liberal credit policy to increase sales‚ but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales‚ production and selling costs are 78 percent‚ and accounts receivable turnover is five times. Assume income taxes of 30 percent and an increase in sales of $80‚000. No other asset buildup will be required to service the new accounts. a. What is the level of accounts receivable needed to support this sales expansion? Answer- Level needed is [pic]
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different results. This differences occurs when an asset or liability is not recognized in the account even though benefits or obligations may result from the transaction or oppositely. (www.ventureline.com) SEPARATE DETERMINATION Separate determination concept holds that each component of any category of assets or liabilities should be valued separately when arriving at a total to be shown in the accounts for that category. For example‚ the value of each stock item should be calculated individually
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Interest Expense 600 Interest Payable 600 ______ 2. Interest Payable 600 Cash 600 ______ 3. Interest Receivable 1‚400 Interest Earned 1‚400 ______ 4. Cash 1‚400 Interest Receivable 1‚400 ______ 5. Depreciation Expense 1‚600 Accumulated Depreciation 1‚600 ______ 6. Supplies
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Robert Buckman 7/28/10 Using a Cash Budget for Planning Purposes Introduction Let me begin by explaining what a cash budget is. A cash budget is a tool that helps individuals and companies forecast a short term financing needs. Investopedia defines a cash budget as‚ “an estimation of the cash inflows and outflows for a business or individual for a specific period of time.” (Cash Budget) A cash budget is used to determine the borrower’s ability to generate cash and repay debt. A cash budget also
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type of transaction or accounting adjustment. It contains space for dates and for accounts to be debited and credited‚ columns for the amounts of the debits and credits‚ and a posting reference column for numbers of the accounts that are posted. Most companies have electronic journals but the basics are the same. Q3-3. Posting means including the transaction amount in the affected general ledger accounts. This procedure enables company personnel to trace amounts in the ledger back to the
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EXECUTIVE SUMMARY The purpose of writing this report is to analyse and to compare relevance of data of the ARI (ARRIUM LIMITED) with the context of various financial ratios and to give suitable recommendation to potential new investor UNO Super fund Management. Discussion of the topic starts with the core business of the company with the all financial background. The report also summarise the way the fund generated by the company and the capital investment by the company. The nucleus of the report
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or by a donor agency or when otherwise necessitated by circumstances subject to prior approval of the Commission. Wednesday‚ March 6‚ 13 Chart of Accounts and Account Codes • A new chart of accounts and code structure with a three-digit account numbering system shall be adopted. Wednesday‚ March 6‚ 13 Books of Accounts • All national agencies shall maintain two sets of books‚ namely: • Regular Agency (RA) Books. • National Government (NG) Books. Wednesday‚ March 6
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------------------------------------------------- PROFESSIONAL EXPERIENCE VANGUARD‚ New York‚ NY 7/2008-12/2008 Bookkeeper Temporary-Assignment Process all Accounts Payable and Accounts Receivable. Daily and monthly statements. Maintained Inventory. Oversee daily office operations. Maintaining general ledger‚ preparing monthly cash flow statement‚ check register‚ balance sheet‚ including
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that the entity will remain in operation for the foreseeable future. 2. All of the following are characteristics of useful accounting information‚ EXCEPT: a. informative b. reliable c. consistent d. relevant 3. A company paid off $45‚000 of its account payable in cash. What would be the effects of this transaction on the accounting equation? a. Assets‚ $45‚000 increase; Liabilities‚ no effect; Equity‚ $45‚000 increase. b. Assets‚ $45‚000 decrease; Liabilities‚ $45‚000 decrease; Equity‚ no effect
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in payment of an amount owed. The effect of the transaction on the accounting equation was to a. increase an asset‚ increase owner’s equity b. increase an asset‚ increase a liability c. decrease an asset‚ decrease a liability (Debit ’Accounts Payable’ $7‚000 (decreases a liability) Credit ’Cash’ $7‚000 (decreases an asset) d. increase one asset‚ decrease another asset CHAPTER 2 5. Revenue should be recognized when a. the customer charges an order b. the customer places
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