Classmates‚ According to (Oster‚ 2014)‚ "Percentage of receivables and percentage of sales are two accounting allowance methods used to reconcile customer accounts deemed noncollectable. When allowed by generally accepted accounting principles (GAAP)‚ these two strategies are preferred over direct write-off of bad debt expenses. Percentage of receivables and percentage of sales provide a business with the ability to accurately estimate the expected bad debt losses they will have in each succeeding
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that are not disclosed that inflate revenue & assets - Used in round –tripping revenue recognition where one item such as a piece of land has been sold to related parties‚ the back to the entity‚ & then back to the related party (b) FR (c) Contracts should be examined to indicate the existence/terms of related party dealings & ensure proper note disclosure 2. Industry dominance (a)-Client has the opportunity to generate ‘special deals’with customers - Revenue may be recognised when a number of
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Classification of Accounting Systems Critically evaluate to what extent past research into classification of accounting systems has become irrelevant because of international harmonization efforts. Let us remind that IASC was replaced in 2001 by IASB (International Accounting Standards Board). We are going to start this paper with the different classification researches‚ taking for example Hofstede and Gray’s studies. Then we will draw the main differences between GAAP (Generally Accepted
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AQ 7.2 Explain how the principle of separation of duties is violated in each the following situations. Also suggest one or more procedure to reduce risk‚ and exposure highlighted in each of example. Solving Problems: a. A payroll clerk recorded 40-hour workweek for an employee who had quit the previous week. He then prepared a paycheck for this employee‚ forged her signature‚ and cashed the check. Violation: The payroll clerk only has an authority to prepare the paycheck‚ not to signature
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costs Labor costs of assembly-line workers $110‚000 – Direct labor Sales commissions $35‚000 – Period costs Factory supplies used $13‚000 – Direct materials Salaries paid to sales clerks $50‚000 – Period costs (b) Explain the basic difference in accounting for product costs and period costs. Product costs are manufacturing costs‚ direct components‚ direct labor and manufacturing overhead‚ do not become expenditures until the company sells inventory. Period costs are non-manufacturing costs‚ including
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Chartered Accountants’ Everyday Tools PAYG Withholding Statement Contact for more information: Phone: 1300 137 322 Within Australia +61 2 9290 5660 Overseas 1800 804 712 Toll free from Malaysia 800 6161 337 Toll free from Singapore Fax: +61 2 9262 4841 Email: memberbenefits@charteredaccountants.com.au This document has been supplied to the Institute of Chartered Accountants in Australia as a free sample by Thomson Reuters and is extracted
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B. transaction-processing system. C. executive support system. D. decision support system. 5) Development and support services for a firms’ business systems are provided by: A. IT management services. B. IT educational services. C. IT standards services. D. Application software services. 6) The use of digital technology and the Internet to execute the major business processes in the enterprise is called: A. e-business. B. enterprise applications. C. e-commerce. D. MIS. 7) A virtual company:
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local market area residents. The Company EB is incorporated in Eldoret Town‚ its postal address being The mobile number being It is owned and managed by its owner-Eric Kipchoror Kiplagat. Mr.Eric Kipchoror Kiplagat has extensive experience in accounting‚ sales‚ marketing‚ and management and is the Sales Executive of Sergoit Golf & Wildlife. The company intends to hire two full-time pastry bakers and six waitresses to handle customer service and day to day operations. Products and Services
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sale discount = Net sales o Net sale – COGS = Gross profit o Sale discount + net sale= sale o Sale – net sale = sale dis o Net sale – gross profit= COGS New asset -> inventory Expense -> COGS Revenue -> sales Contra revenue (debit) – sale returns + allowances (debit) Sale discount (debit) Sale – sales return + allowance – sale discount = net sales Selling expenses: related to advertising and selling products including sales salaries‚ sales commissions
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Riordan Manufacturing: Analysis of HR System University of Phoenix BSA/375 Riordan Manufacturing‚ a Fortune 1000 company‚ is a plastics manufacturer based out San Jose‚ California‚ with additional facilities located in Hangzhou‚ China; Pontiac‚ Michigan; and Albany‚ Georgia. The company was founded by Dr. Michael Riordan in 1991 and has grown exponentially over the past three years‚ with recently projected annual earnings of $46 million and revenues in excess of $1 billion. Despite the
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