CHAPTER 1 • Economics o Study of how societies manage their scarce resources • Ten Principles of Economics o People face tradeoffs • Making decisions involves trading off one goal for another Example: In order to study properly for a final exam‚ students must give up most of their social life during exams • Societies face the tradeoff between efficiency and equity An efficient society gets the most it can from its scarce resources An equitable society distributes the benefits of its
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BU227 – Financial Accounting Module 1 Provided by: Laurier SOS Things to Cover The Accounting Environment IFRS and GAAPs Accounting’s Conceptual Framework Financial Statements Overview Recording Transactions Accrual Accounting Account’s Receivable Amortization Inventory The Accounting System Financial Accounting System (preparation of four basic financial statements). Managerial Accounting System (preparation of detailed plans‚ forecasts and reports). External Decision Makers
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INTRODUCTION To carry on business‚ corporation needs an almost endless variety of real assets. Many of these assets are tangible such as machinery‚ factories‚ offices‚ others are intangible‚ such as technical expertise‚ trademarks‚ patents. All of them need to be paid for. So‚ there are always two questions: “what real assets should the firm invest in?” And “how should the cash for the investment be raised?”. The answer to the first question is the firm’s investment‚ or capital budgeting decision
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adjusting journal entry on the company’s books? a. Outstanding checks b. Non-sufficient fund checks c. Deposits in transit d. Cash on hand 4. In preparing a monthly bank reconciliation‚ which of the following items would be deducted from the balance reported on the bank statement to arrive at the correct cash balance? a. Outstanding checks b. Bank service charges c. Deposit in transit d. A customer’s note collected by the bank on behalf of the depositor 5. On October 1‚ 2011‚ a company
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and financing of short and long term credits for the firm." Thus‚ it deals with the situations that require selection of specific problem of size and growth of an enterprise. The analysis of these decisions is based on the expected inflows and outflows of funds and their effect on managerial objectives. The most acceptable definition of financial management is that given by S.C.Kuchhal as‚ "Financial management deals with procurement of funds and their effective utilisation in the business." Thus
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decide whether Rainbow Products should purchase the machine or not. i) Bay back: cost of machine/expected saving per year = 35000/5000 = 7 years . ii) NPV = Difference between the present value of cash inflows and the present value of cash outflows. Thus‚ NPV = -35000 + 5000* [1-(1/(1.12)^15]/.12 -35000 + 34053.31 NPV = -945.68 iii) IRR: It is that rate of interest that makes the sum of all cash flows zero. 0 = -35000 + 5000* [1-(1/(1+r)^15]/r IRR
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JOCELYN S. GEOLLEGUE MBA 101B – Financial Accounting Case No. 1-1 RIBBONS AN’BOWS‚ INC. Page No. 1of 2 I. VIEWPOINT Carmen Diaz – Owner II. STATEMENT OF THE PROBLEM 1. On Ribbons an’ Bows‚ Inc. finances: a. How would the three-month operations be reported (through June 30)? b. Was the company profitable (ignoring Income Taxes)? c. Why did its Cash-in Bank declined (during the three-month period)
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Pakistan is one of the richest countries in the world in terms of natural resources but also one of the poorest among them in their management. The country is abundant in the vital resources including that of energy‚ agriculture‚ minerals‚ population‚ and geography‚ but unlike the developed countries‚ these have not been properly exploited due to poor management. This dismayed situation is caused due to several‚ both chronic and acute‚ flaws which have led to poor governance of country since its
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CHAPTER-I FINANCIAL STATEMENTS LEARNING OBJECTIVES After studying this chapter‚ you will be able to: • Explain the meaning of financial statements of a company; • Describe the form and content of balance sheet of a company; • Prepare the Balance Sheet of a company as per Schedule VI Part I of the Companies Act 1956. • Know the major headings under which the various assets and liabilities can be shown. • Explain the meaning‚ objectives and limitations of analysis using accounting
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dumping of Greek bonds into the market removed Greece from the free financial markets. As it was expected‚ Greek banks were also downgraded‚ and consequently the public felt insecure about the safety of their money. This resulted in an increase in deposit outflows and non-performing loans along with the credit contraction. However it is worth noting that‚ virtually alone in the European region‚ Greek bankers acted more like old‚ slow moving commercial bankers and they did not invest in U.S. subprime-backed
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