...Memo To: Kristen Huffman, President and CEO From: Date: September 25, 2012 Re: Huffman Trucking Ratio Analysis Team B has completed a ratio analysis on Huffman Trucking. Our team has looked over financial statements to determine the liquidity, profitability, and solvency ratios of Huffman Trucking. These ratios provide detailed information to creditors, investors, and employees. Together, the ratios reveal data related to the performance and position of Huffman Trucking. What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position? * The liquidity ratio of a company shows the way the company is able to pay back short-term debt that is owed. Creditors would be interested in this type of ratio. The profitability ratios are the profit performance that makes up the financial success of the company. Profitability ratios would be beneficial to individuals outside of the company such as investors and creditors. Solvency ratios are the ability of the company to pay off the long-term debt. The company’s solvency ratios are of interest to long-term creditors and the company’s’ shareholders. Shareholders and long-term creditors would be most interested in solvency ratios of the company. * Which users may be interested in each type of ratio? Huffman Trucking are mainly suppliers, other trader creditors and staff such as: Government – profitability ratio. Suppliers - they are interested in liuidity. Electronics cunsumers –...
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...on the income statement. The cost of intangible assets with indefinite lives is not amortized. Companies generally use the straight-line method for amortizing intangible assets. Depletion is the allocation of the cost of natural resources to expense in a rational and systematic manner and is only used for natural resources. A common type of natural resource is oil. Declining-balance method provides you the highest depreciation expense in the first year, because with this method there is a decreasing annual depreciation expense over the asset’s useful life. According to "Learn Accounting" (2004-2014), "Yes, many companies use two or more methods of depreciation, it is acceptable for companies to depreciate its plant assets by using the straight line method while using an accelerated method on its income tax return.” The two different methods of depreciation that can be used are, one for accounting and another for income tax. Some assets can consist of being depreciated...
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...Before after action After Dividend Stock Split Stockholders equity paid in capital Common stock, $10 par 600,000 630,000 600,000 Paid in capital in excess par value 0 12,000 0 Total paid in capital 600,000 642,000 600,000 Return earnings 900,000 858,000 900,000 Total stock holders equity 1,500,000 1,500,000 1,500,000 Outstanding shares 60,000 66,000 120,000 E12-1 1. Stock securities, or purchases made in debt, are executed by companies in order to obtain surplus cash holdings to bolster income margins and create flexibility into the future for strategic advantages. 2. Seasonal fluctuations or economic cycle would be the culprit. 3. The investment of cash over short periods of time would best be used on low-risk, high liquidity, and short-term securities. An example of this would be government-issued securities. 4. Debt securities and stock securities. 5. They are postulating a potential value increase in the organization’s investment. E12-2 Jan. 1 Dr Debt investments $50,900 Cr Cash $50,900 July 1 Dr Cash $2,000 Cr Interest revenue $2,000 ($50,000 x 8% x 6/12) July 1 Dr Cash $33,500 Cr Debt investments $30,540 ($50,900 x 30/50) Cr Gain on sale of debt investments $2,960 Prepare the adjusting entry for the accrual of interest at December 31. Dec. 31 Dr Interest receivable $800 ($20,000 x 8% x 6/12) Cr Interest revenue...
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...Pendergrass Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. * Is the intern correct? No, this is incorrect. Intangible assets should not “always” be amortized over their legal lives. * Explanation Intangible assets are defined as Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. The intangible assets are amortized over the established legal life or the years of its useful life, whichever ends first. According to Kieso, Kimmel, and Weygandt (2010) intangible assets should be amortized over their legal lives. However, the accounting clerk is stating that intangible assets should “always” be amortized over their legal lives; however, intangible assets with limited lives are amortized and intangible assets with indefinite lives are not amortized. Therefore, it depends on whether the intangible asset is defined over their legal lives or indefinite lives. * What are the basic issues related to accounting for intangible assets? The process of allocating the cost of intangible assets to expense is called amortization and intangible assets are typically amortized on a straight-line basis. To record amortization of an intangible asset, a company increases (debits) Amortization Expense, and decreases (credits) the specific intangible asset. Company’s record intangible assets at cost and intangible assets are categorized...
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...Cost Accounting Tabitha Smith ACC 310 Christine Errico January 12, 2011 Cost Accounting What is cost accounting? Cost accounting as referred to as managerial accounting is a system of accounting used specifically by managers (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting measures, records and reports information about costs to help managers to form a well informed decisions for an organization (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting methods and their use, budgets including discipline, construction, and elements, and variance analysis are important aspects of cost accounting as a whole, which is an important tool for a successful organization. The main goal of cost accounting is to help managers to maximize value within their organization (Lanen, Anderson, & Maher, 2011, p. 3). One of the fundamental services of cost accounting is to provide information to the manager to guide them to make effective valuable decisions (Lanen, Anderson, & Maher, 2011, p. 3). An essential objective of cost accounting is to create an effective value chain (Lanen, Anderson, & Maher, 2011, p. 4). A value chain is a set of activities in which raw materials are converted into goods and services for consumers to purchase (Lanen, Anderson, & Maher, 2011, p. 4). An organization is responsible to coordinate with their vendors and suppliers along with their distributors and customers to accomplish their objective (Lanen, Anderson...
