between organizations that use a certain method. Accrual accounting is mostly used by organizations that are for profit. Accounts using this method are prepared with financial transactions accrued. Organizations using this method report revenues and expenses in the accounting period their economic substance is realized‚ not the period they are received or paid for in cash. An example would be a patient is billed $240 for an office visit. The amount billed is reported in the accounting period it was billed
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Robert Buckman 7/28/10 Using a Cash Budget for Planning Purposes Introduction Let me begin by explaining what a cash budget is. A cash budget is a tool that helps individuals and companies forecast a short term financing needs. Investopedia defines a cash budget as‚ “an estimation of the cash inflows and outflows for a business or individual for a specific period of time.” (Cash Budget) A cash budget is used to determine the borrower’s ability to generate cash and repay debt. A cash budget also
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Assisnment PrintView Page of 12 I C*N‚WL awar0: 4 t . 10 points priceof purchased with an invoice taos Company merchandise resalefrom TusconCompany for Taospaidwithin the n160. merchandise costTuscon The had and termsof 2110‚ $14‚322. $21‚000 credit period. inventory system. Assume bothbuyer seller a perpetual that and use discount (Omit the "$" sign in your l(a)Prepare entriesthat the buyershouldrecordfor the purchase. response.) General Journal Merchandise inventory payable lAccounts
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“ordinary and necessary” business expenditure? “Ordinary” and “necessary” imply that an expense must be customary and helpful‚ respectively. Because these terms are subjective‚ the tests are ambiguous. However‚ ordinary is interpreted by the courts as including expenses which may be unusual for a specific taxpayer (but not for that type of business) and necessary is not interpreted as only essential expenses. These limits can be contrasted with the reasonable limit on amounts and the bona fide
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financed in part by debt‚ should the cash flow statement include interest expenses? Explain. Should the $262‚500 test marketing cost be included in the analysis? Explain. The cash flow statement should not include interest expense or dividends. The return required by the investors furnishing the capital is accounted for in the 12 percent cost of capital (WACC) used to discount the cash flows‚ therefore including interest expense and also discounting would be "double counting." Put another way‚ if we
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3. The amount of depreciation expense for 2013 using double-declining-balance would be c. $6‚000. 4. Assume that Z Company uses straight-line depreciation. If‚ on January 1‚ 2014‚ Z Company sells the asset for $10‚000‚ the statement of cash flows would report a b. $10‚000 cash inflow from an asset disposal in the investing activities section. 5. On January 1‚ 2012‚ Fulsom Corporation purchased a machine for $50‚000. Fulsom paid shipping expenses of $500 as well as installation costs
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long-term planning for The Body Shop. The goal is to yield practical insights while being straightforward. To get started‚ we assumed the growth rate for sales is 13%; the cost of goods sold percent change is 38% changes‚ and a 50% change for operating expenses. The amount of external financing‚ the variables affecting the estimates‚ what the best way to raise the financing‚ along with important ratios‚ the internal growth rate‚ the sustainable growth rate‚ and future recommendations will all be discussed
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About the Case Study This case study is about the Human Resources Management challenges faced by a retail organization and the appropriate HR Technology solution provided to meet out these challenges. About the Organization in Case Study The organization in the study is one of the largest retail stores chain across the globe. They have around 100 retail stores in India in different locations and looking to expand further to more than 200 store across India. Organizational Structure Organization
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000 Credit sales‚ $450‚000 Selling and administrative expenses‚ $110‚000 Sales returns and allowances‚ $30‚000 Gross profit‚ $490‚000 Accounts receivable‚ $110‚000 Sales discounts‚ $14‚000 Allowance for doubtful accounts credit balance‚ $1‚200 How much is bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible? A. $5‚500 B. $6‚700 C. $4‚240 D. $4‚300 Answer: Bad debt expense ($4‚300) = 5% of accounts of accounts receivable (5% $110‚000)
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of Revenue Accounts Dividend Fee Rent 4-5 Sales Interest Format of the Income Statement Elements of the Income Statement Expenses – Outflows or other using-up of assets or incurrences of liabilities that constitute the entity’s ongoing major or central operations. Examples of Expense Accounts Rent Depreciation Salaries and wages 4-6 Cost of goods sold Interest Taxes Format of the Income Statement
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