When the items needed for the additional information required by the direct method are so easy to
Question:
When the items needed for the additional information required by the direct method are so easy to identify from the Cash Book, why do you think most companies prefer to use the indirect method?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
In principle the direct method is very easy to calculate You just add up a...View the full answer
Answered By
Arun kumar
made more than four thousand assignments
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
Question Posted:
Students also viewed these Business questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Weld, Bergevin, and Magrath article points out that if a company is going to intentionally manipulate earnings, they must be astute enough to present financial statements that still seem...
-
Now that you have background on ethics and a set of skills for evaluating ethical issues, the application to real-life dilemmas seems fairly straightforward. However, there is one additional aspect...
-
Jane Grimes, retail fruit and vegetable merchant, does not keep a full set of accounting records. However, the following information has been produced from the business's records: 1. Summary of the...
-
Guardian Services is a firm that provides security services to apartment buildings and offices. Smartly dressed in dark blue uniforms, Guardians security officers are placed in visible locations...
-
Take five minutes for the Communicator to provide to the Active Listener (follow the rules of active listening!) what they think on one of the topics listed below: Whether political views should be...
-
From the following, information, prepare a Bank Reconciliation Statement as per passbook on 31 December 2005: (a) Bank balance as per cash book 10,000. (b) Cheques issued during December, but...
-
In 2014, Gale and Cathy Alexander hosted an exchange student, Axel Muller, for 9 months. Axel was part of International Student Exchange Programs (a qualified organization). Axel attended tenth grade...
-
At the end of Year 2, retained earnings for the Baker Company was $3,750. Revenue earned by the company in Year 2 was $4,000, expenses paid during the period were $2,100, and dividends paid during...
-
Utilizing the financial information below for The Cookie Company, complete a budget performance report combining activity and revenue and spending variances like that in Exhibit Please be sure to...
-
Prepare a cash flow statement for Lee Ltd for the year ended 31 December 20X4 as required under FRS 1 using the direct method, together with note 1 to the statement. The profit and loss account,...
-
Give an example of the information to be included under each of the headings in an FRS 1-based cash flow statement and indicate why this information might be useful. Data from FRS 1 Cash flows...
-
In Problems 1922, use the method of Example 5 to find the constants A, B, and C in the indicated partial-fraction decompositions. 8 x(x + 4) A Bx + C + x x+4
-
Design an arithmetic circuit with two selection variables S 1 and S 0 and two n- bit data inputs A and B. The circuit generates the following eight arithmetic operations in conjunction with carry C...
-
Larrys Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Larrys prints...
-
Pecos Pecan Pads makes pressed pecan wood covers to prevent weed growth. During July 2009, the company produced and sold 44,000 rolls and recorded the following cost data: Requirements 1. Compute the...
-
The Human Resources departments costs are allocated to the other departments based on the number of direct labor hours. The departments expected fixed costs are 400,000 and its variable costs are...
-
A lawyer allocates overhead costs based on her hours working with different clients. The lawyer expects to have \($200,000\) in overhead during the year and expects to work on clients cases 2,000...
-
In the previous problem, suppose the scale of the project can be doubled in one year in the sense that twice as many units can be produced and sold. Naturally, expansion would be desirable only if...
-
Is it ethical to provide safety training in English to immigrant workers who speak little English, in order to reduce costs?
-
A business makes a provision for doubtful debts of 3% of debtors, also a provision of 1% for discount on debtors. On 1 January 20X8 the balances brought forward on the relevant accounts were...
-
John Boggis saw a computer for sale in a local store for 1,499. This was much cheaper than hed seen it for sale elsewhere. He needed five of these PCs and also needed the cabling to network them....
-
A business, which started trading on 1 January 20X7, adjusted its doubtful debt provision at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordance...
-
Maddox Resources has credit sales of $ 1 8 0 , 0 0 0 yearly with credit terms of net 3 0 days, which is also the average collection period. Maddox does not offer a discount for early payment, so its...
-
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Jan. 5 Selk purchased 50,000 shares (25% of total)...
-
Equipment with a book value of $84,000 and an original cost of $166,000 was sold at a loss of $36,000. Paid $100,000 cash for a new truck. Sold land costing $330,000 for $415,000 cash, yielding a...
Study smarter with the SolutionInn App