Original AACSB: Analytic AICPA BB: Legal AICPA FN: Research Bloom's: Knowledge Difficulty: Hard 4. Custody of inventory is transferred to the shipping area upon authorization of: A. The customer order. B. The shipping order.
The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle). Requirement 2 – B Hudson’s wholesale inventories should be reported on the balance sheet at the replacement cost amount. The text indicates that the replacement cost is less than the NRV (or ceiling) and more than the NRV-NP (or floor) making the
Each process needs an adequate trail to avoid arithmetical errors or typos. This is a long, drawn out process, but it is needed to ensure the accuracy of our financial statements. Finally, I believe there should be a control in place for our credit department. If a customer wishes to be billed on credit, the request must go from sales to the credit department electronically. This way it is easily traceable to avoid bogus
Considering alternatives to our problem, I started by examining the facts. These included reports from quality control, accounting, the loss prevention department, and our legal department. I also had to take into consideration for additional production costs, time, and repackaging or replacement of the whistles for this order. I then identified who the stakeholders were in this issue. Those who are going to be affected by the three alternatives are; the customer, consumers, government regulators, our employees, and the company as a whole.
The buyer can be expected to satisfy all obligations under the contract.The contractor can be expected to perform all contractual obligations”. In other words, the percent of competition method can be used if there can be an accurate estimate of the cost. The contract has to be very specific about the exchanging of goods or services. The two parties agree to
If no service contract exists, those fees are recognized over the average customer relationship period. Associated expenses are deferred only to the extent of such deferred revenue. For contracts that involve the bundling of services, revenue is allocated to the services based on their relative fair value. AT&T Inc. records the sale of equipment to customers as gross revenue when AT&T Inc. is the primary obligor in the arrangement, when title is passed and when the products are accepted by customers. For agreements involving the resale of third-party services in which AT&T Inc. is not considered the primary obligor of the arrangement, AT&T Inc. records the revenue net of the associated costs incurred.
These statements now may be used in evaluating the performance of Lee College. Evaluating the performance and financial position for not-for-profit organizations and governments is difficult because they vary greatly in size. Their relative performance based on gross amounts reported in the financial statements does not provide a clear picture and in order to facilitate comparisons; many that use the financial statements often calculate ratios. The most commonly used measure of not-for-profit efficiency is the program expense ratio. This ratio is calculated by taking a total of the program expenses and dividing by the total expenses for an organization.
b. Avion, Inc. - Production i. Their responsibility is to produce the goods ordered. If they are running short on supply, or have a change in how quickly supply is required, they need to communicate their requirements to the Materials Management group. c. Foster Technologies - Production i. Their responsibility is to produce the materials Avion, Inc. requires to produce their goods per their contract.
| | | | | |Account for tag numbers to make sure none was deleted. | |Accuracy | | | | |Make sure recorded counts are accurate by |Compare physical counts to perpetual inventory master file.| |To make sure inventory is counted precisely. |recounting client’s counts. Check descriptions | | | |and unit of counts. | | |Items in the inventory listing schedules are accurate.| |Record client’s counts for subsequent testing.
They lived in Canada for six months and was able to move to Canada because Balbir's brother sponsored them. Balbir's brother lived in Brampton Ontario. After two months of living with his brother, his brother was not able to accommodate Balbir, his