...its terminology. For this module case assignment, I will conduct some research on accounting terms and discuss the definitions of these accounting terms that relate to: Generally Accepted Accounting Principles, Contra-Asset Accounts, Historical Cost, Accrual Basis vs. Cash Basis Accounting, and Accounting Standards Codification, and explain why this concept is important to financial statements. I will also describe the general organization of three sets of financial statements from three companies, offer my opinion as to whether Net Income or Cash from Operating Activities is more useful for each of the three companies, predict the companies' future trends using Net Income or Cash Flows, and provide one additional conclusion about each company using information found in the annual report. According to Investopedia, the term, Generally Accepted Accounting Principles (GAAP), “is the common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information” (Investopedia). Contra-Asset Accounts is an asset account which is expected to have a credit balance. The contra asset account is related to another asset account (AccountingCoach). Historical Cost describes...
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...Code of Ethics Compare & Contras Concordia University Code of Ethics Compare & Contrast The three codes of ethics that I chose to compare and contrast are those of the American Health Care Association (AHCA), the Health Information Professionals (HIP), and the American Nurses Association (ANA). Each one of these organizations have areas that are very similar to each other, as well as areas that are completely different. This paper points out the most common ethical codes which are practiced by each of the three establishments while on the same hand showing how vastly different they are. American Health Care Association The first code of ethics is from the American Health Care Association, or AHCA for short. What I found interesting about this particular code of ethics was that it seemed to be right down the middle compared to the other two. The ethics of the AHCA seem to be greatly centered on long term care for those in the community who need it and the standards of which they are upheld to. There is also more emphasis on self-accountability and just being a good person by doing what is right. The AHCA also considers itself as a model for other healthcare organizations when it comes to establishing the moral guidelines for employers as well as employees to follow. Patient advocacy and the strength of the relationship with the community are repeatedly emphasized in these ethics codes, which suggests that above all, healthcare providers should put the needs...
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...Receivables. - Are reported as a current asset on the balance sheet. - Are reported at the amount the companu thinks they will be able to collect. Direct write-off: theoretically undesirable: no matching receivable not stated at net realizable value. Allowance Method: Losses are estimated?; better matching. receivable stated at net realizable value. Allowance for doubtful accounts is a a contra account with normal credit balance. PErcentage of receivables in PPT 8-22. Column C is 1-30 days of the first cycle. Column D is 1-30 days from the invoice AKA (31-60 days). When you do the problems, If you draw a chart, you usually get it correct. Draw a chart according to time. ANALYSIS: (8-46) Net credit sles/ average net accous receivable= accounts turnover. CHAPTER 9: we depreciate tangible assets. we amortisize intangible assets. (patents, start up costs, legal costs, etc...) In any turnover higher the number is better. So for accounts receivable turnover higher is better. WHEN SEARCHING FOR RATIOS TO COMPARE YOUR BUSINESS MAKE SURE TO LOOKS FOR C TYPE...
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...Study Plan for FNC1 Financial Accounting Concepts and Procedures – Chapters 1-4 and Chapter 10 1. Understand Basic Accounting Concepts and Principles 2. Know what items are shown on a Balance Sheet, Income Statement, and Statement of Owners Equity a. Items shown on Balance Sheet shows a companies: i. Assets ii. Liabilities iii. Stockholder's (or owner's) equity b. Items shown on Income Statement: i. The income statement shows revenues ii. Expenses iii. Gains and losses iv. It does NOT show cash receipts & cash disbursements c. Items shown on Statement of Owner's Equity: i. Paid-in Capital ii. Retained Earnings iii. Treasury Stock iv. Accumulated Other Comprehensive Income 3. Know the Accounting equation a. Assests = Liabilities + Equity 4. Understand debits and credits a. 5. Understand the timing of recording transactions 6. Understand when revenue and expenses are recognized a. Revenue Recognition Principal: Under the accrual basis of accounting, revenues are recorded when they are EARNED not when the company RECEIVES the money 7. Know how to calculate depreciation expense a. Straight-Line method of depreciation: (cost-residual value)/useful life depreciation method in which the depreciation expense is the same each period 8. Know how to calculate accumulated depreciation a. Cost principle: i. Reported on income statement, asset amount is reported on balance sheet, based on original cost b. Matching principle i. Asset's cost allocated to depreciation...
