Multiple Choice: 1. In general terms‚ financial assets appear in the balance sheet at: a. Face value b. Current value c. Cost d. Estimated future sales value 2. Which of the following practices contributes to efficient cash management? a. Never borrow money – maintain a cash balance sufficient to make all necessary payments. b. Record all cash receipts and cash payments at the end of the month when reconciling the bank statements
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Summary on Research for Accounting Changes and Error Analysis Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. A change in accounting principle results when an entity adopts a generally accepted accounting principle different from the one it used previously (Hall 2007). A presumption exists that an accounting principle once adopted shall not be changed in accounting for events and transactions of a similar type (Financial
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approximately the same under different inventory costing methods and the choice of method does not materially affect net income. To see this‚ remember that FIFO profits include holding gains on inventories. If the inflation rate is low (or inventories turn quickly)‚ there will be less holding gains (inflationary profit) in inventory. Q6-3. FIFO holding gains occur when the costs of earlier inventory p are matched against current selling prices. Holding gains on inventories increase with an increase
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Accounting Memo Irene Emond BCOM/230 July 14‚ 2014 Jay Johnson Accounting Memo When creating a memo‚ the first thing to do is to know and identify your purpose and your audience. Failing to know your audience can result in misinterpretation‚ needing more clarification or being altogether ignored. Considering your audience is a must‚ as it falls under the same category as knowing the purpose of your memo. Upon reviewing the given example‚ I would suggest using the commonly accepted format. The first
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AC210 EXAM 1 EEACH MULTIPLE QUESTION IS 5 POINTS PROBLEM IS 50 POINTS TOTAL POINTS=100 YOUR NAME___________Tyler Gaassett________________ Multiple Choice Questions *Highlight Your Answer Chapter 6 1-30. Operating income is: A. A measure of profitability after deducting cost of sales from net sales. B. A measure of profitability after deducting cost of sales and all expenses incurred in operating the business from net sales. C. A measure of liquidity after deducting cost
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when using either GAAPs. With that mentioned‚ the following differences exist between the US GAAP and IFRS (International GAAP). Inventory Measurement GAAP clarifies that inventory value is measured based on FIFO‚ LIFO and weighted average method‚ but IFRS does not allow the use of LIFO method. Recognition of Revenue from Services GAAP accepts the money as revenue when total services are provided and contract of services is completed‚ however if there is work pending under the service contract
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Budgeting 9 1.1 Advantages of Budgeting 9 1.2 Disadvantages of budgeting 9 2. Fixed Budgets 9 2.1 Flexible Budgets 9 2.2 Zero- base Budgets 10 2. Learning Outcome 2&4 11 Conclusion 12 References 13 List of Tables Table 1: FIFO Store Ledger 8 Table 2: LIFO Store Ledger 8 Table 3: Receivables 10 Table 4: Payables 10 Table 5: Cash Budget 11 Introduction Management accounting costing and budgeting is looking at the cost information‚ both present and future‚ of businesses and gather
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1837 John Deere fashions a polished-steel plow in his Grand Detour‚ Illinois‚ blacksmith shop that lets pioneer farmers cut clean furrows through sticky Midwest prairie soil. 1838 John Deere‚ blacksmith‚ evolves into John Deere‚ manufacturer. Later he remembers building 10 plows in 1839‚ 75 in 1841‚ and 100 in 1842. 1842 John Deere adds retailing to his business‚ filling orders for the Patent Cary Plow. 1843 Deere and Leonard Andrus become "co-partners in the art and trade of blacksmithing‚ plow-making
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CHAPTER 6 Objectives Identify different types of long-term operational assets. Determine the cost of long-term operational assets. Explain how different depreciation methods affect financial statements. Determine how gains and losses on disposals of long-term operational assets affect financial statements. Explain how expense recognition for natural resources (depletion) affects financial statements. Explain how expense recognition for intangible assets (amortization) affects
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A. Sales discount E. FOB shipping point H. Purchase discount B. Credit period F. Gross profit I. Cash discount C. Discount period G. Merchandise inventory J. Trade discount D. FOB destination 1. Goods a company owns and expects to sell to its customers. G 2. Time period that can pass before a customer’s payment is due. B 3. Seller’s description of a cash discount granted to buyers in return for early payment. A 4. Reduction below list or catalog price that is negotiated in setting the
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