EXPENSE RECOGNITION The production‚ sales‚ or cash receipts method can be used to assign revenues to periods of time. Expense recognition involves assigning or matching expenses to periods of time. Some expenses are closely related to the revenues assigned to periods of time. For example‚ the costs of goods sold during a period reflect the costs of materials‚ labor‚ and manufacturing overhead incurred to produce units of product that were sold. These costs are called product expenses. Other expenses
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consumer behavior diverging rather than converging? Many would say that because of globalization‚ the income‚ media and technology would suggest that consumer’s needs‚ taste‚ lifestyles and wants have become homogeneous‚ giving special emphasis on technology and internet. But what people do with their possessions does not converge. Some believe that global companies will achieve success by concentrating on what everybody wants rather than worrying about the details of what everyone things they might
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APJEM Arth Prabhand: A Journal of Economics and Management Vol.1 Issue 1‚ April 2012‚ ISSN AN ANALYTICAL STUDY ON INDIAN CURRENCY RUPEE DEPRECIATION AGAINST THE US DOLLAR AND ITS ECONOMIC IMPACT SHELLY SINGHAL* *Maharaja Agrasen Institute of Management and Technology‚ Jagadhri‚ Haryana‚ India. ABSTRACT The Indian rupee is under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries
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Analyse the cash flow and highlight any problems that are evident such as a shortage of cash and any other cash flow problems his business might experience. (M1) In P3‚ a cash flow forecast for John Adams was created. A cash flow forecast is a simple statement showing opening balance‚ cash in‚ cash out and closing balance. Cash flow forecast are usually compiled on a month by month basis‚ for up to twelve months ahead. The exact contents of an individual firm’s cash flow forecast will depend on the
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Funds flow statement shows the changes in the financial position between two balance sheet dates. It represents the movement of funds and the movement can be inward called as income or receipts. In case of outward movement‚ it is represented by expenditure or payments. The term‚ "funds" has different meanings. In the context of funds flow statement "funds" means the net working capital. Flow of funds means changes in funds position of changes in working capital. Working capital refers to that
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Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service‚ by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage. A manager’s decision-making process regarding new or increased
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rearview mirror is always clearer than the windshield.” That’s exactly what the three key financial keys are: the rearview mirror. The income statement‚ the balance sheet‚ and the statement of cash flows all combine to show exactly what happened in the past. The income statement is a report generated to show the profitability of the company. It shows sales less expenses during a specified period of time. It is prepared in such a way that the profit after each expense can be determined easily. For
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a business firm pursue other objectives besides the objective of maximum profits? What objectives other than profit maximisation might a firm pursue? Is this possible in a competitive world? The traditional theory of business behaviour tends to make a general assumption that businesses possess the information‚ market power and motivation to set a price and output that maximises profits. Profits being defined as the difference between the total revenue received by a firm and the total costs that
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the importance of depreciation expenses. Depreciation as a concept and in practice plays a very important role in a company ’s cash flow hence in funding. The reason ’s are basically two‚ firstly because depreciation is a way of self finance for an organization and secondly because is a way of decreasing taxes that the government claims as the company doesn ’t have to pay taxes on depreciation which consequently enlarges the cash flow of the company. As a term depreciation in accounting is the
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Depreciation Methods Depreciation is the accounting process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. Factors Involved in the Depreciation Process 1. What depreciable base is to be used for the asset? 2. What is the asset’s useful life? 3. What method of cost apportionment is best for the asset? Depreciable Base for the Asset The base established for depreciation is a function
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