EXPENDITURE CYCLE * AUDIT OBJECTIVES *CONTROLS * TESTS OF CONTROLS Note: in Achieving these audit objectives requires designing audit procedures to gather evidence that either corroborates or refutes management assertions. Expenditure Cycle Activities & Technologies • Purchases & Cash Disbursement System * DATA PROCESSING Department: Step 1: Purchasing Department Step 2: Receiving Department Step 3: Accounts Payable Department Step 4: Cash Disbursement Department AUTOMATED SYSTEM EFFECT: * Improved
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points out two common problems in capital structure research. First, although it is not clear whether non-financial liabilities should be considered debt, they should never be considered as equity. Yet, the common financial-debt-to-asset ratio (FD/AT) measure of leverage commits this mistake. Thus, research on increases in FD/AT explains, at least in part, decreases in non-financial liabilities. Future research should avoid FD/AT altogether. The paper also quantifies the components of the balance sheet of
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Team Case Assignment #1: WorldCom (Due Date: Monday, September 14) Bernard “Bernie” Ebbers and other founders started Long Distance Discount Service, a small Mississippi reseller of long-distance service. LDDS changed its name to WorldCom Inc., with Ebbers as CEO. WorldCom provides a broad range of communications services to both US and non-US based business and consumers. The company’s core business is communications services, which include voice, data, Internet and international services.
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How the Equity Method Relates to Consolidated Financial Statements As we'll see, the equity method is in many ways a partial consolidation. If a company acquires more than 50% of the voting stock of another company, it's said to have a controlling interest, because by voting those shares, the investor actually can control the company acquired. The investor is referred to as the parent; the investee is termed the subsidiary. For reporting purposes (although not legally), the parent and subsidiary
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CHAPTER 9 [pic] Current Liabilities, Contingencies, and the Time Value of Money OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in Learning Objective Exercises Minutes Level 1. Identify the components of the current liability category of 1 10 Easy the balance sheet. 2 10 Easy 3 10 Easy 2. Examine how accruals affect the current liability category. 4 20 Mod 5 15 Mod 6 10 Mod 7 15 Mod 8 15 Mod 3. Demonstrate an understanding of
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Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also
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You Are an Entrepreneur! Kristina Walters Dr. Chad Greenfield ACC557 – Financial Accounting 8/11/2013 1. EXECUTIVE SUMMARY 1.1 Product Sunshine Bakery is a new bakery specializing in gluten, wheat free products. Due to the rise in celiac disease there has been a significant increase in demand for these bakery products. For many years food allergies went undiagnosed and only recently doctors have started to diagnose food allergies such as gluten. Sunshine Bakery wants to help people
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monkey Ex2. Jennifer is the eldest gymnast EX5. a. A general ledger contains all the assets, liabilities and owners’ equity accounts b. The purpose of a trial balance is to prove that debits equal credits, but does not prove that all transaction have been recorded. C. the current assets section of the balance sheet contains items such as cash, Accounts receivable, and prepaid expensive and the current liabilities section contains items such as accounts payable, Notes payable and short term debt. d. The
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Basant Agro Tech (India) Limited Quarterly Update – Oct – Dec 2012 05 April 2013 Company business Basant Agro Tech (India) Limited is engaged in the manufacturing, marketing and distribution of NPK mixer granulated fertilizers (NPK: Nitrogen, Phosphorus and Potassium), Single Super Phosphate (SSP Fertilizer) and hybrid seeds. The seeds division of the company produces vegetables, field-crops and oil-seeds and is engaged in the research and development of various hybrid seeds. Basant Agro
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May 29, 2013 IN CLASS Ratios: comparison between * Companies * This year/last year Time series analysis – year by year performance in same company Cross-sectional analysis – comparison with different companies Bench mark analysis – there is a standard to compare to * High, medium, low risk 4 major categories of ratios * Probability * Liquidity * Stability or debt ratio – debt compared with equity * Profitability of growth -------------------------------------------------
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