Dissertation Excellence: Ace Your Accounting Research Paper
26. Some hormones enter cells via ________. 8) A) pinocytosis B) primary active transport C)...
Some hormones enter cells via ________. 8) A) pinocytosis B) primary active transport C) receptor-mediated endocytosis D) exocytosis what's the answer and why is it that answer please I need a detailed explanation of why if another question comes how can I identify the method of transport
27. Which of the following is considered a practical constraint on the qualitative characteristics:A)Ver
Which of the following is considered a practical constraint on the qualitative characteristics:A)Verifiability.B)Conservatism.C)Cost effectiveness.D)Timeliness.
28. Distinguish between the sales order, billing, and AR departments. Why can’t the sales order or AR...
Distinguish between the sales order, billing, and AR departments. Why can’t the sales order or AR departments prepare the bills?
29. You are trying to decide how much to save for
You are trying to decide how much to save for retirement. Assume you plan to save $5000 per year with the first investment made 1 year from now. You think you can earn 10% per year on your investments and you plan to retire in 43 years, immediately after making your last $5000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the twentieth withdrawal (assume your savings will continue to earn 10% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? e. Assuming the most you can afford to save is $1000 per year, but you want to retire with $1 million in your investment account, how high of a return do you need to earn on your investments?
30. The Akinnuoye Store is located in midtown Madison. During the
The Akinnuoye Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2012, the following accounts appeared in two of its trial balances. Instructions (a) Prepare a multiple-step income statement, an owner’s equity statement, and a classified balance sheet. Notes payable are due in 2015. (b) Journalize the adjusting entries that were made. (c) Journalize the closing entries that arenecessary.
Connie Young an architect opened an office on October 1
Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: a. Transferred cash from a personal bank account to an account to be used for the business, $36,000. b. Paid October rent for office and workroom, $2,400. c. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, $9,000. e. Paid cash for supplies, $2,150. f. Paid cash for annual insurance policies, $4,000. g. Received cash from client for plans delivered, $12,200. h. Paid cash for miscellaneous expenses, $815. i. Paid cash to creditors on account, $4,500. j. Paid $5,000 on note payable. k. Received invoice for blueprint service, due in November, $2,890. l. Recorded fees earned on plans delivered, payment to be received in November, $18,300. m. Paid salary of assistants, $6,450. n. Paid gas, oil, and repairs on automobile for October, $1,020. Instructions 1. Record these transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. 4. Determine the net income or net loss for October.
Connie Young an architect opened an office on October 1
5.17 Suppose that USD-sterling spot and forward exchange rates are as follows:
Spot
1.6080
90-day forward
1.6056
180-day forward
1.6018
What opportunities are open to an arbitrageur in the following situations?
a. A 180-day European call option to buy $1 for $1.57 costs 2 cents.
b. A 90-day European put option to sell $1 for $1.64 costs 2 cents.
33. Determining Amounts to be paid on Invoices Determine the amount to be paid in full settlement of eac
Determining Amounts to be paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Returns and Allowances $1,000 $ 12,800 6,000 500 30,000 - $ 175 2,500 1,100 250 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB destination, 2/10, n/30 5,000 2,500 28,500 7,700 Amount to be paid a. $ 11,800 x b. e. $ 6,930 X Feedback Check My Work FOB shipping point freight is the buyer's cost, FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase - Return - Discount) + applicable freight.
34. calculate the sustainable growth rate
Profit margin = 8.4 % Capital intensity ratio =0.45 Debt-equity ratio =0.60 Net income = $95,000 Dividends = $ 40,000 Required: Based on the above information, calculate the sustainable growth rate for Southern Lights Co. (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 3...
35. Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $30,000,...
Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $30,000, accident insurance $2,000, sales taxes $2,100, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?
