Accounts receivable

creating bogus invoices in order to request payment from Coach and keeping the money for personal use. (3) Theft and financial fraud; an employee in charge of accounts receivables could be embezzling money by posting a customer’s payment on another customer’s account and keeping the money instead of posting it to the accounts receivable account or a manger might be understating inventory balances on financial statements. Extended procedures to detect fraud by the fabrication of purchase…

form is given to them to fill out to apply for credit. However for large companies, such as Trust Power, they are referred to a manager. For example, a manager would be allocated to communicate with Mount Maunganui College, as they have an existing account balance of $12,000. Whereas, United Ltd is a new customer, with a balance of $230. Therefore they communicate with a normal salesperson. By allocating these managers to negotiate directly with these large companies, Office Products Depot is…

lower ratio. These tell if a company is using its resources to generate income properly. According to the results for Apple Inc. in years 2013, 2014, and 2015 these ratios are pretty good. The roe (return on equity) ratio is going up which means that accounts payable is being used properly and being capitalized on. This is the most important ratio out of this category as it tells investors how good the company is doing. Same with the ROA (return on assets) this is staying consistent threw the…

Earnings per share of common stock: Profit allocation to outstanding shares on common stock is measured by this ratio. Company G jumped from a $0.672 in 2001 to a $1.03 for the year 2012. Benchmarks for the quartile industry are 0.83/0.87/0.9. Earnings per share of common stock for Company G represent and increment above average. Earnings per Share of Common Stock represent strength for Company G. L. Price earnings ratio: This ratio values current share price and compares to earnings per…

Additionally, I have attached the balance sheets for Snow Mountain and Ski Town, hopefully all this information is helpful when deciding which company to buy. When having accounts receivable accounts, it is essential to make an uncollectible accounts expense in order to estimate the amount of money you will probably not be receiving. This account is key when completing financial statements because it avoids the profit and owner’s equity being overstated and the expenses understated, leading to…

Principle 1: Money has a time value The hypothesis behind money has a time value is the value of money today is more valuable than the same amount in the future due to its potential earning capacity (Titman, Kewon & Martin, 2014, p. 127). If you have a dollar in your wallet today, that dollar will be worth less in a year’s time if the dollar remains in your wallet. Inflation has an effect on the time value as it increases the price of goods and services over time, decreasing the amount of…

on the rising debt-equity ratio. The accounts receivable days in aging is over double the amount of what is recommended for the construction industry. Generally it is recommended that companies maintain an accounts receivable days in aging around 45 days or less and Punj Lloyd is averaging about 111 days, and in 2015 it is 146 days which suggest the company has been lazy in collecting it’s receivables. This large amount of days in aging for accounts receivable is withholding cash that the…

Excellent summary of the case study; I did not have to read it to understand what is going on. All the important facts are covered. I just noted how Avis who is initially excited by the fact that she uncovered fraud, and then becomes concerned or disappointed because one of the involved manager, Mo Rappelle, with whom she has become well acquainted. And the fact that Mo backdated sales to increase his year-end bonus by slightly more than $100, which has clearly an immaterial impact on Lowell,…

ledger accounts and transactions to determine the effectiveness of internal controls, accuracy of data, and detect potential misstatements and fraudulent activities. Examination of Ms. Jones’ completed audit reveals incorrect assumptions, statements, and inappropriate application of audit procedures. Monetary Unit Sampling Sampling is an essential tool in effectively auditing accounting records of an organization. Said tool is utilized to test the internal control procedures, account…

The truck has a useful life of 3 years and a salvage value of $3,000. 245,000 . Further adjustments and information: 24,500 Accumulated Depreciation - Building i-v-e ry Truck*** Collections: Accounts Receivable $21,000; Interest on Bonds $6,000; Cash Sales $95,000 . 50,000 Allcw--ance for Doubtful Debts 110 110 Credit 48,000 1102 1103 , Debit 18,000 i. Bad debt expense is estimated at 1% of credit sales 10,000 ccumulated Depreciation -…