[number_cruncher_24]

Hi – I was wondering if someone could help me with an accounting question – here’s the scenario: Our fiscal year ends on May 31. We received a bill for our insurance policy on May 20. The bill is for insurance for the period of 6/15 through 12/15. We enter all bills into the system when received. When I enter this bill into the system, it will result in a credit to A/P but which account should be debited? It’s not an expense for the current fiscal year because it is for a future period, but we won’t pay it until after 5/31, so it’s not a prepaid yet either.

[Mayo]

Just realized I totally missed the boat on your current ratio question. Current Ratio shouldn't change. AP goes up, Prepaids go up. No net effect.

Mayo, BBA, Macc

[Mayo]

Just realized I totally missed the boat on your current ratio question. Current Ratio shouldn't change. AP goes up, Prepaids go up. No net effect.

Mayo, BBA, Macc

[mla1169]

If they're operating at a loss I'm too busy getting out my resume to give a darn what they do with their insurance bill lol!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

If they're operating at a loss I'm too busy getting out my resume to give a darn what they do with their insurance bill lol!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[acamp]

Now we're getting into the real answer … shit's not material, who the hell cares–if you want to call it error and it extrapolates to below posting thresholds do it, if not, document how its one off, not representative of the prepaid population (as the account primarily consists of prepaid rent and other items that are actually prepaid with cash) and move on.

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

Now we're getting into the real answer … shit's not material, who the hell cares–if you want to call it error and it extrapolates to below posting thresholds do it, if not, document how its one off, not representative of the prepaid population (as the account primarily consists of prepaid rent and other items that are actually prepaid with cash) and move on.

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

If current ratio is below 1, it improves (assets increase by a greater % than liabilities) try it out 😉

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

If current ratio is below 1, it improves (assets increase by a greater % than liabilities) try it out 😉

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[Mayo]

“shit's not material, who the hell care”

That was my original post about justifying it to the auditor. Trust me, he/she could probably care less as long as it's under scope.

But then the rules lawyers came out, and I decided to get all academic; Gotta use that Master's in Accounting degree sometime right?

Mayo, BBA, Macc

[Mayo]

“shit's not material, who the hell care”

That was my original post about justifying it to the auditor. Trust me, he/she could probably care less as long as it's under scope.

But then the rules lawyers came out, and I decided to get all academic; Gotta use that Master's in Accounting degree sometime right?

Mayo, BBA, Macc

[acamp]

Master's in accounting to discuss theory, 3 unit class in persuasive writing for documentation.

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

Master's in accounting to discuss theory, 3 unit class in persuasive writing for documentation.

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[Mayo]

“If current ratio is below 1, it improves (assets increase by a greater % than liabilities) try it out ;)”

Oh snap..apparently I'm not using my Finance knowledge at all.

Mayo, BBA, Macc

[Mayo]

“If current ratio is below 1, it improves (assets increase by a greater % than liabilities) try it out ;)”

Oh snap..apparently I'm not using my Finance knowledge at all.

Mayo, BBA, Macc

[Mayo]

Master's in Accounting: Allowing you to engage, and possibly win, pedantic and nerdy accounting arguments over the internet.

Gotta luv it.

Mayo, BBA, Macc

[Author]

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