What is meant by the year-end cutoff of transactions? If merchandise in transit at year-end is material

Question:

What is meant by the year-end cutoff of transactions? If merchandise in transit at year-end is material in dollar amount, what determines whether these goods should be included in the inventory of the buyer or the seller? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

See More Books

Question Posted: Jun 10, 2016 05:14 AM

See More Questions

What is meant by the word vesting?
What is meant by the term inventoriable product costs? What is meant by the term period costs? Why does it matter whether a cost is an inventoriable product cost or a period cost?
What is meant by the term operating cycle?
Based on the following definitions, which statement is NOT true? int[] 1DArray={1,2,3}; int[][] 2DArray=new int[2][]; 2DArray[0]={4,5}; 2DArray[1]={6,7,8}; public void method1(int[] 1DArray){...}...
What is the objective of data-driven relationship programs?
Which values of our corporate culture correspond to your value concept and which do not?
Arden and Plomin (2006) published a study reporting that IQ scores for boys are more variable than IQ scores for girls. A researcher would like to know if this same phenomenon applies to other...
Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large amount of borrowed funds was invested in a new building addition as well as in equipment...
87. As fitness business owners, we run an immediate gratification business. True False 88. When looking at your target market you should be thinking about ____________ and ________. What is their...
How many four-digit numbers can be formed from the digits 1, 4, 5, 7, 8, and 9 (a) If the numbers must be even and digits are not used repeatedly? (b) If the numbers are less than 3000 and digits are...
Under what circumstances might a company write down its inventory to carrying value below cost?
Twin-Cities, Inc., purchased a building for $400,000. Straight-line depreciation was used for each of the first two years using the following assumptions: 25-year estimated useful life, with a...
Suppose Lennox Air Conditioning Company borrowed $\$ 5,000,000$ on December 31, 19X0, by issuing 9-percent long-term debt that must be paid in five equal annual installments plus interest each...
Alvarado Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $12.00 per hour. If 5,700 units used 29,400 hours at an hourly rate of $11.40 per...
7. (30 points) You are a teaching assistant (TA) for a new course in the department and you wish to measure the amount of time that students spend engaging with the online resources. Using the Canvas...
Mod Clothiers makes women's clothes. It costs $28,000 to produce 5,000 pairs of polka-dot polyester pants. They have been unable to sell the pants at their usual price of $50.00. The company is...
In a mid-sized manufacturing company, the annual financial statements were prepared for audit by an external auditing firm. The company\'s finance team had diligently compiled the financial data, and...
Explain the meaning of the SMART acronym. In 100-200 words, define what the words "goal" and "success" mean to you. Summarize your thoughts on whether or not the SMART model can help you become a...
Bakers Ltd are currently undertaking a review of the delivery vans used to deliver products to customers. The company runs two types of delivery van (type A, recently purchased,and type B, at least...
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
Osborn Diversified Products, Inc., is a billion-dollar manufacturing company with headquarters in Dayton, Ohio. The company has 15 divisions, two of which are the Battery Division and the Golf Cart...
Researchers suggest that many angioplasties and implanted cardiac pacemaker surgeries done in the United States each year are medically unwarranted. The additional risk to patients health posed by...
Researchers suggest that many angioplasties and implanted cardiac pacemaker surgeries done in the United States each year are medically unwarranted. The additional risk to patients health posed by...
solve this plz Alba Company is considering the introduction of a new product. To determine the selle price of the product you have The direct material permit The direct labor per unit The variable...
Calculate the current ratio collection period for accounts receivable, inventory turnover, gross margin percentage, and return on equity for 2014 and 2015 for the Jordan Corporation. Do not average....
A company received $11,000 cash in exchange for 200 shares of the companys common stock. What would the effect of this transaction on the current years accounting equation? Select one: A. No effect...

What is meant by the year-end cutoff of transactions? If merchandise in transit at year-end is material

Question:

Step by Step Answer:

A cutoff of transactions means determining that transactions occurring near yearend are ...View the full answer

Financial and Managerial Accounting the basis for business decisions

Students also viewed these Managerial Accounting questions