36. The following financial data were taken from the annual financial statements of the Smith...
The following financial data were taken from the annual financial statements of the Smith Corporation:
1999
2000
2001
Current assets
$450,000
$400,000
$ 500,000
Current liabilities
390,000
300,000
340,000
Sales
1,450,000
1,500,000
1,400,000
Cost of goods sold
1,180,000
1,020,000
1,120,000
Inventory
280,000
200,000
250,000
Accounts receivable
120,000
110,000
105,000
Required a. Based on these data, calculate the following for 2000 and 2001:
1. Working capital
2. Current ratio
3. Acid-test ratio
4. Accounts receivable turnover
5. Merchandise inventory turnover
6. Inventory turnover in days
b. Evaluate the results of your computations in regard to the short-term liquidity of the firm
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following at June 30:
Accounts Payable
$
28,200
Buildings
194,000
Cash
49,000
Common Stock
145,000
Equipment
157,000
Land
291,000
Notes Payable (long-term)
6,400
Retained Earnings
526,300
Supplies
14,900
During the month of July, the company had the following activities:
a.
Issued 5,200 shares of common stock for $520,000 cash.
b.
Borrowed $112,000 cash from a local bank, payable in two years.
c.
Bought a building for $207,000; paid $105,000 in cash and signed a three-year note for the balance.
d.
Paid cash for equipment that cost $230,000.
e. Purchased supplies for $45,250 on account.
1.
Analyze transactions (a)–(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.)
38. How many cubic centimeters of an ore containing only 0.22% gold (by mass) must be processed to...
How many cubic centimeters of an ore containing only 0.22% gold (by mass) must be processed to obtain $100.00 worth of gold? The density of the ore is 8.0 g/cm3 and the price of gold is $818 per troy ounce. (14.6 troy oz = 1.0 ordinary pound, called an avoirdupois pound; 1 lb = 454 g)
39. (Objectives 14-2, 14-3, 14-4, 14-5) Items 1 through 9 are selected questions of the type...
(Objectives 14-2, 14-3, 14-4, 14-5) Items 1 through 9 are selected questions of the type generally found in internal control questionnaires used by auditors to obtain an under - standing of internal control in the sales and collection cycle. In using the questionnaire for a client, a “yes” response to a question indicates a possible internal control, whereas a “no” indicates a potential deficiency.
1. Are customer orders evaluated for credit approval by someone independent of sales?
2. Are online sales automatically recorded in the sales system?
3. Are unit prices obtained from a pre-approved and restricted master file of unit prices?
4. Is the bill of lading information forwarded in a timely fashion to accounting to ensure recording in the sales journal?
5. Is the numerical sequence of bills of ladings accounted for to identify duplicates or missing documents?
6. Are entries in the sales journal restricted to those that are supported by a valid bill of lading?
7. Are sales invoice amounts independently verified for correctness?
8. Are individuals responsible for handling cash collections independent of accounting and shipping functions?
9. Are entries in the sales journal timely recorded in the accounts receivable master file?
Required
a. For each of the preceding questions, state the transaction-related audit objectives being fulfilled if the control is in effect.
b. For each control, list a test of control to test its effectiveness.
c. For each of the preceding questions, identify the nature of the potential financial mis - statements.
d. For each of the potential misstatements in part c, list a substantive audit procedure to determine whether a material misstatement exists.
(Objective 14-2)
BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS
The sales and collection cycle involves the decisions and processes necessary for the transfer of the ownership of goods and services to customers after they are made available for sale. It begins with a request by a customer and ends with the conversion of material or service into an account receivable, and ultimately into cash. The eight business functions for the sales and collection cycle are shown in the third column of Table 14-1. They occur in every business in the recording of the five classes of transactions in the sales and collection cycle. Under “Business Functions,” observe that the first four processes are for recording sales, while every other class of transactions includes only one business function. In this section, we’ll explain each of the eight business functions and describe typical documents and records for each function, which appear in the fourth column of Table 14-1. Before auditors can assess control risk and design tests of controls and substantive tests of transactions, they need to understand the business functions and documents and records in a business.
