CHAPTER 4 THE ACCOUNTING CYCLE: ACCRUALS AND DEFERRALS OVERVIEW OF BRIEF EXERCISES‚ EXERCISES‚ PROBLEMS‚ AND CRITICAL THINKING CASES Brief Exercises B. Ex. 4.1 B. Ex. 4.2 B. Ex. 4.3 B. Ex. 4.4 B. Ex. 4.5 B. Ex. 4.6 B. Ex. 4.7 B. Ex. 4.8 B. Ex. 4.9 B. Ex. 4.10 Learning Objectives 3‚ 4 3‚ 4 3 3 6 4 5 5 5 8 Topic Deferred expenses and revenue Deferred expenses and revenue Accounting for supplies Accounting for depreciation Accrued revenue Unearned revenue Accrued salaries Accrued interest Accrued
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decision to get an MBA? 2. What other‚ perhaps nonquantifiable factors‚ affect Ben ’s decision to get an MBA? 3. Assuming all salaries are paid at the end of each year‚ what is the best option for Ben‚ from a strictly financial standpoint? 4. In choosing between the two schools‚ Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? 5. What initial salary would Ben need to receive to make him indifferent between
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Valuation- “projected financial performance into values.” Involves projecting/ making budgets. Value of an Asset = Value of Cash Flow (CF) it Will Generate (not profits) CF=1/(1+r)^1 value is based on three things- Current Cash Flow‚ Expected growth (used with to estimate future cash flow)‚ Riskiness of expected future cash flow (discount rate).Net Present Value- Value CFs using project discount rate based on risk Investment Decision-which real assets the firm should acquire.Choose positive and
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contributions * Who owns what and in what percentages * Customer contract details * Services performed * Due date * Risks involved * Cost of services 2. Litigation (discussed later in the chapter) Litigation refers to lawsuits‚ the process of filing claims in court‚ and ultimately going to trial. 3. Alternative Dispute Resolution Alternative dispute resolution is any other formal or informal process used to settle disputes without resorting
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OLI Paradigm‚ the a firm must first have some competitive advantage in their home market before going abroad‚ however these global challengers have been able to go overseas without perfecting these advantage in at their home base. The infusion of finance specific factors into the OLI framework‚ creates proactive and reactive financial strategies which results in the creation ownership advantages that emerging market firms need to consider FDI. It is on this basis that these firms are able perceivably
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Solutions Manual Fundamentals of Corporate Finance 9th edition Ross‚ Westerfield‚ and Jordan Updated 09-29-2010 CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review and Critical Thinking Questions 1. Capital budgeting (deciding whether to expand a manufacturing plant)‚ capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt)‚ and working capital management (modifying the firm’s credit collection policy with its customers)
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Chapter Four Mutual Funds and Other Investment Companies INVESTMENTS | BODIE‚ KANE‚ MARCUS Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Investment Companies • Pool funds of individual investors and invest in a wide range of securities or other assets • Services provided: • Record keeping and administration • Diversification and divisibility • Professional management • Lower transaction
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Having studied this chapter you will be able to: Evaluate the potential value added to a firm arising from a specified capital investment project or portfolio using the net present value model. Project modelling should include explicit treatment of: (a) Inflation & specific price variation (b) Taxation including capital allowances and tax exhaustion (c) Single & multi-period capital rationing to include the formulation of programming methods and the interpretation of their output (d) Probability
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Chapter IV PRESENTATION‚ ANALYSIS ANS INTERPRETATION OF DATA This chapter presents the analysis and interpretation of data to determine the feasibility of the proposed record keeping sytem for Department of Environment and Natural Resources. 1. The proposed Recordkeeping System developed and described based on the following stages: 2.1 Functionality The data in table 2 shows the respondents evaluation. The systems got a highest point “The system uses passwords to protect unauthorized
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Chapter 4: Mini Case 1: Smith‚ Smith‚ Smith‚ and Smith is a regional accounting firm that is putting up a new headquarters building. The building will have a backbone network that connects eight LANs (two on each floor). The company is very concerned with network errors. What advice would you give regarding the design of the building and network cable planning that would help reduce network errors? I have to make some assumptions regarding the network design for this new building. Since they
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