2 Conceptual Learning Objectives C1: Describe accounts receivable and how they occur and are recorded C2: Describe a note receivable and the computation of its maturity date and interest C3: Explain how receivables can be converted to cash before maturity
3 Analytical Learning Objectives A1: Compute accounts receivable turnover and use it to help assess financial condition
4 Procedural Learning Objectives P1: Apply the direct write-off and allowance methods to account for accounts receivable P2: Estimate uncollectibles using methods based on sales and accounts receivable P3: Record the receipt of a note receivable P4: Record the honoring and dishonoring of a note and adjustments for interest
5 C 1 Accounts Receivable Amounts due from customers for credit sales. Credit sales require: Maintaining a separate account receivable for each customer. Accounting for bad debts that result from credit sales.
6 C 1 Recognizing Accounts Receivable $20.5 Mil. Abercrombie & Fitch 2.7% Pfizer $5.785 Mil. 12% Skechers $97.4 Mil. 20% Huffy $92.9 Mil. 33% 0% 5% 10% 15% 20% 25% 30% 35% As a percentage of total assets
7 C 1 Sales on Credit On July 16, Barton, Co. sells $950 of merchandise on credit to Webster, Co., and $1,000 of merchandise on account to Matrix, Inc. Jul. 16 Accounts Receivable - Webster 950 Sales 950 To record credit sales to Webster Co. Accounts Receivable - Matrix 1,000 Sales 1,000 To record credit sales to M atrix, Inc.
8 C 1 Sales on Credit Accounts Receivable Ledger Webster, Co. Date PR Debit Credit Balance Jul Schedule of Accounts Receivable Webster, Co. $ 950 Matrix, Inc. 1,000 Total $ 1,950 Matrix, Inc. Date PR Debit Credit Balance Jul. 16 1,000 1,000 General Ledger Accounts Receivable Date PR Debit Credit Balance Jul. 16 1,950 1,950
9 C 1 Sales on Credit On July 31, Barton, Co. collects $500 from Webster, Co., and $800 from Matrix, Inc. on account. Jul. 31 Cash 500 Accounts Receivable - Webster 500 To record cash collections on account Cash 800 Accounts Receivable - Matrix 800 To record cash collections on account
10 C 1 Sales on Credit Accounts Receivable Ledger Webster, Co. Date PR Debit Credit Balance Jul Jul Matrix, Inc. Date PR Debit Credit Balance Jul. 16 1,000 1,000 Jul Schedule of Accounts Receivable Webster, Co. $ 450 Matrix, Inc. 200 Total $ 650 General Ledger Accounts Receivable Date PR Debit Credit Balance Jul. 16 1,950 1,950 Jul. 31 1,
11 C 1 Credit Card Sales Advantages of allowing customers to use credit cards: Customers credit is evaluated by the credit card issuer. Sales increase by providing purchase options to the customer. The risks of extending credit are transferred to the credit card issuer. Cash collections are quicker.
12 C 1 Credit Card Sales With bank credit cards, the seller deposits the credit card sales receipt in the bank just like it deposits a customer s check. The bank increases the balance in the company s checking account. The company usually pays a fee of 1% to 5% for the service.
13 C 1 Credit Card Sales On July 16, 2007, Barton, Co. has a bank credit card sale of $500 to a customer. The bank charges a processing fee of 2%. The cash is received immediately. Jul. 16 Cash 490 Credit Card Expense 10 Sales 500 To record credit card sales and fees
14 C 1 Credit Card Sales On July 16, 2007, Barton, Co. has a bank credit card sale of $500 to a customer. The bank charges a processing fee of 2%. Barton remits the credit card sale to the credit card company and waits for the payment that is received on July 28. DR CR Jul. 16 Accounts Receivable - Credit Card Co. 490 Credit Card Expense 10 Sales 500 To record credit card sales and fees. Jul. 28 Cash 490 Accounts Receivable - Credit Card Co. 490 To record receipt from credit card company
15 C 1 Installment Accounts Receivable Amounts owed by customers from credit sales for which payment is required in periodic amounts over an extended time period. The customer is usually charged interest.
