accounting periods. T162. An adjusting entry includes at least one balance sheet account and at least one income statement account. T163. Recording incurred but unpaid expenses is an example of an accrual. F164. If all transactions were originally recorded in conformity with GAAP‚ there would be no need for adjusting entries at the end of the period. T165. Every adjusting entry must change both an income statement account and a balance sheet account. F166. When the reduction in prepaid expenses is not
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Retained earnings‚ June 1 $ 0 Add: Net Income $3300 Less: Dividends $2000 Retained earnings‚ June 30 $1300 ____________________________________________________________________________ Eckersley Service Company Balance Sheet June 30‚ 2011 Assets Cash $4600 Accounts Receivable $4000 Supplies $2400 Equipment $29000 Total Assets $40000 Liabilities and
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understand by the concept of conservatism ? Why is it also called the concept of prudence? Why is it not applied as strongly today as it used to be in the Past? Question 1(b) What is a Balance Sheet? How does a Funds Flow Statement differ from a Balance Sheet? Enumerate the items which are usually shown in a Balance Sheet and a Funds Flow Statement. Question 2(a) Discuss the importance of ratio analysis for inter-firm and intra-firm comparisons including circumstances responsible for its limitations
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Do you know which department store has the slogan “Expect More‚ Pay Less.”(Target 2012 Annual Report‚ 2012‚ p.1). Target is one of the leading stores besides Wal-mart that keeps their prices low while still making a profit from their sales. They introduced the new price match and return policies and continue to offer more savings through their REDcard Rewards. (Target 2012 Annual Report‚ 2012‚ p.2). With the REDcard Rewards clients are able to save an extra 5 percent off nearly all purchases and
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Harvard Business School 9-197-010 Rev. May 30‚ 1997 First Investments‚ Inc.: Analysis of Financial Statements In March 1995‚ Fred Aldrich‚ a summer trainee with the First Investments‚ Inc.‚ was called into the office of the head of investment analysis section of the trust department. The following conversation took place: Fred‚ here are the 1994‚ 1993‚ and 1985 Basic Industries Company’s financials (Exhibit 1) and a 10-year summary (Exhibit 2 ). Our trust department has owned this stock since
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Landforms Australia’s major landforms Mountains Many of Australia’s mountain ranges are the result of folding or faulting – for example the Flinders ranges and the Stirling Ranges. Fold Mountains are formed when one plate slides down under another .Some rocks are forced down while others are forced upwards and bent into wave-like forms. Fault Mountains are formed when layers of rock are fractured and one section moves down and another section moves up. Until about 600 million years ago‚ the area
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has a very detailed and organized balance sheet and income statement in which all of the company ’s information is listed in the proper order. The balance sheet can be viewed annually or quarterly and all amounts are in US dollars by millions except for per share amounts. The balance sheet first begins to lists the company ’s assets. The assets section is broken down by current assets‚ cash‚ net receivables‚ inventories‚ and other current assets. The balance sheet then lists in order the total current
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Balance Sheet Items presented on the face of the statement of financial position represents an entity’s assets‚ liabilities‚ and equity (net assets) at a given point in time‚ a specific date. These items should be sufficiently detailed to enable identification of material components under US GAAP. In contrast the Financial Instruments and Exchange Act requires Japanese GAAP to present items in a more detailed manner compared to IFRS and US GAAP. Thus Bridgestone‚ following JP GAAP have more accounts
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planning the audit of a client ’s inventory‚ an auditor identified the following issues that need audit attention. 1. Inventories are properly stated at the lower of cost or market. 2. Inventories included in the balance sheet are present in the warehouse on the balance sheet date. 3. Inventory quantities include all products‚ materials‚ and supplies on hand. 4. Liens on the inventories are properly disclosed in notes to the financial statements. 5. The client has legal title to the
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Page No. 1. Cover Page……………………………………………………………………1 2. Contents. ………………………………………………………………….2 3. Computing the Amounts……………..……………………………3 4. Trading‚ Profit & Loss Account and Balance Sheet….9 5. Comments on the Performance of the Business…….10 6. Explaining the Limitation of Comparison…………...….12 7. References………………………………………………..……………..13 (A) Compute the following amounts: (I) Average Stock: Average stock = opening
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