A customer’s request for goods initiates the entire cycle. Legally, it is an offer to buy goods under specified terms. The receipt of a customer order often results in the immediate creation of a sales order. Customer Order A customer order is a request for merchandise by a customer. It may be received by telephone, letter, a printed form that has been sent to prospective and existing customers, through salespeople, electronic submission of the customer order through the Internet, or other network linkage between the supplier and the customer. Sales Order A sales order is a document for communicating the description, quantity, and related information for goods ordered by a customer. This is often used to indicate credit approval and authorization for shipment. Before goods are shipped, a properly authorized person must approve credit to the customer for sales on account. Weak practices in credit approval often result in excessive bad debts and accounts receivable that may be uncollectible. An indication of credit approval on the sales order often serves as the approval to ship the goods. In some companies, the computer automatically approves a credit sale based on preapproved credit limits maintained in a customer master file. The computer allows the sale to proceed only when the proposed sales order total plus the existing customer balance is less than the credit limit in the master file. This critical function is the first point in the cycle at which the company gives up assets. Most companies recognize sales when goods are shipped. A shipping document is prepared at the time of shipment, which can be done automatically by a computer, based on sales order information. The shipping document, which is often a multicopy bill of lading, is essential to the proper billing of shipments to customers. Companies that maintain perpetual inventory records also update them based on shipping records. Shipping Document A shipping document is prepared to initiate shipment of the goods, indicating the description of the merchandise, the quantity shipped, and other relevant data. The company sends the original to the customer and retains one or more copies. The shipping document serves as a signal to bill the customer and may be in electronic or paper form. One type of shipping document is a bill of lading, which is a written contract between the carrier and the seller of the receipt and shipment of goods. Often, bills of lading include only the number of boxes or pounds shipped, rather than complete details of quantity and description. (For the purpose of this textbook, however, we will assume that complete details are included on bills of lading.) The bill of lading is often transmitted electronically, once goods have been shipped, and automatically generates the related sales invoice as well as the entry in the sales journal. Many companies use bar codes and handheld computers to record removal of inventory from the warehouse. This information is used to update the perpetual inventory records. Because billing customers is the means by which the customer is informed of the amount due for the goods, it must be done correctly and on a timely basis. The most important aspects of billing are: • All shipments made have been billed (completeness)
• No shipment has been billed more than once (occurrence)
• Each one is billed for the proper amount (accuracy) Billing the proper amount is dependent on charging the customer for the quantity shipped at the authorized price, which includes consideration for freight charges, insurance, and terms of payments.
In most systems, billing of the customer includes preparation of an electronic record or a multicopy sales invoice and real-time updating of the sales transactions file, accounts receivable master file, and general ledger master file for sales and accounts receivable. The accounting system uses this informa tion to generate the sales journal and, along with cash receipts and miscellaneous credits, to prepare the accounts receivable trial balance. Sales Invoice A sales invoice is a document or electronic record indicating the description and quantity of goods sold, the price, freight charges, insurance, terms, and other relevant data. The sales invoice is the method of indicating to the customer the amount of a sale and the payment due date. Companies send the original to the cus - tomer, and retain one or more copies. Typically, the computer automatically prepares the sales invoice after the customer number, quantity, destination of goods shipped, and sales terms are entered. The computer calculates the invoice extensions and total sales amount using the information entered, along with prices in the inventory master file. Sales Transaction File This is a computer-generated file that includes all sales transactions processed by the accounting system for a period, which could be a day, week, or month. It includes all information entered into the system and information for each transaction, such as customer name, date, amount, account classification or classifications, salesperson, and commission rate. The file can also include returns and allowances or there can be a separate file for those transactions. The information in the sales transaction file is used for a variety of records, listings, or reports, depending on the company’s needs. These may include a sales journal, accounts receivable master file, and transactions for a certain account balance or division. Sales Journal or Listing This is a listing or report generated from the sales transaction file that typically includes the customer name, date, amount, and account classification or classifications for each transaction, such as division or product line. It also identifies whether the sale was for cash or accounts receivable. The journal or listing is usually for a month but can cover any period of time. Typically, the journal or listing includes totals of every account number for the time period. The same transactions included in the journal or listing are also posted simultaneously to the general ledger and, if they are on account, to the accounts receivable master file. The journal or listing can also include returns and allowances or there can be a separate journal or listing of those transactions. Accounts Receivable Master File This is a computer file used to record individual sales, cash receipts, and sales