CHAPTER 6 ACCOUNTING FOR MERCHANDISING BUSINESSES PRACTICE EXERCISES PE 6–1A $140‚775 ($127‚500 + $435‚600 – $422‚325) PE 6–1B $31‚850 ($17‚500 + $141‚750 – $127‚400) PE 6–2A Cost of merchandise sold: Merchandise inventory‚ July 1 $ 88‚370 Purchases $681‚400 Less: Purchases returns and allowances $9‚250 Purchases discounts 7‚000 16‚250 Net purchases $665‚150 Add transportation in 3‚180 Cost of merchandise purchased 668‚330 Merchandise available
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Analyzing Financial Statements December 16‚ 2012 Regina Campbell Calculate the following: Current ratio‚ long-term solvency ratio‚ contribution ratio‚ programs and expense ratio‚ general and management and expense ratio‚ fund-raising and expense ratio‚ and revenue and expense ratio for the years 2003 and 2004. 2003 2004 Current Ratio: .87 .90 Long Term Solvency Ratio:
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Interest/Sales * Sales/Assets * Assets/Equity * Earnings before interest/Net Income b) Net income*asset turnover*tax rate c) Return on Assets (ROA)*financial leverage d) Both a) and c) 2. Which of the following is true a) Return on Assets is influenced by financing activities b) ROE is not affected by financial structure c) Profit margin is a measure of asset efficiency d) None of the above 3. Assume that cost of goods sold for a company consists
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illegal activity occurs. The first factor an auditor should consider is how the occurrence effects the financial statement and the penalty‚ if any‚ for the issue. The second factor to be considered is the integrity of the management staff and their reaction to the illegal occurrence. The last factor for an auditor to consider when an illegal occurrence happens is the internal controls over the financial reporting. “Smuggling” money into the US can result in fines. “Smuggling” from the Caribbean
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In Chapter 6 of Lord of the Flies by William Golding‚ the struggle between civility and savagery continues. As Ralph and Jack’s leadership styles become more and more different‚ conflicts arise more frequently. As this is the midpoint of the novel‚ the story has been set and the conflict has been introduced. Throughout this chapter‚ the motifs of fear‚ power‚ and responsibility are present. At the end of Chapter 5‚ Piggy and Ralph are wishing for an adult; someone to give them insight and who
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USES OF FINANCIAL STATEMENTS The financing‚ investing‚ and operating activities of a company are recorded by accounting systems in the form of detailed transactions. To effectively communicate a company’s activities to decision-makers‚ these detailed transactions are summarized and reported in a set of standardized reports called financial statements. The role of financial statements is to provide information that will help investors‚ creditors‚ and others make judgments and predictions that serve
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sold and ending inventory. FIFO cost flow assumption: The cost of items purchased earliest are the costs that will be transferred first to cost of goods sold on the income statement. LIFO cost flow assumption: The cost of items purchased latest are the costs that will be transferred first to cost of goods sold on the income statement. 4 methods used to assign costs to inventory and cost of goods sold 1. Specific Identification 2. First-in‚ first-out 3. Last-in‚ first-out 4. Weighted average Goods in
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wants an accountant to perform an examination of its internal controls‚ the accountant should follow: B. AICPA AT 501‚ “An examination of an entity’s internal control over financial reporting that is integrated with an audit of its financial statements.” A.21 A review service engagement involving unaudited financial statements involves B. less work than an audit but more work than a compilation A.22 When accountants are not independent‚ which of the following reports can they nevertheless issue
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CHAPTER 10 Standard Costing and Performance Measures for Today’s Manufacturing Environment ANSWERS TO REVIEW QUESTIONS 10-1 Management by exception is a managerial technique in which only significant deviations from expected performance are investigated. 10-2 Any control system has three basic parts: a predetermined or standard performance level‚ a measure of actual performance‚ and a comparison between standard and actual performance. The system works by making the comparison between
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report and financial statements of the Patton-Fuller financial information. This paper will summarize the relationship between revenue sources and expenses and explain the effect of revenue sources on financial reporting and reviewing the annual reports of 2008-2009‚ and the differences between the audited and the unaudited statements‚ as well as determine how the hospital’s revenues and expenses are grouped for planning and control. How did the audited and unaudited financial statements differ?
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