5. Assume working capital is $45‚000 and the current ratio is 4:1. What are current liabilities? A. $ 10‚000 B. $ 11‚250 C. $ 15‚000 D. $ 17‚400 E. $ 180‚000 6. Wolfpack‚ Inc. collected $6‚250 on account. The effect of the transaction on the accounting equation is to: A. Increase revenue and decrease expenses. B. Have no effect on total assets. C. Decrease assets and decrease liabilities. D. Increase assets and increase
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218). Many companies used to hold and continue to hold flaws in their governance structures that allow management to operate their businesses to further their own personal self-interests instead of increasing the shareholders’ values. The three cases that I believe illustrates the most ineffective corporate governance system include: Nortel‚ Adelphia‚ and Tyco. Nortel Networks’ ineffective corporate governance system stemmed off of the management’s use of earnings management in order to achieve
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Chapter 1 Financial Statements and Business Decisions EXERCISES E1–2 Req. 1 READ MORE STORE Balance Sheet As at December 31‚ 2008 |ASSETS | |LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |Liabilities | | |Cash |$ 48‚900
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CHAPTER 1 Introduction to Financial Statements Study Objectives 1. 2. 3. 4. 5. 6. Describe the primary forms of business organization. Identify the users and uses of accounting information. Explain the three principal types of business activity. Describe the content and purpose of each of the financial statements. Explain the meaning of assets‚ liabilities‚ and stockholders’ equity‚ and state the basic accounting equation. Describe the components that supplement the financial statements in an annual
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Why Are Ethics Important In The Accounting Profession? Sheree Fletcher CE CAPSTONE COURSE FOR THE ASSOCIATES DEGREE IDS399 September 10‚ 2006 What does ethics have to do with accounting? Everything‚ since there have been some recent financial accounting scandals; a few examples being Xerox‚ WorldCom‚ Enron‚ which have generated much unwanted and unfavorable publicity for CPA’s‚ including those working as controllers or chief financial officers for organizations. When you hear the
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MNGT-511 FINAL EXAM (Total points 100) Name: Rebecca Malandrino Chapter 7 1) Which of the following types of inventory usually is not held by a manufacturing business? (3P) C) Merchandise inventory 2) The following information was taken from the 2007 income statement of Cobra Company: Pretax income‚ $12‚000; Total operating expenses‚ $20‚000; Sales revenue‚ $120‚000. Compute cost of goods sold. (5P) A) $88‚000 (120‚000 – 20‚000 – 12‚000) 12‚000 (pre-tax income) + 20‚000 (operating
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Ethics Assignment The following paper will discuss the hypothetical research case given to us in problem 3-46 of our auditing textbook. The case depicts us as an audit firm that‚ during the current year’s audit of our client International Bank of Commerce (IBC)‚ has discovered some problems with loans that IBC has issued. First‚ the standards of the AICPA Code of Professional Conduct‚ the ASB auditing standards‚ and the PCAOB auditing standards that apply to this will be identified and discussed
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investments or capital of the firm and not only in relation to sales. Return on capital employed ratio measures the efficiency with which the investment made by shareholders and creditors is used in the business. Managers use this ratio for various financial decisions. It is a ratio of overall profitability and a higher ratio is‚ therefor‚ better. To see whether the business has improved its profitability or not‚ the ratio can be calculated for a number of years. Return on equity (ROE) is widely
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Assignment 1 Review of Accounting Ethics Strayer University Financial Accounting ACC 557 May 1‚ 2013 Assignment 1 Review of Accounting Ethics Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations‚ financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers
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Accounting Information Systems ACCOUNTING SYSTEMS‚ INTERNAL CONTROLS‚ AND ETHICS Prepared for the course team by Vimlesh B. Narayan Unit 1 Contents Unit 1 Contents 2 Concept Map 3 Learning Outcomes 4 1.1 Introduction 5 1.2 Accounting System Design 6 System Objectives and Design Factors 6 Designing the System 8 1.3 Internal Control Systems 17 Objectives of Internal Control Systems 17 Structure of Internal Control Systems 18 Why You Should Consider the Components? 21 Internal
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