Submitted By raghavsagar

Words 6849

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Words 6849

Pages 28

BASIC ACCOUNTING CONCEPTS:

THE INCOME STATEMENT

Changes from Tenth Edition

The chapter has been updated. Additional topics include proforma earnings, EBITDA and SEC financial report certification and affirmation requirements for CEO’s and CFO’s.

Approach

Undoubtedly, the accrual idea is the most difficult of all basic accounting matters for the student to grasp. As a matter of fact, we sometimes say that the proper recognition of revenue and expense is the only important accounting problem. Although this is an exaggeration, it is not far from the truth. The text and cases in this chapter constitute only a beginning in understanding and it is to be expected that students will understand the matter thoroughly only after they have attacked it from several different angles.

Sometimes we ask the class “Suppose a company received a lawyer’s bill for $1,000. Explain all the different ways in which this bill could be recorded in the accounts.” The answer is that if the bill relates to services rendered in a prior year (or accounting period) but not recorded in that time, it is nevertheless an expense of the current year; if it represents a charge for a previous year that was recorded in that year, the payment of the bill merely represents a decrease in a liability; if it represents a charge in the current year, it is recorded as an expense; and if it represents a retainer for services to be rendered in the following year it is recorded as an asset, prepaid expense.

It may be desirable to introduce a number of short questions of this type in order to hammer home the accrual concept. It is suggested, however, that problems relating to depreciation be deferred, as this is an intricate matter which is perhaps best left until Chapter 7.

Students should always be required to use the word “revenue” rather than the word “income.” They may find it…...

...Quantitative marketing research is the application of quantitative research techniques to the field of marketing. It has roots in both the positivist view of the world, and the modern marketing viewpoint that marketing is an interactive process in which both the buyer and seller reach a satisfying agreement on the "four Ps" of marketing: Product, Price, Place (location) and Promotion. As a social research method, it typically involves the construction of questionnaires and scales. People who respond (respondents) are asked to complete the survey. Marketers use the information so obtained to understand the needs of individuals in the marketplace, and to create strategies and marketing plans. Contents [hide] • 1 Scope and requirements • 2 Typical general procedure • 3 Statistical analysis o 3.1 Reliability and validity o 3.2 Types of errors • 4 See also • 5 List of related topics • 6 References [edit] Scope and requirements This section is empty. You can help by adding to it. (July 2010) [edit] Typical general procedure Simply, there are five major and important steps involved in the research process: 1. Defining the Problem. 2. Research Design. 3. Data Collection. 4. Analysis. 5. Report Writing & presentation. A brief discussion on these steps is: 1. Problem audit and problem definition - What is the problem? What are the various aspects of the problem? What information is needed? 2. Conceptualization and operationalization - How exactly do we......

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... SCMA*2000 Quantitative Methods Q:1 Do question 7-27 (given on p. 294 of the text). Note: This may require drawing diagrams, and you may do it using Word, or Excel. However, your work must be fully explained on the same sheet (as I explained in the class, and as you have done for the previous assignments). (12 Marks; 3 for each part) Q:2 Do question 7-31 (given on p. 295 of the text). This question will require drawing diagrams. Follow the instructions given in Q:1. (12 Marks; 6,3,3) Q:3 Do question 7-33 (given on p. 295 of the text) which is related to the previous question. Here you will refer to the Table given for this question on p. 295 of the text when answering. (6Marks; 3 each part) Q:4 Do question 8-1 (given on p. 331 of the text). You may use Excel (as I did in the class yesterday, and the relevant file is posted on the course website for those of you who were not present in the class) or QM for Windows to do this question, and you must explain your work on the same page if you use Excel or through annotation tool if you are using QM for Windows. (15 Marks; 5,10) Q:5 Do question 8-6 (given on p. 333 of the text) in light of the instructions given in the previous question. (15 Marks) Notes: i) The assignment must be submitted electronically in the drop box before the deadline. ii) Please be mindful of the University's policy regarding plagiarism, which is a serious offense. You may read about the policy at the University's website. ...

