99‚000. C) $ 67‚000. D) $131‚000. E) $198‚000. Answer: C Calculation: Equity = $99‚000 - $32‚000 = $67‚000 2. A debit is: A) An increase in an account. B) The right-hand side of a T-account. C) A decrease in an account. D) The left-hand side of a T-account. E) An increase to a liability account. Answer: D 3. Accounting is an information and measurement system that: A) Identifies business activities. B) Records business activities. C) Communicates
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Course Project This paper analyzes a fictional privately held company‚ Smackey Dog Foods‚ Inc. as well as its fictional auditor‚ Keller CPAs. The analysis is based on a Keller Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence‚ audit planning‚ audit stages‚ internal controls‚ confirmations‚ sample size‚ obtaining evidence‚ inventory‚ warehousing cycles‚ Professional Rules of
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$66‚000 Δ Bad debt expense (on incremental sales only) Policy one 1.75% ($800‚000) (14‚000) New policy 2.0% ($1‚100‚000) (22‚000) Δ Investment in accounts receivable (incremental sales only) Policy one $800‚000 × 50/365 = $109‚589 Policy two $1‚100‚000 x 65/365 = $195‚890 Δ Opportunity benefit on investment in accounts receivable at 16% Policy one: $109‚589 × 16% = (17‚534) Policy two: $195‚840 × 16% = (31‚342) Total incremental change $ 16‚466 $ 12‚658 Both
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Classmates‚ According to (Oster‚ 2014)‚ "Percentage of receivables and percentage of sales are two accounting allowance methods used to reconcile customer accounts deemed noncollectable. When allowed by generally accepted accounting principles (GAAP)‚ these two strategies are preferred over direct write-off of bad debt expenses. Percentage of receivables and percentage of sales provide a business with the ability to accurately estimate the expected bad debt losses they will have in each succeeding
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Required a. Calculate purchases‚ gross margin‚ inventory turn days‚ accounts receivable turn days‚ and accounts payable turn days for the years ended 20x2‚ 20x3‚ 20x4‚ 20x5. Purchases 2002 = 2003 = 2004 = 2005 = Gross margin% 2002 = 2003 = 2004 = 2005 = Inventory Turn-over days 2002 = 2003 = 2004 = 2005 = Accounts Receivable Turn-over Days 2002 = 86.43 2003 = 88.51 2004 = 87.30 2005 = 76.83 Accounts Payable Turn-over Days 2002 = 2003 = 2004 = 2005 = b. Describe
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October 30 of units 40 60 20 62 28 Cost per unit $ 1‚000 1‚100 1‚150 1‚200 1‚300 6. Each company sold 160 units for $398‚500 during the year. All sales were on credit; 90 days‚ same as cash. Management has not yet determined how inventory and cost of goods sold will be valued. This year management will use the periodic inventory system and record cost of goods sold at the end of the year. Therefore‚ record the sales piece of this transaction
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liquidity and its application in a balance sheet. A company’s balance sheet includes both current and non-current assets. The current assets are defined as the total sum of: * Cash and cash equivalents – Cash in hand or cash at bank * Accounts receivables – Amount that is expected to be collected from the customers within the current accounting cycle * Inventory – Goods or material in-stock or under processing which can be sold and converted into cash * Marketable securities – Very
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statement. Assumptions (Balance Sheet) 6. Accounts Receivable Assumption is okay since there is no reason to expect a change in customer behavior and sales are the same as the previous year 7. Investments in Plant increase by $3‚000‚000 during the first 2 months of the forecast. This assumption is reasonable as it is predicated that the modernization project will be completed in August. No other investments are expected to be needed. 8. Accounts Payable‚ he assumes a 30-day payment period
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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 Feb‚ although the service has received on Jan. The advantages of cash basis accounting are‚ easy to learn‚ less time consuming to handle‚ cash
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payments include cash received at the time of purchase and account payments received in the mail. At day’s end‚ the treasurer endorses all checks and prepares a deposit slip for the checks and the cash. A clerk then deposits the checks‚ cash‚ and deposit slip at the local bank each day. When checks are received as payment for accounts due‚ a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are
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