The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle). Requirement 2 – B Hudson’s wholesale inventories should be reported on the balance sheet at the replacement cost amount. The text indicates that the replacement cost is less than the NRV (or ceiling) and more than the NRV-NP (or floor) making the
Net cash provided by operating activities indicates the net sources and uses of cash in operating activities. The statement of cash flows helps determine the inflows and outflows of cash which, in turn, helps an entity determine how effectively it is converting its revenues to free cash flow. Free cash flow is one of the best metrics to determine the profitability of a company. Free cash flow is determined by analysing the operating, investing and financing section of the statement of cash flows. Generally, free cash flow is cash flows provided by operating activities less cash flows used by investing activities for the purchases of plant, property and equipment and the repayment of long-term debt.
Telmore could reduce its costs due to offering its customers only one product – pre-paid service. It did not have to design cost-intensive infrastructure for top-up services (such as vouchers) as money could be only transferred online or via credit card. Furthermore, no bills were delivered to customers - they could only download them online in PDF-format. The customer service was very lean and motivated and operated limited hours in comparison to 24/7 services provided by TDC. All of those factors allowed Telmore to significantly save on its operations and have lower break-even level, and provide ‘no-frills’ service as lower price, which gave it its competitive advantage over TDC.
By focusing on the incremental cash flows Caledonia can analyze and determine the benefits and the costs to any project. Incremental cash flows will highlight the marginal benefit
There are many advantages to being a sole proprietor. There are very easy to create, there’s no cost to create, or time involved. It’s as simple as selling goods or services, and start charging money in return. Some business may be required to obtain permits, to sell
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 26. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objectives of financial reporting 27.
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 26. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objectives of financial reporting 27.
The ensuing chapters explained how to make more money, whether it be by looking for a higher paying job, or getting a second or a third. By shopping around for the best deals, (note that this does not mean exchanging quality for quantity), we create the illusion of making more by spending less. The final chapters go on to talk about planning for the future. Saving for long-term goals, such as college funds, retirement funds, and retirement funds, is a substantial part of preparing
II. Project Management – the system implementation is a small scale project, but it still requires project management, especially in the areas listed below. A. Triple constraints 1. Myra can control the scope, schedule and cost of implementing the system by buying the Platinum system as a bundle which will save money and installing it as soon as she can.
Taking advantage of the price fluctuation offers a lot of passive income opportunities. Ideally, we buy shares when they are cheap and we sell them when they are expensive. This is also true with almost all trading instruments. A passive income opportunity is evident when a clear and strong trend has been forming. To get the right entry, we must understand why such fluctuations occur so that we can follow where the market is heading.