1. What is the significance of accounting for inventories? What "difference does it make" if the amounts reported are accurate or not?
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Hi there,
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<br>Accounting for inventory is very important, especially if the business is involved in the selling of physical goods. If the company does not report that they have any inventory on hand when they actually do so, they would be underreporting their assets. This could have significant consequences in instances where the company holds bank covenants and their bank loans are dependent on ...
Solution Summary
This question involves the fundamentals of accounting
... CASH $ 6,000,000.00 ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE $ 14,000,000.00 ... AND PAYROLL TAXES PAYAB INVENTORIES $ 12,000,000.00 OTHER ... What is the meaning of the ...
... the fund is made according to its meaning as cash. ... sold plus ending inventory minus beginning inventory plus the beginning balance in accounts payable to ...
... taken Average time of taken = X/Y inventory record XYX ...accountant does not takes an average of one minute ... standard error of mean=σ/√n= Significance level=α ...
...accounts, financial leverage, perpetual inventory, imprest fund ... between temporary and permanent accounts, and state ... 5. Explain the significance of the return on ...
... Examples of these types of inventories are liquids ... to concentrate on verifying the account balance rather ... Moreover, because of the significance of cash to an ...
... because the company's beginning and ending inventories will be ... Citing specific accounting pronouncements, this solution examines the meaning of the ...
... balances from financial statements: accounts receivable turnover ... uncollected, days' sales in inventory, profit margin ... to better understand the meaning of the ...
... in the note that summarizes its accounting policies ... At August 31, 2010 and 2009, inventories would have been ... Explain the meaning of the increase or decrease in ...
... may find itself holding inventory that has an uncertain future; meaning the company ... NOTE: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Inventories. ...
