Solutions Chap 8 Suggested Exercises 2. Howard Bowen’s cotton farm analysis appears below. a. Accounting profits: Revenues $5‚000‚000 Less: Variable operating costs 4‚500‚000 Less: Depreciation 40‚000 Less: Wages 50‚000 Equals: Operating Income $410‚000 Less: Interest expense 400‚000 Accounting income before tax +$10‚000 b. Economic profits: Revenues $5‚000‚000 Less: Variable operating costs 4‚500‚000 Less: Opportunity
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ON ACCOUNTING AND ACCOUNTING INFORMATION FOR‚ INTERNAL AND EXTERNAL USERS PRESENTED BY Mr. EMMANUEL FONGEH IN PARTIAL FULFILLMENT OF AN EXECUTIVE MASTERS DEGREE IN BUSINESS ADMINISTRATION. CHAPTER 1 1.1 INTRODUCTION. At a glance‚ accounting can appear extremely complicated and confusing. The untrained eye may struggle to grasp the entire nature of accounting and
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Risks and Internal Controls for Kudler Fine Foods ACC/542 June 3‚ 2013 Jana L. Highwort‚ MBA University of Phoenix Risks and Internal Controls for Kudler Fine Foods Internal controls are policies and procedures a company uses to ensure the accuracy and validity of their data. Risks are threats to that data that could be internal or external of the company (Hunton‚ Bryant‚ & Bagranoff‚ 2004). The following paragraphs will identify and analyze the risks and internal controls as they relate
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company uses a process cost accounting system. Its Assembly Department’s beginning inventory consisted of 50‚000 units‚ 3/4 complete with respect to direct labor and overhead. The department started and finished 127‚500 units this period. The ending inventory consists of 40‚000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24‚000 and overhead costs of $32‚000 for
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Here again‚ I will offer the choice to the patient to disclose his/ her gender so I could give appropriate recommendations about the medication. However‚ if any of my patient need counseling about any types of birth control (condoms‚ plan B)‚ I will use the occasion to educate them on sexually transmitted diseases and how to avoid them. I will focus on the fact that anyone that is sexually active‚ no matter their sexual orientation is at risk. I will point out that they
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the deposals of capital assets with reference to Air Canada. Define cash and accounts receivables and explain the recognition and valuation of receivables. Identify and compare depreciation methods. Table of Content Introduction Task 1: Internal Control and Cash Task 2: Receivables Task 3: Noncurrent Assets Task 4: Recommendations Conclusion References Introduction Air Canada is counter as Canada’s flag carrier. It is Canada’s largest international‚ domestic and US transborder airline
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Checklist for Evaluating Internal Controls There are five components to internal controls. A comprehensive checklist should adequately define these components and ensure that each component has been adequately met. According to Louwers‚ Ramsay‚ Sinason‚ and Strawser (2007) the five components to internal controls include: 1. Control environment – Involves the tone of the organization and includes “the integrity‚ ethical values‚ and competence of the company’s people” (Louwers‚ Ramsay‚ Sinason
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limitations of the internal control system and also give the reader three examples of such limitations. Internal control procedures will be thoroughly discussed and how the procedures are actually executed. Signs and symptoms of an underdeveloped internal control system and the impact of a missing journal entry on a financial statement will be further reviewed. With everything‚ there can be bad or there can be good. In accounting‚ however‚ there has to be a consistent control system in order
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The weakness in internal control over cash disbursements is that there is no numbers on the check. If there were numbers on the checks it will be easier to file in order and the number to the check will be the identity of the person and reason for the check for the company’s records. Dear Management‚ The internal control over cash disbursements need to be revised. To maintain‚ proper and organized documents each check written by this company will have a number on it. For the safety of our
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14th Street Pizza: the next BIG thing or a sinking ship? Introduction While driving to his office in Khayaban-e-Nishat‚ Phase 6‚ Tanveer Yusuf was thinking about the good old days when he started 14th Street with his two best friends NaveedGodil and AmjadTumbi. Despite the amazing response that they initially got‚ the ship now seems to be quite in a bit of a lurch. Started by three best friends‚ 14th Street was supposed to be the next big thing. Being the pioneers of the 20” pizza they intended
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