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...* What is mental accounting and how does it impact consumer decision making? Mental accounting is an economic term penned by Richard Thaler that describes how people code, categorize , and evaluate economic outcomes. The result is that consumers place their money into mental buckets based on how they got it (i.e. work, lottery winnings, or other windfalls) and the intent for each bucket such as current income, current wealth, and future income. According to Thaler’s theory, these assets are assigned different functions for each group which can lead to harmful and irrational effects on their buying decisions and other spending behaviors. (Thaler, 2008) Thaler purports that the consumer utilitzes mental accounting in each economic situation that that they are involved in and this what influences the decisions that the consumer makes. There are two key concepts in mental accounting. First, there is framing ; which is the way a person subjectively frames a transaction in their mind will determine the utility they receive or expect. This concept is similarly used in prospect theory In which people make decisions based on the potential value of losses and gains rather than the final outcome, and that people evaluate these losses and gains using certain heuristics. This model is tied to real life choices and not to optimal decisions. (Kahneman and Tversky, 1979) Another concept that is important in mental accounting is modified uitility which purports two values to ...
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...management can be traced back over thirty years. These two approaches were being used in countries other than the United States in 1984. Different organizations and companies started executing these approaches after their systems were not effective. In 1987, articles started appearing in the Harvard Business Review and the Journal of Cost Management which changed the expectations of companies. These articles familiarized companies with accounting based costing. These concepts were beginning to be universally implemented within the business world. Large firms that had changed to ABC and ABM were encountering exceptional results over the past four years. Software was finally made available to assist with accounting based costing in 1990 (Turney 4). It looked as though these techniques were going to flourish and develop. However, in the early to mid 90’s, the media changed the view of these. The information was proved to not always be accurate and people were given wrong information about different aspects of the system. In 2000, accounting based costing was becoming accepted again. This was due to the increase in technology. Companies were beginning to rely on the internet and cell...
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...activity inputs to outputs. To improve activity efficiency is to produce the exact activity output with lower cost for the inputs used. Cost and trend then becomes important to measures of efficiency. Quality main concern is doing things correctly the first time it is done. If activity is defective, activity will have to be repeated which causes unnecessary cost and reduction in efficiency. Time required performing an activity which is critical. Longer times means, more intake of information and less ability to respond to customer demands. Time measures of performance are usually nonfinancial. (Palepu, Shank, Knapp, Gibson, Mowen, 2010, p.277) Identify the pros and cons of using an activity-based system over functional-based cost accounting. Functional-based overhead costing has two important stages: overhead costs are assigned to an organizational unit (plant or department), and the other is overhead costs which is assigned to cost objects. Activity-based costing (ABC) traces cost to activities and then to cost objects. The main assumption is that activities consume resources and cost object in turn consume activities. ABC is also a two stage process; however, ABC stresses direct tracing and driver tracing (exploiting cause-and-effect relationship. While a volume based costing system...
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...to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada. With CGA, you can: 1. Pursue...
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...wiL1084x_fm_i-xxiv_1.indd Page i 1/10/11 7:53:00 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 Managerial Accounting John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia 3 rd edition wiL1084x_fm_i-xxiv_1.indd Page ii 1/10/11 9:14:31 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 To my students and family, especially Kimberly, Jonathan, Stephanie, and Trevor. To my wife Linda and children, Erin, Emily, and Jacob. MANAGERIAL ACCOUNTING Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright 2012, 2010, 2007 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2 1 ISBN 978-0-07-811084-9 MHID 0-07-811084-X Vice president and editor-in-chief: Brent Gordon Editorial director: Stewart Mattson Publisher: Tim...
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...Handbook of Management Accounting Research Volume 3 Edited by CHRISTOPHER S. CHAPMAN Imperial College London, UK ANTHONY G. HOPWOOD University of Oxford, UK MICHAEL D. SHIELDS Michigan State University, USA AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively visit the Science and Technology Books website at www.elsevierdirect.com/rights for further information Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for...
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...7 e-Business Systems CHAPTER OVERVIEW Chapter 7: e-Business Systems describes how information systems integrate and support enterprisewide business processes, as well as the business functions of marketing, manufacturing, human resource management, accounting, and finance. LEARNING OBJECTIVES After reading and studying this chapter, you should be able to: 1. Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company: a. Enterprise application integration b. Transaction processing systems c. Enterprise collaboration systems 2. Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management. SUMMARY • Cross-Functional Enterprise Systems. Major e-business applications and their interrelationships are summarized in the enterprise application architecture of Figure 7.2 . These applications are integrated cross-functional enterprise systems such as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM). These applications may be interconnected by enterprise application integration (EAI) systems so that business professionals can more easily access the information resources they need to support the needs of customers, suppliers,...
