Finance & Accounting Essays

Qn. 1. There are two key types of financial statements. There financial statement that calculates income taxes and the financial statement is for financial reports. The former’s objective is to identify the total taxes payable or refundable in a single

Intel’s idea of venturing into the DRAMs in the processors market was in the quest to serve the increasing demand for the processors. This motivated the company to introduce the manufacture of the processors. The adequacy of the market demand was the motivating factor for the company to venture into the business.

The old paradigm was called as the industrial paradigm which was based on FASB’s and existed during the industrial economy; the new paradigm is called the industrial information paradigm which existed during the age of information technology. The old financial principles

The authors of the study were aiming to investigate why finance managers who are highly educated, experienced and well paid are thought to make poor decisions and also to explore the

If an investment pool is funded by a local government or an individual state, then it qualifies to be an external cash and investment pool if it involves participation by a legal distinct entity which is not party to the same reporting entity as the funding government.

This process is the underlying objective of all corporate activity. Shareholder wealth maximization is a long-term financial goal, which is comprehensive and reflects

The primary motivation of corporate reporting is to enhance the image of the corporate, as well as its credibility with the stakeholders. Stakeholders include customers, employees, society, suppliers as well as shareholders. To properly illustrate the effectiveness of business reporting, various accounting theories will be used.

banks, the financial crisis in Cyprus and the EU wide policy implications on the country’s financial sector are some of the aspects that will be discussed within this study. Thereafter the researcher will be setting forth certain recommendations that are aimed towards the

Such an answer is the same if Marsha was a US citizen since there is no discrimination in the process of tax application to U.S. and non U.S. citizens. As such, the federal tax department levies the same tax rates

The art of creating a shared pool of numerous mortgages that do not have related default likelihood may help in creating a bond that has no defaulters. In such a situation, the owners can honor their credit obligations. The risk-neutral credit spread is identical between an ensemble mortgage and the average mortgage in it, the chance of loss is.

Assume that you have a line of credit for one million dollars in the US or an equivalent amount in a foreign country. Given perfect hindsight about interest rates and exchange rate changes, please calculate your total profit in dollars using uncovered interest arbitrage during the assigned period if you followed the strategy chosen in Q4.

As it stands, the company owns the largest sugar distribution network in the United Kingdom. Real Good Food plc participates in various market sectors such as wholesale, retail, manufacturing, food service, and export. The company’s production and distribution activities are operated under six business divisions.

The Loans and savings company has taken that opportunity to serve the SMBs so that they can easily have access to financial facilities. Since SMBs are considered to have a high default rate and are risky, it is recommended that SMBs should engage in group lending. On the other hand, defaulting can be reduced if credit rationing is undertaken.

The annual report contains the financial statements of a company’s current financial period plus several previous periods’ financial statements to facilitate a comparison of the financial performance of the company over the financial periods. The annual report has different segments. these segments cover the following topics.

These types of credit risk mainly arise concerning the account receivable and counterparty risk in the Istisna contracts, Sukuk held to maturity in the books of the banking, account receivable in case of Murabahah contract, and lease payment receivable in case of Ijarah contracts, and capital impairment risk in Musharakah or Mudharabah.

Therefore, its computation will be as follows; = 12*3.2 $ =38.4M MV0= 38.4/ (1.25) ^5= 12.58 The % of the venture to be given up= Venture capital needed/ MV0 1.5/12.58=18.9%

Despite Marxist theories identifying capital accumulation as bourgeoisie and amassing of wealth by capitalists as anti-people, by way of subjugating poor and oppressed masses, it is an undeniable fact that this predominant concept of modern-day business has acquired added status and significance in the 21st century.

The purpose served this return is for measuring the return rates in the amount of money that is invested in any economic entity. The ration should not be the only one used in evaluating

In the years that it has been in existence, the euro has widely grown to be recognized as an international currency, and thus, it has enjoyed the benefits of the world’s stable market and endured times of instability. The first idea that gave birth to the embryo of the European Monetary Union can be traced back to R. Mundell’s theory of optimum currency areas of 1961 and that of McKinnon of 1963.

Despite the company having a strong desire to succeed among other competitors, it was declared bankruptcy in Canada and the United States. After conducting a financial analysis, it was evident that the

The author states that citizens deposit 15 million in the bank is a debit entry in the capital account because it is considered as investment abroad. Imports 220 million worth of goods will be debited in the current account since the expenditures owed to other countries. Borrowing 45 million by issuing bonds is a credit item in the capital account.

Therefore, they are concerned with making the right investment decision. Financial markets have become increasingly famous as many people today are opting to invest in financial assets/ securities (Madura, Pg. 3).

This paper does represent coded data for the interview record created. The information is coded put into a table to store the responses of the interview in a relevant, usable as well as accessible form. Coding and putting the information in a table will represent

ITT Co.s payables turnover ratio increased in the year 2011 and 2012 .additionally, the value of the ratio also increased in the year 2013. This ratio is computed by the use of the above formula. ITT Co.s working

This is due to the cultural values present in the highly religious region. Companies that are being hosted in the region need to abide by the said rules in order to be accountable for their actions,

Within the scope of corporate finance, finance managers have to deal with two major decisions related to operations, namely capital budgeting decisions and financing decisions. Capital budgeting decisions refer to choices made over firm assets and financing decisions deal with choices regarding the manner in which these assets shall be funded so as to create profits.

