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You Are Reviewing the Accounting Records of Buddy's Foreign Automotive,owned

question 50

Essay

You are reviewing the accounting records of Buddy's Foreign Automotive,owned by Bruce Jones,its sole stockholder.You have uncovered the following situations.List the appropriate accounting principle related to each independent scenario and suggest a correct action for each.
1.In August,a check for $500 was written to Community Sports.This amount represents soccer camp for his daughter Cassie.
2.Bruce plans a Going Out of Business Sale for June,since he will be closing the business for a month-long vacation in July.He plans to reopen August 1 and will continue operating Buddy's Foreign Automotive indefinitely.
3.Buddy received a shipment of tools from Ontario,Canada.The invoice was stated in Canadian dollars.
4.Sandy Lane paid $1,500 for a major repair services.The amount was recorded as revenue.The parts for the repair must be ordered from overseas and the service won't be complete until the following month.

Recognize the changing landscape of the IS workforce and the strategic importance of the IS function within organizations.

Understand the role of MIS (Management Information Systems) in providing consultative services and managing company operations.

Distinguish between data, information, knowledge, and wisdom in the context of business decision-making.

Describe the structure and purpose of databases, networks, and other key information system components.

Definitions:

Pills

Oral dosage forms of medication that include both over-the-counter and prescription medicines, designed to release their active ingredients in the body.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex brain functions including thought, memory, and consciousness.

Master Area

A primary or controlling section within a larger domain, often referring to a specific field of study or expertise.

Central Processor

The primary component of a computer or information processing system responsible for interpreting and executing instructions.