1. Arredondo‚ Inc. has current assets of $2‚170‚ net fixed assets of $9300‚ current liabilities of $1350‚ and long-term debt of $3980. Building a balance sheet for this company‚ address the following questions: a. What is the value of the shareholders’ equity account for this firm? b. How much is net working capital? Arredondo‚IncBalance Sheet | Assets Liabilities and Owener`s EquityCurrent assets $2‚170 Current
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More Practice for the Final Exam Adjusting Entries Key _____ 1. Accruals occur when cash flows: A) Occur before expense recognition. B) Occur after revenue or expense recognition. C) Are uncertain. D) May be substituted for goods or services. Answer: B _____ 2. An example of a contra account is: A) Depreciation expense. B) Accounts receivable. C)
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The Accrual basis of accounting is far superior to the Cash basis of accounting. Discuss. The difference between accrual and cash basis of accounting is cash basis accounting recognizes revenues and expenses depends upon on timing. Cash basis accounting is simple‚ recognizes revenues when cash is received and recognizes expenses when cash is paid out only. It does not record accounts payable or receivable. For example‚ paid a service invoice on Feb‚ the expenses will be recognized as expenses on
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earns less profit after operating expenses and taxes for each dollar of sales than its competitors. Best Buy superior NOAT shows that the company uses its operating assets more efficiently than its competitor. For each dollar of net operating assets‚ best buy generates $6.83 in sales. Best buy has a RNOA higher than the industry average due to efficient use of operating assets. d) Net Non-operating obligations (NNO)= Non-operating liabilities – Non-operating assets * NNO2011= 441+557+711-(1103+22)+690
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they work completely different and they are using two different strategies. I think Netflix has much better strategy than Blockbuster competitor. Netflix has complete development network. They developed Development Kit for developers where you can use their API functions and integrate their service wherever you want. So‚ it is not coincidence we have Netflix on each TV as application channel. It is not coincidence we have Netflix everywhere; in WII‚ Xbox‚ PlayStation‚ Google TV‚ Apple TV‚ inside
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1. | ch01001 | | Financial accounting information is: | | | Student Response | Value | Correct Answer | Feedback | A. | Designed to assist investors and creditors. | 100% | | | B. | Not used by managers and in income tax returns. | | | | C. | Called "special-purpose" accounting information. | | | | D. | Not applicable to individuals. | | | | | Score: | 2/2 | | | 2. | ch01003 | | Generally accepted accounting principles: | | | Student Response |
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Cash basis accounting predicts a periodic measure of performance that is used to predict future cash flows. This is the difference between cash receipts and cash payments from transactions related to providing goods and services during a reporting period. “Revenue is recognized when cash is received and expense is recognized when cash is paid”. ("Accrual basis accounting‚"). “When transactions are recorded on a cash basis‚ they affect a company’s books only once a completed exchange of value has
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University ACC 403 Mod 1 CA March 8‚ 2013 Part I. Generally Accepted Accounting Principles (US GAAP) The common set of accounting principles‚ standards and procedures that companies use to compile their financial statements are called Generally Accepted Accounting Principles. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. “Published accounts have to follow the GAAP for
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Cash Basis vs. Accrual Basis Accounting Cash basis accounting and the accrual basis accounting are two accounting methods used to keep track of a business’s income and expenses. In accrual basis accounting‚ revenue is recorded as it is earned and expenses are recorded when they generate revenue. Under cash basis accounting‚ only transactions involving increases or decreases of the entity’s cash are recorded. One of the major differences is the reporting of net income and net cash flows
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Demo Homework Chapter 1 Demonstration Problem 1-2 Effect of Product and Period Costs Klyn Manufacturing Company experienced the following accounting events during its first year of operation. Except for the depreciation adjusting entries‚ all transactions are cash transactions. 1. Acquired $50‚000 cash from the issue of common stock. 2. Paid $6‚800 for the materials that were used to make its products. All products started were completed during the period. 3. Paid salaries of $4‚300
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