ag‚a;es’g.;’gad;a’;ldg;gd;sal;‚ger’fa‚s.a;l‚gdlag‚dla‚g;ewlwetp;lq4pewql‚e;et‚q;g‚al‚gal;g‚dla;ew‚tqleg‚algm‚eksgtmaq;‚;’.E’S.AFD;Af?D/A>;T’‚;L‚EL;On January 1‚ 2010‚ Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31‚ 2012‚ the carrying value of the building was $30 million and its tax basis was $20 million. At December 31‚ 2013‚ the carrying value of the building was $28 million
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Substantive Procedures - Class of Transactions SALES AND SALES RETURN Occurrence Compare Sales of this year with Sales of last year as well as Analytical Procedures (for with budgeted and Industry average. Investigate unusual Overstatement) difference. Completeness (for Compare G.P. Ratio of this year with last year as well as budgeted and Industry average. Investigate unusual difference. Understatement) Review a reconciliation of Inventory (opening
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California State University‚ Chico Institute for Sustainable Development Life Cycle Assessment of Reusable and Single-use Plastic Bags in California January 2011 Produced under contract by: California State University Chico Research Foundation Author: Joseph Greene‚ Ph.D. Sustainable Manufacturing Program California State University‚ Chico Chico‚ CA 95929-0789 Funding provided by Table of Contents Table of Contents..........................................................................
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principle in determining the acquisition cost of plant assets. Pg. 402 Depreciation is the application of the cost principle in determining the acquisition cost of plant assets. This application applies the classes: land improvements‚ buildings‚ and equipment. To determine the acquisition cost of plant assets should be stated at the market value. It would also be reported on the balance sheet as a deduction. Depreciation of plant assets are determined on the assets wear and tear. As it gets older
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compare and contrast different types of accounting. The focus will be on the following types; accrual‚ cash flow and fund accounting. I aim to show the strength and weakness of each‚ how entries are made for each‚ how and if each method handles depreciation‚ how inventory is accounted for and if there any differences between organizations that use a certain method. Accrual accounting is mostly used by organizations that are for profit. Accounts using this method are prepared with financial transactions
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Acct 550c Week6 Homework E10-1 Item Land Land Improvements Bldg Other Accts (a) ($275‚000) Notes Payable (b) $275‚000 (c) $ 10‚000 (d) 7‚000 (e) 6‚000 (f) (1‚000) (g) 25‚000 (h) 250‚000 (i) 9‚000 (j) $ 4‚000 (k) 11‚000 (l) (5‚000) (m)
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e EDouble entry - Income statement 1. Sales When sales are made‚ capital increases by the amount of profit made on the sale. 2. Expenses When ongoing costs‚ such as wages or rent are incurred‚ capital decreases. 3. Income and expense accounts Periodically‚ usually once a year‚ the figure of profit (income - minus expenses) is added to capital. During the year figures are accumulated in separate accounts for each item of income and expenditure. 4. Cost of sales At the end of the year‚ the
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liabilities – long – term debt =14030 – 2470 – 3980 = 7580 Net working capital = current assest – current liabilities NWC = 3840 – 2470 NWC = 1370 2. Building an income statement Lifetime‚ Inc.‚ has sales of $585‚000‚ cost of $273‚000‚ depreciation expense of $71‚000‚ interest expense of $38‚000‚ and tax rate of 40%. What is the net income for this firm? Income statement Sales 585000 Costs 273000 Deprectiation 71000 EBIT 241000 Interest 38000 Taxable income
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Inflation is assumed Chapter 1 True / False Questions 1. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE 2. Financial Capital is composed of long-term plant and equipment‚ as well as other tangible investments. FALSE 3. Real Capital is composed of long-term plant and equipment. TRUE 4. During the 1930s‚ financial practice revolved around such topics as the preservation of capital‚ maintenance of liquidity‚ reorganization
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The Matching Principle: Insights into Earning’s Usefulness to Investors.$ Harm Sch¨tt u Haas School of Business University of California at Berkeley Abstract This paper argues that matching expenses to revenues increases earnings’ usefulness to investors by providing an accounting rate of return (ARR) closer to current economic profitability. To test this‚ I estimate a proxy for a firm’s internal rate of return (IRR) in order to approximate the distortion between ARR and IRR. Results show that
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