The statements provide all the necessary details regarding the financial structure and position of a given entity. The financial statements of an entity usually include an income statement, balance sheet, cash flow statement and statement of ratio calculations. Firms may also prepare other types of statements such as the statement of retained earning.

In this context, Apple charged Samsung with the infringement of its patent right and design structure owing to which Samsung is required to pay fines as well as damages for the same (Lohr, “Apple-Samsung Case Shows Smartphone as Legal

The investors cannot simply trust what market dynamics tell them because they have to treat everything as a lie before the information checks out (Vernon, 1966). However, most of the companies use advertisement as the means of cultivating positive intentions and hopes in

The causes and effects of internationalization are other major concern areas of this research. The current limitations to the synthesis and understanding of globalization results from lack of information and concrete data required from initial

Alternative investments are asset classes that aren't stocks, bonds, or cash. These kinds of investments differ from traditional investment types because they aren't easily sold or converted into cash. It's also common for alternative investments to be referred to as alternative assets.

Some companies have been rated to have borrowed different amounts in the past five years to cater to the economical imbalances. Coca-Cola Company $ 12 billion in the year 2003, Toshiba $ 22 million in the year2011, and BMW $ 17 billion in the year 2012. This has been a big challenge in determining and examining the growth of these companies because of the debts they incur yearly.

Sustainability as a concept involves working in a way that an organization considers and accounts for its impact on the planet, society, and the future (Carroll & Buchholtz 2014, p. 145). This survey will outline the role played by various business models in accounting for sustainability. As it will be discovered, sustainability includes three aspects.

Its strengths lie in its business structure and strategies in the Qatar environment. It has a strong share capital and market capitalization that enables it to adjust its business structure to the financial market (UDC, 2015). It is currently developing an

Investments by the companies, give them a chance to increase their other income which will result in the company’s growth. Therefore, the investment in other companies can be beneficial for the company in a manner that, the interest rate paid on the investment can be higher than the company's home place.

The rules of business have changed over time and, therefore, entrepreneurs need to adapt to the ever-changing environment. For example, a majority of firms operate in one market while at the same time running a financial subsidiary in another. Resultantly, there is a need to link management tools with financial instruments so as to operate in the diverse and ever-changing environment.

Ford Motor Company is a multinational automotive manufacturer based in America. Its headquarters are in Dearborn, Michigan in the suburb of Detroit. The firm was established by Henry Ford and integrated in 1903. The firm markets its automotives under the brands Lincoln and Ford. It also owns shares in the Japanese Mazda and UK’s Aston Martin.

The high costs stock items will be received last and issued first. This will reduce the cost of closing stock. Consequently, the cost of the issue will be increased and the profit will be decreased. If the LIFO method is used over the lifetime of the business where the costs of raw materials are expected to rapidly increase, it will have minimal effect.

hese should include, but not restricted to, plan description, actuarial value, assets, actuarial accrued liability, and the related actuarial method employed in valuation. The valuation date needs to be included the case the fund is managed by a trust or multiple employers. The

Internal rate of return is important to the business organization because it ascertains whether the project under consideration provides higher or lower rates of return than the one that can safely be obtained in

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.

Performance management measures may be effective for both small and big organizations. It gives clarity to the company’s goals, and objectives and provides a clear framework to the employees and managers of the organization. The performance management system is being utilized by some of the companies that have benefitted from them. 

Extreme usage of materials is the main cause of unfavorable direct materials quantity variance. A positive annex is very favorable to the company. This may be due to substandard quality of materials, or poor workmanship with regard to production as well as the low supervisory role employed in the production department.

Generally, firms exposed to foreign currency exchange should adopt exchange rate risk as an integral part of their decisions. Foreign currency exchange risk facing a firm is the exposure to probable financial losses because of foreign currency devaluation against the domestic currency (Madura, 2009).

Looking for a company with a large market opportunity is the initial primary stage of investment evaluation. Ventura plc assesses the market opportunity for CF ltd and calculates its rate of return on investments. The rate of return on investment refers to the

Financial ratio analysis is also advantageous in that it is easy to come up with the components of returns. Such returns include pre-taxed interest and the pre-taxed margin. The two are the core profitability of the company before interest and taxes. The higher margins show better prospects for the company.

Great Britain noted that an income tax of 20% is automatically charged on savings interest while those who are married and one of the spouses was born before 6 April 1935 are able to claim a Married Couple’s Allowance hence reducing the tax bill. The UK government is fair because those who are blind are able to claim the Blind Person’s Allowance.

The formula to calculate free cash flow is cash from operations minus capital expenditures. This concept is important because it gets managers to analyze what they are spending their money on and what changes can be made to those expenditures. When the free cash flow is negative or very small an analyst must evaluate if is a recurrent problem or a one-time issue.

In 1984, there was an increased growth in business using financial market instruments. More and more banks were increasingly using instruments such as foreign currency and forward rate arrangements in active trading. However, it was noted with concern that in the future, business growth may be hampered unless there existed a standard and uniform measure to regulate the use of these financial instruments.

From the transformed lifestyle to more convenience and comfort, the car is desirable ownership item. To the business owner or a big corporation, the car has become an indisposable tool of trade. This growth in the automotive industry came following