sheet consists of assets and liabilities of any firm. The assets are called as the uses of the firm and the liabilities are called as the sources of the firm. Sources of the firm: (Debts or liabilities): The debts or liabilities are the claims of the outsiders against the assets of the firm. The liabilities refer to the amount payable by the firm to the claimholders; i.e. the amount owed by the firm to other parties. For an obligation to be recognized as a liability‚ it must meet three requirements
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ACCT112 Midterm Assignment – Week 9 Due at the end of week 9. There are 70 marks. This assignment is worth 20 % of the total grade. True or False: (15 Marks) 1. In spite of its weaknesses‚ the cost principle is most often used because it is the most reliable basis of valuation. TRUE 2. The going concern assumption assumes the company will continue to operate for at least two years. TRUE 3. The economic entity assumption states that economic events can be identified with a
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Executive Summary The Royal Beach Resort is located at Basdio‚ Guindulman‚ Bohol‚ Philippines‚ and on the free shuttle system. Will offer customers 12 two-bedroom units with underground parking‚ fully-equipped kitchens‚ laundry facilities and stone fireplaces. Royal Beach Resort also will offer a common-area outdoor hot tub as well as a on-site store and on-site front desk service. On average‚ visitors will spend over P250 million‚ annually‚ for lodging‚ food‚ and recreational activities at
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SOLUTION FOR LONE PINE CAFE CASE: A)Each of the partners contributed $16000 cash to the partnership and agreed to share in their profits proportionally to what they had invested which amounts to 1/3rd of the total profit. Therefore‚ each Owner’s equity : $16000 cash They signed a one year lease at a nearby cafe called the Lone pine cafe and agreed to pay a rent of $ 1500 every month. The partners borrowed $21000 from the bank . They used $35000 out of their partnership money and
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would increase the value of the business. Next we had to but the land for $150‚000. This was a debit and credit line item under assets because we used cash and credit $100‚000 under liability because we now owe a debt. After fully balancing the equation‚ we had $200‚ 00 in assets (what we invested) and $100‚000 in liabilities and shareholder’s equity. Chapter 1 Accounting in Action: E 1-5 pg. 34 Instructions: For each of the three situations‚ say if the accounting method used is correct or incorrect
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Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company’s financial leverage calculated by dividing its total liabilities by its stockholders’ equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio ’Debt/Equity Ratio’ A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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average percentages of sales to obtain forecast of income items‚ current assets‚ current liabilities‚ and net fixed assets for the period of 2008-2010‚ and then determine Huiyuan’s free cash flows (and cash flow components) for each year. Ignore issues regarding external fund needed. (b) Complete the forecast table‚ using historical average ratios wherever applicable. Use overdrafts (a line of current liabilities) to indicate any external capital needed. Huiyuan will keep its cash level at HK$110
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April 21‚ 2012 To MS. Nusrat Khan Lecturer‚ Department of Finance‚ Faculty of Business Studies‚ University of Dhaka. Subject: Submission of Term Paper on “Partnership Accounting”. Dear Madam‚ It is an honor for us to submit the `Project Report’ on “Partnership Accounting” which is prepared as a partial requirement of the course named “Accounting Principles (F- 103)” of BBA program under Department of Finance of the Faculty of Business Studies‚ University of Dhaka. The main objective of study
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ACCOUNTANCY STUDENTS love. “Life is like a balance sheet. One wrong entry could change everything. We make decisions that give us either an Asset or a Liability. Yet in the end it is up to us on how to make adjustments to balance it.” I’ll INVEST ur name serve as the CAPITAL of my life and ASSET of my heart‚ you will never be a LIABILITY coz even if ur MARKET VALUE will be the most expensive‚ I will sacrifice my INCOME‚
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does not earn interest. Determine Huiyuan’s free cash flows (and cash flow components) for each year. (b) Complete the forecast table under the following conditions: (i) Sales will grow at 24% per year. (ii) The sales percentage for other current liabilities is expected to decline to 41% in future years. (iii) Because of high uncertainty in the timing and the cost of raising equity
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