Profit Determination Prepared by John Hoggett and Clare Innes Measurement of Profit • Cash basis • Cash income received - Cash expenses paid – Revenues recorded when received – Expenses recorded when paid • Accrual basis • Profit = Income (incl. Revenues) - Expenses – Revenue is recognised when the anticipated inflow of economic benefit can be reliably measured – Expenses when the consumption of benefits can be reliably measured 2 Adjusting Entries • The need for adjusting entries-
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FUNCTIONAL AUTHORITY: Functional authority consists of the right to give orders within a segment of the organization in which this right is normally non existent. This authority is usually assigned to individuals to complement the line or staff authority they already possess. Functional Authority generally covers only specific task areas and is operational only for designated amounts of time. It is given to individuals who‚ in order to meet responsibilities in their own areas‚ must be able to exercise
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the Jewish people‚ when you heard North Korean government monitors all the foreigners in the country‚ and when you get annoyed when your parents forbid you to go out on school nights‚ have you ever considered the power and control of authority around you? Thinking about your parents‚ elder siblings‚ teachers‚ the city mayor and even the president‚ all of those are the authority figures around you in the daily life. Because authority is not always correct and can be easily abused‚ people need to have
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PERSONAL COPY/ NOT FOR SALE OR CIRCULATION (Session 2012-13) INTRODUCTION HISTORY OF INCOME-TAX: 1. India’ trust with income tax dates back to 1859 when James Wilson‚ Finance member in the Council of India‚ came to the country to establish the tax structure‚ a new paper currency and to remodel the finance system. 2. A bill imposing tax on profits from property‚ professions‚ trades and offices was passed by the Legislative Council of India. It received the assent of the Governor General on July
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PROFIT MAXIMIZATION: REALITY OR A THEORETICAL OBJECTIVE? Research Compiled for The Paper Store‚ Inc. by Amy Sorter 3/2009 For More Information on This Paper‚ Please Visit www.paperwriters.com/aftersale.htm Introduction Though many people equate economics with finance and accounting‚ it ’s actually a social science‚ a study of behavior and how rational people behave when it comes to allocation of resources. Within the study of that social science are many theories in which economists attempt
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Sam Livoria From: Dev Das‚ CMA Subject: Strategic and Operational opportunities Livoria Sandwiches faces major changes within the food industry in Dawkins. The city is in continuing growth and expansion‚ being ranked as the fastest growing number of vegetarians in the country. Currently Livoria faces a cash shortfall due to a lawsuit. The menu has to be adapted to the market demand fast to keep up with the changes. The owners expressed the desire of having 1.1M in net profit by 2015. The goal
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PROFITABILITY OF BRANCH profit center Definition A business unit or department which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured. Distinctly identifiable department or unit that contributes to the overall financial results of a firm. Where adequate cost accounting systems are in place‚ profit centers are given responsibility to target certain percentages of the total revenue and are given adequate authority to control their
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research and development. Below are the Financial Profitability Statement Ratios for 2006‚ 2005. Profit margin ratio = Net income measures net income in each sales dollar. Net sales Dec. 06 CHF Sales $98.5 billion – Expenses $1.5 billion = Net income $97.0 = 9.8% Net sales $98.5 Dec. 05 CHF Sales $91.1 billion – Expenses $425 million= Net income $90.7 = 10.0% Net Sales $91.1 Gross margin ratio = Net sales – Cost of goods
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Income Level Income level has an effect on behaviors‚ including what people buy and how much they will pay. According to Bieker‚ consumer spending forms two-third of all spending in the economy. A change in consumer income will result in consumers buying more or less of product at all possible prices and also cause a change in demand and a shift of the demand curve. If the income and savings of consumers are high (the high consumer spending level)‚ their purchase is parallel or even more expensive
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Case Study of Vistakon and Disposable Contact Lenses Vistakon is a well-established‚ overwhelming market leader in the disposable contact lens industry‚ based on strong brand equity and channels of distribution. Additionally‚ as a subsidiary of Johnson and Johnson‚ Vistakon has considerable resources at its disposal. The launching of 1 Day Acuvue‚ with newly invested manufacturing technology in place‚ provides a great opportunity to preempt competition and thus enhance its positioning. However
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