16 P1 Valuing Accounts Receivable Some customers may not pay their account. Uncollectible amounts are referred to as bad debts. There are two methods of accounting for bad debts: Direct Write-Off Method Allowance Method
17 P1 Direct Write-Off Method On August 4, Barton determines it cannot collect $350 from Martin, Inc., a credit customer. DR CR Aug. 4 Bad Debts Expense 350 Accounts Receivable - Martin 350 To write-off uncollectible account
18 P1 Direct Write-Off Method On September 9, Martin decides to pay $200 that was previously written off. DR CR Sep. 9 Accounts Receivable - Martin 200 Bad Debts Expense 200 To reinstate account previously written-off Sep. 9 Cash 200 Accounts Receivable - Martin 200 To record payment on account
19 P1 Matching vs. Materiality Matching requires expenses to be reported in the same accounting period as the sales they help produce. Materiality states that an amount can be ignored if its effect on the financial statements is unimportant to users business decisions.
20 P1 Allowance Method At the end of each period, estimate total bad debts expected to be realized from that period s sales. There are two advantages to the allowance method: 1. It records estimated bad debts expense in the period when the related sales are recorded. 2. It reports accounts receivable on the balance sheet at the estimated amount of cash to be collected.
21 P1 Recording Bad Debts Expense At the end of its first year of operations, Barton Co. estimates that $3,000 of its accounts receivable will prove uncollectible. The total accounts receivable balance at December 31, 2007, is $278,000. DR CR Dec. 31 Bad Debts Expense 3,000 Allowance for Doubtful Accounts 3,000 To record estimated bad debts Contra-asset account
22 P1 Recording Bad Debts Expense At the end of its first year of operations, Barton Co. estimates that $3,000 of its accounts receivable will prove uncollectible. The total accounts receivable balance at December 31, 2007, is $278,000. DR CR Dec. 31 Bad Debts Expense 3,000 Allowance for Doubtful Accounts 3,000 Accounts Receivable Bal. 278,000 To record estimated bad debts Allowance for Doubtful Accounts Dec. 31 3,000
23 P1 Balance Sheet Presentation At the end of its first year of operations, Barton Co. estimates that $3,000 of its accounts receivable will prove uncollectible. The total accounts receivable balance at December 31, 2007, is $278,000. Barton, Co. Partial Balance Sheet December 31, 2007 Cash Accounts receivable $ 278,000 Less: Allowance for doubtful accounts 3,000 $ 275,000 Inventory
24 P2 Estimating Bad Debts Expense Two Methods 1. Percent of Sales Method 2. Accounts Receivable Methods Percent of Accounts Receivable Aging of Accounts Receivable Method
25 P2 Percent of Sales Method Bad debts expense is computed as follows: Current Period Sales Bad Debt % = Estimated Bad Debts Expense
26 P2 Percent of Sales Method Barton has credit sales of $1,400,000 in Management estimates 0.5% of credit sales will eventually prove uncollectible. What is Bad Debts Expense for 2007?
27 P2 Percent of Sales Method $ 1,400, % = $ 7,000 Barton s accountant computes estimated Bad Debts Expense of $7,000. DR CR Dec. 31 Bad Debts Expense 7,000 Allowance for Doubtful Accounts 7,000 To record estimated bad debts
28 P2 Percent of Accounts Receivable Method Compute the estimate of the Allowance for Doubtful Accounts. Year-end Accounts Receivable Bad Debt % Bad Debts Expense is computed as: Estimated Adj. Bal. in Allowance for Doubtful Accounts - Unadj. Year-End Bal. in Allowance for Doubtful Accounts = Estimated Bad Debts Expense
29 P2 Percent of Accounts Receivable Barton has $100,000 in accounts receivable and a $900 credit balance in Allowance for Doubtful Accounts on December 31, Past experience suggests that 4% of receivables are uncollectible. What is Barton s Bad Debts Expense for 2007?
30 P2 Percent of Accounts Receivable Desired balance in Allowance for Doubtful Accounts. $ 100, % = $ 4,000 Allowance for Doubtful Accounts 900 3,100 4,000 DR CR Dec. 31 Bad Debts Expense 3,100 Allowance for Doubtful Accounts 3,100 To record estimated bad debts
31 P2 Aging of Accounts Receivable Method Each receivable is grouped by how long it is past its due date. Each age group is multiplied by its estimated bad debts percentage. Estimated bad debts for each group are totaled.
