cents. ___C___ Preparing accounting reports. ___C __ Reporting information in a standard format. ___I__ Selecting economic activities relevant to the company. ___R__ summarizing economic events. Exercise E1-5 Meredith Cleaners has the following balance sheet items. Accounts payable Incorrect Liabilities Accounts receivable Correct Assets Cash Correct Assets Notes payable Incorrect Liabilities Cleaning equipment Incorrect Asset Salaries payable Incorrect Liabilities
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outstanding balance of $2,706.54. Clint Maddox mentioned that RedPack would not let this receivable go uncollected and that a collection agency would be used to collect the balance. Based on the normal arrangements with the collection agency, RedPack would receive 50% of the collection they receive from the customer. Therefore, to remain consistent with RedPack’s conservative approach, I believe that Golden Holdings reserve should be increased by $1,353.47 (half of their current outstanding balance). In
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that is one year in length is A. | a calendar year. | B. | a fiscal year. | C. | an interim period. | D. | a quarterly period. | | 6. | The revenue recognition principle dictates that companies recognize revenue in the accounting period in which payment is received. A. | True | B. | False | | 7. | The revenue recognition principle dictates that revenue should be recognized in the accounting records A. | when cash is received. | B. | when performance obligation is satisfied. |
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February 23, 2015 1. Recognition of normal balances The following items appeared in the accounting records of Triguero’s, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company’s viewpoint. Also indicate the normal account balance of each item. Classification Normal Balance A. Amounts paid to a mall for rent
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standard format. ___I__Selecting economic 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
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Week 8 : Final Exam - Final Exam ------------------------------------------------- Top of Form Time Remaining: | | Page: 1 2 | Page 1 1. (TCO F) The price earnings ratio is affected by _____. (Points : 3) | net income preferred dividends market price per share All of the above | 2. (TCO G) Which of the following is not a factor needed to calculate the present value of a bond? (Points : 3) | The contractual interest rate The length of time until the amounts are
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CHAPTER 5 Revenue Recognition after Delivery * Assumes we are able to make reasonable estimates of amounts due from customers that potentially might be uncollectible. * For product sales this also includes amounts not collectible due to customers returning the products they purchased. Installment Sales * Increasing the length of time allowed for payment usually increases the uncertainty about whether the store actually will collect a receivable * The increased uncertainty concerning
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December 31, 2008, Anders Company has assets of $35,000 and stockholders' equity of $20,000. What are the liabilities for Anders Company as of December 31, 2008? a. $15,000 b. $10,000 c. $25,000 d. $20,000 _____ 5. A credit is not the normal balance for which account listed below? a. Common stock account b. Revenue account c. Liability account d. Dividend account _____ 6. An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done
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Learning Objective 1: Apply the recognition criteria for revenues and expenses Revenue Recognition Revenue should be recognized when it has been earned 1. Entity should have completed or performed the majority of the tasks related to the sale 2. The amount of the sale is known 3. There is reasonable assurance that the amount earned will be collected Record revenue equal to the cash value of the goods or service transferred to the customer Recognition criteria for expenses Expenses
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8/4/13 Chapter 1 Results 36% (9 out of 25 correct) Responses to questions are indicated by the symbol. 1. Corporations generally receive more favorable tax treatment than sole proprietorships and corporations. A. True B. False Correct! Sole proprietorships and partnerships generally receive more favorable tax treatment than corporations. 2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation This
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