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Jun 21, 2024
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Project One Analysis
Charlotte De La Cruz
Southern New Hampshire University
ACC 317: Intermediate Accounting
July 29, 2023
Project One Analysis
The financial components included in the current assets and current liabilities are located on the Batters Up Balance sheet. Current assets of Batters Up include cash, accounts receivable, prepaid rent, prepaid insurance and merchandise inventory. Current liabilities include accounts payable, wages payable and interest payable. Current assets are resources that a business owns that are expected to be used or converted into within a year. Current liabilities are short term financial obligations that are due within one year. The ratio of current assets and liability is a liquidity ratio that measures the ability to pay debt obligations. The balance sheet is arranged a manner that provides a clear picture of a
company’s financial position. The assets are listed on the left in order of liquidity. The current liabilities are listed in order of maturity, with the shortest-term liabilities listed first followed by long term debt. The same asset or liability can have both short term and long-term components. An example would be a company’s building and equipment that are used for their operations. The building and equipment are considered as long-term assets because they are expected to be held for greater than a year. The land on which the building and equipment are located can be considered as a short-term asset and sold within a year. Another example is inventory. Some inventory can be considered short term and other inventory can be considered long-term depending on what sort of shelf life it has. Current assets and current liabilities can be used as tools to measure variances in data. One method is to use trend analysis which includes analyzing the historical data for a company and identifying any changes in financial statements over time. Variances in data can also be analyzed by comparing the financial data of a company to similar
companies in the same industry. This is called comparative analysis. Comparative analysis can also compare statements from different time periods in order to determine the profitability of the business. Another way to detect variances in data is ratio analysis. By calculating different ratios like liquidity and debt to equity you can compare these ratios against the companies’ historical data or industry averages to compare a company’s
financial position quarterly or annually. Lastly, variances can be detected by evaluating the cashflows for a company and identifying any abnormal patterns. Business intelligence
software can collect, process and compare asset and liability data and assist in analyzing trends or variances over time. Footnotes for current assets and liabilities provide additional information about the data provided. Data doesn’t paint the entire financial picture, and footnotes provide explanation about the nature and timing of the items listed under assets and liabilities. Footnotes allow investors and stakeholders to make more informed decisions based on the company’s financial health. Some examples of additional context that footnotes provide are the age of an account receivable or the terms of a loan. The First in First out (FIFO) inventory method is a valuation method where the assets produced or acquired first are the first to be sold, used or disposed of. FIFO is appropriate for this inventory because it matches the natural flow of goods, it’s also a method to also calculate the cost of goods sold and accurately price inventory. The oldest goods and oldest costs are expensed first and when you purchase more goods for your inventory, you’ll use the most recent inventory cost as a basis for pricing. By selling the oldest costs first, this helps prevent inaccurate inventory pricing and makes reporting more accurate.
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The following items are listed in the FASB codification under the referenced sections.
The applicable FASB codification section for cash and cash equivalents is Section 305.
The applicable FASB codification section for inventory is Section 330.
The applicable FASB codification section for receivables is Section 310.
References
Financial Accounting Standards Board (FASB). (2010).
Accounting standards codification.
Retrieved from
http://asc.fasb.org/
Related Questions
Using accounting vocabulary
Consider the following accounting terms and definitions, and match each term to the definition:
arrow_forward
Solve #35 please
arrow_forward
The ___________ is the process by which a company spends cash, generates revenues, and receives cash either at the time the revenues are generated or later by collecting an accounts receivable.
Group of answer choices
accounting cycle
business cycle
operating cycle
income cycle
arrow_forward
Balance Sheet. Use Table 3.2 on page 82 as a guide to create a monthly balance sheet
arrow_forward
ME12
Accounts with normal credit balances include:
a) Assets and liabilities
b) Revenues and expenses
c) Liabilities and revenues
d) Revenues and assets
ME13
The chart of accounts lists a company's accounts in what order?
a) Assets, liabilities, revenues, expenses, stockholders' equity
b) Assets, revenues, expenses, liabilities, stockholders' equity
c) Assets, liabilities, stockholders' equity, expenses, revenue
d) Assets, liabilities, stockholders’ equity, revenues, expenses
arrow_forward
Q025: Which accounting concept requires that financial statements reflect
the assumption that the business will continue operating indefinitely?