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...The Quantitative Methods course is relevant in almost all aspects of my work, I am an Accounting and Finance Senior Recruiter in Miami. My primary responsibilities include seeking new Clients and Companies to either fill open opportunities or find skilled candidates that are a match for these company’s needs. I am generally multi-tasking, speaking to candidates on the phone, while sending a resume to a company and follow up with both. A vital part of being successful in this industry is organization, follow up and time management. The excel skills I am using in the Quantitative Methods is extremely helpful in my day to day at work, I had an excel list of candidates with applicable titles and last day of contact with notes. Since taking the course and completing the homework’s, I now have what I would consider an impressive excel document; tabs with monthly internal interviews, daily follow up notes, candidate submittal etc. I am not extremely organized and can see all my top clients, candidates and updated notes from one document. I cannot stress how useful this document has become, simplifying and minimizing time previously spent on tons of updates. In addition to staying organized it is vital for me to be an effective manager. I am practically managing my own business, considering that I am have to manage all aspects of the hiring, interview and resume aspects. I am analyzing and solving managerial problems on a daily basis. It is important for me to make not only a......

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...Running head: QUANTITATIVE AND QUALITATIVE RESEARCH METHODS PAPER Quantitative and Qualitative Research Methods Paper Obbie Brown University: Course: Tutor: Date: Appropriate Academic Research An appropriate academic research can be defined as the research and the experimental developments which comprise creative works which are conducted on a systematic basis with an aim of increasing the pool of an individual’s or a group’s knowledge. The knowledge could include the in-depth knowledge of mankind, culture and the society. The stock of knowledge is then used to devise alternative solutions to the existing problems (Brew & Lucas, 2009). Quantitative Research Quantitative form of research is predetermined and involves a large number of respondents. It involves objective measurements which are both quantitative and are statistically valid. Quantitative research entails hard and objective data. Quantitative research seeks to quantify data and generalize the results from the predetermined sample to the target population. It also aims at measuring the incidence of various views and opinions in a given sample (Balnaves & Caputi, 2001). Qualitative Research Qualitative research involves the collection, analysis and interpretation of data through the application of the observatory techniques as well as listening to peoples’ opinions. While quantitative research entails the counts and measures of phenomena, the qualitative......

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...DERY CYRIL DOMEYELLE EBA LEVEL: 300 QUANTITATIVE BUSINESS METHODS ASSIGNMENT (A) Let x = number of units of product X y = number of units of product Y z = number of units of product Z Maximize 20x + 18y + 16z (Objective function) Subject to 5x + 3y + 6z ≤ 3,000 (Machine hours constraint) 2x + 5y + 3z ≤ 2,500 (Labour hours constraint) 8x + 10y + 3z ≤ 10,000 (Materials constraint) Changing the inequalities into equalities and adding a slack variable Maximize 20x + 18y + 16z (Objective function) Subject to 5x + 3y + 6z + S1 = 3,000 2x + 5y + 3z + S2 = 2,500 8x + 10y + 3z + S3 = 10,000 Initial Simplex Tableau Solution Variables Products X Y Z Slack Variables S1 S2 S3 S1 5 3 6 1 0 0 3,000 S2 2 5 3 0 1 0 2,500 S3 8 10 3 0 0 0 10,000 Z 20 18 16 0 0 0 0 (B) Initial Simplex Tableau Solution Variables Products X Y Z Slack Variables S₁ S₂ S₃ S₁ 5 3 6 1 0 0 3,000 S₂ 2 5 3 0 ...

