Category Below Financial Statements Balance Sheet Income Statement Cash Flow Statement Stockholders’ Equity Financial Ratios Accounting Principles Bookkeeping‚ Debits and Credits Accounting Equation Adjusting Entries Bank Reconciliation Petty Cash Accounts Receivable and Bad Debts Expense Inventory and Cost
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various accounting firms. A topical listing of the cases is presented with the case and solution following the listing. Topical Index of Student Cases INTERMEDIATE ACCOUNTING Cases Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail premium Case
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