Problem 2: true/false questions13. The large deficit in Chicago's revolving funds was due to an accounting systems problem thatresulted in bills not being sent to user departments for services rendered.14. Internal service funds can obtain long-term financing by issuing either revenue bonds or generalobligation bonds.15. Enterprise funds report bad debt expense in the operating expenses section of the statement ofrevenues, expenses, and changes in net position.16. On an enterprise fund's statement of net position, the amount reported for restricted netposition can be based upon a constraint imposed by the governing body of the localgovernment.17. On the proprietary fund financial statements, internal service funds are reported under theheading of governmental activities.18. If cash flows from operating activities are not large enough to sustain the operations of anenterprise fund, the cash to sustain the operations must come from selling investments andcapital assets.19. On the proprietary funds statement of cash flows, GASB allows local and state governments theoption to report cash flows from operating activities either directly or indirectly.20. When the water utility bills the police department for water usage, the water utility debits"customer accounts receivable" for the amount of the billing.

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Financial Accounting Intro Concepts Meth/Uses

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Chapter7: Introduction To Financial Statement Analysis

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Problem 31P

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Inferring Bad Debt Write-Offs and Cash Collections from Customers E14-17 Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions). Current Year Prior Year Accounts receivable, net of allowances of $333 and $375 $14,987 $13,014 Net revenues 69,943 62,484 According to its Form 10-K, Microsoft recorded bad debt expense of $14 and there were no bad debt recoveries during the current year. (Hint: Refer to the summary of the effects of accounting for bad debts on the Accounts Receivable (Gross) and the Allowance for Doubtful Accounts T-accounts. Use the T-accounts to solve for the missing values.) Required: What amount of bad debts was written off during the current year? Based on your answer to requirement (1), solve for…
Case 8 Decide whether each situation is or is not a symptom of revenue fraud. Then explain (1) why the situation isor is not a symptom and (2) if it is a symptom, how itwould be found using computer queries or traditionalmethods. YIN Sales discounts appear too high. YIN Accounts receivable increases as a percentage of revenues. YIN Bad debt allowance increasesby the same percentageas accounts receivable. YIN Increase in sales returns. YIN Large percent of revenues recorded in thefourth quarter. YIN Unexplained reconciling items on the bankstatement.
13 The following information relates to Maharlika Corporation for the year ended June 30, 2021. Sales revenue 450,000 Opening balance of trade receivables (net of allowance) 100,000 Closing balance of trade receivable (net of allowance) 132,500 Doubtful debt expense 5,000 Increase in allowance for doubtful debts 2,000 Bad debts are written off against the allowance for doubtful debts. What is the amount of cash collected from the customers during the year ended June 30, 2021? Group of answer choices 487,500 412,500 418,500 481,500
19. Company ABC factored its accounts receivable with a financing vendor using a "with recourse" arrangement. What impact might this have on the company? Group of answer choices anger vendors due to later payment Improve cash conversion cycle reduce bad debt Increase days sales outstanding
There are some mistakes in the video. The Year 2 long-term debt should be the same as that of Year 1 ($3,650). For Year 2, total liabilities and equity SHOULD NOT be equal to total assets ($13,225). As Year 2 Long-term debt is $3,650, thus total liabilities and equity for Year 2 should be calculated as $2,415.00 + $3,650 + $6,159.86 = $12,224.86 And, External Financing Needed (EFN) should be calculated as below. External Financing Needed = Projected total assets – Projected total liabilities and equity = Year 2 total assets from the projected balance – Year 2 total liabilities and equities from the balance sheet = $13,225 – $12,224.86 = $1,000.14 Ending equity can also be calculated as below. Ending Equity = Beginning Equity + Addition to retained earnings = Beginning Equity + (Net Income – Dividends) = $5,750 + ($683.10 - $273.24) = $6,159.86
question 4 Which of the regulations and policies have been used to manage the 2008/2009 financial crisis? options a. Lender of last resort. b. Limit cash withdrawals from the bank account. c. Deposit insurance d. All of the above.
