Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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ACME Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Bill, the owner of ACME, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases by December 31. Bill told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchases in January.
Explain if you think there are ethical implications of Bill’s actions.
Which ratios will be affected, and how, by accelerating these sales?
Please do not copy and paste from other websites.
Please assist by providing the correct answer for 1.1,1.2 and 1.3
1.1
Which one of the following would reduce the cash balances of a business and not reduce the profit for the year?
Select one:
a. Interest paid
b. Distribution costs
c. Remuneration to directors
d. Dividends paid
1.2
Goods costing R180 000 sent out to consignee to show a profit of 20% on Invoice Price. Invoice price of the goods will be______.
Select one:
a. R216 000
b. R225 000
c. R210 000
d. R281 250
1.3
Goods sent on consignment Invoice value R200 000, at cost + 331/3 %. 1/5th of the goods were lost in transit. Insurance claim received R10 000. The amount of abnormal loss to be transferred to General P/L is___.
Select one:
a. R30 000
b. R20 000
c. R35 000
d. R25 000
Record the following transactions for the month of January of Thomas Cook, a small finishing retailer,balance off all the accounts, and then extract a Income statement as at January 31, 2022:2022Jan 1 Started business with $10,500 cash.Jan 2 Put $9,000 of the cash into a bank account.Jan 3 Bought goods for cash $550.Jan 4 Bought goods on credit from: T. Dry $800; F. Hood $930; M. Smith $160; G. Low $510.Jan 5 Bought stationery on credit from Buttons Ltd $89.Jan 6 Sold goods on credit to: R. Tong $170; L. Fish $240; M. Singh $326; A. Tom $204.Jan 8 Paid rent by cheque $220.Jan 10 Bought fixtures on credit from Chiefs Ltd $610.Jan 11 Paid salaries in cash $790.Jan 14 Returned goods to: F. Hood $30; M. Smith $42.Jan 15 Bought van by cheque $6,500.Jan 16 Received loan from B Barclay by cheque $2,000.Jan 18 Goods returned to us by: R. Tong $5; M. Singh $20.Jan 21 Cash sales $145.Jan 24 Sold goods on credit to: L. Fish $130; A. Tom $410; R. Pleat $158.Jan 26 We paid the following by cheque:…
Chapter 4 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 4 - Prob. 1DQCh. 4 - In comparing the accounts of a merchandising...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - How does a company that uses a perpetual inventory...Ch. 4 - Distinguish between cash discounts and trade...Ch. 4 - What is the difference between a sales discount...Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Refer to the income statement for Samsung in...Ch. 4 - Refer to the income statement of Samsung in...Ch. 4 - Buyers negotiate purchase contracts with...Ch. 4 - Enter the letter for each term in the blank space...Ch. 4 - Prob. 2QSCh. 4 - Use the following information (in random order)...Ch. 4 - Compute the amount to be paid for each of the four...Ch. 4 - Prepare journal entries to record each of the...Ch. 4 - Prob. 6QSCh. 4 - Prepare journal entries to record each of the...Ch. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 21QSCh. 4 - Prob. 22QSCh. 4 - Prob. 24QSCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - A retailer completed a physical count of ending...Ch. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - Prob. 20ECh. 4 - Prob. 21ECh. 4 - Lopez Company reports unadjusted first-year...Ch. 4 - Prob. 23ECh. 4 - Piere Imports uses the perpetual system in...Ch. 4 - Prob. 25ECh. 4 - Prob. 1PSACh. 4 - Prepare journal entries to record the following...Ch. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 1PSBCh. 4 - Prepare journal entries to record the following...Ch. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Prob. 1GLPCh. 4 - The General Ledger tool in Connect automates...Ch. 4 - Prob. 3GLPCh. 4 - comparative figures for Apple and Google follow....Ch. 4 - Prob. 3FSACh. 4 - Amy Martin is a student who plans to attend...Ch. 4 - You are the financial officer for Music Plus, a...Ch. 4 - OfficialBrands’s general ledger and supplementary...Ch. 4 - Prob. 5BTN
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