should be added to the book balance? EFT receipts deposits in transit collection items both EFT receipts and collection items Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings? net income expenses dividends all of these answers are correct The use of the FIFO method increases taxable income: when prices are constant when prices are declining when prices are increasing under all circumstances A company mistakenly destroys a
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explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. True statement; the indirect approach is an alternative method for preparing the statement of cash flows for the direct method. b. Depreciation expense is added back
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13. The interest on a $4‚000‚ 6%‚ 60-day note receivable is $40. 14. The maturity value of a $2‚000‚ 6%‚ 60-day note receivable dated February 10th is $2‚020 15. A disadvantage of the corporate form of business is government regulation.. 16. James Corporation issued 2‚000 shares of $5 par value common stock for $20 per share. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par for $30‚000.
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32‚000 Accum. depreciation-Trucks - Equipment 45‚000 Accum. depreciation-Equipment 12‚200 Accounts payable 5‚000 Estimated warranty liability 1‚400 Unearned services revenue - Interest payable - Long-term notes payable 15‚000 D. Buggs‚ Capital 59‚700 D. Buggs‚ Withdrawals 10‚000 Extermination services revenue 60‚000 Interest revenue 872 Sales (of merchandise) 71‚026 Cost of goods sold 46‚300 Depreciation expense-Trucks - Depreciation expense-Equipment - Wages expense 35‚000 Interest
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change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting estimates. T 10. Change in principle vs. change in estimate. F 11. Accounting for change in depreciation method. F 12. Accounting for change in reporting entities. T 13. Example of a change in reporting entities. F 14. Accounting error vs. change in estimate. T 15. Accounting for corrections of errors. T 16. New principle created by FASB standard
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revenues? Why or why not? Case 3: Depreciation at Delta and Singapore Airlines Presentation date: Dec 3 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. (a) For Delta‚ what was its annual depreciation expense (per $100 of gross aircraft value) prior to July 1‚ 1986; from July 1‚ 1986 through march 31‚ 1993; and from April 1‚ 1993 on ? (b) For Singapore‚ what was its annual depreciation expense (per $100 of gross aircraft value)
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problems with the topics that may have been experienced. Below is a summary of Team D’s discussion for Week Two. Objective 2.1 Differentiate among accounts payable‚ notes payable and accrued expenses. The team’s objective was first to differentiate and explain accounts payable‚ notes payable and accrued expenses. As discussed‚ accounts payable is the money owed to suppliers by the company. Most companies pay their invoices in thirty days‚ so they do not accrue any interest. Notes payable was defined
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direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false‚ briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. True b. Depreciation expense is added back to net income when the indirect method is used. True c. One
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000 Less: Reserve for Bad Debts $0 $86‚000 $86‚000 Merchandise Inventory $429‚000 Prepaid Expenses $26‚000 Notes Receivable $0 Total Current Assets $1‚971‚000 $1‚971‚000 Fixed Assets: Vehicles $63‚000 Less: Accumulated Depreciation $27‚750 $35‚250 $35‚250 Furniture and Fixtures $435‚000 Less: Accumulated Depreciation $186‚000 $249‚000 $249‚000 Equipment $634‚000 Less Accumulated Depreciation $214‚000 $420‚000 $420‚000 Total Fixed Assets $704‚250 $704‚250 Other Assets: Goodwill $0
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7‚000 Accounts receivable . . . . . . . . . . . . . . . . . . . 16‚500 Office supplies . . . . . . . . . . . . . . . . . . . . . . 2‚000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170‚000 Accumulated depreciation—Trucks . . . . . . . . 35‚000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75‚000 Accounts payable . . . . . . . . . . . . . . . . . . . . .
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