USE TGHE FOLLOWING TO SOLVE FOR QUESTION7 ONLY Tooele Company’s controller estimated bad debt expense using the percentage of accountsreceivable method. Total sales for the year were $500,000 of which 250,000 are on account.The ending balance in accounts receivable was $100,000. An examination of the outstandingaccounts at the end of the year indicates that approximately 12 percent of these accounts willultimately prove to be uncollectible. Before any adjusting entries, the balance in theAllowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjustingentry to record bad debt expense for the year?(The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or theAllowance for Uncollectible Accounts.)a. CREDIT Allowance for Bad Debts for $11,300b. DEBIT Allowance for Bad Debts for $11,300c. CREDIT Allowance for Bad Debts for $12,000d. CREDIT Allowance for Bad Debts for $12,700e. DEBIT Allowance for Bad Debts for $14,700 5. Use the…
Which one of the following is classified as a cash or cash equivalent? Select one: a. Prepaid insurance b. Restricted bank account that cannot be used for operations c. Bank overdraft d. Government debt investment with 30 days to maturity e. Post-dated cheque
Problem 1 - Prepare a bank reconciliationThe following information relates to M Park Corporation for the month of March 2022:1. Cash balance per books, March 31 was $20,647.002. Deposits in transit, March 31 were $8,140.003. The March bank service charge was $34.00 and has not been recorded by the company.4. Outstanding checks, March 31 were $3,905.005. An electronic funds transfer (EFT) collected by the bank was $590. The collection has not been recorded by M Park Corporation.6. The bank made an error and recorded a $3,000 deposit twice.7. Cash balance per bank, March 31 was $19,968.00PurposeThe purpose of this problem is to demonstrate an understanding of preparing a bank reconciliation.InstructionsAfter analyzing the data, prepare a bank reconciliation for M Park Corporation at March 31st. Reconcile the cash balance per the bank firstand list items that increase the cash balance first. Also, round amounts to two decimal places. Please provide explainations, thanks! (
MC49 The following bank reconciliation is presented for the Pony Co. for the month of November, 2020: Balance per bank statement, 11/30/2020 P180,400 Add: Deposit in transit P41,500 Erroneous bank charge 15,500 56,500 Subtotal P236,900 Less: Outstanding Checks 78,200 Balance per books, 11/30/2020 P158,700 Data for the month of December 2020 follow: Per bank: December deposits/credits — P261,000 December charges/debits — P224,200 Balance, December 31, 2020 — P217,200 All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, P25,000 checks were outstanding as of December 31, 2020. What is the amount of cash disbursements per books in December 2020? (WITH SOLUTION) a. P146,000 b. P171,000 c. P249,200 d. P249.200
Problem 24 Egida Company started its business on January 1, 2021. After considering the collection experience of other entities in the industry, Egida established an allowance for bad debts estimated at 5% of credit sales. Outstanding accounts receivable recorded on December 31, 2021 totaled P115,000 while the allowance for bad debts account had a credit balance of P12,500 after recording estimated doubtful accounts expense for December and after writing off P2,500 of uncollectible accounts. Further analysis of the entity’s accounts showed that merchandise purchased in 2011 amounted to P450,000 and ending merchandise inventory was P75,000. Goods were sold at 40% above cost. Sales on account amounted to 80% of total sales. Total collections from customers, on the other hand, excluding cash sales, amounted to P300,000. The net realizable value of the accounts receivable at December 31, 2021 is overstated (understated) by:
MC51 The following bank reconciliation is presented for the Pony Co. for the month of November, 2020: Balance per bank statement, 11/30/2020 P180,400 Add: Deposit in transit P41,500 Erroneous bank charge 15,500 56,500 Subtotal P236,900 Less: Outstanding Checks 78,200 Balance per books, 11/30/2020 P158,700 Data for the month of December 2020 follow: Per bank: December deposits/credits — P261,000 December charges/debits — P224,200 Balance, December 31, 2020 — P217,200 All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, P25,000 checks were outstanding as of December 31, 2020. What is the amount of cash balance per books in December 2020? (WITH SOLUTION) a. P257,200 b. P242,200 c. P207,200 d. P192,200

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13. The large deficit in Chicago's revolving funds was due to an accounting systems problem that resulted in bills not being sent to user departments for services rendered.