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usually not capable of insuring themselves in an economy that is expected to perform poorer in the future, since they expect to earn less income when the bad situation sets in. The savings that are set aside acts like a precautionary measure against future income fluctuations.
It is an integrated enterprise resource planner that can be utilized by business organizations to manage the financial and other resources of a company effectively. In allocating costs, SAP utilizes transaction-based and periodic allocations. Periodic allocations are generally known as periodic reposting methods.
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Thus, GASB requires that pension plans apply a historic rate of return, between 7%-8% to measure the total pension liability, where the pan has sufficient assets set aside in a stable irrevocable trust. If such assets do not exist, then the total pension liability should be measured based on a risk-free rate of return between 3% to4%.
Current assets are more liquid than noncurrent assets. Retailers link the customers and wholesalers. Most fast moving consumer goods are handled by retailers for example, supermarkets. Retailers need a strong liquidity to help pay for the fast moving goods which
The core focus of financial strategies is on the financial aspects of strategic decisions. Accordingly, this infers a close connection with the benefits of shareholders and therefore, with capital markets. For a corporate strategy to be successful, it must take into consideration all the external and internal participants in the corporate.
position of the business from start of business to the that present time, while an income statement describes the current year performance, it details the current year profit margin. Income statement is also known as profit and loss account it shows end year income, expenses and
Gary’s restaurant will incur several expenses in start up exercise. However, these costs are necessary in carrying on with the operations of the restaurant. Before commencement of operations, Gary will have to incur expenses such as rental costs, council taxes and advertising costs. There are the costs that Gary will incur immediately the business enters its operations.
According to Feldstein (1999), this legality of tax avoidance could reach a point that it will turn out to be an illegality. If any government were to seal or curb these tax avoidance
Under the decision rule for NPV for accepting the project, a company should accept an investment venture if N.P.V. is positive i.e. if the present value of cash outflows exceeds that of cash inflows or at least is equal to zero (NPV ≥0). This will rank project ventures giving the uppermost rank to that particular venture with the highest NPV because this will give the maximum cash inflow or capital gain to the company.
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The seminars that I expect to attend as part of my internship will also help me hone my problem solving and communication skills. Interactions with people from varied walks of life, will give me insights into different ways of analyzing and addressing problems, and give me the confidence to put forward my own views and ideas.
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As a military official, before enrolling for the course, I was a disorganized when it came to my personal businesses. Thanks to the course, I finally learnt some basics of business. Some excellent examples of these topics that I
The decisions may be on the purchase of raw material or the quality of products that are to be produced by the company. The management accounting practices that are applied by barber foods include total
87,000 in 2011 as compare to 85,000 in 2010 and administration cost i.e. 14,000 in 2011 and 10,000 in 2010. However, Net profit increased from 20% in 2010 to 24% in 2011 mainly due to increase in sales of the year 2011 i.e. 278,000 as compare to 225,000 in the
The documents that I have used in this paper to explain to potential investors the business strategy are; a cash budget, a forecast income statement, and a forecast balance sheet. These documents are the ones that I will use, to give a representation of how the business will run in the future, and how income will be of benefit, to the business.
The author concludes that it is recommendable for investors to invest in this company as the income statement reflects a profit. The cash budget also indicates that the cash flow is favorable. The balance sheet position of that company is good. There are other theoretical factors that may affect returns such as competition, technological changes and tax
Operating in a very competitive environment in which traditional transfer price approaches could not determine better operating performance. The advantages of applying the ABC method are cost reduction and production efficiency in manufacturing plants, and it is a tool in the making decision process by helping managers in deciding which manufacturing facility is considered most appropriate.
Wanting to conduct business, MIBW4A identified an economical and sustainable method of providing safe and treated drinking water. "Most other efforts to bring clean water to the underserved citizens had relied on volunteerism and had ultimately failed. Those efforts were not market-based and proved to be unsustainable" Kaputt said.
It is normally arrived at by dividing the net income by total assets. Capital generated either from the equity holders or debt from financial institution is used to acquire assets. In effect assets are a direct derivation from capital employed. This
The retained earnings section contains net income that a company would have otherwise distributed as dividend to its shareholders. Retained earnings are usually calculated from the following formulae. Retained earnings = net income + existing retained earnings
The company has created the largest electric utility in the United States (Wald, 2012).
The key driver for the merger between Duke Energy and Progress Energy is due to the low-emission of power generation and higher operating expenses by the
This present essay has two sections. The first section focuses on Japan as a foreign market that plays host to numerous American MNEs. Under this section, the essay will use General Electric, which is an American MNE operating in Japan as the case study to investigate why the company decided to venture into the Japanese market.
The share of a company is currently selling at $100.The company wants to finance its capital expenditure of $100,000 either by selling new shares or through retained earnings. If the company sells new shares the issue price will be $95. The
Mark J. Krenik, a former U.S Air Force civilian employee, was involved in a criminal act that involved fraud. He opened bank accounts under the name ST Systems Corporation and Hughes STX. The two bank account accounts were under his control. His fraudulent activities were discovered by bank employees.
