... time periods 20- 5 LO Job Order Cost System Illustration 20- 2 shows the recording of costs in a job order cost system for Disney as it produced two different films 20- 6 Illustration 20- 2 Job order ... be accompanied by a corresponding posting to one or more job cost sheets 20- 19 LO Illustration 20- 4 Job cost sheet 20- 20 LO Raw Material Costs Assigned to a job when materials are...
... product Chapter 20- 6 LO 1: Explain the characteristics and purposes of cost accounting Cost Cost Accounting Accounting Systems Systems There are two basic types of cost accounting systems Chapter 20- 7 ... profitability of completed jobs Chapter 20- 4 Job Job Order Order Cost Cost Accounting Accounting Cost Accounting Systems Job Order Cost System Process Cost System Cha...
... in cash Illustration 9-1 Receivables as a percentage of assets 9-3 LO Types of Receivables Three accounting issues: Recognizing accounts receivable Valuing accounts receivable Disposing of accounts ... Companies record credit losses as debits to Bad Debt Expense LO Valuing Accounts Receivable Methods of Accounting for Uncollectible Accounts Direct Write-Off Theoretically undesirable: 9-10...
... Cash Flows Note Disclosure Generally Accepted Accounting Principles (GAAP) LO Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) – Standards that are generally ... 5.Managerial accounting activities focus on reports for internal users Solution: 1-7 1.True 2.False 3.False 4.False 5.True LO LEARNING OBJECTIVE Explain the building blocks of ac...
... PROCEDURES Double-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance 2-3 Recording done by debiting at least one account and crediting ... hair salon to be called “Hair It Is.” A friend has advised Kate to set up a double-entry set of accounting records in which to record all of her business transactions Identify the balance...
... than when paid) In 3-5 accordance with generally accepted accounting principles (GAAP) LO Accrual- versus Cash-Basis Accounting Cash-Basis Accounting 3-6 Revenues recognized when cash is received ... Cash-basis accounting is not in accordance with generally accepted accounting principles (GAAP) LO Recognizing Revenues and Expenses REVENUE RECOGNITION PRINCIPLE Recognize reven...
... detailed records of the goods on hand Cost of goods sold determined by count at the end of the accounting period Calculation of Cost of Goods Sold: Beginning inventory $ 100,000 Add: Purchases, ... Accounts Receivable 200 Inventory 5-37 200 30 Cost of LO LEARNING OBJECTIVE Apply the steps in the accounting cycle to a merchandising company Adjusting Entries Generally the same as a servi...
... often “take inventory” when the business is closed or business is slow 6-5 at the end of the accounting period LO 6-6 LO Determining Inventory Quantities DETERMINING OWNERSHIP OF GOODS GOODS ... in ending inventory of the current period will have a reverse effect on net income of the next accounting period 6-39 Over the two years, the total net income is correct because the errors ....
... Manual Accounting Systems Perform each step in the accounting cycle by hand Satisfactory with a low volume of transactions Must understand manual accounting systems to understand computerized accounting ... overall conceptual framework for establishing accounting standards In addition, high-quality international accounting requires both high-quality accounting standards and h...