INTRODUCTION To carry on business‚ corporation needs an almost endless variety of real assets. Many of these assets are tangible such as machinery‚ factories‚ offices‚ others are intangible‚ such as technical expertise‚ trademarks‚ patents. All of them need to be paid for. So‚ there are always two questions: “what real assets should the firm invest in?” And “how should the cash for the investment be raised?”. The answer to the first question is the firm’s investment‚ or capital budgeting decision
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BU227 – Financial Accounting Module 1 Provided by: Laurier SOS Things to Cover The Accounting Environment IFRS and GAAPs Accounting’s Conceptual Framework Financial Statements Overview Recording Transactions Accrual Accounting Account’s Receivable Amortization Inventory The Accounting System Financial Accounting System (preparation of four basic financial statements). Managerial Accounting System (preparation of detailed plans‚ forecasts and reports). External Decision Makers
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and financing of short and long term credits for the firm." Thus‚ it deals with the situations that require selection of specific problem of size and growth of an enterprise. The analysis of these decisions is based on the expected inflows and outflows of funds and their effect on managerial objectives. The most acceptable definition of financial management is that given by S.C.Kuchhal as‚ "Financial management deals with procurement of funds and their effective utilisation in the business." Thus
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adjusting journal entry on the company’s books? a. Outstanding checks b. Non-sufficient fund checks c. Deposits in transit d. Cash on hand 4. In preparing a monthly bank reconciliation‚ which of the following items would be deducted from the balance reported on the bank statement to arrive at the correct cash balance? a. Outstanding checks b. Bank service charges c. Deposit in transit d. A customer’s note collected by the bank on behalf of the depositor 5. On October 1‚ 2011‚ a company
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CHAPTER-I FINANCIAL STATEMENTS LEARNING OBJECTIVES After studying this chapter‚ you will be able to: • Explain the meaning of financial statements of a company; • Describe the form and content of balance sheet of a company; • Prepare the Balance Sheet of a company as per Schedule VI Part I of the Companies Act 1956. • Know the major headings under which the various assets and liabilities can be shown. • Explain the meaning‚ objectives and limitations of analysis using accounting
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decide whether Rainbow Products should purchase the machine or not. i) Bay back: cost of machine/expected saving per year = 35000/5000 = 7 years . ii) NPV = Difference between the present value of cash inflows and the present value of cash outflows. Thus‚ NPV = -35000 + 5000* [1-(1/(1.12)^15]/.12 -35000 + 34053.31 NPV = -945.68 iii) IRR: It is that rate of interest that makes the sum of all cash flows zero. 0 = -35000 + 5000* [1-(1/(1+r)^15]/r IRR
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Business Administration (BScB) + (IM) Authors: Ellert Jón Björnsson Kristinn Thor Valtýsson Advisor: Roger Bandick Financial Crisis in Iceland Icelandic Monetary Policy Aarhus School of Business December 2009 Abstract From being one of the poorest nations in Europe to becoming one of the most successful economies in the West‚ the geographically isolated country of Iceland suffered a lot when its three major banks collapsed in the same week in October 2008. As a consequence of the banking
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JOCELYN S. GEOLLEGUE MBA 101B – Financial Accounting Case No. 1-1 RIBBONS AN’BOWS‚ INC. Page No. 1of 2 I. VIEWPOINT Carmen Diaz – Owner II. STATEMENT OF THE PROBLEM 1. On Ribbons an’ Bows‚ Inc. finances: a. How would the three-month operations be reported (through June 30)? b. Was the company profitable (ignoring Income Taxes)? c. Why did its Cash-in Bank declined (during the three-month period)
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Pakistan is one of the richest countries in the world in terms of natural resources but also one of the poorest among them in their management. The country is abundant in the vital resources including that of energy‚ agriculture‚ minerals‚ population‚ and geography‚ but unlike the developed countries‚ these have not been properly exploited due to poor management. This dismayed situation is caused due to several‚ both chronic and acute‚ flaws which have led to poor governance of country since its
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Assuming that the lessee is required to make deposits to financially protect the lessor concerning the maintenance obligation by setting up a reserve‚ the guidance in ASC 840-10-05-9A through 840-10-05-9C states that the maintenance reserve shall be recognized as a deposit asset and reimbursed later when the required repair and maintenance is completed by the lessee. However‚ the provision in the lease agreement does not call upon the lessee to make deposits but simply requires the lessee to perform
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