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...chapters 5–10 1. a. Physical units method of allocation: Grades Board Feet Percent of Units Allocation* Firsts and seconds 1,500,000 .20 180,000. No. 1 common 3,000,000 .40 360,000 No. 2 common 1,875,000 .25 225,000 No. 3 common 1,125,000 .15 135,000 Totals 7,500,000 1.0 900,000 Unit cost: Firsts and seconds .12 (180,000/1,500,000) No. 1 common .12 (360,000/3,000,000) No. 2 common .12 (225,000/1,875,000) No. 3 common .12 (135,000/1,125,000) b. Sales-value-at-split-off method: Note: Market value is calculated by dividing board feet produced by 1,000 and multiplying by the sales price (e.g., [(1,500,000/1,000) × $300] = $450,000). Next, the percentage of market value is multiplied by $900,000 for the allocation. Market Value Percentage Grades (MV) of MV Allocation Firsts and seconds 450,000 .30 270,000 No. 1 common 675,000 .45 405,000 No. 2 common 262,500 17.5 157,500 No. 3 common 112,500 7.5 67,500 Totals 1,500,000 1.0 900,000 Unit cost: Firsts and seconds .18 (270,000/1,500,000) No. 1 common .18 (405,000/3,000,000) No. 2 common .18 (157,500/1,875,000) No. 3 common .18 (67,500/1,125,000) Comp. Prob. 2 (Continued) The physical units method, often used in the lumber......

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...FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? Top of Form $ 110,000 $ 150,000 $ 170,000 $ 230,000 2. A customer is currently suing a company. A reasonable estimate can be made of the costs that would result from a ruling unfavorable to the company, and the amount involved is material. The company's managers, lawyers, and auditors agree that there is only a remote likelihood of an unfavorable ruling. This contingency: Top of Form Should be disclosed in a footnote. Should be disclosed as a parenthetical comment in the balance sheet. Need not to be disclosed. Should be disclosed by an appropriation of retained earnings. 3. The ABC Company operates a catering service specializing in business luncheons for large corporations. ABC requires customers to place their orders 2 weeks in advance of the scheduled events. ABC bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Collections from customers have never been an issue in the past. ABC should recognize revenue from its catering services......

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...| Assignment No.: | 1 | Degree Title: | MN1105 Quantitative Methods | Question No. & Title: | “Critique of Quantitative Methods Journal Paper” | “Critique of Quantitative Methods Journal Paper” Why Are Some Subsidiaries of Multinationals the Source of Novel Practices while Others Are Not? National, Corporate and Functional Influences. This paper aims to establish the analysis of a unique international data set in four host countries like Canada. Ireland, Spain and UK. The study examines the argument that various, rather than single, proof are required to understand the factors promoting or retarding the diffusion of human resource practices within multinational companies. Multinational companies are progressively powerful and effective in Europe and worldwide. They are the main factor of the world and regional economies. MNCs are familiar with the sharing of organizational practices to foreign subsidiaries with the rest of the company. Organizational practices can be shown as important resources and abilities to produce and develop through the firm. “The key part of MNC’s is the diffusion of human resource practices to develop at the international level at the diverse capabilities and knowledge that they possess at subsidiary level.” The article examines the diffusion of HR practices from the foreign operations of MNCs to the rest of the firm. The term for this is reverse diffusion. In these case the main focus of research which are related to......

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...Quantitative Methods in Management is generally a practical field and can be applied in different areas like Manufacturing, Environmental Planning, Engineering and Construction which is the field of my profession as an Architect. The subject offers a scientific and systematic approach to problem solving and decision making. The use of mathematical analysis helps a decision maker like me, to be able to understand the problems I’m facing and provide a tool in making informed and reasoned judgments. One example on how the subject can help me is for putting mark ups on BIDS which we normally use in construction. The different methods shown in the subject especially in chapter 4 sample problem(4-13) in the book thought me on how to evaluate expected value of profit on different values of additional cost and evaluate which value can give me the best probability of winning the bid and getting the highest profit possible. Since one of the objectives of the subject is to develop analytical frame of mind, it will be an essential tool in project management which includes decision making. It will make Project Managers like me to be explicit in analyzing conditions associated with future decisions and in determining the outcome of different alternatives. For example in my case, I can now evaluate the pros and cons of renting exhibitions stands against building our own for the company. I can now consider which will be more profitable for the company considering all the factors......