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...And in March, DPS does not costing PT money. | January | February | March | Net Income | (41,472) | (40,341) | (21,438) | Fixed expense: | | | | Rent | 1240 | 1240 | 1240 | Custodial service | 9240 | 9240 | 9240 | Computer lease | 95000 | 95000 | 95000 | maintenance | 5400 | 5400 | 5400 | | 69,408 | 70,539 | 89,442 | The table above shows that PDS’s net income increasing incrementally. This subsidiary has potential to earn money to parent company in the future. So, keep PDS is better for Prestige Telephone company. 2. Respond to the case question, but think carefully about how the intercompany charge affects your breakeven analysis. (Hint: the intercompany charge at 205 hours of service is similar to a ‘contra fixed cost’.) An: power = (1803-1592)/ (401-348) = $3.98 rand to 4 Salaries for operations only = (30264-29184)/ (361-316) =$24 Total VC =4+24 =$28/hr B/E hours =total...
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...Parol Evidence Rule: If agreement in writing, presumed that writing contains all terms. Any oral statements will not be admitted as contractual: (Mercantile Bank of Sydney v Taylor) The P.E.R only applies if the written contract appears to be a complete record the agreement. -But partly written, partly oral contracts are an exception (Van Den Esschert v Chappell) *P.E.R was not applied due to the comment made was not in the written agreement, therefore the complete agreement consisted of the written contract PLUS the verbal assurance. If contract signed: * Parties bound even if did not read the document: (L’Estrange v Graucob) * Unless the signed contract was misrepresented: (Curtis v Chemical Cleaning & Dye Co) If a representation or promise is not a term of the contract, it is not a breach of the contract if the representation is false or the promise is broken. What is enforceable is: * A Breach of a collateral contract * A misrepresentation * A contravention of the ACL Parol Evidence Rule: If agreement in writing, presumed that writing contains all terms. Any oral statements will not be admitted as contractual: (Mercantile Bank of Sydney v Taylor) The P.E.R only applies if the written contract appears to be a complete record the agreement. -But partly written, partly oral contracts are an exception (Van Den Esschert v Chappell) *P.E.R was not applied due to the comment made was not in the written agreement, therefore the complete agreement...
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...millón para la recompra de acciones * Intereses del 18% anual cuyo pagos mensuales eran de 1,5%. * La compra de 75.000 acciones por valor nominal de $10 c/u y valor de mercado de $40 c/u llegando a un total de 3’000.000. * Carta a Eckwood para solicitar prolongación del crédito y solicitar un préstamo adicional de 350000 dólares para compra de equipo. * Pagos de dividendos en diciembre de 150000 * Disminución de los trabajos en proceso * Exceso de compra de materias primas. Compare los resultados obtenidos en la pregunta anterior con los supuestos en los que están basados. Que acontencimientos podrían alterar los resultados? Es correcta la creencia del señor Cowins que Hampton puede repagar el préstamo en Diciembre? Qué acción debería tomar el señor Eckwood sobre la solicitud de préstamo del señor Cowins? Cuáles son los mayores riesgos asociados con el préstamo propuesto? Qué otras alternativas tiene el señor Eckwood, y cuáles son sus pros y contras? Qué haría...
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...forensic accountant. They need to be able to analyze the validity of each transaction the company recorded to make sure that the transactions were reported accurately and fairly. They must possess the knowledge and expertise to interpret financial statements or work under situations where information has been either destroyed or tampered with and be analytical and put the pieces of the puzzle back together again. Forensic accountants should be detailed orientated. Being a forensic accountant means that you will be looking at large quantities of numbers from supporting documents and various financial reports. Being detail orientated you would compare the numbers and the documents and identify any inconsistences within the reports, which requires finding detailed information for each transaction and investing the time needed to compare the details. Another key characteristic that forensic accountant needs to possess is the ability to remain persistence. When dealing with cases some...
