Accounts payable

final account, then architect shall issues penultimate certificate for the release of the retention sums and any other outstanding sum 3. Within 21 days after the period oh honoring certificates for the payment of the penultimate certificate and within 21 days after the certificate of making good defects has been issued, in the event no penultimate certificate has been issued; the final certificate shall be issued by architect 4. Final certificate are issued which consists of final account and…

Cassidy Donelan Professor Henry BACC 3110 15 October 2015 Case #1 – Aetna, Inc.’s Critical Accounting Policies Critical accounting policies for firms or industries are policies having a high level of subjectivity, bearing a material impact on financial statements. These estimates, required by the Securities and Exchange Commission (SEC) are outlined in the Management’s Discussion and Analysis (MD&A) section of each company’s 10-K filing as of 2002. The SEC, in requiring these estimates to be…

Similarities between Job costing and Process costing: • Both are used to calculate the cost of products. • Both have the same cost steps. Both Job cost and Process cost record production in separate accounts for materials inventory, labor, and overhead. The costs are moved to a Work in Process Inventory account. • Both use pre-calculated overhead rates to apply overhead. Differences between job costing and process costing: • Types of products produced. Companies that use job costing have…

This case involves three parties Romanelli Inc. as principal, Schor accountant and financial adviser as agent and Citibank as a third party. It must be decided whom is liability for actions made by Schor. This case addresses the following legal issues; Authority, Authority branch of agency law, Criminal Law, Third Party Liability, and Vicariously Tort Liability. Relevant social issues involved. Standards must be in place to aid society. There must be standards that prevent an agent from…

recorded under operating activities as cash outflow due to assumption that the items were purchased in cash 5. Amount owing to the manufacturer for merchandise purchased In the balance sheet, this transaction will be recorded as a liability (account payable). Once the business is able to pay the amount owed to the manufacturer, the cash flow statement will record this transaction under operating activities and as cash…

Case Activities 2 Negotiability In this case, Cory Babcock and Honest Air Conditioning & Heating purchased a new 2001 Chevrolet Corvette in September 2001 from Cox Chevrolet in Sarasota, Florida. The retail installment sales contract (RISC) stated that there were required monthly payments to be made until the balance of $52,516.20 was paid in full. There were other conditions imposed by RISC on the buyers and seller with respect to the payment for and handling of the Corvette. Cox then…

inputs into cash. It evaluates how effectively a firm is managing its working capital. In most cases, a company acquires inventory on credit, which results in accounts payable. A firm can also sell products on credit, which results in accounts receivable. Cash, therefore, is not involved until the firm pays the accounts payable and collects accounts receivable. So the cash conversion cycle measures the time between outlay of cash and cash recovery (Siddiquee, Khan & Shaem Mahmud, 2009). This…

principles for outside agencies such as the IRS. What complicates things is the reality that leadership and board members have varying levels of accounting/financial knowledge. One way to simplify information is to develop a chart of accounts. The chart of accounts is the foundation of the nonprofit accounting system. It is a set of categories to organize the description of assets, liabilities, net assets, income, and expenses…

already received. Review the budget. The managers meet with the senior management to review the budget ,any constraint issues or funding limitations have to be highlighted. Also test for the validity of the turnover ratios for accounts receivable, inventory, and accounts payable in relation to historical metrics, as well as sales per salesperson. Amy recommendations or notes by senior manahement have to be forwarded to the managers involved in budget development and they should do any…

Managing Cash Flow Cash Flow is made up of revenue or expense streams that move between cash accounts over a stated time frame. The "statement of cash flows," traces the sources of cash created and used by a firm during the period is calculated by adding noncash charges (such as depreciation) to net income after taxes. The purpose of FASB rules applied to financial statement makeup are not about tracking the movement of cash through your business. They are concerned with the measurment profit or…