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Articles by Sam G |
1. Raising equity capital within a corporation
November 08, 2013
The largest businesses are organized as corporations because incorporation increases the company’s ability to raise cash (or capital) by easing the transfer of ownership and limiting the liability of owners. Ownership of a corporation is divided into a large number of equal parts or shares. Shares a...
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2. Reasons for the growing importance of international trade
November 08, 2013
International trade has a pervasive importance for our standard of living and our daily lives. In the department store we find cameras and electrical equipment from Japan and clothing from China and India. On the street we find automobiles from Germany, Japan, Korea, Sweden, and France using gasolin...
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3. Project Planning
November 04, 2013
The planning process fulfills four distinct purposes:
• Identify activities – the work breakdown structure Most projects are too complex to be planned and controlled effectively unless they are first broken down into manageable portions. This is achieved by structuring the project into a ‘f...
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4. Short run and long run changes in production
November 03, 2013
The cost of producing any level of output will depend on the amount of inputs (or ‘factors of production’) used and the price the firm must pay for them. Let us first focus on the quantity of factors used. If a firm wants to increase production, it will take time to acquire a greater quantity of cer...
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5. Methods for comparing groups
October 23, 2013
Rank-based methods are sometimes described as methods for comparing medians, but under general conditions they are highly unsatisfactory for this purpose. More generally, if the goal is to compare measures of location, such as the mean, median or trimmed mean, methods in this topic are unsatisfactor...
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6. Meeting the needs of internal users
October 23, 2013
The traditional approach to management accounting has been to regard internal decision makers as inward looking. This has led to developing techniques for identifying, measuring and communicating costs where only internal comparisons have been thought relevant. Those techniques remain useful in some...
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7. Types of inventory and flow of costs
October 23, 2013
Inventory represents products held for resale and is classified as a current asset on the balance sheet. The inventories of large companies like General Electric, Procter and Gamble, and Wal-Mart are composed of thousands of different products or materials and millions of individual units that are s...
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8. Entity and Equity Concept
October 09, 2013
An entity means an Organization, whether a company or not, big or small or profit oriented or not, having a separate existence (entity) from the owner. Equity means any right, claim or interest in an asset (in accounting, as it could relate to things other than assets in the other departments of lif...
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9. Functions of management accounting
October 09, 2013
Management accounting is concerned with accounting information which is useful for the management and it is the presentation of accounting information in such a way as to assist management in the creation of policy and the day to day operation of an undertaking.
The following are the functio...
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10. Types of commercial credit
October 09, 2013
There are many types of commercial letters of credit drawn to suit the individual requirements of the transactions:
Documentary letter of credit and clean letter of credit:
A documentary or a secured letter of credit is one where the banker opening the letter of credit incorporates a...
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