PUBLIC SECTOR ACCOUNTING AND FINANCE 1.0. Introduction: One of the main distinguishing factors between public and private sector organisations lies in their objectives and sometimes funding structure. While public sector bodies have a more social objective and focus more on the allocation or distribution of public goods and services within the country, private sector bodies have the main objective of increasing the wealth of their shareholders (IFAC, 2011). However, both private and public
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Profit Profit - the difference between the purchase price and the costs of bringing to market. - Is any amount of money that is left over from a company after all financial expenses have been paid. It is the money they are able to save once the business purchases have been made. - Is the money a business makes after accounting for all the expenses. - The positive gain from an investment or business operation after subtracting for all expenses. Opposite of loss.
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Eastman Kodak | | | | | | |Comparative Income Statement |2004 |2003 |Difference |Change | |Sales |13517 |12909 |608 |4.71% | |Less COGS |9548 |8734 |814 |9.32% | |G.P |3969 |4175 |-206 |-4.93% |
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1. Assets - are things of value owned by the business. 2. Liabilities - are the equities of the creditors, or the debts of the business. 3. Cash - is any medium of exchange that the bank will accept at face value. 4. Accounts Receivable - Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. 5. Notes Receivable - A note receivable is a formal promise to receive a specific amount of cash from another
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GLOSSARY OF FINANCIAL TERMS Absorption costing A costing approach in which all manufacturing costs are charged to the product. | Absorption-cost pricing An approach to pricing that defines the cost base as the manufacturing cost; it excludes both variable and fixed selling and administrative costs. | Accelerated-depreciation method Depreciation method that produces higher depreciation expense in the early years than in the later years. | | Account A record of increases and decreases in
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total of $6,800 for services provided our clients. The general goals of financial reporting are to keep an accurate and ethical record of all financial transactions of a company while maintaining transparency and adhering to the generally accepted principles of accounting. The steps I too in the recording process for this assignment were to first make journal entries to accurately depict all financial transactions for the company. After making and double checking my journal entries, I entered them
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------------------------------------------------- Debt A debt is an obligation owed by one party (the debtor) to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to covermoral obligations and other interactions not based on economic value.[citation needed] A debt is created when a creditor agrees to lend a sum of assets to a debtor. Debt is usually granted with expected repayment; in modern society,
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Liquidity ratios Liquidity ratios measure the ability of a company to repay its short-term debts and meet unexpected cash needs. Current ratio. The current ratio is also called the working capital ratio, as working capital is the difference between current assets and current liabilities. This ratio measures the ability of a company to pay its current obligations using current assets. The current ratio is calculated by dividing current assets by current liabilities.
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TRUE-FALSE STATEMENTS 8. Closing entries are not needed if the business plans to continue operating in the future and issue financial statements each year. 9. The dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. 10. After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the
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Every company wants to that their business is bringing in profits. One of the most frequently used tools of financial ratio analysis is profitability ratios which are used to determine the company's bottom line. Profitability ratio shows the company’s overall efficiency and performance. Formula: Profitability Ratio: This is the profitability ratio analysis for Berry’s Bug Blasters in 2008. (3,249,580.53)/(1,932,041.17) = 1.68 This shows that in 2008 for every $1 of assets owned by Berry’s
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