Straight-Line Method The straight line method spreads the depreciation evenly over the life of the asset. (Horngren‚ Sundem‚ Elliot‚ Philbrick‚ 2006‚ p. 342) The straight line method is calculated using the following formula: Depreciation expense = (Acquisition cost Estimated Residual value/ years of useful life. In this case‚ 22‚500= 90‚000/4= 100‚000- 10‚000/4
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A COMPARISON BETWEEN CASH ACCOUNTING AND ACCRUAL ACCOUNTING 1. Introduction Accounting principle and theory are generally referred to two main accounting methods which include cash accounting and accrual accounting. Cash basis accounting on income and cost is determined by the amount of actual payment for reference and accounting recording mode is simple‚ easy to master. The use of the accrual basis of accounting is more complicated than it with a main difference of recording timing. This essay
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While I was looking for an appropriate topic for research‚ I found an interesting publication‚ which fitted best to the subject (ethics in managerial accounting issues) and also included 5 good examples examples of possible problems associated with the field. The method of the study seemed unclear‚ especially considering the connection between the serial number of a dollar bill and the question to which the respondent had to answer in the end (in my work I will constantly refer back to the text
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LBC202 Management Accounting I The Subject team responsible for planning and production of this Subject is: Associate Professor Jean Raar Acknowledgements as required This Learning Guide follows the approach taken in the recommended text: Horngren‚ C. T.‚ Datar‚ S. M.‚ Foster‚ G.‚ Rajan‚ M. V.‚ Ittner‚ C.‚ Wynder‚ M.‚ Macquire‚ W. and Tan‚ R. (2011). Cost Accounting: a managerial emphasis. 1st Australian Edition‚ Pearson‚ Frenchs Forest‚ NSW. There is a Student Guide to accompany “Cost
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master budget of a company exist. Master budgets seek to outline a plan for the future in the upcoming year or quarter for the company ’s finances. "The master budget is a detailed and comprehensive analysis of the first year of the long range plan"‚ (Horngren‚ et. al.‚ 2008‚ p. 304). The year review of the master budget takes the components of the operational and financial budgets and break down the important information contained within each. Fitting the Pieces Together Elements of the operational
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References: 1. Horngren‚ C.T.‚ Harrion‚ W.T.‚ and Oliver‚ M.S.‚ 2013. Financial and Managerial Accounting. 3rd ed. Prentice Hall. 2. Financials.morningstar.com. 2013. Growth‚ Profitability‚ and Financial Ratios for Colgate-Palmolive Company (CL) from Morningstar.com. [online]
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Financial Statement Analysis FOR Competition Bikes Western Governors University Financial Analysis (NAME) (DATE) A1. This financial analysis is for Competition Bikes that was taken from balance sheets and income statements from years 6‚ 7 & 8. A1a. Horizontal Analysis Strengths Net Sales – totaled $4‚485‚000.00 for year 6‚ and grew +33.3% or $1‚495‚000.00 between years 6 to 7. Cost of Goods Sold – totaled $3‚294
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References: Forbes. (2010). Microsoft Corporation Financial Ratios. Retrieved from http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=msft Horngren‚ C. T.‚ Sundem‚ G. L.‚ Stratton‚ W. O.‚ Burgstahler‚ D.‚ & Schatzberg‚ J. (2008). Introduction to management accounting (14th ed.). Upper Saddle River‚ NJ: Pearson- Prentice Hall. Investopedia. (2010). Dupont analysis definition. Retrieved from
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worker; we can’t measure them with a price tag. The going concern concept representing the ability of a business instead of being closed or sold‚ operate at least twelve month after the end of the reporting period. CITATION Har07 \l 17417 (Harrison‚ Horngren‚ Bamber‚ Best‚ Fraser‚ & Willett‚ 2007) For example‚ even though the company is facing financial issues and might face bankruptcy in the future. The accounting period of the business would be continuing as usual until the business is officially
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References: Hanson‚ D.‚ Dowling‚ Peter J.‚ Hitt‚ Michael A.‚ Ireland‚ R. Duane and Hoskisson‚ Robert E.‚ (2008) Strategic Management: Competitiveness and Globalisation‚ Asia Pacific Third Edition‚ Thomas Publishing‚ South Melbourne‚ Australia. Horngren et. al.‚ Gitman et. al.‚ and Atrill et. al.‚ (2008) Accounting and Finance for Decision Making‚ University of Newcastle‚ Pearson Education Australia Custom Book‚ Frenchs Forrest‚ Sydney‚ NSW. Marti‚ Jose Maria Viedma (2004). Strategic knowledge benchmarking
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