Each old PC sold was Rs 1000 and each new PC was bought for Rs 2000. The PCs were sold for cash and were purchased for cash. Owing to this transaction‚ how much should Charlie Corporation’s Fixed Asset account change for this year? You may ignore depreciation. Answer :
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ACC/422 final exams http://www.finalexamguideline.com/main.sc 1) Which of the following is NOT considered cash for financial reporting purposes? 2) What is the preferable presentation of accounts receivable from officers‚ employees‚ or affiliated companies on a balance sheet? 3) Which of the following is considered cash? 4) If a company employs the gross method of recording accounts receivable from customers‚ then sales discounts taken should be reported
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Chapter 14 Statement of Cash Flows Solutions to Questions 14-1 The statement of cash flows highlights the major activities that impact cash flows and hence affect the overall cash balance. 14-2 Cash equivalents are short-term‚ highly liquid investments such as Treasury bills‚ commercial paper‚ and money market funds. They are included with cash because investments of this type are made solely for the purpose of generating a return on temporarily idle funds and they can be easily converted to
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Accountancy Department College of Business and Accountancy Notre Dame University Cotabato City‚ Philippines CPA – MOCK BOARD EXAMINATION AUDITING PROBLEMS MR. RONALD GERMO MAMARIL INSTRUCTION: Select the correct answer for each of the following questions. Mark only one answer for each item by shading the box corresponding to the letter of your choice on the sheet provided. STRICLY NO ERASURES ALLOWED. Use pencil no. 1 only. CASE 1: STOCK INVESTMENT IN SAN
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22 Accounting Changes and Error Analysis 22-1 Accounting Changes and Error Analysis Accounting Changes Error Analysis Changes in accounting policy Changes in accounting estimate Balance sheet errors Income statement errors Balance sheet and income statement effects Change in reporting entity Correction of errors Summary Motivations for change of method 22-2 Comprehensive example Preparation of statements with error corrections Changes in Accounting Principle
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Module 6 Reporting and Analyzing Operating Assets QUESTIONS Q6-1. When a company increases its allowance for uncollectible accounts‚ it also records bad debt expense in the income statement. If a company overestimates the allowance account‚ bad debt expense is too high and net income is understated. As well‚ accounts receivable (net of the allowance account) and total assets are both understated on the balance sheet. In future periods‚ the company will not need to add as much to its allowance
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June 2011 Depreciation Expense Accumulated Depreciation (Record depn @ 800‚000/4 useful life) 200‚000 30 June 2011 Accumulated Depreciation Part A 200‚000 Part A Revaluation Increment (Gain) (Revalue Part A to $690‚000) 200‚000 200‚000 90‚000 90‚000 1 July 2010 Part B Cash (Purchase of Part B) 500‚000 500‚000 30 June 2011 Depreciation Expense 100‚000 Accumulated Depreciation (Record depn @ 500‚000/5 useful life) 30 June 2011 Accumulated Depreciation Part B
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Financial Statement: A Summary report which quantitatively describes the financial health of a company Purpose of financial Statement: The objective of financial statements is to provide information about the financial position‚ performance and changes in financial position of an enterprise to the shareholders and lenders. it is useful to a wide range of users in making economic decisions. Components of Financial Statement: Profit & Loss Statement / Income Statement Retained earnings
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The factory overhead budget for the year was budgeted at $481‚798 less $150‚000 depreciation. Total depreciation over the last three years has remained at $130‚000 per year for the past three years as identified on the company’s balance sheets. Therefore setting depreciation at $150‚000 for the 9th year is too high without identifying any new major purchases that would add to this depreciation. Even though depreciation is not actual cash flow it does define the reduction of company assets and should
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represents the total of the plant‚ property‚ and equipment that Palfinger has. This number should be recorded as the historical cost that the plant‚ property and equipment was purchased at. This total number also has the total sum of amortized depreciation subtracted out to get the net amount of PP&E that is put on the balance sheet c.) In the notes to the financial statements‚ Palfinger reports the plant‚ property and equipment of the following: • Land and equipment • Undeveloped
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