Chapter 2 Review of the Accounting Process AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools‚ departments‚ and faculty may approach assessment and its documentation differently‚ one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor‚ we have labeled each question‚ exercise and problem in Intermediate Accounting‚ 7e with the following
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Time! 100% Satisfaction Guarantee DESCRIPTION FOR THIS STUDY GUIDE: Dq1 Suppose you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find? Dq2 What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating
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CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Explain what an account is and how it helps in the recording process. Define debits and credits and explain their use in recording business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Prepare
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company to generate funds from internal sources. • The company has been forced to forgo taking discounts on accounts payable and to borrow in increasing amounts from its bank to maintain its expansion. • Jones must decide whether to continue to expand and‚ if so‚ how to finance the growth. © Dr. C. Bulent Aybar Impact of Growth on Jones: Investment Requirements – Inventories + Accounts Receivables 2004 2005 2006 $430 $509 $643 – Investment in inventory and A/R has been growing at a rate of ~22%
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Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
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highlights certain intermediate components of income. Condensed Income Statement: A condensed income statement is one that summarizes much of the income statement detail into a few captions and amounts. Details of these captions are present in Notes to account. Retain Earning Statement: The financial statement which calculates the balance of retained earnings at the end of the period is called the statement of retained earnings. It is very similar to the statement of changes in equity however it only
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Inc.’s revenue process‚ cycle of test ending 12/31/2007 and in the receivable aged trial balance sheet. In the following you will see a step listed that was taken during the process. A total of approximately ten transactions have been selected for the twelve months as randomly selections for testing. In order to support each transaction the sample invoices were located for each‚ and posted to the ledger as well as customer accounts. All purchase orders were found aside from the December shipment of
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appear below. MADRASAH CORPORATION Balance Sheets Assets Dec. 31‚ 2014 Jan. 1‚ 2014 Inc./Dec. Cash $ 20‚000 $ 13‚000 $ 7‚000 Inc. Accounts receivable 106‚000 88‚000 18‚000 Inc. Equipment 39‚000 22‚000 17‚000 Inc. Less: Accumulated depreciation—equipment 17‚000 11‚000 6‚000 Inc. Total $148‚000 $112‚000 Liabilities and Stockholders’ Equity Accounts payable $ 20‚000 $ 15‚000 5‚000 Inc. Common stock 100‚000 80‚000 20‚000 Inc. Retained earnings 28‚000 17‚000 11‚000 Inc
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reported as cash‚ explain the rationale. 1. Checking account balance $925‚000; certificate of deposit $1‚400‚000; cash advance to subsidiary of $980‚000; utility deposit paid to gas company $180. 2. Checking account balance $500‚000; an overdraft in special checking account at same bank as normal checking account of $17‚000; cash held in a bond sinking fund $200‚000; petty cash fund $300; coins and currency on hand $1‚350. 3. Checking account balance $590‚000; postdated check from customer $11
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Internal Control and Accounting Systems (AQ2013) For use in the AAT Accounting Qualification Chic Paints Ltd Assessment book Time allowed: Four months AAT Level 4 Diploma in Accounting QCF qual ref SCQF qual ref QCF unit ref SCQF unit ref Internal Control and Accounting Systems 600/6892/9 R324 04 F/504/3353 UD65 04 Notice to candidates 1) All candidates must adhere to the terms and conditions specified for this assessment. 2) Your report must be typed‚ completed and submitted for formal assessment
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