32 P2 Aging of Accounts Receivable Days Past Due Barton, Co. Schedule of Accounts Receivable by Age December 31, 2007 Accounts Receivable Balance Percent Uncollectible Estimated Uncollectible Amount Not Yet Due $ 64,500 1% $ Days Past Due 18,500 3% Days Past Due 10,000 7% Days Past Due 3,900 40% 1,560 Over 90 Days Past Due 3,100 60% 1,860 $ 100,000 $ 5,320
33 P2 Aging of Accounts Receivable Barton s unadjusted balance in the allowance account is $900. We estimated the proper balance to be $5,320. Allowance for Doubtful Accounts 900 4,420 5,320 DR CR Dec. 31 Bad Debts Expense 4,420 Allowance for Doubtful Accounts 4,420 To record estimated bad debts
34 P2 Writing Off a Bad Debt With the allowance method, when an account is determined to be uncollectible, the debit goes to Allowance for Doubtful Accounts. Barton determines that Martin s $300 account is uncollectible. DR CR Dec. 31 Allowance for Doubtful Accounts 300 Accounts Receivable - Martin 300 To write-off an uncollectible account
35 P2 Recovery of a Bad Debt Subsequent collections on accounts written off require that the original write-off entry be reversed before the cash collection is recorded. DR CR Feb. 8 Accounts Receivable - Martin 300 Allowance for Doubtful Accounts 300 To reinstate account previously written off Feb. 8 Cash 300 Accounts Receivable - Martin 300 To record full payment on account
36 P2 Summary % of Sales Emphasis on Matching % of Receivables Emphasis on Realizable Value Aging of Receivables Emphasis on Realizable Value Sales Bad Debts Exp. Accts. Rec. All. for Doubtful Accts. Accts. Rec. All. for Doubtful Accts. Income Statement Focus Balance Sheet Focus Balance Sheet Focus
37 P3 Let s look at notes receivable!
38 P3 Notes Receivable A note is a written promise to pay a specific amount at a specific future date.
39 P3 Notes Receivable Term $1, July 10, 2007 Payee Ninety days after date I promise to pay to the order of Barton Company, Los Angeles, CA One thousand and no/ Dollars Payable at First National Bank of Los Angeles, CA Maker Value received with interest at 12% per annum No. 42 Due Oct. 8, 2007 Julia Browne
40 P3 Notes Receivable $1, July 10, 2007 Ninety days after date I promise to pay to Principal the order of Barton Company, Los Angeles, CA One thousand and no/ Dollars Payable at First National Interest Bank Rateof Los Angeles, CA Value received with interest at 12% No. 42 Due Oct. 8, 2007 per annum Julia Browne Due Date
41 P3 Interest Computation Principal of the note Annual interest rate Time expressed in years = Interest Even for maturities less than one year, the rate is annualized. If the note is expressed in days, base a year on 360 days.
42 P3 Computing Maturity and Interest On March 1, 2007, Matrix, Inc. purchased a copier for $12,000 from Office Supplies, Inc. Matrix gave Office Supplies a 9% note due in 90 days in payment for the copier. What is the maturity date of the note?
43 P3 Computing Maturity and Interest Days in March 31 Minus the date of the note 1 Days remaining in March 30 Days in April 30 Days in May to maturity 30 Period of the note in days 90 The note is due and payable on May 30, How much interest will Matrix pay to Office Supplies, Inc. on this note?
44 P3 Computing Maturity and Interest Principal of the note Annual interest rate Time expressed in years = Interest $ 12,000 9% 90/360 = $ 270 Total interest due at May 30.
45 P3 Recognizing Notes Receivable Here are the entries to record the note on March 1, and the settlement on May 30, DR CR Mar. 1 Notes Receivable 12,000 Sales 12,000 Sold goods in exchange for note DR CR May 30 Cash 12,270 Interest Revenue 270 Notes Receivable 12,000 Collected note and interest due
46 P4 Recording a Dishonored Note On May 30, 2007, Matrix informs us that the company is unable to pay the note or interest. Accounts Receivable - Matrix 12,270 Interest revenue 270 Notes Receivable 12,000 To charge accounts receivable for dishonored note
47 P4 Recording End-of-Period Interest Adjustments When a note receivable is outstanding at the end of an accounting period, the company must prepare an adjusting entry to accrue interest income.
