CHAPTER 3 The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. Transaction identification. Nominal accounts. Trial balance. Adjusting entries. Questions 1, 2, 3, 5, 6, 7, 8 4, 7 6, 10 8, 11, 13, 14 3, 4, 5, 6, 7, 8, 9, 10 2, 3, 4 5, 6, 7, 8, 9, 10, 20 11, 12, 15, 22, 23 12 9 11 13, 14, 16 14, 15 1, 2, 6, 12 15, 16, 17 18 19 12 13 18, 19 20 21, 22, 23 12 11 1, 2, 7, 8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6 1, 4, 9, 10, 12 Brief Exercises 1, 2 Exercises
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12/10/13 Cash and Receivables Print this page ACCOUNTS RECEIVABLE 3. Define receivables and identify the different types of receivables. Receivables are claims held against customers and others for money, goods, or services. For financial statement purposes, companies classify receivables as either current (short-term) or noncurrent (long-term). Companies expect to collect current receivables within a year or during the current operating cycle, whichever is longer. They classify all other
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TechMall.com: Revenue Recognition in the Internet Economy MEMO To: Doug Liddle, President From: Sheri Brinker Date: March 11th, 2011 ------------------------------------------------- Re: Revenue Recognition As we approach the close of the fiscal year, the following issues should be addressed in regards to our current revenue recognition policy: the use of gross versus net revenue, the recognition of setup fees, and potentially the recognition of revenue from the sale
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for Energy Inc.’s environmental obligations, income tax and install smoke filters. BRIEF BACKGROUND OF COMPANY Energy Inc. (Energy) is a public company that operates in the oil industry. As of December 31, 2011, Energy recognized $ billion in revenue for the sale. Sometimes, Energy’s operations result in soil contamination and Energy should clean up this contamination when legislation requiring under the laws of the particular country. In addition, Energy has a widely published environmental policy
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International Financial Reporting 1 (a) 1. Consolidated income statement for the year ended 30 September 2005 Revenue (W1) Cost of sales (balancing figure) Gross profit (W2) Distribution costs (7,000 + 6,000 + (6,000 x 35% x 4/12)) Administrative expenses (8,000 + 7,000 + (7,200 x 35% x 4/12)) Operating profit Investment income (W3) Finance cost (W4) Profit before tax Income tax expense (7,000 + 1,800 + (3,600 x 35% x 4/12)) Profit for the period Attributable to Minority interest (4,200 x 20%) Alpha
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Water Company distributes its water softeners to dealers upon their request. The contract agreement states that dealers may have 90 days to sell and pay for the softeners. Until the 90-day period is over, any softeners may be returned at the dealer's expense and with no further obligations on the dealer's part. If the water softeners are damaged while in the hands of a dealer, Sea-Soft agrees to accept the return of the damaged softeners with no obligation to the dealer. Past experience indicates that
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Salaries payable Incorrect Liabilities Cleaning supplies Correct Assets Common stock Incorrect Stockholders equity Exercise E1-12 Income Statement Advertising expense $ 1,800 Rent expense 10,400 Utilities expense 3,100 Salaries expense 30,000 Service revenue 62,500 Retained Earnings Statement Retained earnings, January 1, 2008 $ 48,000 Dividends during 2008 6,000 Exercise E1-13 Mendez Company Balance Sheet December 31, 2008 Assets Liabilities
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IFRS vs. GAAP Accounting 290 IFRS vs GAAP The world has never been smaller than it is today. Technology has created ways to reach out to the far corners of the world that have never been possible in the past. This has made the transfer of information the easiest and fastest it has ever been. This revelation of information didn’t just make it easier for individuals to connect around the world, but business as well. Internationalization of business has never been stronger
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recognized and reported as they occur regardless of when cash is received or paid. 2. Revenues are recognized and reported when earned regardless of when cash is received. 3. Expenses are normally recognized in the period when it is incurred. 4. Requires recognition of accruals (accrued revenues and expenses) and deferrals (prepaid expenses and unearned income). 5. It attempts to better match revenues and expenses in determining the net income for an accounting period. 6. Adjustments are necessary
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record revenue, you should also record at the same time any expenses directly related to the revenue. Thus, if there is a cause-and-effect relationship between revenue and the expenses, record them in the same accounting period. Matching principle is relevant to the time period assumption. Revenue Recognition is an accounting principle under generally accepted accounting principles (GAAP) that determines the specific conditions under which income becomes realized as revenue. Generally, revenue is recognized
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