Accounting Information Systems; Quickbooks 2015: A Complete Course (without Software); Access Card For Intuit Quickbooks 2015 (13th Edition)
13th Edition
ISBN: 9780134404080
Author: Marshall B. Romney, Paul J. Steinbart
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 1CQ
To determine
Identify the correct option for the given statement.
Expert Solution & Answer
Answer to Problem 1CQ
Option “d”
Explanation of Solution
REA Diagram: REA (Resources, events, agents) diagram is a technique used to establish the relationship between resource, events and agents. This diagram is used to understand accounting transactions occurring in the business entity.
Modelling of business cycle makes it easier to identify the all relevant resources, events and agents for each business cycle. The relationship between the entities is prepared when the resources, events and agents are identified. At the same time, it is easier to assign the relationships in REA diagrams for a single business cycle, because it directly represents the business policies of organization. Hence, all type of entities (resources, events, and agents) are separated in different table for easy identification.
From the above explanation it is clear that “option a, b and c” are incorrect options and option “d” is a correct answer.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What is the value of ending inventory using the variable costing method?
Which of the following does NOT appear on an
income statement prepared using variable
costing?
A. Fixed production costs
B. Contribution margin
C. Gross margin
D. Variable production costs
What is the value of ending inventory using the variable costing method? General accounting
Chapter 18 Solutions
Accounting Information Systems; Quickbooks 2015: A Complete Course (without Software); Access Card For Intuit Quickbooks 2015 (13th Edition)
Ch. 18 - Prob. 1CQCh. 18 - Prob. 2CQCh. 18 - Prob. 3CQCh. 18 - Prob. 4CQCh. 18 - Prob. 5CQCh. 18 - Prob. 6CQCh. 18 - Prob. 7CQCh. 18 - Prob. 8CQCh. 18 - Prob. 9CQCh. 18 - Prob. 10CQ
Ch. 18 - Prob. 1CPCh. 18 - Prob. 1DQCh. 18 - Why take the time to develop separate REA diagrams...Ch. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - Prob. 5PCh. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Refer to Problem 17.10 and develop a set of tables...Ch. 18 - Prob. 1C
Knowledge Booster
Similar questions
- Financial Account Subjectarrow_forwardQuirky Inc. is a Subchapter S corporation. It properly reported a net income of $100,000 for financial statement purposes. It had charitable contributions of $5,000 and a dividend income of $10,000 from a large domestic publicly-traded company. What is the taxable income of Quirky Inc. that will be reported to its shareholders on Schedule K-1?[General Account]arrow_forwardPresented below is information related to Swifty Inc.'s inventory, assuming Swifty uses lower-of-LIFO cost-or-market. (Per unit) Skis Boots Parkas Historical cost $285.00 $ 159.00 $ 79.50 Selling price $318.00 $217.50 $ 110.63 Cost to distribute $ 28.50 $ 12.00 $ 3.75 Current replacement cost $304.50 $157.50 $ 76.50 Normal profit margin $ 48.00 $ 43.50 $ 31.88 Determine the following: a. The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. Celling Limit $ Floor Limit $ b. The cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount $ c. The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount $arrow_forward
- All 3 questions take and provide correct solutionsarrow_forwardCarmelita Inc. has the following information available: Costs from Beginning Direct materials Conversion costs Inventory Costs from Current Period $5,100 6,800 $ 20,200 1,46,900 At the beginning of the period, there were 500 units in a process that was 45% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,100 units were started and completed. The ending inventory contained 400 units that were 29% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were: a. 5,100 from direct materials and 5,491 for conversion costs. b. 5,491 for direct materials and 5,500 for conversion costs. c. 5,491 for direct materials and 5,491 for conversion costs. d. 5,500 for direct materials and 5,491 for conversion costs.arrow_forwardprovide correct solutionsarrow_forward
- general accountarrow_forwardBedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: -The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor. -The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is: A) $362,000 B) $390,000 C) $412,000 D) $318,000 E) $340,000arrow_forwardneed answer in this questionsarrow_forward
- Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750. at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (750 $1,000) $750,000 Cost of goods sold (750 $450) 337,500 Gross margin 412,500 Selling and administrative expenses 240,000 Net income $172,500 Additional Information: a. Production cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cost the latter amount is based on $100,000 of fixed production costs allocated to the 1,000 kayaks produced. b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required: Prepare an income statement for the current year under variable costing.arrow_forwardDon't use ai given answer accounting questionsarrow_forwardOperating expensesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education