because the estimated revenue is $5.5 million. The second journal entry records increase of cash and revenue by $4 million, increase of cost of goods by $4 million and decrease in IPR&D account by $4 million. The second option shows changes in asset from IPR&D to cash as well as a matching revenue and expense caused by the transaction. However, the second journal entry does not consider the future possible $3.5 million profit by selling Drug X as well. The major difference between Option#3
Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served. The source of revenue comes from net income, which comes from a sale of goods or services
the most advanced robotic system and also suggest that this prototype is at least 5 years ahead of what DBR’s competition has to offer. Because of this reason, DBR fear that their competitors could try and steal their technology or damage current assets which would be a boost for DBR’s competitors and a huge loss for DBR. Sabotage & Information extortion DBR also signed 2 major contracts with foreign state-run oil companies. This could trigger negative feelings about DBR in the minds of environment
According to our textbook, Fundamental of Advanced Accounting, it states that when financial statements represent more than one corporation, we refer to them as consolidated financial statements. So how does consolidated financial statements play a role in corporations? What are the reasons and benefits for the consolidation of financial statements? What are the steps that are necessary to ensure the proper accounting? What are a few excerpts from Accounting Standards Codification? Thus, these are
CHAPTER 16 THE DEMAND FOR MONEY Chapter Outline • The Components of the Money Stock • Financial Innovation • The Functions of Money • The Demand for Money: Theory • Transactions Demand • The Precautionary Motive • The Speculative Demand for Money • Empirical Results for M2 Demand • The Income Velocity of Money • Working With Data Changes from the Previous Edition The material in this chapter has been updated, but the basic organization has not changed.
Lesson 1: The Accounting Process (Textbook Libby et al. Chapters 1 and 2). Objectives: When you have successfully completed this lesson, you will be able to... Define accounting and explain its purpose Define business and identify the different types of businesses Explain the accounting equation: Assets = Liabilities + Owner's Equity Visualize the start of a business, create accounting transactions for it, and prepare simple financial statements Reading Assignment Please read chapters
accounting theories related to lease treatment, and finally current issues outlined in academic research concerning lease treatment by the lessee. There are two major classifications of leases. Capital leases and operational leases. A Capital lease is defined in the CICA handbook as “a lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee” (CICA, 2010, Section 3065, ¶3). In order for a lease to be classified
organization, the other one being family (Schaefer, 461). We are all part of a community, and in many cases, we are a part of multiple ones. In chapter 20 of our textbook, we are looking at communities and urbanization. It discusses urbanization and how communities originate. It also looks at the different types of communities. Communities are defined as “a spatial or political unit of social organization that gives people a sense of belonging” (Schaefer, 548). It can be based on a place of residence, such
therefore, there are no separate features between the two. All assets and liabilities of the firm are the assets and liabilities of the owner. By the same token, revenues of the firm are viewed as increasing the wealth of the owners, while expenses decrease it. Moreover, the proprietary concept results in a pro rata consolidation when applied to the preparation of consolidated financial statements. Only the proportionate share of the assets and liabilities of the subsidiary are consolidated by the parent
of exchange is money. Money solves the divisibility problem divisibility (How do you sell you half a cow? Etc.) facilitates saving (You can keep money indefinitely, but what Etc.), about foods?) and represents wealth. The Five Sector Economy The economy can be divided up into five different sectors. Household Sector Firms Sector Financial Sector Government Sector Overseas Sector The household and firms sectors can either be in surplus or deficit in terms of money. The ld financial