Jasmine Travis BUS3061 Professor Jerry Thomas July 17‚ 2014 1. Question 1: Proficient-level: There are several important functions performed in an organization‚ among which accounting is one of them. Define the accounting function and discuss how it differs from double-entry bookkeeping. Accountants analyze and interpret financial information‚ prepare financial statements‚ conduct audits‚ design accounting systems‚ prepare special business and financial studies‚ prepare forecasts and budgets
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Question 1 Substance over form Information in the financial statements should represent transactions in accordance with their commercial substance not merely their legal form. The accounting for leases is the application of this concept‚ as the classification of a lease as either a finance lease or an operating lease‚ depends on the substance of the transactions rather than the legal form of the contract. IAS 17 distinguishes between two types of lease transactions: A finance lease and an
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Definition of ‘Lease’ A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid. Leases are the contracts that lay out the details of rental agreements in the real estate market
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high. The Quality control of DJC is process centric where each process is QC monitored unlike in Sunnyvale its end product inspection. The quality losses of DJC and ACC over total production are 0.7% and 1.6%. So‚ Quality is one grey zone which needs to be addressed by ACC. Ø Work in process inventory cost is very high in case of ACC in comparison to DJC. This in turn is reduces connector output per square foot as extra space is required for WIP and finished goods(15.1 of Kawasaki VS. 10.9 of Sunnyvale)
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the Cost of Capital: Survey and Synthesis Case 13 Teaching Notes Introduction “Each year in the US‚ corporations undertake more than $500 billion in capital spending” (Bruner 184). This case presents a reasonably analyzed set of teaching notes describing how these financially sophisticated corporations estimate their capital costs. Understanding the estimation of capital costs helps identify the uncertainty of the cost-of-capital theory‚ sets a benchmark for cost-of-capital‚ helps determine
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ACCOUNTING FOR LEASES IFRS questions are available at the end of this chapter. TRUE-FALSe—Conceptual Answer No. Description T 1. Benefits of leasing. F 2. Accounting for long-term leases. F 3. Classifying lease containing purchase option. T 4. Accounting for executory costs. F 5. Depreciating a capitalized asset. F 6. Lessee recording of interest expense. T 7. Benefit of leasing to lessor. F 8. Distinction between direct-financing and sales-type leases. F 9. Lessors’ classification
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July 18‚ 2011 3 Subject: Leases and Lease Structure Issues 4 To: Regional Trucking Company 5 From: Bob Stanton This memo will cover the current practice and thought related to direct financing‚ sales type‚ and operating leases. I understad that Regional Trucking Company have limited time to cover all aspects of these areas. Disclosure Requirements for Capital Leases SFAS No. 13 also requires the disclosure of additional information for capital leases. The following information must
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HOUSE LEASE THIS LEASE made as of -August 1‚2010-------------------BETWEEN ---Gregorio &Editha Andrada------------------------(THE LANDLORD) and ---Mary Jane Duyag-------------------------------------------------(THE TENANT). LEASE.The Landlord leases to the Tenant 7208 Beakrush Lane‚Winter Garden‚Florida 34787(the Premises) for a term of beginning on August 1‚2010 and ending on August 1‚2011(the term).Any occupancy by the Tenant of the Premises shall be subject to the
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Memorandum To: Supervisor From: Date: March 14‚ 2011 Re: Leases and Lease Issues CONFIDENTIAL The trucking company currently owns 100 trailers and a new client have requested 20 more for a total of 120 trailers for its project. The relationship with the new client is uncertain but at the same time it has potential for significant growth of the company. The uncertainty of the relationship may have an effect on the financial position of the client company
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| Lessee Ltd.- Lease Case | | | | | | 1. Was the junior accountant’s analysis correct? Why or why not? No‚ the junior accountant’s analysis is not correct in classifying the lease as an operating lease in accordance with IFRS. Whether or not a lease is classified as a finance or an operating lease depends on if all of the benefits as well as risks of ownership have been shifted from the lessor to the lessee. According to IAS 17-10(d)‚ a lease must be classified as a finance
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