48 P4 Recording End-of-Period Interest Adjustments On December 1, 2007, Matrix, Inc. purchased a copier for $12,000 from Office Supplies, Inc. Matrix issued a 9% note due in 90 days in payment for the copier. What adjusting entry is required on December 31, the end of the company s accounting period? $12,000 9% 30/360 = $90 DR CR Dec. 31 Interest Receivable 90 Interest Revenue 90 To accrue interest on note
49 P4 Recording End-of-Period Interest Adjustments Recording collection on note at maturity. Days in December 31 Minus the date of the note (1) Day remaining in December 30 Days in January 31 Days in February 28 Days in March until maturity 1 Period of the note in days 90 DR CR Mar. 1 Cash 12,270 Interest Receivable 90 Interest Revenue 180 Notes Receivable 12,000 To record full payment of note
50 Disposing of Receivables Companies sometimes want to convert receivables to cash before they are due. They can sell or factor receivables. They may pledge receivables as security for a loan.
51 A1 Accounts Receivable Turnover This ratio provides useful information for evaluating how efficient management has been in granting credit to produce revenue. Net sales Average accounts receivable
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 07 Reporting and Analyzing Receivables Conceptual Learning
Chapter 07 - Accounts and Receivable I. Accounts Receivable A receivable is an amount due from another party. Accounts Receivable are amounts due from customers for credit sales. A. Recognizing Accounts
human/istock/360/getty Images C H A P T E R 9 Receivables Financial Accounting 14e Warren Reeve Duchac Classification of Receivables The term receivables includes all money claims against other entities,
Chapter 8 Receivables Receivables mean amounts owed to the company by others. Accounts Receivable are receivables resulting from the company rendering services or selling products to the public. The company
Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total
ANSWERS TO QUESTIONS 01. The three major types and classification of receivables are as follows: Type Classification (1) Accounts receivable Current asset (2) Notes receivable Current or noncurrent asset
Heintz & Parry 0 th Edition Chapter College Accounting Accounting for Accounts Receivable Apply the allowance method of accounting for uncollectible accounts. SALES ON ACCOUNT Offering customers the ability
Recording and Adjusting Receivables KUMC: We support your infinite possibilities! Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable.
C. Valuing Accounts Receivable. 1. Valuing receivables involves reporting them at their cash (net) realizable value. Cash (net) realizable value is the net amount expected to be received in cash. 2. Uncollectible
Introduction to Accounting 2 Modul 2 Accounting for Receivables After studying this chapter, you should be able to: 1. Identify the different types of receivables. 2. Explain how accounts receivable are
CHAPTER 9 ACCOUNTING FOR RECEIVABLES LEARNING OBJECTIVES 1. IDENTIFY THE DIFFERENT TYPES OF RECEIVABLES. 2. EXPLAIN HOW COMPANIES RECOGNIZE ACCOUNTS RECEIVABLE. 3. DISTINGUISH BETWEEN THE METHODS AND BASES
CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises Problems Set A Problems Set B 1. Record accounts receivable transactions. 1, 2,
CURRENT RECEIVABLES Receivables are the amount owed to the organization by its customers and/or others. Current receivables will be collected within one year or the current operating cycle which ever is
Chapter 8 Arise from selling goods and services on credit and lending money Right to receive cash in the future from a current transaction Define and explain common types of receivables 3 Amounts to be
Receivables: - amounts to be collected from customers for goods or services provided - a written promise for the future collection of cash Accounting for Uncollectible Accounts: Allowance Method: - recording
EXERCISE 7-3 (10 15 minutes) Current assets Accounts receivable Customers Accounts (of which accounts in the amount of $40,000 have been pledged as security for a bank loan) $79,000 Installment accounts
CHAPTER 18 Receivables CONTENTS Demonstration problem 18.1 Doubtful debts net credit sales and ageing methods 18.2 Discounting and default of a bill receivable 18.3 Ageing of accounts receivable and adjustment
CEBU CPAR CENTER, INC. AUDIT OF RECEIVABLES PROBLEM NO. 1 Your audit disclosed that on December 31, 2006, the accounts receivable control account of Alilem Company had a balance of P2,865,000. An analysis
Chapter 7 Walk Through Balance Sheet Cash and Receivables Chapters 1 6 Accounting cycle: JE, AJE, financial stmts Conceptual framework, GAAP, revenue Time value of money concepts Remaining chapters (ACTG
Adjustment for Loss from Uncollectible Accounts (accrued expense) Objective Explain and illustrate the allowance method of accounting for uncollectible accounts receivable. Cite the advantages and disadvantages
Unit 6 Receivables 7-1 Receivables - Claims resulting from credit sales to customers and others goods or services for money,. Oral promises of the purchaser to pay for goods and services sold (credit sale;
PowerPoint to accompany Chapter 10 Receivables Learning Objectives 1. Design internal controls for receivables 2. Use the allowance method to account for bad debts 3. Use the direct write-off method to
C H A P T E R 9 Receivables QUIZ AND TEST HINTS The following hints may be helpful to you in preparing for a quiz or a test over the material covered in Chapter 9. 1. You should be able to prepare journal
CHAPTER 8 Reporting and Analyzing Receivables ANSWERS TO QUESTIONS 1. Accounts receivable are amounts customers owe on account. They result from the sale of goods and services (i.e., in trade). Notes receivable
In July, Lane Co. sells merchandise to Avery Co. on account. In August, Avery pays the balance in full. The entry that Lane will make to record the receipt of cash will include a credit to the account.
