pertaining to a business. It is concerned with ensuring that records of those individual financial transactions are accurate‚ up-to-date and comprehensive. Accuracy is therefore vital to the process. * Bookkeeping provides the information from which accounts are prepared but is a distinct process‚ preliminary to accounting. 2. WHY IS BOOKKEEPING IMPORTANT? The importance of Book-keeping are as follows: * Limitation of human memory: Capacity of human beings is limited as to how much one
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Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + D. Segal‚ Capital – D. Segal‚ Drawing + Revenues – Expenses Description (a) 15000 15000 (b) -1800 3800 2000 (c) -1000 1000 (d) 1700 1000 2700 service fees (e) -1800 -1800 (f) -750 750 rent expense (g) -650 650 Bal. 10700 1000 3800 1000 200 15000 650 2700 750 Cash Accounts Payable
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classification of data and reporting while simultaneously increasing the range of inputs to give a clearer and more comprehensive picture of the financial health of a company (Gambling‚ 1975). The topic I selected for this research paper is how modern account systems have made a difference in modern organizations. Before taking this course I was unsure of how accounting was used in businesses or the way it was formatted. I aquired tremendous amount of knowledging from taking this class‚ from analysing
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collectability of the accounts receivables was problematic. It seemed as if Fly-by-Night had a good system of collecting their sales on account from year 9 to year 10 as the accounts receivable number decreased during those years. However‚ the accounts receivable account increased by more than six times through years ten and fourteen. Because of this poor system of collecting accounts receivable‚ Fly-by-Night’s cash flow would suffer. The same can be said about the inventory account. Because the amount
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Current Assets Learning Objectives Upon reading this chapter‚ students should: • Be able to compare and contrast working and fixed capital • Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories • Know the differences between the three motives • Be able to differentiate between float‚ collection float‚ and disbursement float • Know how to appraise a firm’s credit worthiness
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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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Australia’s place in the global economy Trends in Australia’s trade patterns Trends in Australia’s financial flows The balance of payments TRENDS in Australia’s balance of payments Consequences of a high current-account deficit Overview Chapter 10‚ External Stability: Australia’s current account deficit Australia’s foreign liabilities Australia’s exchange-rate Policies to achieve external stability Chap 4‚ Part one: Understanding Australia’s place in the global economy (p102) To understand the
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creditworthy customers. The average customer can expect to pay one or two percent (or more) above prime. In competitive markets banks may actually charge preferred customers less than prime. 8-4. The use of a compensating balance or minimum required account balance allows the banker to generate a higher return on a loan because not all funds are actually made available to the borrower. A $125‚000 loan with a $25‚000 compensating balance requirement means only $100‚000 is being provided on a net basis
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success also derived from strategy of Oleg Pinchuk‚ a former major Ukrainian beer producer. He aggressively had policy on giving credits to distributors. On a small budget‚ he had organized five distributorships‚ taken the company to 211 customer account (from 0)‚ and set up warehousing arrangement. These policies were a key of achievement. Oleg Pinchuk’s strategies focused on getting people into distribution pipeline to serve customer needs whenever they want it. Although there was nonexistent for
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Accounts Receivable Cycle Riordan Manufacturing‚ an industry leader in the field of plastic injection molding‚ has facilities in California‚ Georgia‚ Michigan and China. The accounting functions are carried out in each individual location‚ and consolidated for processing in the corporate offices in California. The Georgia and Michigan locations‚ being newly acquired‚ are using systems that are not completely compatible with the corporate offices. This is causing problems on many levels and within
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