marginal or drop in sales or sales price could cause a the company to go form a relatively small profit to a loss. The company would have to have a relook at its operating expenses and find ways to reduce and find cost savings in that class. Executive compensation is quite high at around 22% of selling and general expenses and much more then the 170,000 of all other administrative salaries. Executives may need to take a cut in compensation considering the underlying environment and load on the
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In terms of conceptual primacy, in the case of income and expenditure, depreciation is charged as an expense relating to an asset which is being used by the business to mimic its actual depreciation in value. The main two types of depreciation used from an income and expenditure point of view include straight line depreciation and reducing balance depreciation. Straight line charges an equal expense to the business every period, reducing the value of the asset, down to a scrap value. Reducing balance
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ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 593–608 American Accounting Association DOI: 10.2308/iace-50038 Wiki Art Gallery, Inc.: A Case for Critical Thinking Fred Phillips and Brandy Mackintosh ABSTRACT: This instructional case requires students to provide advice to a client who is currently a co-owner of a for-profit art gallery. The client is planning to purchase his coowner’s shares at a price to be determined based on their company’s recent financial performance. The company’s
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THE FEASIBILITY OF A NEW SIT-DOWN RESTAURANT IN VENTURA Presented to the Faculty of the Agribusiness Department California Polytechnic State University In Partial Fulfillment Of the Requirements for the Degree Bachelor of Science by John Wassil Winter 2011 Chapter 1 INTRODUCTION Fast food chains have grown at an incredible rate over the past couple of decades. There seems to be a McDonald's or Burger King on every street corner. Fast food offers people in a rush an inexpensive
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during the years of the contract instead over the life of the contract. The owners pay these sign on bonuses and consider them as an expense for that year, which is beneficial to the owner. In my opinion, these bonuses should be amortized because they are expected to deliver benefits over the lives of their contracts. 4. Non-roster Guaranteed Contract Expenses All of the players agree and suggest that any such payments should be expensed as they are made and the owners believe that the
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the balance sheet and income statement. Wages are recorded as an expense on the income statement, so they reduce net income. In this Trolley Dodgers case, wages were being fraudulently inflated, so the affect would be understatement of net income on the income statement. Wages are also an accrued expense that require an adjusting entry; the wage amount would be recorded as a current liability on the balance sheet and an accrued expense on the income statement. Again, if wages are being fraudulently
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Administrative expenses Allowance for doubtful debts as on 01/7/11 Bad debts written off during the year Office equipment (cost as on 01/7/11) Accumulated depreciation at 01/7/11 (office equipment) Office equipment purchased during the year Sale proceeds of office equipment Interest paid Long-term loan Capital Retained earnings Total The following adjustments are due: (i) Closing inventory as on 30/6/12 (ii) Payables as on 30/6/12: ● Freight-out ● Wages and salaries ● Admin expenses ● Interest payable
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SaSampa Video, Inc. 10/12/10 12.27 9-201-094 REV: OCTOBER 7, 2003 GREGOR ANDRADE Sampa Video, Inc. Sampa Video, Inc. was the second largest chain of videocassette rental stores in the greater Boston area, operating 30 wholly owned outlets. Begun in 1988 as a small store in Harvard Square catering mostly to students, the company grew rapidly, primarily due to its reputation for customer service and an extensive selection of foreign and independent movies. These differentiating factors allowed
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Long-haul transport Flight and truck-related expense Hub labor Hub depreciation Subtotal Delivery Labor Fuel Maintenance and depreciation Subtotal Advertising Sales Information technology Customer service Corporate overhead Total cost Margin Price $1.64 $0.10 $0.31 $2.05 $0.22 $0.21 $0.54 $0.20 $0.97 $8.55 $0.45 $9.00 Cost per unit $1.09 $0.07 $0.21 $1.37 Item Pickup Labor Fuel Maintenance and depreciation Subtotal Long-haul transport Flight and truck-related expense Hub labor Hub depreciation Subtotal Delivery
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INter How the development of the Web and Internet has impacted global finances? Internet and World Currency – Bitcoins and Illegal purchases over the web By Harvey T. Mayorga Panther ID 2191830 FIN6644 Instructor: Dr. Krishna Dandapani ABSTRACT The subject of this project is going to be Bitcoins. I will be researching and going about how Bitcoins work, how good or bad can bitcoins be and its involvement in illegal purchases over the internet. SUMMARY Page 2 Abstract 4 What
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