ACCOUNTING ASSIGNMENT 1 QUESTION 1 PART A: EROSION OF CAPITAL Historical cost is adopted and used by many businesses in Australia. Despite being used by majority, one of the main disadvantages of Historical cost is fails to maintain intact other concepts of capital like constant purchasing power capital, except money capital. It fails to measure assets at their current cost but only use their current cost. In order to maintain capital properly, it should be able to cover the replacement cost of
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Case 1-1 Ribbons and Bows Questions: 1a. How would you report on the three-month operations of Ribbons an’ Bows, Inc., through June 30? Ribbons an’ Bows remains in the black at the end of the three month period given to us in the case. However, several items need to be considered to have a good understanding of the state of the company from a profitability standpoint: all monies going out (debited), and all monies already in (credited). 1b. Was the company profitable? On paper
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On the balance sheet inventory is listed in the current assets section. As a current asset, inventory is viewed by users of financial statements as an asset that may be readily converted to cash if needed. In line with the historical cost principle, the valuation of inventory is solely based on the amount the inventory was purchased for. However, if the value of the inventory decreases below the original cost, then when valuing inventory the historical cost principle must not be used in this case
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British Airways Nicole Miller ACCT240 October 1, 2014 First and foremost, I would like to briefly describe what exactly British Airways actually is. British Airways is a global airline providing full service to its customers. One of their standout features is that the fares are relatively low, offering a global route network. British Airways flies to and from centrally-located airports. British Airways has actually been around for approximately 90 years and was registered in England. One of
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Final Project One of the most important skills that a student of accounting can develop is that of being able to prepare and understand financial statements. This individual project is designed to help you develop and demonstrate your skills. It should be possible to begin the assignment at any time, however some of the necessary background will only be covered later in the course. Please follow each of the steps below and make certain to answer the questions completely. In order to make certain
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Accounting 1. Stockholders equity = total assets-total liabilities i.e Apple: 118,210 Dell: 8917 2. Accounting equation Missing amount is: a. 1,118,790 b. 93230 c. 55,940 1. Assignment E1-6 Missing amount for condensed balance Costco target walmart Asset 27,140 46,630 193,406 Liabilities 14,779 30809 117,645 Stockholder equity 12,361 15,821 75,761 Exercise 1-10 The following item in Flip flop Sandals Financial statements will either appear or will not appear: 1. Accounts
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equity portion of the balance sheet describing the number of shares sold to shareholders at a predetermined value per share, also called “common stock” or “preferred stock” 6. Capital Surplus – found in the equity portion of the balance sheet accounting for the amount shareholders paid that is greater or lesser than the “capital stock” amount 7. Capitalized Expense – expenses that are accumulated, not expensed as incurred, to be amortized over a period of time; i.e. the development cost of
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Accounting and Auditing Research Chapter 1-4 Chapter 1 1. Research is the ability to locate and extract relevant information from available resource materials 8. Applied research focuses on text, and instances or issues of importance, Theoretical research focuses on investigating questions that appear interesting to the researcher but serve little or no application 15. Identifying keywords and relevant facts and issues are important and require the exact source of issue, justification, and determination
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Jennefer Boel Module 1 Part 3 Chapter 3 # 17, 20, 32, 47 17. CVP Computation Var. cost per unit: Units sold: 410000 Price per unit: $68 $60 Fixed costs: $1,640,000 Revenue = Revenue = Total Variable Cost = Total Va 1. a. Contribution margin Contribution Margin = Total Revenues - Total Variable Costs Contribution Margin = $27,880,000 - $24,600,000 Contribution Margin = $3,280,000 b. Operating Income Operating Income = Total Revenue -Total Var. Costs - Fixed Costs Total Revenue Total Variable
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Chapter #7: Cost-Volume-Profit Relationship Cost-volume-profit analysis – mangers use to help them understand the interrelationship among cost, volume, and profit in an organization by focusing on interactions among the following 5 elements * Prices of products * Volume or level of activity * Per unit variable costs * Total fixed costs * Mixed of products sold The contribution format * Total unit CM Ratio * Sales (400 speakers) $100,000 $50 100% *
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