A) Economic Entity Assumption
B) Going Concern Assumption
C) Monetary Unit Assumption
D) Periodicity Assumption
arrow_forward
Need Help with this Question with this Question with this Question
arrow_forward
Activity # 7 Application of the concepts of Assets, Liabilities, Owner’s Equity, Revenue, and ExpenseThe following table includes SFP and SCI elements. Put a check mark (√) in the column where each accounts belongs to.Account Asset Liability Owner’s Equity Revenue Expenses1. Interest Receivable2. Professional Fees3. Service Income4. Mr. A, Drawing 5. Doubtful Accounts6. Depreciation Expense7. Accrued Interest Income8. Unearned Interest Income9. Prepaid Interest10. Accumulated Depreciation11. Mortgage payable12. Unused Supplies13. Supplies Inventory14. Supplies on hand15. SSS Premium Expense16. Withholding Taxes Payable17. Repairs and Maintenance 18. Petty cash Fund19. Allowance for Bad Debts20. Cash in bank21. Accounts payable22. Prepaid Insurance23. Unexpired Insurance24. Salaries payable25. Utilities Expens
arrow_forward
finalacial accounting
please give me the answer of this question thanks
arrow_forward
Required:
• LEDGER (format/answer sheet provided)
arrow_forward
What is total assets on this company's balance sheet?
What is total current liabilities on this company's balance sheet?
What is the correct order for the current liabilities section of the balance sheet?
a. Accounts payable, payments to suppliers, deferred revenue, income tax payable
b. Bank loan payable, Income tax payable, Accounts payable, Deferred revenue
c. Accounts payable, Income tax payable, Payments to suppliers
d. Accounts payable, Deferred revenue, Income tax payable
e. Accounts payable, Income tax payable
Enter the letter that corresponds to your choice. (A B C D E)
What is total liabilities on this company's balance sheet?
What is total equity on this company's balance sheet?
What is the correct order for the equity section of the balance sheet?
a. Owners' Capital, Retained earnings
b. Retained earnings, Owners' capital
c. Retained earnings, Owners' capital, Profit
d. Retained earnings, Profit, Owners' capital
e.…
arrow_forward
30. MC.03.035
Bright Services pays wages of a part-time employee. The transaction would involve a
a. debit to Cash.
b. debit to Wages Expense.
c. credit to Prepaid Expenses.
d. credit to Wages Payable.
31. MC.03.036
Patrick Services paid the office rent for the current month. The transaction would involve a
a. credit to Prepaid Rent.
b. debit to Rent Expense.
c. debit to Cash.
d. credit to Rent Payable.
32. MC.03.037
Homer Services pays the monthly rent, $5,000. The transaction would involve a
a. debit to Rent Expense.
b. credit to Rent Payable.
c. debit to Cash.
d. debit to Prepaid Rent.
33. MC.03.038
P. Baker deposits $10,000 in a bank account, in the name of his business, to be used to purchase equipment. The journal entry to record the transaction would involve a:
a. credit to P. Baker, Capital.
b. credit to P. Baker, Drawing.
c. credit to Cash.
d. credit to Equipment.
arrow_forward
34. MC.03.039
The
requires that assets be recorded at the actual cost.
a. cost principle
b. matching principle
c. business entity principle
d. fair value principle
35. MC.03.040
For a journal entry to be complete, it must contain
a. the date.
b. a credit entry.
c. a debit entry.
d. an explanation.
e. All of these listed answers are correct.
36. MC.03.041
Which of the following is correct concerning recording journal entries?
a. Dollar signs are always recorded in the journal.
b. The credit part of the entry is recorded first.
c. The credit account is always indented underneath the debit entry.
d. The debit part of the entry is recorded last.
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A docs.google.com/forms
choose the right answer
Amount invested by the proprietor in the business should be credit to:
Drawing O
Capital O
Cash O
A/c payable O
choose the right answer
The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known
as
Intangible assets O
Investments
Current assets
Fixed assets O
arrow_forward
ABC Company's accounting records reported the following
account balances as of December 31, 2026:
Supplies ...
Interest revenue
▪▪▪▪..
Patent
Income tax expense
Retained earnings
Equipment ..
Accounts payable
Salaries expense
▪▪▪▪▪▪▪
Sales revenue
Cash .
Land
Notes payable
Inventory
Common stock
Accounts receivable
Dividends .….…..
Salaries payable
Cost of goods sold
Utilities expense
Trademark
Rent revenue
III
II
II.
