Corporate Characteristics Proposal Katrina Phillips ACC 281 June 11‚ 2012 Chris Brown University of Phoenix As an individual or a group of individuals‚ starting up any type of business takes strategic planning even before the business opens. Many questions will to be asked once the concept of the business is designed. Each form has its own unique style starting from which type of business organization is decided on‚ whether
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company that has a positive economic value. There are two main types of assets: current assets and non-current assets. Current Asset Current assets are assets that a company expects to convert to cash or use within one year (Kimmel‚ Wegandt‚ & Kieso‚ p. 49‚ 2007). Common types of current assets are cash‚ short-term investments‚ receivables‚ inventories‚ and prepaid expenses. 1. Cash is considered current assets because it typically is used within a year of it being stated on a balance sheet
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References: Kieso‚ D. E.‚ Weygandt‚ J.J.‚ & Warfield‚ T. D. (2010). Intermediate Accounting‚ (13th ed.). Hoboken‚ NJ: John Wiley & Sons. Paid in Capital vs. Earned Capital. (1997 -2012). Retrieved from http://budgeting.thenest.com/paid-capital-vs-earned-capital-26802
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References: www.forbes.com/sites/forbesinsights/2014/08/12/regulatory. www.ehow.com Kimmel‚ P. D.‚ Weygandt‚ J. J.‚ & Kieso‚ D. E. (2011). Accounting: Tools for Business Decision Making. http://www.investopedia.com/terms/r/ratioanalysis.asp http://blog.promodirect.com/2011/03/significance-of-comparative-analysis-in-business
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References: Kimmel‚ P.D.‚ Weygand‚ J.J.‚ & Kieso‚ D.E. (2010). Financial accounting: Tools for business decision-making (5th Ed.). Retrieved from The University of Phoenix database. Sweeney‚ Paul. 2012. Sarbanes-Oxley – A decade later‚ Financial Executives International. July/August 2012. Retrieved
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References: Dahl‚ D. (2011). Top 10 Reasons to Run Your Own Business. Inc. Retrieved on August 28‚ 2011 from http://www.inc.com/guides/201101/top-10-reasons-to-run-your-own-business.html Kimmel‚ P. D.‚ Weygandt‚ J. J.‚ & Kieso‚ D. E. (2009). Accounting: Tools for business decision making (3rd ed.). Hoboken‚ NJ: John Wiley & Sons
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References: “Ratios are only as good as the data upon which they are based and the information with which they are compared.” (Kieso‚ Weygandt‚ Warfield‚ 2010) Thus‚ ratios analysis present some disadvantages.
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Geographic Segmentation Why Ranch Market choose Jakarta city to built the business‚ specifickly at Kebon Jeruk and pondok indah.. ? According to Philip Kotler & Kevin Keller‚ author of book ‘Marketing management’ (Kotler & Keller‚ edition 14e‚ chapter 8)‚ Geographic segmentation divides the market by nations‚ states‚ regions‚ counties‚ cities‚ or neighborhoods. Separation of geographic areas into marketing / advertising areas. Occurs after analyzing collected information in the physical location
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Depreciation is a non-cash expense given by the IRS that is very important to a company’s cash flow. Book depreciation is based upon the usage of assets. Tax depreciation is subtracted from the company ’s income when completing yearly taxes using MACRS. Kieso‚ Kimmel‚ and Weygandt (2011) explain that depreciation as “the process of allocating the cost of an asset to expense over its useful life” (p. 197). It is a way to basically created funding for the company and also means the value of an asset has been
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noncurrent asset cannot be easily converted into cash. It is held for longer terms and usually more profitable than a current asset. They cannot be sold to the general consumer base and are liable to undergo depreciation over time (Kimmel‚ Weygandt‚ & Kieso‚ 2007). Difference between Current and Noncurrent Assets How soon it can be liquidated is the main difference between current and noncurrent assets. Current assets are those that are readily available to be sold‚ lent‚ or leased in order to produce
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