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...Individual Work-2-Week-10 Ricky Norberg Quantitative Methods - 1 Everest University Online Date - 03/19/2016 Instructor: Robert Miner 1 1. Over a three week (21-day) scheduling period, each unit will be scheduled for seven days. Normal staffing requires 186 firefighters to be on duty every day. Thus, each unit needs to provide staffing for 7*186=1302 firefighter days. During a three week period, each firefighter provides 6 days of service. Therefore, Base no of firefighters needed by each unit=1302/6 = 217 Base no of firefighters needed by each unit=217. 2. Using the normal distribution, Z value corresponding to probability of 0.3548= - 0.3722 Optimal no of additional firefighters based on given distribution: Q*= μ+Ζσ μ=20 σ=5 Ζ=0.3772 Thus, Q*=20-0.3772(5) =18.14 Using minimum cost criteria, 18 firefighters should be added in each unit in order to cover daily absences. 3. On a given day, what is the probability that Kelley-day firefighters will be called in to work overtime? Optimal probability that demand will exceed Q*: P (Demand>Q*) =1-((Cu/ (Cu +Co)) P (Demand>Q*) =1-0.3548 = 0.6542 the probability that Kelley-day firefighters will be called in to work overtime=0.6542 4. Based on the three-unit organization, how many firefighters should be assigned...

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...Managerial Economics & Quantitative Methods To what extent is there an asymmetric information problem between your company and your customers? Use an example of a product you sell that consumers will not be able to detect the quality of before they buy it. What are some of the methods you may use to resolve this problem? Do warranties always signal quality? The company I am working for is Coca-Cola Hellenic Business Service Organization that main aim is to deliver accounting and financial services to all entities in the Coca-Cola Hellenic Organization that are stand as our Customers. We are responsible for 29 countries for Accounts Payable, General Accounting, Collection and Disputes and HR. Now, from this year we are taking over the Purchasing Administration from all countries. There are many examples of the asymmetric information problems between BSO and Hellenic companies. Mainly they are in the field of quality and timing of the work done. Unfortunately, our Customers were and are completely unaware of the quality of our products and services we offer before we completely take over the responsibilities for them. To resolve this issue we do the following actions before we take over particular department and responsibility: Make all accounting and financial processes standardized that means that we design operational procedures and flows in advance. After the Customers agree with the processes. They are designed for all countries and are......

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...Question 1: After consider the requirements, we decide to use Mean-Variance preferences method to calculate the utility we can get from investing four stocks: DBS, SPH, GE, SIA. We know the equation: Ur= μ-γ2 Varri=μ- γ2σi2 We can decide weight of four stocks by maximizing the utility of the portfolio. (N=4, T=232) So we suppose: 1. The best portfolio is the one that satisfy owner most, which means have the maxi utility. 2. The owner is afraid of risk, and the risk aversion is measured by γ, γ=3 3. The portfolio will be hold for one year. From equation: Rate=R1-R2R1 We can get return rates of four stocks in different periods since Jan-96 (See sheet 1), and the mean return rates μ for the four stocks are: DBS=0.10814638, SPH=0.0733264, GE=0.12002196, SIA=0.06982988 And we can get the Covariance Matrix: 0.105279399 0.041817263 0.05022109 0.0565126810.041817263 0.062596535 0.025656805 0.0373403140.05022109 0.025656805 0.109059667 0.0386166250.056512681 0.037340314 0.038616625 0.065556537 A= 21.372. B= 1.72756669. C= 0.18175538, D= 0.90015379 And we get σ σDBS=0.32446787, σSPH=0.250193,σGE=0.33024183, σSIA=0.25604011 From the equation: σportfolio2=wi2σi2+wiwjσi,j (i≠j) We can get the σ with different weights (See sheet) Since efficient frontier is equal to the minimum-variance frontier for expected returns larger than the expected return of the global minimum-variance portfolio We also know the......

