Comparing Accounting Software Programs to Manual Accounting Manual accounting uses several paper ledgers to record financial transactions. It is very time consuming to record each single transaction onto paper‚ being very cautious not to make an error. There are several ledgers for each part of the accounting system‚ such as accounts payable‚ accounts receivable‚ and revenue accounts. Combining these ledgers into one general ledger‚ provide the balance for each ledger. The general ledger
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500 of supplies on acount from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2‚100 for services provided. 12 Received $3‚500 advance on a management consulting engagement . 17 Received cash of $1‚200 for services completed for H. Arnold Co. 31 Paid Secretary-receptionist $2‚000 salry for the month. 31 Paid 40% of balance due Read Supply Company. Jane uses the following chart accounts:
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1. | Question : | Li Retailing reported the following items for the current year: Sales = $3‚000‚000; Cost of Goods Sold = $1‚500‚000; Depreciation Expense = $170‚000; Administrative Expenses = $150‚000; Interest Expense = $30‚000; Marketing Expenses = $80‚000; and Taxes = $300‚000; Li’s operating profit margin is equal to | | | Student Answer: | | 25.67% | | | | 35.67% | | | | 36.67% | | | | 50.00% | | Instructor Explanation: | Operating Profit Margin = EBIT/Sales
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2.0 Ratio analysis The next will introduce the Mulberry’s and its competitor—Burberry’s financial ratios from their financial statements from 2010-2012. 2.1 Profitability analysis 2.1.1 Net profit margin Table 2.1 Mulberry and Burberry’s net profit margin Net profit margin | 2010 | 2011 | 2012 | Mulberry | 4.12% | 14.03% | 15.02% | Burberry | 6.42% | 13.74% | 14.27% | Data source: Mulberry’s and Burberry’s 2010-2012 annual reports From Table 2.1 it can find that Mulberry’s net profit
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Financial Accounting and Reporting Case: America Online 1. What accounting approach has AOL used in the past that it is now changing (related to the $385 million)? AOL‚ prior to October 1‚ 1996‚ recorded the expenditure related to subscribers acquisitions as an asset and amortized monthly over a period < 24 months. This was a strongly criticized approach. Furthermore‚ the accounting approach in the article is considered aggressive. In October 1996‚ they discontinued capitalizing customer acquisition
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Learning Task Number Four The Henry Furniture Co. is a new company and has numerous fixed assets that need to be depreciated. You can help Henry by determining the depreciation rates for the assets and the amount of depreciation for year one. The assets were purchased at various times during the year (hint: watch out for the dates). The following assets will be held by the company for at least the next two years (In other words‚ year two will be a full year for all of the assets). Please fill
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operations and performance of a company are termed as stakeholders of that company. A list of possible stakeholders of a company may include employees‚ company management‚ company suppliers‚ stockholders‚ customers‚ distributers and local society. All the above discussed stakeholders look for different kind of information in the annual books of the company. The internal management of the company try their level best to boost the revenues and profitability of the organization‚ company suppliers generally look
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Chapter 1: Overview—The Financial Statements Chapter 1 introduces the four financial statements--Income Statement‚ Statement of Retained Earnings‚ Balance Sheet‚ and Statement of Cash Flows. Accounting as the language of business is discussed along with an introduction of the various users of accounting information. Financial and Managerial accounting are compared. The four ways to organize a business – proprietorship‚ partnership‚ limited – liability company‚ and corporation‚ are discussed
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me some value in the future - So Cash and Accounts Receivables are assets‚ and so are machines‚ buildings‚ etc. FINANCIAL STATEMENTS The income statement reflects conditions over a period of time (say Q1 2013)‚ while the Balance sheet reflects the state of the business at a specific point in time (say‚ at end of Q1 2013) Equity is what the owners/stakeholders of the company really have‚ of value. Equity = Assets - Liabilities Asset: Anything that will give me value in the future Liability:
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decision that test this code. One of the elements that many believe distinguishes a profession from other occupations is acceptance by it members of a responsibility for the interest of those it serves. . Accounting ethics is a field of professional ethics which pertains specifically to accounting. For the public to rely on the information provided there must be a level of confidence in the knowledge and behavior of accountants. The nature of the accountants’ work puts them in a special position of
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