CHAPTER 2 INVESTING AND FINANCING DECISIONS AND THE BALANCE SHEET CHAPTER CONTENTS Brief Chapter Outline 2.2 What’s New in This Edition 2.2 Chapter Summary 2.3 Chapter Learning Objectives 2.4 Chapter Lecture Outline 2.4 Additional Teaching Notes 2.8 Teaching Resources Chart (Organized by Learning Objective) 2.10 Ideas for Incorporating the Study Guide 2.11 End of Chapter Materials Chart (Organized by Learning Objective) 2.12 End of Chapter Materials Comparison Chart (4th Edition
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Turn off all cell phones. This examination comprises 5 questions over 20 numbered pages. Answer Question 1’s multiple-choice questions on the SCANTRON sheet provided. Answer Questions 2-5 in this booklet. Booklet is not to be removed from the examination room. You may not separate the pages. Limit your answer to the space provided. Blank sheets for rough work and supporting calculations are given at the end of each question. This exam will be marked out of 100 marks for convenience and is 3 hours
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Chapter 1: Environment and Theoretical Structure of Financial Accounting Accounting Principles Board (APB) The Accounting Principles Board (APB) followed the CAP. Asset/liability approach With the asset/liability approach‚ recognition and measurement of assets and liabilities drives revenue and expense recognition. Auditors Auditors express an opinion on the compliance of financial statements with GAAP. Capital markets The capital markets provide a mechanism to help our economy allocate
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Literature Review Lease Financing: Lease is a contract between the owner and the user of assets for a certain time period during which the second party uses an asset in exchange of making periodic rental payments to the first party without purchasing it. Under lease financing‚ the lessee regularly pays the fixed lease rent over a period of time at the beginning or at the end of a month‚ 3 months‚ 6 months or a year. At the end of the lease contract the asset reverts to the real owner. However
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Introduction : This report will be analysing Wesfarmers financial statements provided in their 2010 annual report by: horizontal analysis‚ trend analysis‚ vertical analysis and ratio analysis. With the numerical data obtained and the conclusions drawn from them‚ a generalised discussion on the limitations of financial statement analysis and examining possible factors influencing the position of Wesfarmers shares in comparison to others; this report will enable people in the business world to make
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CHAPTER 1: INTRODUCTION TO FINANCIAL ACCOUNTING 1.1 USE‚ PREPARATION AND CONCEPTS * Use: The information derived from financial accounting is used by managers‚ investors‚ bankers‚ financial analysts and accountants‚ helping them to learn how to use information effectively and to do their jobs better. This information is essential to accountants for the services they provide. * Preparation: to be effective users of accounting information‚ people need to know something about how and
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PepsiCo vs. Coca-Cola – A Financial Comparison June 13‚ 2007 AC550 May 2007 Executive Summary The purpose of this comparative analysis is to provide a summary of financial and accounting information to a potential investor who is looking to invest in either Coca-Cola or PepsiCo. This research will cover some facts from the financial statements of both companies for the year of 2004. There are many factors to review when comparing these two companies. They are two of the top manufacturers
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the managers will analyze the financial statements of HGW to address their concerns. This chapter discusses how to perform this analysis. 1. Explain why managers analyze financial statements. 2. Perform horizontal and vertical analyses of the balance sheet and the income statement. 3. Discuss earnings management and the importance of comparing net income to cash flow from operations. 4. Understand how MD&A‚ credit reports‚ and news articles can be used to gain insight into a company’s current and
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Table of Content TABLE OF CONTENTS I EXECUTIVE SUMMARY II I. INTRODUCTION 1 i. Background: ii. Framework: iii. Financial Statements: iv. Analyzing Company Accounts v. Ratio Analysis II. MANAGEMENT ACCOUNTING 3 i. The Objectives of Management Accounting: ii. Scope of Management Accounting: iii. Functions of Management Accounting: iv. Advantages of Management Accounting: v. Limitations of Management Accounting:
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A transposition error was found in the Expense account ($250‚ not $205). The trial balance discrepancy of $45 was divided by 9‚ and the result was an even amount. Therefore‚ a transposition error was possible‚ so a search was begun. b) 7. b) (cont.) Explanation of error and how you found it The balance in the Bank account was subtracted incorrectly; it should be $3 505. The trial balance discrepancy was a multiple of ten‚ indicating an addition error. Amounts were added again
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