■
■
$11,000
$46,000
$58,000
$22,000
$86,000 (at Jan. 1, 2026)
$37,000
$29,000
$31,000
$88,000
$21,000
$54,000
$70,000
$49,000
$97,000
$33,000
$16,000
?
$53,000
$25,000
$75,000
$26,000
Calculate the amount of gross profit reported in ABC
Company's 2026 income statement.
arrow_forward
SEE MORE QUESTIONS
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- Using accounting vocabulary Consider the following accounting terms and definitions, and match each term to the definition:arrow_forwardSolve #35 pleasearrow_forwardThe ___________ is the process by which a company spends cash, generates revenues, and receives cash either at the time the revenues are generated or later by collecting an accounts receivable. Group of answer choices accounting cycle business cycle operating cycle income cyclearrow_forward
- Balance Sheet. Use Table 3.2 on page 82 as a guide to create a monthly balance sheetarrow_forwardME12 Accounts with normal credit balances include: a) Assets and liabilities b) Revenues and expenses c) Liabilities and revenues d) Revenues and assets ME13 The chart of accounts lists a company's accounts in what order? a) Assets, liabilities, revenues, expenses, stockholders' equity b) Assets, revenues, expenses, liabilities, stockholders' equity c) Assets, liabilities, stockholders' equity, expenses, revenue d) Assets, liabilities, stockholders’ equity, revenues, expensesarrow_forwardQ025: Which accounting concept requires that financial statements reflect the assumption that the business will continue operating indefinitely? A) Economic Entity Assumption B) Going Concern Assumption C) Monetary Unit Assumption D) Periodicity Assumptionarrow_forward
- Need Help with this Question with this Question with this Questionarrow_forwardActivity # 7 Application of the concepts of Assets, Liabilities, Owner’s Equity, Revenue, and ExpenseThe following table includes SFP and SCI elements. Put a check mark (√) in the column where each accounts belongs to.Account Asset Liability Owner’s Equity Revenue Expenses1. Interest Receivable2. Professional Fees3. Service Income4. Mr. A, Drawing 5. Doubtful Accounts6. Depreciation Expense7. Accrued Interest Income8. Unearned Interest Income9. Prepaid Interest10. Accumulated Depreciation11. Mortgage payable12. Unused Supplies13. Supplies Inventory14. Supplies on hand15. SSS Premium Expense16. Withholding Taxes Payable17. Repairs and Maintenance 18. Petty cash Fund19. Allowance for Bad Debts20. Cash in bank21. Accounts payable22. Prepaid Insurance23. Unexpired Insurance24. Salaries payable25. Utilities Expensarrow_forwardfinalacial accounting please give me the answer of this question thanksarrow_forward
- Required: • LEDGER (format/answer sheet provided)arrow_forwardWhat is total assets on this company's balance sheet? What is total current liabilities on this company's balance sheet? What is the correct order for the current liabilities section of the balance sheet? a. Accounts payable, payments to suppliers, deferred revenue, income tax payable b. Bank loan payable, Income tax payable, Accounts payable, Deferred revenue c. Accounts payable, Income tax payable, Payments to suppliers d. Accounts payable, Deferred revenue, Income tax payable e. Accounts payable, Income tax payable Enter the letter that corresponds to your choice. (A B C D E) What is total liabilities on this company's balance sheet? What is total equity on this company's balance sheet? What is the correct order for the equity section of the balance sheet? a. Owners' Capital, Retained earnings b. Retained earnings, Owners' capital c. Retained earnings, Owners' capital, Profit d. Retained earnings, Profit, Owners' capital e.…arrow_forward30. MC.03.035 Bright Services pays wages of a part-time employee. The transaction would involve a a. debit to Cash. b. debit to Wages Expense. c. credit to Prepaid Expenses. d. credit to Wages Payable. 31. MC.03.036 Patrick Services paid the office rent for the current month. The transaction would involve a a. credit to Prepaid Rent. b. debit to Rent Expense. c. debit to Cash. d. credit to Rent Payable. 32. MC.03.037 Homer Services pays the monthly rent, $5,000. The transaction would involve a a. debit to Rent Expense. b. credit to Rent Payable. c. debit to Cash. d. debit to Prepaid Rent. 33. MC.03.038 P. Baker deposits $10,000 in a bank account, in the name of his business, to be used to purchase equipment. The journal entry to record the transaction would involve a: a. credit to P. Baker, Capital. b. credit to P. Baker, Drawing. c. credit to Cash. d. credit to Equipment.arrow_forward
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