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By Walther L.M., Skousen C.J.

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Webster still believes in the future of this investment, and is holding all 5,000 shares. But, accounting rules require that the investment “be written down” to current value, with a corresponding charge against income. ” This term is used to describe an event that is being recorded (“recognized”) in the financial statements, even though the final cash consequence has not yet been determined. ” April had the intended effect, and the stock of Merriam bounced up $3 per share to $12. Still Webster decided to hang on for more.

Marketed globally by 23 sales companies and an extensive net of distributors. In line with the corevalue to be ‘First’, the company intends to expand its market position. Dedicated Analytical Solutions FOSS Slangerupgade 69 3400 Hillerød Tel. com 54 Cash and Highly-Liquid Investments Current Assets 10. Trading Securities From time to time a business may invest cash in stocks of other corporations. Or, a company may buy other types of corporate or government securities. Accounting rules for such investments depend on the “intent” of the investment.

Ambitious? , customer returns of merchandise for credit can be approved only by a sales manager). o Prenumbered documents allow ready identification of missing items. For example, checks are usually prenumbered so that missing checks can be identified rapidly. o Independent verification of records is another control procedure. Examples include comparing cash in a point of sale terminal with the sales recorded on that register and periodic reconciliation of bank accounts. A company may engage an accounting firm or CPA to provide an independent review of the company’s accounting records and internal controls.

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