Acct%20Project%201[1]

Acct%20Project%201[1] - financial weakness, since a company...

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Drew Sherry and Aaron Kovalchik ACCT 214 Project 1 Professor Rankin 25 October 2011 Chapter 3 1. A company has accrued expenses at year-end because they wait until the end of the period. They use an adjusting entry to update each expense for their financial statements 2. Accrued Expenses and Other $902 million 3. December 31, 2008 a. Accrued Expense and Other 1093 Accounts Payable 1093 b. Operation Expenses 3428 Cash 2335 Accrued Expense 1093 4.
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5. a. 2007 Current Ratio: 5164 = 1.39 3714 2007 Debt Ratio: 5288 = 0.8154 6485 b. 2008 Current Ratio: 6157 = 1.297 4746 2008 Debt Ratio: 5642 = 0.6786 8314 Amazon.com Inc’s current ratio decreased between 2007 and 2008, showing a
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Unformatted text preview: financial weakness, since a company wants its current ratio to improve. On the other hand, the debt ratio also decreased showing a financial strength, since lesser debt is good for a company. Chapter 5 1. Net Accounts signifies: Accounts Receivable Allowance for Bad Debt Other signifies: Other Current Assets 2. Accounts Receivable: online purchases using a credit card, is vendor receivable and customer receivables 3. The allowance for doubtful accounts in 2008 was $81 million, while in 2009 it was $64 million....
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Acct%20Project%201[1] - financial weakness, since a company...

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