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...大家网会计英语论坛 A (40)available hours 可用小时 A (41)avoidable costs 可避免成本 B (42)back-to-back loan 易币贷款 B (43)backflush accounting 倒退成本计算 B (44)bad debts 坏帐 B (45)bad debts ratio 坏帐比率 B (46)bank charges 银行手续费 B (47)bank overdraft 银行透支 B (48)bank reconciliation 银行存款调节表 B (49)bank statement 银行对账单 B (50)bankruptcy 破产 B (51)basis of apportionment 分摊基础 B (52)batch 批量 B (53)batch costing 分批成本计算 B (54)beta factor B (市场)风险因素 B B (55)bill 账单 B (56)bill of exchange 汇票 B (57)bill of lading 提单 B (58)bill of materials 用料预计单 A (16)accrual concept 应计概念 A (17)accrual expenses 应计费用 A (18)acid test ratio 速动比率(酸性测试比率) A (19)acquisition 收购 A (20)acquisition accounting 收购会计 A (21)adjusting events 调整事项 A (22)administrative expenses 行政管理费 A (23)amortization 摊销 A (24)analytical review 分析性复核 A (25)annual equivalent cost 年度等量成本法 A (26)annual report and accounts 年度报告和报 表 A (27)appraisal cost 检验成本 A (28)appropriation account 盈余分配账户 A (29)articles of association 公司章程细则 A (30)assets 资产 A (31)assets cover 资产担保 A (32)asset value per share 每股资产价值 A (33)associated company 联营公司 A (34)attainable standard 可达标准 A (35)attributable profit 可归属利润 A (36)audit 审计 A (37)audit report 审计报告 A (38)auditing standards 审计准则 A (39)authorized share capital 额定股本 B (59)bill payable 应付票据 B (60)bill receivable 应收票据 B (61)bin card 存货记录卡 B (62)bonus 红利 B (63)book-keeping 薄记 B (64)Boston classification 波士顿分类 B (65)breakeven chart 保本图 B (66)breakeven point 保本点 B (67)breaking-down time 复位时间 B (68)budget 预算 B (69)budget center 预算中心 B (70)budget cost...
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...------------------------------------------------- Study on SAP Training Satisfaction of the Students ------------------------------------------------- A Research Paper Presented to The General Education and Accountancy Department In Partial Fulfillment of the Requirements for the Course in Research Submitted by: Ronel Katrina Kishia Marie Nyalyn Reymund Elmer Rennaly Ruby Angelica Mae Anne TABLE OF CONTENTS Title Page 1 Acknowledgment 2 Chapter I Introduction 4-7 Background of the study 8 Framework of the Study 9-11 Statement of the Problem 11-12 Significance 13 Scope and Delimitation 14 Definition of Terms 15 Chapter II Review of Related Literature 17-21 Chapter III Methodology 22-24 Chapter IV Presentation, Interpretation and Analysis of Data 25-32 Chapter V Summary of Findings, Conclusions and Recommendations 33-36 References 37-38 Appendices Appendix 1 Schedule of Expenses 39 Appendix 2 Letter of Approval 40-41 Appendix 3 Letter to Respondents 42 Appendix 4 Questionnaire 43-46 Curriculum Vitae 47-55 CHAPTER I Problem and Its Background INTRODUCTION Companies nowadays use systems that would help them streamline operations and improve their customers’ experience to enhance their competitive position and drive growth. By which the SAP or Systems, Applications...
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...Strategic management accounting: how far have we come in 25 years? Kim Langfield-Smith Monash University, Melbourne, Australia Abstract Purpose – The purpose of this paper is to provide a review of the origins of strategic management accounting and to assess the extent of adoption and “success” of strategic management accounting (SMA). Design/methodology/approach – Empirical papers which have directly researched SMA and prior review papers of the adoption and implementation of SMA or SMA techniques are reviewed. As well as assessing the extent of adoption of SMA and the reasons underlying an apparent low adoption rate, the role of accountants in adopting and implementing SMA is considered. Finally, the success or otherwise of SMA is discussed. Findings – SMA or SMA techniques have not been adopted widely, nor is the term SMA widely understood or used. However, aspects of SMA have had an impact, influencing the thinking and language of business, and the way in which we undertake various business processes. These issues cut across the wider domain of management, and are not just the province of management accountants. Research limitations/implications – There is limited value in conducting future surveys of the adoption and implementation of SMA or SMA techniques. Rather, the focus should be on how SMA-inspired techniques and processes diffuse into general practice within organizations. Originality/value – Twenty-five years after the term strategic management accounting was first introduced...
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