Case Study Research Paper Example | Topics and Well Written Essays - 2000 words

Research Paper - Case Study Example This was however, made beneficial by incorporating the conditions into the forecasts of exchange rates. The forecasts were readily available as they were within the contact of managers. The case was expanded by including annual exchange relationships, as well as potential political events that indicated relations with exchange rate behavior. Although the process may seem to distract students, the simplifications utilized were essential for the provision of a sufficiently detailed analysis. The process also included a keen focus on the beneficial techniques, as well as financial aspects included in the case. Some issues were however over looked although an individual who reviews the analysis would easily reincorporate them. Political contemplations principal to investments were also initiated in the process. This was to help meet the requirements of a vast customer. Capital budgeting is the main subject matter of this case in regards to a multinational organization. Rudimentary comprehension of basic techniques in capital budgeting is essential in evaluation of the case (Bierman, Harold & Smidt, p. 382). However, some issues require advanced knowledge to analyze and the present resolution of the case. Automotive Specialties, Incorporated (ASI) is a multinational holding company classified as a domestic division. It has been delegated the role of building a new plant in Mesa Verde, a small country in South America by its largest customer. Jamie Miles an Assistant treasurer at ASI did the analysis and forecasts of the customer’s proposal. Uncertainty of the investment was done in collaboration with Fujimora Transport though the investment value was not determined. The management of ASI needed to consider some of the customer’s motives prior to commitment of finances in the implementation of the project. This case indicates the fact that capital budgeting involving multinational organization is similar to the basic capital budgeting that students are

Finanical Accounting Concepts Phase 2 DB Essay Example | Topics and Well Written Essays - 500 words

Finanical Accounting Concepts Phase 2 DB - Essay Example This is also the reason why the expense incurred on Furniture is not shown on the income statement, The expense incurred on the furniture ($1500) will be shown in reduced amounts for a period of years in subsequent income statements. The Income Statement reflects the inflow and outflow of expenses and revenues. However, the Owner’s equity statement is a statement that reflects the position of the owner’s capital in the business. Therefore it reflects the shares position, the kinds of shares (common, preferred or deferred preferred shares) and their distribution. However, a balance sheet is a comprehensive statement that reflects the financial position of a firm at the end of a financial year. While the Income statement shows mainly operating expenses and net revenues, the balance sheet is a summary of a Company’s entire financial condition at any given point of time, therefore it includes all assets of the Company, all liabilities and net worth. This statement also takes into account the ownership of non fluid assets and share ownership in the Company. Therefore, in a balance sheet, the accounting equation would be: Assets – Liabilities + Owner’s Equity. The Accounting Cycle includes the process of recording entries of receipts and expenses in a journal in chronological order according to dates. These entries are then posted to the ledger, both under debits and credits, under the appropriate account heading. The trial balance is then prepared to ensure that all debits are equal to all credits. Any errors or discrepancies are then resolved with individual journal entries, in order to yield the adjusted trial balance. This forms the basis for the preparation of the various kinds of financial statements, such as cash statements, income statements and balance sheets. The final steps in preparing these statements are in the posting of the closing entries and the preparation of the final