In 300 words or more answer the two questions below

Anonymous
timer Asked: Dec 22nd, 2018
account_balance_wallet $10

Question description

Lance Berkman is the controller of Saturn, a dance club whose year-end is December 31. Berkman prepares checks for suppliers in December, makes the proper journal entries, and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January.

Requirements

1. What financial ratio(s) is(are) most affected by the action?

2. What is Berkman’s purpose in undertaking this activity


Tutor Answer

nkostas
School: UC Berkeley

Attached.

Running head: FINANCIAL RATIOS

1

Financial Ratios

Institution Affiliation

Date

FINANCIAL RATIOS

2
Financial Ratios

It can be assumed that the suppliers have already supplied goods or services to the
business and the owner is to pay them. From the question, it is stated that the book's entries are
done and the checks are prepared in December, but the checks are posted out in the following
month. The expected entries from this action will involve crediting the cash or bank account in
the journal and debiting the supplier’s account.
The act...

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Review

Anonymous
Good stuff. Would use again.

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