Answer: Note Receivable
Explanation:
A Note Receivable is a written document from a party promising to repay another party with interest on amounts borrowed in form of cash or otherwise thereby creating a debtor - creditor relationship between them.
When a promissory note is received from a customer in exchange for an accounts receivable it is a <em>Note Receivable</em> and the Payee being the creditor will record it as such.
Answer:
A. Procyclical policy.
Explanation:
Procyclical policy is basically is a government approach to increase goverment spending and reduces taxes while government is going through economic expansion.
Answer:
Entry to record adjustment:
COGS Dr $9.4m
Inventory Cr $9.4m
Explanation:
The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.
The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:
Entry:
COGS Dr $9.4m
Inventory Cr $9.4m
As far as I remember, at the end of the systems implementation phase, the final report to management should include these elements:
1. <span>a comparison of actual costs and schedules to the original estimates;
2. </span>final versions of all system documentation;
3. <span>planned modifications and enhancements to the system that have been identified;
It's necessary thing in system analysis.</span>