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...Jet Copies Case Problem Alex B. Wilson Professor Henry Grimm Quantitative Methods-MAT 540 February 12, 2012 Strayer University-Allentown Campus Jet Copies Case Problem 1 If you assume that the number of days needed to repair a copier is random, you can generate a random number using the Excel RAND function which I denoted r2 between 0 and 1. If 0 < r2 < 0.2 then it takes 1 day 0.2 < r2 < 0.65 then it takes 2 days 0.65 < r2 < 0.90 then it takes 3 days 0.9 < r2 < 1 then it takes 4 days 2 The probability distribution of the random variable varies between the times of 0 to 6 weeks, with the probability increasing as time goes on. This can be approximated by the function f(x) = x/18 for 0 < x < 6 Therefore, the distribution function is f(x) = x-square divided by 36 for 0 < x < 6 If we set this equal to another random number r1 that is between 0 and 1 then R1 = x-square divided by 36 which results to x = 6√ r1 3 Since the number of copies sold per day is a uniform probability distribution between 2000 to 8000 copies, I made r3 a random number between 2000 to 8000. To get the amount of business lost on a particular day, I take r3 X (repair time), and the lost revenue is then equal to 0.1 X r3 X repair time, since they charge $0.10 per copy. 4 After running the simulation, I got the following results: Repair Distribution P(x) | Cumulative | Repair time | 0.2 | 0.000 | 1.000 | 0.45 |......

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...Quantitative Methods in Management Q M M Session One Asato ma sat gamaya, tamaso ma jyotir gamaya, mrityo ma amritam gamaya ‘Lead me from the superficial to the worthy, from darkness to light and from stagnation to zestful living’ Brahadaranyaka Upanishad (1,3,28) [pic]M C Escher http://www.theorsociety.com/Science_of_Better/htdocs/prospect/index.asp What is Operational Research? The discipline of applying appropriate analytical methods to help make better decisions. By using techniques such as problem structuring methods (sometimes known as 'Soft O.R.') and mathematical modelling to analyse complex situations, operational research gives executives the power to make more effective decisions and build more productive systems based on: • More complete data • Consideration of all available options • Careful predictions of outcomes and estimates of risk • The latest decision tools and techniques Linear Programming Operations management often presents complex problems that can be modelled by linear functions. The mathematical technique of linear programming is instrumental in solving a wide range of operations management problems. Linear programming is used to solve problems in many aspects of business administration including: • product mix planning • distribution networks • truck routing • staff scheduling •......

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...James W. Taylor February 2012 Imperial College EMBA 2012 Quantitative Methods Individual Assignment This assignment consists of two parts. Part A is worth 50% of the marks, and Part B is worth the remaining 50%. Your report for the two parts should consist of no more than 1,500 words. Part A – Blanket Systems Blanket Systems is developing and testing a new computer workstation, OB1, which it will introduce to the market in the next 6 months. OB1 will be sold under a three-year warranty covering parts and labour. The company has decided to subcontract the service support for the warranty and has entered negotiations about the support contract with Fixit Inc. Fixit has proposed two different pricing schemes for the subcontract. The first involves the payment of a fixed fee of $1,000,000 and the second a variable fee of $250 per workstation sold, subject to a minimum fee of $350,000. Under both schemes, the payment will be made one year after the introduction of the workstation to the market at which point the product will be replaced by newer models not covered by the warranty service subcontract. At the moment, there is uncertainty about the sales potential of the new workstation. Sales of OB1 are expected to come from two sources: (i) the successful closure by senior management of a major purchase of 2000 units by a long standing customer, (ii) the efforts of regional sales offices. Given the state of the negotiations with the long-standing customer, the current estimate......

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