A simple yet very meaningful story of an old man who observes the dilemma of a king and innovatively uses it to his advantage is told. The king tries without success to capture a city. This old man knows how and not only will he tell the king, but also he will make gold while at it. The story brings out in a very meaningful way the relationship between innovation and the competitive advantage of organizations.
statement also referred to as profit and loss statement or statement of revenue and expenses is a financial statement used to measure the financial performance of a company for a given accounting period. This performance normally evaluated by determining the company’s summary
As an auditor, I will know that all the minutes have been made available to me by referring to those of previous meetings. This is because the minutes of each meeting entail what was discussed in the previous meeting and by going through the minutes, I will be in a position to check the dates, members in attendance, and agenda helping me trace if all the minutes have been availed.
A financial market refers to the market for transacting financial assets like equities, bonds, derivatives, and currencies. They facilitate the borrowing and lending of financial assets. Typically, financial markets are defined through transparent pricing, the basic trading regulations, and market forces influencing the trade securities.
The subliminal forces emanating from the social environment shape the direction of company’s policies and its choices. The stability, performance, and general progress of the firm depend on the manner in which the company aligns its policies and actions on the resident concerns and values as established within a certain environmental setting.
The NPVs include Canadian NPV Project Prospective, and Canadian NPV Parent Prospective RPP. Relative Purchasing Power (RPP) NPV can be used for the long run due to its far-reaching relevance compared to NPV from the
The arguments show that though generally financial development is strongly associated with economic and financial growth, there is no sustain for either the financial system that is bank-based or the financial system that is market-based. This paper observed a review challenging hypothetical views of financial structure and economic growth.
It is not true that real estate is a safe way of investing as compared to bonds. This is because bonds offer investors assurance and stability that real estate cannot. Though considering bonds versus real estate each has its own points which highly depend on factors like age, level of income of an individual, stability of the income, and risk lenience.
This study will rely on the Stakeholder theory and the legitimacy theory of accounting to explore the responses by British Petroleum (BP) following the oil spill crisis of the year 2010 in the Gulf of Mexico. The suitability of the Stakeholder theory derives from the fact that the theory is based on the need to prioritize value for the stakeholders in an all-inclusive and comprehensive manner.
a) Incorporating and Applying Various Equity Portfolio Management Strategies. Strategies lie at the heart of the investment field and it is one of those things which have a dominant effect on the portfolio (Charles & Jones, 2008; David, 2007). The portfolio selected for the above section comprises of different stocks of different companies.
The temporary net assets that were restricted by 31st 2007 were 2916537 while $ 7020720 of the net assets was unrestricted. The checking account for the company can be
The accounting industry GAAP treats not-for-profit organizations and VHWO differently from other profit organizations. They are organizations that use surplus revenues to achieve their goals rather than distributing them as profit or dividends. The special reporting applies to these organizations because they are involved in different missions from those of other for-profit organizations.
Held to many securities form the category of debt securities that are held till the maturity date (Finkler, 2010). Some of them tend to fluctuate in market value, an example of which is bonds. This fluctuation results from changes in interest rates with time and alterations in the financial status of the organization that borrows.
Ethics relate to moral course of actions taken by individuals. While it is easy to distinguish some actions as ethical or unethical, there are others that pose difficulties in terms of deciding the right course of action for specific situations. Most ethical dilemmas center on the short term consequences and the probability of undesirable consequences in the long run.
Financial statements or reports provide a vivid picture of transactional flows within such organizations. Financial statements or reports fulfill various reasons that include determining the ability of organizations to generate cash, as well as other resources. Such financial statements determine the possibility of organizations meeting their liabilities and also track financial results.
In the case of Meals for the Homeless, major sources of revenue in 2011 included foundation grants, annual ball, mail solicitation, and telephone solicitation. According to the organization's activity statement for the year ending on 31st December 2010 and 2011, telephone solicitation decreased from $28,000 to $25,000.
The balance sheet is among the financial statements used by organizations to provide financial results, information, and conclusions. The balance sheet is a financial statement that states the financial position of an organization in terms of assets, liabilities, and equity at a particular time (Finkler, 2010).
As the paper stresses the first category of accounting is financial accounting. The main purpose of this type of accounting is to get an insight into financial matters using financial statements. It involves some core activities related to financial information, which are recording and summarizing of the events that have occurred within in a given period.
The y also gives a general description of the company as well as the industry in which the company operates (Stittle, 2003).
Annual reports target a number of audiences who need the
On the other hand, the bank’s ability to grow by 25% each year, for a period of five years, is a major strength for the bank. In this case, such growth is not possible without
It can be noted that the system needs to be programmed so that it can offer error reports. Information obtained from Internal Control Systems (n.d.) posits that this control strategy is meant to enable the operators to quickly notice if an error has occurred through the processing of data input to the system.
According to Bodie et al (2004), it is the amount arrived at as a difference between income and expenses. Mils et al (2002) call the flow of cash into a business and out of a business, in a form of income and payment ‘cash flow’. Another
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According to the report Morocco’s FDI flows for 2008 until 2010 are declining; this is largely due to global recessions that hit the U.S. economy. The influx of foreign investors in the country can be traced to the positive contribution of the Structural Adjustment Program the government adopted in 1983 through the monitoring of the IMF and the World Bank.
The company provides services in the modern telecommunication sector which includes the provision of internet services. The company has advanced from 2G to 3G communication strategies as a way of enhancing its competitiveness in the telecommunication industry of India. A lot of weaknesses were reported in the auditing process.