reference to any objective standard (reliability); and 3). comparisons among companies in the same industry would become more problematic (comparability). The costprinciple under US GAAP requires companies to account and report most assets and liabilities at cost rather than fair market value(“FMV”).Cost is the purchased price, while FMV refers to the price at which the asset would change hands between a willing buyer and a willing seller, neither being under a compulsion to buy or to sell and both
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Lemonade Stand According to the text book economics is “the study of how best to allocate scarce resources among competing uses” (Larson et al, 2007. p. 340). The United States continued search for stronger prosperity continues to grow. Each business wants to grow stronger and to do so they need to continue to produce more goods and service. By utilizing their various financial statements they will be able to develop an Economic Profit report which will show them how they are failing or growing
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Accounting Summary Report Angelique Gares BUS599 Introduction to Quantitative Principles Dr. Raju Singh April 12, 2010 . This report is the study of a six day season of a company Tropical Thirst’s lemonade stand and to create a journal of its transactions and produce an income statement and balance sheet into the operation of the business. The summary report will explain the nature of the business based on the number as it relates to the health of the operation. Based on the findings of the
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activities relevant to the company. __ R__Summarizing economic events. Instructions Classify each item as an asset, liability, or stockholders’ equity. E1-5 Meredith Cleaners has the following balance sheet items. Accounts payable Accounts receivable Cash Notes payable Cleaning equipment Salaries payable Cleaning supplies Common stock ASSETS LIABILITY STOCKHOLERS’ EQUIT Accounts receivable Accounts payable Common Stock Cash Notes payable Cleaning equipment
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Consolidated Statement Final Quiz Boston and Celtics formed a business combination on January 1, 2008, when Boston acquired 80 percent interest in the common stock of Celtics for P580,000. At the date, the difference between fair values over the book values of interest acquired is allocated to the following assets. |Inventories |20,000 |25% were still unsold year ended 2008. | |Building |200,000
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at what date to help manage this account. This would also be listed on the Statement of Cash Flow report. The Balance sheet will tell me where the company is right at this moment. This will allow me to see how much the company has in assets, liabilities, and equity. If a large purchase needs to be made, I would know how much is available. I will need this information to discuss with the CEO of the company. The Income statement will keep the investors in tune with what is happening to the
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Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep. Net Fixed Assets Total Assets Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock (100,000 shares) Retained earnings Total common equity Total liabilities and equity Income Statements 2011 7395000 0 5089000 36318000 48802000 107878000 0 107878000 156680000 2010 7907000 0 4144000 32713000 44764000
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___________________________________________________________________________ On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows: 1. Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25,000. C. $70,000. D. $45,000
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Leasehold improvements * Accounts payable * Manufacturing expenses * Selling and administrative expenses Processing Purchase Orders: -Purchase requisition -Purchase order Receiving Goods and Services -Receiving Report Recognizing Liability: -Vendor’s invoice -Debit memo -Voucher -Acquisitions transaction file -Acquisitions Journal/lisintg -AP master file -AP trial balance -Vendor’s statement Processing and recording Cash Disbursements: -Check -Cash disb. Transaction file -Cash disb
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indicates that the current assets are insufficient to pay off current liabilities and, if needs be, PCSC many have to look to other assets to pay off current liabilities. This is not a healthy situation to be in but is not an indication of bankruptcy. This ratio has dramatically improved over the last 5 years which is a healthy sign. The ratio has been very close to 1 over the last 3 years indicating that the current assets and liabilities are close to equal in value; this is approaching a more healthy
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