Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
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very high‚ the technology for this certain piece of equipment is projected to change every few years‚ and there is only a few years of useful life remaining on the operating lease. The organization needs to be careful of investing large amounts of money on equipment that is going to need to be replaced often. Also‚ with a lease/rental on this “short-lived” piece of equipment‚ the organization is more apt to replace it on time‚ ensuring it always remains within new technology
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CASE 8-1: NORMAN CORPORATION 1. Answer: The transaction should be recognized based on the following points: i. ii. Conservatism concept stated that expenses should be recognized as soon as they are reasonably possible to occur. According to loss contingency‚ a liability is recognized when information available indicates that it is probable for a liability to occur and when the amount of loss can be reasonably estimated. Therefore‚ Norman should provide a provision for loss and recorded the transaction
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Chapter 16 1. Sheila inherited 300 shares of stock‚ 100 shares of magenta and 200 shares of purple. She has a stockbroker sell the shares for her‚ use the proceeds for personal expenses‚ and thinks nothing further about her transactions. What issues does she face when she prepares her Federal income tax return? Sheila needs to treat the sale of her shares as a capital gain because she had the stock for investment purposes‚ and not as inventory (Hoffman‚ 2013‚ p 16-6--16-7). 3. Alison owns a
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themselves unable to realize high maintenance economies of scale‚ which made leasing an extremely attractive option‚ providing companies like UTC the opportunity to enter the market and realize profits. UTC offered all type of leases to shippers but mainly gave full-service operating leases and offered both renewal contracts on old cars and new contracts on new cars. Market Analysis: There are 4 major competitors in the tank leasing market‚ with GATX having the biggest car fleet (53‚295 cars) and UTC
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the relationship with the customer may last‚ but the deal has the potential for significant growth. Your supervisor has asked you to research leases and lease structure issues on the Financial Accounting Standards Board (FASB) website‚ in particular the current practice and thought related to direct financing‚ sales type‚ and operating leases. Write a 700- to 1‚050-word memo addressed to your supervisor that summarizes your FASB research results. Keep the memo brief while exploring
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I recommend the lease option for Tremont. This is because while the lease option offers a remotely smaller‚ it is also much less risky. To start‚ the lease option has a much higher IRR (around 45%) and the IRR barely fluctuates from scenario to scenario. This means that no matter how much the discount rate changes the project is still safe. On the other Hand the base IRR for the build option is about 22% and fluctuates greatly from scenario to scenario. There is a scenario in which the WACC
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line. The relocation plan related to the following facts: Facts Financial affection Dec 15‚ 2010‚ issued a press release to terminate the lease of the old facility. Jan 31‚2011‚at which time it will sign the lease termination agreement‚ Pharma Co. plans to vacate the Plant A facility. The lease is an operating lease with termination fee is $1.3M. The lease was entered into in Feb 2004 with a term of 10 years. The written notice is required for early termination. Dec 27‚ 2010‚ communicated the
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TITLE: INNOVATIVE WAYS OF ATTRACTING AND RETAINING GOOD QUALITY TENANTS. BACKGROUND The evolution of the commercial property market with trends like shorter lease lengths and competition for new tenants in the market for example‚ means that landlords can no longer rely on traditional ways of attracting and retaining tenants. According to Rasila‚ H. (2010)‚ “the competitive environment is changing and the real estate owners are seeking new ways of differentiating themselves from competitors”. Traditionally
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the bank wouldn’t give her any relief on her car lease. "She’s been paying the lease for three years...they should give back to our soldiers a little something‚" Roxanne Katz‚ the soldier’s mother. Roxanne Katz said as long as she can remember‚ her daughter has wanted to serve her country. When she got the call for basic training‚ the Peabody soldier‚ Kristina Katz‚ had just two weeks to get her affairs in order. She tried to terminate the car lease on her Mazda 6‚ which she would no longer be able
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