office building and a warehouse to stockpile some inventory of its own. - No Receivables/Days of Receivables: Since an online retailer caters to only individual customers, and since the latter pays usually by cash or credit card, accounts receivable will be at most a negligible amount, if not zero. - Unearned Revenues: Unearned Revenues can exist for an online retailer especially when the company opens up pre-order accounts for various products which are not yet released in the market. - Research
Once the account representatives were provided with the information they needed patients had already received care and been released. It became more challenging to collect debt after a significant amount of time had passed between the date of service and the date of collection attempt. Reimbursement is reduced by forty percent post-service. (Anonymous, 2010) This resulted in an increase of account receivable days. After examining the information obtained
You cannot take a purchase discount. 2,876 S 7-10 2,876 Chapter 6 Accounting Information Systems 207 (5-10 min.) 1. Total purchases on account…………….. $2,876 2. Total Accounts Payable paid off during November………………………….. $ 819 3. In Motion owes House Textiles…………. $ 451 In total, In Motion owes $2,057 on account. S 7-11 (10 min.) S 7-12 1. Cash (Exhibit 7-11)............................................ $1,875 2. Gross sales revenue (Exhibit 7-9)..............
sold the receivables, transferred title to the factor, who assumed all the risks of ownership. In this factoring agreement the accounts receivable were removed from the balance sheet, and the receivables were sold without recourse. This meant that if the receivables were not collected, the factor cannot demand payment. In my opinion, Peregrine recorded the "factoring" and assignment of their receivables as a factoring agreement and recorded the transaction as a sale of the receivables. They recorded
management. Items that can be converted into cash quickly are called current assets. These would include, cash on hand, inventory, short-term investments and accounts receivable. Liabilities are financial obligations that the organization owes. For example, short-term notes payable; loans that come due in less than one year and accounts payable; money owned for goods and services provided to the business. An unsecured loan, like a credit card is one that is obtained without the use of something
for a number of reasons. The company's inability to receive payments from customers in a timely manner created a severe impact in the company's cash flows. The age of account receivables increased each year. In 1995 it took 49 days on average to receive payments from customers. Because of the delay in accounts receivable, Clarkson Lumber's ability to pay suppliers on time is also impacted. In 1995 it took Clarkson 38 days on
applied to these firms, but it should be able to apply the results in a modified way to other firms. The key question was how these firms manage their accounts receivable in the changing market conditions. Background of the Study Working capital constitutes four elements; cash management, account receivable management, inventory management and accounts payable (Mensah, 2011). As cited by Padachi (2010), Rafuse (1996) says that working capital starvation is generally credited as a major cause if not
BTEC HND Qingdao Center | | | | | | | | | | | | | | | | | |Assignment Brief and Feedback Form | | | | | | | | | | | | | | | | |Learner name | | | | | | | | | | | | | | | | | | |Course title |Financial Systems and Auditing | | | | | | | | | | | | | | | |Assessor name |XIAOLIN WANG | | | | | | | | | | | | | | | | | |IV name |Hu Dalong | | | | | | | | | | | | | | | | | |Unit number and title |Unit11: Financial Systems and Auditing | | | | | | | | | | | | | | | |Assignment title |Financial
change funds b.Money orders, certified checks, and personal checks c.Coin, currency, and available funds d.Postdated checks and I.O.U. 's 22.Which of the following is considered cash? a.Certificates of deposit (CDs) b.Money market checking accounts c.Money market savings certificates d.Postdated checks 23.Travel advances should be reported as a.supplies. b.cash because they represent the equivalent of money. c.investments. d.none of these. 24.Which of the following items should
Introduction Chester Inc. is a client of SNHU, LLC who prepares the financial statements and financial analysis for Chester Inc. This report will detail several key items including the accounting effects of international expansion as it relates to differences between Generally Accepted Accounting Principles (GAAP), the United States standards, and the International Financial Reporting Standards (IFRS), the standards that would govern a portion of the financial reporting with an international expansion