Historical Cost Concept What is historical cost? Historical cost is a term used instead of the term cost. Cost and historical cost usually mean the original cost at the time of a transaction. The term historical cost helps to distinguish an asset’s original cost from its replacement cost‚ current cost‚ or inflation-adjusted cost. For example‚ land purchased in 1992 at cost of $80‚000 and still owned by the buyer will be reported on the buyer’s balance sheet at its cost or historical cost of $80
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Case 3-6 Accounting Standards A. Given the income statement effects of LIFO versus FIFO‚ how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and Daimler-Benz? In other words‚ will inventory be reported amounts representing recent costs or older historical costs? In your opinion‚ which balance sheet amounts would be more useful to financial statement users in making decisions to buy or sell shares of a company’s stock? Inventory is an asset that
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Accounting: Topic 6: Analysis And Interpretation Of Financial Statements (Part 2) Capital Structure Analysis Proportion of debt financing relative to equity financing (=gearing or leverage) * Reflects the entity’s financing decisions * Investments in assets are funded externally by liabilities‚ or internally by owner’s as shown in accounting equation (A=L+OE) Debt to equity ratio: Total liabilities/ Total equity x 100=x% Debt ratio: Total liabilities/ Total asset x 100=x%
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Key Points Chapter 1: Key to success – recurring cash flows Chapter 2: Key to success for Entrepreneurs – persistence! Chapter 3: Key to success for BP- it Explains 1) Management‚ 2) Management‚ 3) CF Executive Summary – the most important section Include ROI and NPV (IRR?) Ratio analyses Chapter 4: Key point – must use the same accounting method Key point: Successful entrepreneurs know their cash position at all times. Chapter 5: Liquidity – the most important ratios Key point – Entrepreneurs
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Costs assigned to the building of a house should appear on the income statement when Answer a. the purchase order to manufacture the house is received. b. the house is sold. c. cash is collected for the sale of the house. d. the house is completed. The basic document for keeping track of costs in a job order costing system is a Answer a. labor time card. b. job order cost card. c. process cost report. d. materials requisition form. The following information is available at the
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BM6026 - Managerial Accounting & Finance Mini Assignment - Sem 1 2014/2015 Name : Suriati Binti Yusse Matric no : MB1412199T Class : Tuesday - 7.00PM - 10.00PM product selling price Variable Cost : Material : Extract of Tongkat Ali Other Ingredients Packing Material Overhead Cost : Drying cost of liquid Other Overhead Cost Labour Cost : Processing Packaging Total Variable Cost Unit Contribution Margin Expected volume sales % of total sales Weighted Contribution Q1 : capsule
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• A2 Key Terms Copyright © 2009 AQA and its licensors. All rights reserved. The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered in England and Wales (company number 3644723) and a registered charity (registered charity number 1073334). Registered address: AQA‚ Devas Street‚ Manchester M15 6EX. Dr Michael Cresswell‚ Director General. Teacher Resource Bank / GCE Communication and Culture / Other Guidance: A2 Key Terms / Version 1.0 A2 KEY TERMS
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perspective to link internal branding outcomes (employee-brand fit‚ brand knowledge‚ and belief in the brand) and employees’ perceptions of organizational support to a range of employee brand-building behaviors‚ with organizational identification as the key mediating mechanism. Both cross-sectional and longitudinal analyses of employee data from a major retail bank reveal organizational identification as a strong motivational force for employees to become brand champions‚ largely mediating the effects
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INCOME CONCEPTS The Purpose of Income Reporting Income is used… 1 As the basis of one of the principal forms of taxation. 2 In public reports as a measure of the success of a corporation’s operations. 3 As a criterion for the determination of the availability of dividends. 4 By rate-regulating authorities for investigating whether those rates are fair and reasonable. 5 As a guide to trustees charged with distributing income to a life tenant while preserving the principal for a remainder man
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textile-veteran husband and two partners established‚ Liz Claiborne Inc.‚ a design-driven company that would revolutionize the fashion industry – from how women dress for work‚ to where product is source‚ to how it is sold into and at department stores. The concept was simple: Provide the ensemble-driven sportswear that had been available for many years at designer level prices through the likes of Calvin Klein and Bill Blass‚ but make it affordable for the working woman. Up until this point‚ department stores
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