returns and allowances for each customer and to maintain customer account balances. The master file is updated from the sales, sales returns and allowances, and cash receipts computer transaction files. The total of the individual account balances in the master file equals the total balance of accounts receivable in the general ledger. A printout of the accounts receivable master file shows, by customer, the beginning balance in accounts receivable, each sales transaction, sales returns and allowances, cash receipts, and the ending balance. In this book, we use the term master file to refer to either the computer file or a printout of that file, but it is sometimes called the accounts receivable subsidiary ledger or subledger. Accounts Receivable Trial Balance This list or report shows the amount receivable from each customer at a point in time. It is prepared directly from the accounts receivable master file, and is usually an aged trial balance that includes the total balance outstanding and the number of days the receivable has been outstanding, by category of days (such as less than 30 days, 31 to 60 days and so on). Monthly Statement This is a document sent by mail or electronically to each customer indicating the beginning balance of their accounts receivable, the amount and date of each sale, cash payments received, credit memos issued, and the ending balance due. It is, in essence, a copy of the customer’s portion of the accounts receivable master file. The four sales transaction functions are necessary for getting the goods into the hands of customers, correctly billing them, and reflecting the information in the accounting records. The remaining four functions involve the collection and recording of cash, sales returns and allowances, write-off of uncollectible accounts, and providing for bad debt expense. Processing and recording cash receipts includes receiving, depositing, and recording cash. Cash includes currency, checks, and electronic funds transfers. The most important concern is the possibility of theft. Theft can occur before receipts are entered in the records or later. It is important that all cash receipts are deposited in the bank at the proper amount on a timely basis and recorded in the cash receipts trans action file. This file is used to prepare the cash receipts journal and update the accounts receivable and general ledger master files. Remittance Advice A remittance advice is a document mailed to the customer and typically returned to the seller with the cash payment. It indicates the customer name, the sales invoice number, and the amount of the invoice. A remittance advice is used as a record of the cash received to permit the immediate deposit of cash and to improve control over the custody of assets. If the customer fails to include the remittance advice with the payment, it is common for the person opening the mail to prepare one at that time. Prelisting of Cash Receipts This is a list prepared when cash is received by someone who has no responsibility for recording sales, accounts receivable, or cash, and who has no access to accounting records. It is used to verify whether cash received was recorded and deposited at the correct amounts and on a timely basis. Many companies use a bank to process cash receipts from customers. Some com - panies use a lockbox system in which customers mail payments directly to an address maintained by the bank. The bank is responsible for opening all receipts, maintaining records of all customer payments received at the lockbox address, and depositing receipts into the company’s bank account on a timely basis. In other cases, receipts are submitted electronically from a customer’s bank account to a company bank account through the use of electronic funds transfer (EFT). When customers purchase goods by credit card, the issuer of the credit card uses EFT to transfer funds into the company’s bank account. For both lockbox systems and EFT transactions, the bank provides information to the company to prepare the cash receipt entries in the accounting records. Cash Receipts Transaction File This is a computer-generated file that includes all cash receipts transactions processed by the accounting system for a period, such as a day, week, or month. It includes the same type of information as the sales transaction file. Cash Receipts Journal or Listing This listing or report is generated from the cash receipts transaction file and includes all transactions for a time period. The same transactions, including all relevant information, are included in the accounts receivable master file and general ledger. When a customer is dissatisfied with the goods, the seller often accepts the return of the goods or grants a reduction in the charges. The company prepares a receiving report for returned goods and returns them to storage. Returns and allowances are recorded in the sales returns and allowances transaction file, as well as the accounts receivable master file. Credit memos are issued for returns and allowances to aid in maintaining control and to facilitate record keeping. Credit Memo A credit memo indicates a reduction in the amount due from a cus - tomer because of returned goods or an allowance. It often takes the same general form as a sales invoice, but it supports reductions in accounts receivable rather than increases. Sales Returns and Allowances Journal This is the journal used to record sales returns and allowances. It performs the same function as the sales journal. Many companies record these transactions in the sales journal rather than in a separate journal. Regardless of the diligence of credit departments, some customers do not pay their bills. After concluding that an amount cannot be collected, the company must write it off. Typically, this occurs after a customer files for bankruptcy or the account is turned over to a collection agency. Proper accounting requires an adjustment for these uncollectible accounts. Uncollectible Account Authorization Form This is a document used internally to indicate authority to write an account receivable off as uncollectible. Because companies cannot expect to collect on 100% of their sales, accounting prin - ciples require them to record bad debt expense for the amount they do not expect to collect. Most companies record this transaction at the end of each month or quarter.
(Objective 14-3)