Case analysis: Extract Tar Sands Ltd. Background information Extract Tar Sands is an extraction plant company located in Athabasca‚ Alberta. It is a leading extraction plant‚ and one of the worlds most global industries. Large investments are required but the future outcomes are unknown. Athabasca has the largest reservoir of crude bitumen in the world. The tar sands go through a refining process to separate the bitumen (black viscous oil) from the mixture of clay‚ sand and water. Extracting oil
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1) As you have learned in this week’s readings the Accounting Equation is Assets = Liabilities + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. 2) What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts.
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drawback of historical cost accounting model is that it cannot deal with the effects of changing prices of non-monetary assets. Therefore some entities prefer to use current cost basis instead of historical cost accounting model. The most prominent disadvantage of this method is that book values may be based on badly out of date costs. This becomes more of a problem during periods of high inflation. Therefore‚ historical cost does not generally reflect current market valuation or fair value of an asset
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is its availability when other debt financing is unavailable. (b) Possible disadvantages of leasing: 1. In an ever-increasing inflationary economy‚ retaining title to assets may be desirable as a hedge against inflation. 2. Interest rates for leasing often are higher and a profit factor may be included in addition. 3. In some cases‚ owning the asset provides unique tax advantages‚ such as when bonus depreciation is permitted. (c) Since a long-term noncancelable lease which is used as a
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CHAPTER I THE PROBLEM AND ITS BACKGROUND INTRODUCTION During the first period‚ drinking water is abundant everywhere. But as time goes by‚ pollution occurred and makes the water not safe to be drink. Our country was surrounded by water‚ but the water is not clean and not good for drinking. To be able to have clean water‚ one must purify it first before drinking it. For those who are always busy doing things like work‚ they do not have enough time to boil and purify
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Accounting Assignment #434 Best Friends Vet Clinic Part A Qantas Airline Short Report in accordance to Accounting Perspective Introduction On November 14‚ 2012‚ Qantas applied a capital management measure by 1) repaying its $650 million debt earlier than scheduled and 2) investing up to &100 million in an on-market share buy-back. This was fulfilled to reflect the Board’s goal: returning shareholders’ value‚ maintaining a strong balance sheet while still have the flexibility to
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CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 14/e) | |Questions: | |
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Question 1 Imperial Luxurious is a business providing marketing design services. On 1 March 2011 the following balances were extracted from the books: £ Capital 150 000 Premises 120 000 Fixtures and fittings 24 000 Provisions for depreciation on: premises 5 000 fixtures and fittings 6 000 Debtors 17 500 Creditors 8 500 Bank 8 000 For the month of March the following summarised transactions occurred: • Credit sales of £28 000 were invoiced to
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produce output that is relevant to users of financial statements. 2.A pragmatic theory of accounting involves observing the practices and techniques of working accountants and teaching these to successive accountants. (a)Argue the advantages and disadvantages of such an approach. (b)Do you believe this method of teaching accounting is ‘correct’? (a)A pragmatic theory is where we observe the behaviour of practising accountants and thencopy their accounting procedures and principles.Advantages: • the
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FIN 470 Exam1 - KEY 1. What is the primary disadvantage of the corporate form of organization? Name at least two advantages of corporate organization. The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends. Some advantages include: limited liability‚ ease of transferability‚ ability to raise capital‚ and unlimited life. 2. Evaluate the following statement: Managers should not focus on the current stock value because doing
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