Chapter 12 Practice Problems 1. Bankers hold more liquid assets than most business firms. Why? The liabilities of business firms (money owed to others) is very rarely “callable” (meaning that it is required that the business pay its obligation on demand from the creditor). Since their liabilities are not callable‚ most businesses can afford to invest in assets that are illiquid. Indeed‚ this is what is known as matching the liquidity of assets and liabilities. Since most business assets are illiquid
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Abbreviations |B.P. Bond Payable |PIC Paid In Capital.| |C.S. Common Stock |APIC Additional PIC | |CSE Common SE |PMR Profit Margin | |EOF End of |Ratio | |Financing (Period) |PV Present Value | |FV Future Value |R.E. Retained | |IE Interest Expense|Earnings | |I.S. Income |S.H. ShareHolder | |Statement |S.E. ShareHolder | |FS Financial |Equity | |Statements |SYD Sum of the | |LCM
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determine ending inventory and cost of goods sold. Under a perpetual system the company adjusts its inventory account each time it purchases or sells inventory. Thus it always has a record of its available inventory. Having knowledge of inventory balances helps a company avoid lost sales due to “stock-outs” as well as carrying too much inventory on hand (which results in additional storage and handling costs). The purchasing department can make better decisions with the aid of perpetual inventory
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Business‚ Government and International Economy The business environment of a firm is the totality of external circumstances which the business faces and over which it has little or no control. The business environment of a firm includes 1. Market forces with their associated uncertainty 2. Forces of demand and supply originating from the rest of the world 3. The government policies 4. Nature i.e. the environmental factors Now‚ the scenario is changing. Indian market is getting connected to
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Following Directions Exercise Read every item carefully before beginning this exercise. 1. Get a one – whole sheet of paper. Use your paper in answering the questions. 2. If you were one year older‚ what would be the year you were born? _____________________________ 3. Give directions from this classroom to the library. __________________________________________________ __________________________________________________ __________________________________________________
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individuals concerned. As such‚ absence of a worker on account of strike or lockout or layoff‚ that is‚ involuntary absence is not considered as absence for purpose is not considered as absence for purpose of these absenteeism statistics. There are some contradictions in this definition. For example‚ on the one hand‚ it defines absenteeism as the failure worker to report for duty when he is scheduled to work. On the other hand‚ it says that a work is to be treated as absent even when he does not turn
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TABLE OF CONTENTS 1. Introduction …………………………………………………….… 2. Literature Review.………………………………………………. 3. Methodology ……………………………………………………… 4. Data Analysis and Interpretation ………………………………. 5. Conclusion and Result ……………………………………………. 6. Bibliography ………………………………………………………. 7. References …………………………………………………………. 8. Annexure ………………………………………………………….. INTRODUCTION Mankind is insecure by nature. Unlike an animal whose requirements do not exceed beyond food for its
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recommendations on line managers. Nevertheless‚ because of their expertise‚ staff managers can influence decisions. Management accountants discharge their responsibilities and achieve their objectives by organizing and implementing activities in the following categories: 1. Planning 2. Reporting 3. Controlling 4. Resource Management 5. Information Systems Development 6. Technological Implementation 7. Verification 8. Administration Financial Statement Analysis – The Big Picture FS Analysis
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“Many leaders of big organisations‚ I think‚ do not believe that change is possible. But if you look at history‚ things do change‚ and if your business is static‚ you are likely to have issues” - Larry (Lawrence) Page Co- Founder & CEO of Google Inc DOB: 26 March 1973; East Lansing‚ Michigan US Nationality: American Residence: Palo Alto‚ California Post: Co-Founder and CEO of Google Inc Education: B.Sc. from University of Michigan & M.Sc. from Stanford University Awards: Marconi
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What is a Trial Balance? State its objectives and characteristics. Give some reasons for disagreement of the Trial Balance. A ’Trial Balance’ is a list of all the General ledger accounts (both revenue and capital) contained in the ledger of a business. This list will contain the name of the nominal ledger account and the value of that nominal ledger account. The value of the nominal ledger will hold either a debit balance value or a credit balance value. The debit balance values will be listed
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