Accounting Fundamentals Lesson 5 5.0 Receivables & Investments Short-term investments (also known as marketable securities) are easily convertible to cash that a company plans to hold for a year or less.
Accounting for Bad Debts Created 2009 By Michael Worthington Elizabeth City State University Objectives Define uncollectible accounts and writing-off bad debts Prepare journal entries for the Direct Method
Supplemental Instruction Handouts Financial Accounting Chapter 9: Receivables 1. At December 31, 2011, AZY Co had $1,550,000 in credit sales for the year. The company believes that 5% of these sales will
CHAPTER 9 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Identify the different types of receivables. 2. Explain
Reporting and Analyzing Receivables Study Objectives Identify the different types of receivables. Explain how accounts receivable are recognized in the accounts. Describe the methods used to account for
Reporting and Analyzing Receivables Study Objectives Identify the different types of receivables. Explain how accounts receivable are recognized in the accounts. Describe the methods used to account for
CHAPTER 7 Current assets assets that are expected to be converted into cash within one year or within the operating cycle of an entity Chapter 7 Mugan-Akman 2007 2-40 Current Asset Section of a Balance
Accounting I John Petroff, Nancy Paz, Tibebe Mengistu, and KAREN DE AVILA (2011) Chapter 9 Receivables INTRODUCTION TO RECEIVABLES Receivables are any monetary claims against debtors. Credit can be granted
CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Identify the different types of receivables.
Name: Date: 1. Analyze the following T-account in the ledger of Moxy Pool Supply Company Mdse. Inventory 5,000 400 If $5,000 in the Inventory account represents merchandise purchased from a supplier, we
Sample Test Questions CHAPTER 7 CASH AND RECEIVABLES Answer No. Description MULTIPLE CHOICE Conceptual d 1. Identification of cash items. b 2. Identification of cash items. d 3. Classification of travel
For the last several years Monte Cristo Corp. has operated with a gross profit rate of 30%. On January 1 of the current year, the company had on hand inventory with a cost of $150,000. Purchases of merchandise
Chapter 8 Accounting for Receivables Types of Receivables Receivables: amounts due from individuals and companies that are expected to be collected in cash. 1. Accounts Receivables: amounts owed by customers
Intermediate Accounting Thomas H. Beechy Schulich School of Business, York University Joan E. D. Conrod Faculty of Management, Dalhousie University PowerPoint slides by: Bruce W. MacLean, Faculty of Management,
Short-Term Investments & Receivables Pr. Zoubida SAMLAL Learning Objective 1 Account for short-term investments Account for short-term investments Accounting for Short-Term Investments Also called marketable
EXERCISES Ex. 8 1 Accounts receivable from the U.S. government are significantly different from receivables from commercial aircraft carriers such as Delta and United. Thus, Boeing should report each type
Chapter 10: Revenue Recognition and Valuation of Receivables The timing of revenue recognition Valuation of receivables; VAT Accounting for bad debt Refinancing receivables before the due date Receivables
Format Exam 3 Review http://fates.cns.muskingum.edu/~ plaube/acct301/default.htm 15 questions Multiple choice (12) Essay (2) Problem (1) What to Bring/Remember What to bring Calculator I ll bring scrap
Accounting 303 Exam 3, Chapters 7-9 Spring 2012 Name Row I. Multiple Choice Questions. (2 points each, 30 points in total) Read each question carefully and indicate your answer by circling the letter preceding
Accounting 1 Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Accounting for Uncollectible Accounts Receivable Unit: 4 Chapter 21 I. Objective(s): By the end of today s lesson, the student will be able
1 Chapter 5 Accounting for merchandising operations Appendix 5A: Periodic inventory system 2 Learning objectives 1. Record purchase and sales transactions under the periodic inventory system 2. Prepare
Chapter 8 Accounting for Receivables Accounts Receivable Accounts Receivables are current assets. They are usually expected to be collected within 30 days. Allowance Method and Bad Debt Expense 2 methods:
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
