000 E&P. Therefore‚ each share of stock accounts for $600(1‚200‚000/2‚000). Crane redeemed 500 shares‚ which accounted for $300‚000. Thus‚ after redemption‚ the E&P would be decreased by $300‚000. For the expenses during redemption‚ the $13‚000 accounting and legal fees was not qualified to be deducted‚ but the $18‚500 interest expense was
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ACG 2071 Managerial Accounting Process Costing Systems Minicase Jeffersonian Corporation has been in business for over 50 years. The company is looking to expand operations into the Pacific Rim and would like an analysis of its financial statements to be prepared. Review the financial statements below: Jeffersonian Corporation Comparative Income Statement For years ended December 31‚ 2011 and 2010 Sales Cost of goods sold Gross Profit Operating Expenses Salaries Expense Contract Labor
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Finance Theory & Financial Strategy By Stewart C Myers How do firms integrate strategic planning and financial analysis? It appears to be somewhat haphazard in many cases. Senior management sets a direction‚ vision and mission statement based upon who the firm is now and how it has evolved. Then sets the firm’s course based upon their ideas of who they are and who they may wish to become. The finance department that handles the financial planning and analysis may support the strategic initiative
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Q & T Explain what debit and credit mean. T For each of the following transactions of Dennen‚ Inc.‚ for the month of January 2015‚ indicate the accounts‚ amounts‚ and direction of the effects on the accounting equation. A sample is provided. a. (Sample) Borrowed $30‚000 from a local bank b. Lent $10‚000 to an affiliate; accepted a note due in one year. c. Sold 100 additional shares of stock with a par value of $.10 per share to investors for $500 cash. d. Purchased $15‚000 of equipment‚ paying $5000
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E1-1 Urlacher Company performs the following accounting tasks during the year. Communicates__Analyzing and interpreting information. Records__Classifying economic events. Communicates__Explaining uses‚ meaning‚ and limitations of data. Records__Keeping a systematic chronological diary of events. Records__Measuring events in dollars and cents. Communicates__Preparing accounting reports. Communicates__Reporting information in a standard format. Identifies Identifies_Selecting economic activities
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Chapter 1: Uses of Accounting Information and the Financial Statements TRUE/FALSE 1. The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY: ethical reporting 2. Fraudulent financial reporting can result from the misapplication of accounting principles. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY:
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1 1. The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization. True False 2. The Canadian Business Corporations Act mandates that all incorporated companies in Canada follow IFRS. True False 3. Private companies in Canada may choose between IFRS or ASPE. True False 4. Canada has adapted its own pre-existing standards for public companies to IFRS‚ while the U.S has adopted
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years. Since DCM had higher ratios‚ they had more liquid within the company and they are less likely to experience financial distress in short-term basis. Leverage Ratios are used to measure the extent of the company’s financing with debt relative to equity and its ability to cover interest and other fixed charges. They address the company’s long-term ability to meet its financial leverage. Overall the Plastichem had higher leverage ratios than DCM. Because they were higher they are more in debt
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owner or owners. 2. The four basic financial statements include the balance sheet‚ income statement‚ statement of retained earnings and statement of cash flows. 3. A balance sheet covers a period of time‚ such as a month or year. 4. The income statement shows the financial position of a business on a specific date. Chapter 2 5. Debit means the right-hand side of any account. 6. In a double-entry accounting system‚ total amount debited must always
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after‚ a SWOT analysis. See also Porter’s Five Forces model‚ which is used to analyse competitive position. Please note: If you use SWOT Analysis as a 2x2 matrix method ‚ then technically Strengths and Weaknesses are internal factors (generally the case anyway)‚ whereas Opportunities and Threats are external factors (this can be more difficult‚ since it requires you to ignore internal threats and opportunities). The SWOT 2x2 ’internal/external’ matrix method thus only considers external
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