Accountıng I

Yanıt Açıklaması: According to the information given in the question, cash account is debit 800 TL. Sales income account is credited as 800 TL.

Yanıt Açıklaması: Perpetual Inventory System achieves better control over the inventory by recording the following information: • Units purchased and cost amounts • Units sold and sales and cost amounts • The quantity of merchandise inventory on hand and its cost. The correct choice is E.

Yanıt Açıklaması: The cost of goods sold is (130.000-45.000)=85.000 TL

Yanıt Açıklaması: In thsi transaction; two accounts involved are Cash and Owner’s Capital.

Yanıt Açıklaması: Internal control can be defined as a plan and a system of control procedures designed and implemented by the management and the board of directors.

Yanıt Açıklaması: The operating cycle of a merchandising company starts with the purchase of inventories from a producer or an individual, called a vendor. Then these inventories are sold to customers, either in cash or on account. When the cash is collected from customers, the operating cycle ends the first round.

Yanıt Açıklaması: If cash is received in advance, a liability account will be used as a correspondence to cash account, a liability account called deferred revenue is used as a correspondence to cash account.

Yanıt Açıklaması: One important issue regarding allowances is how to record the written-off uncollectible account receivables. Whenever a company becomes sure that a particular customer will not be able to repay and hence that account receivable would be uncollectible, then that particular account receivable will no longer be categorized as an asset, so it has to be written off from the books. This write-off means to deduct the receivables balance of that specific customer’s account to nil. The company credit Account Receivable and making an offsetting debit to Allowance for Doubtful Debts account. C is the right answer.

Yanıt Açıklaması: Generally, receivables are classified into three main categories: (1) accounts receivables, (2) notes receivables, and (3) other receivables. Receivables can be also classified as current (short-term) and non-current (long-term) receivables with respect to their maturity structures. Receivables that are expected to be collected in less than one or exactly in one year (or operating period) are presented as current asset in the balance sheet. Receivables that are expected to be collected in more than one year (or longer than the operating period) are presented as non-current asset in the balance sheet. B is the right answer.

Yanıt Açıklaması: Net Cost of Inventory Purchased = Purchase cost inventory – Purchase returns and allowances – Purchase discounts + Freight in

Yanıt Açıklaması: The specific identification method uses the specific cost of each inventory unit to determine ending inventory and cost of goods sold.

Yanıt Açıklaması: If the shipment type is FOB destination, transportation is under the seller’s responsibility. Freight cost is not included in the cost of goods; therefore, this type of shipment is called “freight out”. The freight cost is recognized as delivery expense, in the accounting records of the seller.

Yanıt Açıklaması: Periodic inventory system is used by the companies with inexpensive inventories and manual accounting systems. However, with the increased use of technology in all areas of businesses, this system is preferred less day-by-day. The other information is true for companies using perpetual inventory system.

Yanıt Açıklaması: Non-current assets include the assets acquired to be used in business ‘s operations for more than 12 months and receivables of which due dates are more than 12 months. From the perspective of liquidity, non-current assets’ convertibility into cash must be over 12 months.

Yanıt Açıklaması: Sales returns and allowances reduce the amount of accounts receivables since the customer delivers back the goods or the company waives a portion of its claim due to product defects.

Yanıt Açıklaması: Inventories are included in assets in the balance sheet.

Yanıt Açıklaması: Creating a culture against to the cybersecurity attacks and fraud is very important to strengthen the control environment of the business.

Yanıt Açıklaması: When the company sells its goods or services on cash basis, there would be no need to consider for accounts receivables. In such a case, cash account is debited; the sales revenue account is credited. As we have mentioned before, if the company sells its goods and services on credit, then it has to debit accounts receivables.Cash account is debited and sales revenue is credited. This basic sales transaction has cash and income increasing effect.

Yanıt Açıklaması: Purchased merchandise inventory is recorded i n the Merchandise Inventory account at the time of purchase weather on cash or on account.

Yanıt Açıklaması: There are three main accounting issues with respect to the accounting of receivables. They are: 1. Recognition of accounts receivable 2. Valuation of accounts receivable 3. Disposition of accounts receivable