5 Merchandising Operations WHAT YOU PROBABLY ALREADY KNOW You want to order a pair of pants from a mail-order catalog. The price listed in the catalog is $50. There is a 10% off coupon in the catalog for
Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
Accounting 3A-1A The Operating Cycle: Worksheet/Closing Entries Page 1 THE WORKSHEET and CLOSING ENTRIES I. Review of Key Concepts and Terms: A. The purpose of the worksheet 1. To show that the accounts
CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is
GROUP 1 UIL ACCOUNTING REGIONAL 2011-R A--Current Asset--Assets that are either used up or converted to cash during the normal operating cycle of the business, usually 1 year. B--Plant Asset--Long-lived
Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS Name: Selected information from the financial statements of Miller Company for the year ended December 31, 2012, appears below: 2012 Current
2918T_c08_384-431.qxd 8/27/08 10:06 PM Page 384 Reporting and Analyzing Receivables chapter 8 the navigator Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 394 p. 398
Impairment of Notes Receivables US GAAP requires entities to assess whether financial assets are impaired and recognize the impairment. If a note receivable is impaired, the loss is measured by the creditor
Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制
CHAPTER 1 Simple Interest and Simple Discount Learning Objectives Money is invested or borrowed in thousands of transactions every day. When an investment is cashed in or when borrowed money is repaid,
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
Accounting 303 Name Exam 3, Chapters 7-9 Fall 2012 Section Row I. Multiple Choice Questions. (2 points each, 34 points in total) Read each question carefully and indicate your answer by circling the letter
Accounting for a 5 Merchandising Business ANSWERS TO QUESTIONS FOR GROUP LEARNING Q5-1 A merchandising business has a major revenue reduction called cost of goods sold. The computation of cost of goods
FINAL EXAM The Hashemite University, Department of Accounting, Dr Husam Al-Khadash Principle of Accounting, Name: Seat No. Student No. Question One (11 marks): Identify the answer of each of the following
Chapter 7: Cash & Receivables L7 (pg 399 436) UNDERSTANDING CASH AND ACCOUNTS RECEIVABLE How Do Companies Manage and Control Cash? Cash flow budgets help anticipate cash needs and minimize borrowing requirements
REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9) A. Chapter 7. 1. Internal Control Objectives. a. Safeguards to protect assets. b. Procedures to insure reliable financial reports. c. Methods to insure
AT&T Global Network Client for Windows Product Support Matrix January 29, 2015 Product Support Matrix Following is the Product Support Matrix for the AT&T Global Network Client. See the AT&T Global Network
Multiple choice (36%, 2%each): 1. Failure to record the expired amount of prepaid rent expense would not a. understate expense. b. overstate net income. c. overstate owners' equity. d. understate liabilities.
1 Chapter 4 Completing the accounting cycle 2 Learning objectives 1. Prepare an accounting worksheet and describe its purpose 2. Prepare a classified balance sheet and explain the major headings 3. Explain
ACCOUNTING DICTIONARY A Account a record summarizing all the information pertaining to a single item in the accounting equation Account balance the amount in an account Account number the number assigned
ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET J.M. TULL SCHOOL OF ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET Important: PRINT your response (A,B,C,D or E) that best completes the statement
Chapter 7 ACCOUNTS AND NOTES RECEIVABLE LEARNING OUTCOMES: Understand the importance of accounts receivable Account for bad debts using the direct and allowance methods Estimate bad debts using the income
A Look at This Appendix This appendix focuses on investments in securities. We explain how to identify, account for, and report investments in both debt and equity securities. We also explain accounting
128 SU 3: Financial Accounting I 3.5 FINANCIAL ASSETS AND LIABILITIES Definitions 1. Financial assets include cash, equity instruments of other entities (e.g., preference shares), contract rights to receive
Code: ACCT101 Institute: Business & Social Science Title: Principles of Accounting I Department: Accounting Course Description: An introduction to basic concepts and principles of recording and posting