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The cost principle requires that inventory be recorded at the price paid or the consideration given. Inventory cost includes the sum of the costs incurred in bringing an article to usable or salable condition and location. In addition to the invoice cost, other common costs included in inventory are freight costs, inspection costs, and preparation ...

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The Sarbanes-Oxley Act, also known as SOX, requires management and auditors of publicly held companies to adhere to or perform specific requirements, such as: Evaluation of internal controls. Auditor’s work is overseen by the Public Company Accounting Oversight Board (PCAOB). Restriction on consulting services performed by auditors. Term limits...

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LO#1 Describe the business activities that comprise the purchase and payment process LO#2 Develop an activity model of the purchase and payment process using BPMN LO#3 Understand and apply different activity modeling options LO#4 Develop business rules to implement controls for the purchase and payment process LO#5 Develop structure models for ...

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Learning objectives Flowchart types and uses in AIS Symbols Design considerations Design steps Examples

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The revenue realization principle requires thatrevenues be recorded when earned. Goods have been delivered or services have been rendered. There is persuasive evidence of an arrangement for customer payment. Price is fixed or determinable. Collection isreasonably assured

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Learning objectives Systems development life cycle Capability maturity model IT decision factors

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Merchandise inventory includes all goods that a company owns and holds for sale, regardless of where the goods are located when inventory is counted.

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Corporate Governance: Procedures to ensure that the company is managed in the interest of the shareholders Sarbanes-Oxley Act: A law which strengthens financial reporting and corporate governance for public companies.

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LO#1 Describe the business activities that comprise the sales and collection process LO#2 Develop an activity model of the sales and collection process LO#3 Understand and apply different activity modeling options LO#4 Develop business rules to implement controls for the sales and collection process LO#5 Develop UML Class Diagrams for the sales...

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Adjusting entries for a merchandiser will generally be the same as those for a service-based organization One additional adjustment will need to be made to the Merchandise Inventory account to adjust for Shrinkage in the account. Next, let’s complete the accounting cycle by preparing the closing entries for Barton Company.

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