Question: Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities. Classify the following activities as part of the identifying (I), recording (R), or communicating (C) aspects of accounting. 1. Analyzing and interpreting reports. 2. Presenting financial information. 3. Keeping a log of service costs. 4. Measuring the costs of a product. 5. Preparing financial statements. 6. Seeing revenues generated from a service. 7. Observing employee tasks behind a product. 8. Registering cash sales of products sold.
Revenues are the amount earned by businesses in exchange for goods or services and matching of activity with aspect of accounting is shown in step 2
Revenues are defined as the amount of money that the business will get after selling its goods or services to the customers.
Aspect of accounting
Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations.
July 1 Reyna Rivera invested $80,000 cash in the company in exchange for its common stock.
2 The company rented office space and paid $700 cash for the July rent.
3 The company purchased roofing equipment for $5,000 by paying $1,000 cash and agreeing to pay the $4,000 balance in 30 days.
6 The company purchased office supplies for $600 cash.
8 The company completed work for a customer and immediately collected $7,600 cash for the work.
10 The company purchased $2,300 of office equipment on credit.
15 The company completed work for a customer on credit in the amount of $8,200.
17 The company purchased $3,100 of office supplies on credit.
23 The company paid $2,300 cash for the office equipment purchased on July 10.
25 The company billed a customer $5,000 for work completed; the balance is due in 30 days.
28 The company received $8,200 cash for the work completed on July 15.
30 The company paid an assistant’s salary of $1,560 cash for this month.
31 The company paid $295 cash for this month’s utility bill.
31 The company paid $1,800 cash in dividends to the owner (sole shareholder).
Required 3. Prepare the statement of cash flows for the month of July.
Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures (in $ millions) for these businesses for a recent year follow.
Check (1a) 11.3%; (1b) 9.2%
Key Figures ($ millions) Coca-Cola PepsiCo
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,542 $66,504
Net income . . . . . . . . . . . . . . . . . . . . . . . 8,634 6,462
Average assets . . . . . . . . . . . . . . . . . . . . 76,448 70,518
Required 2. Which company is more successful in its total amount of sales to consumers?
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