being stated and value at either the cost or the market value method. (Lower Cost of Market Method) Sometimes an adjustment must be made to the balance sheet when the cost of the inventory is higher than the market value. When a company’s inventory is under the lower of cost or market value the contra asset inventory account is used. This is a balance sheet account used to report the amount that the inventories reported is below
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Chapter 2- The Balance Sheet Reflection Paper The basic principles that being applied on a balance sheet could be applied in my place of work for the following: The Company where I currently work, my line of work, and my financial condition. Company where I currently work at – knowing the company’s total asset and total liability will help you better understand how the entity has the ability to meet its current obligation (Current Ratio). Another concept that could be applied on this would be
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Performance at a Glance | | Statement of Purchase & Sale of Shares | | Review Report to the Members on Statement | | of Compliance with best practice of code of | | corporate governance | | Auditors' Report to the Members | | Balance Sheet | | Profit and Loss Account | | Cash Flow Statement | | Statement of Changes in Equity | | Notes to the Accounts | | | | COMPANY INFORMATION | | | BOARD OF DIRECTORS | | | Mr. A. Majeed | | Chairman | | Mr
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Q1) How was Dell's working capital policy a competitive advantage? * Dell’s built-to-order manufacturing process yielded low finished goods inventory balances * By the mid-1990s Dell’s WIP and finished goods inventory as percent of total inventory ranged from 10% to 20% in contrast to its competitor’s range was from 50% to 70%. * Supply of inventory of Dell was significantly lower than its competitors. * Manufactured PCs with latest OS and processor much before its competitiors
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7000-2400 FC= 4600 8) BREAKEVEN POINT BE = [FC/[P-VC] BE ( Given a total profit ) = [FC+TP]/[P-VC] QUESTION: How many units must you sell to earn $100 000 in profit 4600+ 100 000/ [5-3] = 104600/2 = 52 300 9) FINANCIAL STATEMENT BALANCE SHEET - ASSETS = LIABILITIES + EQUITY INCOME STATEMENT- NET INCOME = REVENUE MINUS EXPENSES CASH FLOW STATEMENT 10) CONTRIBUTION MARGIN Revenue minus variable costs Fixed costs don't really affect the profitability of each line
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Financial Accounting for Decision Makers Visit the Financial Accounting for Decision Makers, sixth edition Companion Website at www.pearsoned.co.uk/atrillmclaney to find valuable student learning material including: G G G G G Self assessment questions to test your learning A study guide to aid self-learning Revision questions and exercises to help you check your understanding Extensive links to valuable resources on the web Comments on case studies to aid interpretative and analytical skills
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P22. 6. Internal and external users of accounting information have similar needs in that both groups are required to make financial decisions. Managers (internal users) are required to make many day-to-day decisions in running their organizations; they generally need more detailed and more timely information. The information supplied to managers can be in any form that fits the specific questions and circumstances facing the manager. Investors and creditors, the primary external users, need summarized
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CASH BASIS, MODIFIED CASH BASIS AND ACCRUAL BASIS OF ACCOUNTING Accrual Basis 1. The effects of transactions and other events on the accounts of a business are recognized and reported as they occur regardless of when cash is received or paid. 2. Revenues are recognized and reported when earned regardless of when cash is received. 3. Expenses are normally recognized in the period when it is incurred. 4. Requires recognition of accruals (accrued revenues and expenses) and deferrals (prepaid
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Task 5 CFO Presentation A1. Key Points The profitability of the Custom Snowboards Inc can be seen in the following areas: net sales, gross profits and net earnings. Net sales increased between years 12 and 13 by 3.21% and again between years 13 and 14 by 1.91%, as shown in the horizontal analysis line 10. The company has continued to grow its net sales for the past three years. Custom Snowboards Inc has the ability to continue increasing net sales. Gross profits have remained constant at
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1. Accounting as mythology * The rigid discipline / procedure in gathering and processing accounting information e.g. double bookkeeping, ledger posti 2. Accounting as distortion – “noise” in accounting information * Manipulation, misrepresentation, fraudulent reporting of information 3. Experimentation realty - exploring various after … of presenting accounting information e.g. deprecation methods, inventory valuation 4. Numeracy reality – Accounting information is essentially
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