COGS $65,000 Purchases $71,000 Bal Dec 31, 2010 $85,000 Accounts payable Cash payments $68,100 Bal Dec 31, 2009 $32,700 Purchases $71,000 Bal Dec 31, 2010 $35,600 Question 2 Jill’s Bikes Comparative balance sheet For Years Ended December 31, 2011 and 2010 (In thousands) 2011 2010 Difference % Assets Current Assets Cash and Equivalents $72 $94 $(22) -23.4% Accounts Receivable, net $122 $104 $18 17.3% Inventory
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Leasing Customer Inserts His/her Name Customer Inserts Name of Tutor Customer Inserts Grade/Course (December 11, 2011) Outline ➢ Introduction ➢ Changes in Leasing accounting ➢ Effect of the changes on the industry ➢ Conclusion A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a certain time. Leasing is
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stated that a monetary report show the monetary account of an organization from beginning to end, a cash flow statement, income statement and the balance sheet (Gapenski, 2008). This statement identifies the financial stability of the organization and includes but not limited to the cash flow statements, income statement, and the balance sheet. The organization’s financial reports show a considerable differentiation between 2008 and 2009. Based on the examination performed for Patton Fuller Community
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Receivable - Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. 5. Notes Receivable - A note receivable is a formal promise to receive a specific amount of cash from another party on one or more future dates. 6. Current Assets - A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could
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GLOSSARY OF FINANCIAL TERMS Absorption costing A costing approach in which all manufacturing costs are charged to the product. | Absorption-cost pricing An approach to pricing that defines the cost base as the manufacturing cost; it excludes both variable and fixed selling and administrative costs. | Accelerated-depreciation method Depreciation method that produces higher depreciation expense in the early years than in the later years. | | Account A record of increases and decreases in
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Journalizing, Posting, and Preparing a Trial Balance Below please find the explanation of our finances for the month of May: On the first of the month our stockholders invested $25,000 cash in exchange for common stock. The company needed a secretary to handle all administrative duties and we hired for this position which salary will be $2,000 monthly. Supplies were needed from Read Supply Company which incurred an expense of $2,500. The rent for our offices is $900. In addition, we were
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money owed to a business by its clients (customers) and shown on its Balance Sheet as an asset.[1] It is one of a series ofaccounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. ------------------------------------------------- Accounts payable Accounts payable, also known as Creditors, is money owed by a business to its suppliers and shown on its Balance Sheet as a liability. An accounts payable is recorded in the Account Payable sub-ledger
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Liquidity ratios Liquidity ratios measure the ability of a company to repay its short-term debts and meet unexpected cash needs. Current ratio. The current ratio is also called the working capital ratio, as working capital is the difference between current assets and current liabilities. This ratio measures the ability of a company to pay its current obligations using current assets. The current ratio is calculated by dividing current assets by current liabilities.
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business entity has only one accounting cycle over its economic existence. 18. The accounting cycle begins at the start of a new accounting period. 19. Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account. 20. Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period. 21. An incorrect debit to Accounts Receivable instead of the
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3. Classification of Financial Instruments lassification of financial instruments and identification of their nature is one of the most important phases for compilation and presentation of monetary statistics. Like other classifications used in monetary statistics, it is also advisable here to follow international standards that would help to make statistics comparable across countries’ and ensure its unity. In carrying out classification, there will be a need to consider features of a country’s
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