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...from shareholders. Treasury stock does not pay dividends, there are no voting rights attached, and should not be included in the outstanding share calculations. A company making a public offering usually creates treasury stock. Not all shares are approved for sale. Some shares are held back and used to create extra cash later. Another reason some shares are held back is to ensure controlling interest. Treasury stocks are created when a company does a buyback. This is beneficial to shareholders because it lowers the number of outstanding shares located in the shareholder equity section of the balance sheet, often seen as a negative number there. The company debits Treasury Stock and credit Cash. Cash paid to buyback stock is recorded in the contra-equity account. Stock Splits A stock split is the number of outstanding shares of stock increased; with no impact on any of the equity account balances. The increases in the number of stock will decrease the market price. Companies do this to keep shares at a reasonable price and attract potential investors. No accounting entry is necessary when a stock split occurs. Stock splits do not dilute the ownership interests of existing shareholders. Reverse stock splits can occur when the company reduces the number of shares outstanding. A memorandum note is enter to indicate the change in shares and changes in par value. Retained Earnings Retained earnings do not represent surplus cash left over after payment of dividends. It demonstrates...
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...Four basic financial statements: * Balance Sheet * Income Statement * Statement of Retained Earnings * Statement of Cash Flows Players: * Investors – trading shares – get dividends * Creditors – trading bonds – get interest rate; risk is less than if you´re an investor * Managers Financial accounting – provides info for managers and people outside the firm. Managerial accounting – provides confidential info for internal decision-makers (“private” or internal accounting). GAAP – Generally Accepted Accounting Principles. Most countries are converging to US GAAP or IFRS as a generally accepted standards. Private companies do not file IFRS. Qualities of accounting * Relevant * Reliable * Consistent (over time) * Comparable (across companies) Concepts of accounting 1. Accounting entity – хозяйствующий субъект 2. Going concern / Continuity – непрерывность – should be assumed that the business will continue to exist and bring economic benefits 3. Stable monetary unit – usually it is the currency. It is assumed that it has the same purchasing power throughout the time. 4. Time period 5. Concervatism / Prudence – расчетливость, практичность 6. Materiality Principles of accounting 1. Reliability 2. Historical Cost Basis – assets and rights of the Company are accounted for at their historical or production cost 3. Revenue – the company should establish rules when the revenue must be recognized...
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...Chapter 11 - Reporting and interpreting Owners' Equity 1. Corporations • Separate entities - have a continuous and separate existence apart from their owners • Granted status by state government (not federal) • Governed by a board of directors elected by the stockholders 2. Benefits of Stock Ownership • A voice in Management - vote in stockholder's meeting • Dividends - receive a proportional share of earnings • Residual Claim - receive a share of remaining assets upon liquidation of company 3. Common Stock vs. Preferred Stock Common Stock Preferred Stock Type The basic voting stock issued by corporation The different type of stock with right over common stock, not really different from buying bond Voting right Holders (“owners”)have voting rights No voting rights Dividends At discretion of board of directors, can not be calculated Priority payment of dividends and asset liquidity, can be calculated, less risky Others Low “par value” Fixed dividend based on par value Benefit of Issuing Do not show as liability so doesn't affect certain ratio; company also gets capital --- 4. Common Shares - Initial Public Offering (IPO): the first time a stock is offered to the public Seasoned New Issue: subsequent sales of new stock to the public Employees Stock Options: ability for employees to purchases stock at a predetermined, fixed price Treasury Stock: repurchases of common stock by the company ISSUED SHARES + UNISSUED...
