Financial Accounting Chapters 1,2,3 Double Entry Accounting- each business transaction has dual effects. As a result, every transaction affects at least two accounts. One Debit and One Credit ACCOUNT | Debit | Credit | Assets | + | - | Expenses | + | - | Dividends or Withdrawals | + | - | Revenue | - | + | Liabilities | - | + | Capital | - | + | Retained Earnings | - | + | Normal Balance- side the account increases Contra Account- has a normal balance opposite of its companion
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5. At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be 6. The Merchandise Inventory account is used in each of the following except the entry to record 7. On a classified balance sheet, merchandise inventory is classified as 8. The Sales Returns and Allowances
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are using inventory systems for their success and growth. Inventory systems have a variety of functions purposes in businesses. Promoting the sales and shrinkage control are two main functions of inventory system. Promoting the sales function deals with availability of sufficient products for the customers whereas shrinkage control function deals with monitoring the occurrence of damage loss, or theft, etc. of the products. Another very important function of inventory control systems is asset valuation;
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which of the ff circum is 8 least likely that tests of contr will b perform-the expected deviation rate exceeds the tolerable deviation rate.;-10-An auditor needs to estimate the average highway weight of tractor-trailer trucks using a state’s highway system. Which estimation mth would b most appropria?-mean-per-unit;-11-The auditors have sampled 50 a/cs 4m a pop of 1,000 AR. The sample items have a mean bk value of $200 n a mean audited value of $203. The bk value of the pop is $198,000. What is the
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Detailed Scheduling and Planning Terminology Action message | An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action message in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report. | Activation | Putting a resource to work | Aggregate planning | A process to develop tactical plans to support the organization’s business plan. Aggregate
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deposit with a bank, negotiable checks, and bank drafts) Cash equivalents- short term highly liquid investments that are readily convertible into known amounts of cash. Cash planning systems- methods and procedures that a company uses to ensure that it has adequate cash available to meet maturing obligations. Cash control systems- methods a company uses to safeguard its funds. Cash budget- a plan of cash activity that forecasts cash receipts and payments, and identifies when the company might have too much
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SUBJECT: PRODUCTION AND MATERIAL MANAGEMENT TOPIC: WAREHOUSING AND STORES MANAGEMENT Presenter Sr. No. | NAMES | ROLL NO. | 1 | | | 2 | | | 3 | | | 4 | | | GROUP NO: 07 INTRODUCTION Receiving and storing are important flow control activities in the materials management chain. In industries, materials have to be stock to meet the consumption requirements during the lead time or during extension of lead time due to delays by
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Inventory Valuation Methods and Ethical Considerations Gary Varnell Capella University MBA 6014 Financial Accounting Professor Laurent Bobda Introduction Net income results, reported in the financial statement presentation, can be affected by the inventory reporting methods used. First-In, First-Out (FIFO), Last-In, First-Out (LIFO,) and weighted average methods each have their own implications during periods of inflation and deflation. This paper is designed to analyze and discuss the Generally
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Accounting 2301 – Practice Questions for Exam #2 1. Mahler Company began the accounting period with a $5,000 debit balance in its accounts receivable account. During the accounting period Mahler recorded revenue on account amounting to $17,000. The accounts receivable account at the end of the accounting period contained a $8,000 debit balance. Based on this information alone, the cash collected from accounts receivables during the period is A) $14,000 B) $17
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* Decision Support * CVP analysis * Performance evaluation * Incremental analysis * Budgeting * Capital allocation * Earnings per share * Ratio analysis * Basic Functions of an Accounting System * Interpret and record business transactions * Classify similar transactions into useful reports. * Summarize and communicate information to decision makers. * Objectives of Financial Reporting (general to specific)
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