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...Marketing Research and Strategic Marketing Plan Produced by Business Administration 126 Advanced Marketing (“West Coast Marketing”) Saint Mary’s College of California Professor Eric Kolhede December 14.2011 Students of Business Administration 126 Advanced Marketing (“West Coast Marketing”) Saint Mary’s College of California Abdul Malik Khan | Maria Ahlqvist | Alexandra Smith | Maria Orozco | Alisa Mosman | Matt Cardoza | Ally Short | Matt King | Amanda Minguillon | Melissa Queen | Anthony Costa | Nick Fong | Ben Rigel | Nick Tuttle | Betsy Serrano | Nicole Arce | Britany Linton | Nirbhik Trehan | Dawn Shipley | Priscilla Esparza | Dayna Best | Steven Dawson – Roberts | Elanor Pitts | Steven Vargas | Evan Schlinkert | Thomas Vo | James Palmer | Tommy Mohoric | John Howe | Tracy Vasquez* | Maddy Aliotti | | Professor Eric Kolhede*Coordinator | | Table of Contents I. Executive Summary 1 II. Research Problem 3 III. Situation (SWOT) Analysis 7 A. External Macro-environmental Forces 7 1) Demographic and Social/Cultural Trends Purpose 7 2) Economic Environment 16 3) Technological Dimension 21 4) Political Environment 27 5) Legal Environment 31 6) Cooperative Environment 33 7) Product Market Analysis 36 8) Competitive Analysis 50 B. Internal Environment 71 1) Introduction 71 2) Resources 75 3) Marketing Mix Program 77 4) Conclusion 77 IV. Primary Research 79 A. Focus Groups 79 B. Sampling Plan 93 1) Population 93 2) Sample Size 94 ...
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...Explain the role of complementary therapies in relation to orthodox treatments. – P4 Compare the role of two complementary therapies with those of more orthodox treatments – M2 Evaluate the role of two complementary therapies in contemporary society. – D1 The term complementary medicine is used by conventional medical practitioners to refer to nom-invasive, non-pharmaceutical techniques which are used in conjunction with allopathic medical treatments such as drugs and surgery. The term implies that sometimes conventional medicine is used as a primary tool and also a non-invasive, non-pharmaceutical complementary technique is used as a supplement when needed. Complementary medicine has become an increasing feature of healthcare practice, but there still remains some confusion about what exactly complementary therapy is and what position the techniques included under this term should hold in relation to conventional medicine. Complementary therapy is based on the interaction between the mind, body and the energy systems combining them; this holistic approach to healing is found useful for the treatment of many conditions, such as asthma, migraine, insomnia and stress. Reflexology, acupuncture, massage and reiki are some popular examples of holistic complementary therapies. Complementary therapies fall into four main types of therapy; 1. Hands on, body manipulation therapies like acupuncture. 2. Energy based therapies like reiki There are many different complementary therapies...
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...Flat Cargo Berhad (FCB) Introduction FCB obtained listing in Bursa Malaysia on the 15 September 2001. The main core business was to provide air freight transportation within the Asian region. As a fast growing company, FCB secured agreements from well-establish company within the transportation industry such as Worldwide Express, United Parcel Services (UPS), Nationwide Express, City link and others. Issue on FCB 1) The auditors were unable to verify the aircrafts claimed have been purchased by FCB in 2005. The audit team found a non-functional rundown aircraft barely worth 231 million in a hangar. Aircrafts that was claimed have been purchased are categorize as an asset for FCB. It’s because the business nature in providing delivering transportation services to customer that generate income for the company. But acquired an asset must be recorded through legal transaction and within controlled of the company. These items are expected to be used in future activities that will generate cash inflows to the company. From the financial statement in 2005, the account equipment, at cost of the aircrafts acquired is increased and cash decreased for the same amount. But, failing to verify the legal amount of purchased assets, we consider the expenditure was not happening and the amount of fixed asset was overstated and the cash was understated in the balance sheet. Non-functional aircraft barely worth 231 million in the hangar were a huge asset for FCB that within their control...
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...to Financial Investing and Property For Dummies". Accounting is the language of business. It is the system of recording, summarizing, and analyzing an economic entity's financial transactions. Effectively communicating this information is key to the success of every business. Those who rely on financial information include internal users, such as a company's managers and employees, and external users, such as banks, investors, governmental agencies, financial analysts, and labor unions. These users depend upon data supplied by accountants to answer the following types of questions: • Is the company profitable? • Is there enough cash to meet payroll needs? • How much debt does the company have? • How does the company's net income compare to its budget? • What is the balance owed by customers? • Has the company consistently paid cash dividends? • How much income does each division generate? • Should the company invest money to expand? Accountants must present an organization's financial information in clear, concise reports that help make questions like these easy to answer. The most common accounting reports are called financial statements. Chapter 1: Accounting Information and the Accounting Cycle The accounting cycle is a series of steps performed during the accounting period (some throughout the period and...
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