This document provides an overview of techniques for managing short-term assets like inventory and accounts receivable, as well as long-term fixed assets. It discusses determining optimal inventory levels, scheduling orders, and using just-in-time systems. Accounts receivable management includes minimizing time to payment collection and managing bad debts. Fixed asset valuation methods and capital budgeting decisions like net present value are also covered. The document concludes with operations management challenges and measuring productivity.
Objective of today’s session:
Purchasing system and procedure.
Audit objective.
Audit procedure.
Audit program.
Cash purchases.
Audit findings and reporting.
Even if you did want to branch out into finance and economics, a background in accountancy lays the valuable groundwork for developing broader monetary theories. Accountants can hone their craft through the application of known methodologies.
An accountancy certification is always valuable. You’ll learn how to focus on money management, financial recording and reporting, and the best processes to save cash for a business or sole traders. These skills are desired in every industry. For most accountants, it’s never hard to find work.
I've tried my level best to indulge in arranging and providing the best information regarding this topic. check it out ,i hope it caters to your requirements.
Dont just copy paste, take reference and i am sure you can make it better than me.
Have a good day.!
Regards : Manik Dutt
Objective of today’s session:
Purchasing system and procedure.
Audit objective.
Audit procedure.
Audit program.
Cash purchases.
Audit findings and reporting.
Even if you did want to branch out into finance and economics, a background in accountancy lays the valuable groundwork for developing broader monetary theories. Accountants can hone their craft through the application of known methodologies.
An accountancy certification is always valuable. You’ll learn how to focus on money management, financial recording and reporting, and the best processes to save cash for a business or sole traders. These skills are desired in every industry. For most accountants, it’s never hard to find work.
I've tried my level best to indulge in arranging and providing the best information regarding this topic. check it out ,i hope it caters to your requirements.
Dont just copy paste, take reference and i am sure you can make it better than me.
Have a good day.!
Regards : Manik Dutt
Conversion Cycle for all types of business, principle and goal of lean manufacturing, productions methods used in different organizations and the activities and documents of Traditional manufacturing environment.
The format and the reason of making 8 column worksheet & closing entries is described in the presentation. I delivered this presentation in University Of Sufism and Modern Sciences.
Conversion Cycle for all types of business, principle and goal of lean manufacturing, productions methods used in different organizations and the activities and documents of Traditional manufacturing environment.
The format and the reason of making 8 column worksheet & closing entries is described in the presentation. I delivered this presentation in University Of Sufism and Modern Sciences.
SAP MM (Material Management) is one of the most important modules in SAP ERP software program. SAP MM software module supports the procurement and stock capabilities going on in each day organization operations.
Every agency acquires material or offerings to complete its enterprise needs. The process of buying materials and acquiring offerings from providers or dealers is procurement.
The Balance SheetA balance sheet is the financial statement that.docxmattinsonjanel
The Balance Sheet
A balance sheet is the financial statement that reports a firm’s financial condition at a specific time. As highlighted in the sample balance sheet in Figure 17.5 (for our hypothetical vegetarian restaurant Very Vegetarian introduced in Chapter 13), assets are listed in a separate column from liabilities and owners’ (or stockholders’) equity. The assets are equal to, or balanced with, the liabilities and owners’ (or stockholders’) equity. The balance sheet is that simple.
figure 17.5: SAMPLE VERY VEGETARIAN BALANCE SHEET
Current assets: Items that can be converted to cash within one year.
Fixed assets: Items such as land, buildings, and equipment that are relatively permanent.
Intangible assets: Items of value such as patents and copyrights that don’t have a physical form.
Current liabilities: Payments that are due in one year or less.
Long-term liabilities: Payments not due for one year or longer.
Owner’s equity: The value of what stockholders own in a firm (also called stockholder’s equity).
balance sheet
Financial statement that reports a firm’s financial condition at a specific time and is composed of three major accounts: assets, liabilities, and owners’ equity.
Let’s say you want to know what your financial condition is at a given time. Maybe you want to buy a house or car and therefore need to calculate your available resources. One of the best measuring sticks is your balance sheet. First, add up everything you own—cash, property, and money owed you. These are your assets. Subtract from that the money you owe others—credit card debt, IOUs, car loan, and student loan. These are your liabilities. The resulting figure is your net worth, or equity. This is fundamentally what companies do in preparing a balance sheet: they follow the procedures set in the fundamental accounting equation. In that preparation, it’s important to follow generally accepted accounting principles (GAAP).
Since it’s critical that you understand the financial information on the balance sheet, let’s take a closer look at what is in a business’s asset account and what is in its liabilities and owners’ equity accounts.
Classifying Assets
Assets are economic resources (things of value) owned by a firm. Assets include productive, tangible items such as equipment, buildings, land, furniture, and motor vehicles that help generate income, as well as intangible items with value like patents, trademarks, copyrights, and goodwill. Goodwill represents the value attached to factors such as a firm’s reputation, location, and superior products. Goodwill is included on a balance sheet when one firm acquires another and pays more for it than the value of its tangible assets. Intangible assets like brand names can be among the firm’s most valuable resources. Think of the value of brand names such as Starbucks, Coca-Cola, McDonald’s, and Apple. Not all companies, however, list intangible assets on their balance sheets.
assets
Economic resources (things of val ...
Coma campus is best training and development institute. We have provided best mentor as an industry worker for SAP as a development field. We have best facility like as a lab, Theoretical based but 90% have practical based training and 10% theoretical.<a>SAP Training in noida</a>
It is about Supply Chain Operations and Planning:
Objectives
1. Gain a conceptual appreciation of the business operations in any supply chain
2. Exercise an executive level understanding of operations involved in supply chain planning and sourcing
3. Start to access how well these operations are working within your own company
Explore the multifaceted world of Muntadher Saleh, an Iraqi polymath renowned for his expertise in visual art, writing, design, and pharmacy. This SlideShare delves into his innovative contributions across various disciplines, showcasing his unique ability to blend traditional themes with modern aesthetics. Learn about his impactful artworks, thought-provoking literary pieces, and his vision as a Neo-Pop artist dedicated to raising awareness about Iraq's cultural heritage. Discover why Muntadher Saleh is celebrated as "The Last Polymath" and how his multidisciplinary talents continue to inspire and influence.
2137ad - Characters that live in Merindol and are at the center of main storiesluforfor
Kurgan is a russian expatriate that is secretly in love with Sonia Contado. Henry is a british soldier that took refuge in Merindol Colony in 2137ad. He is the lover of Sonia Contado.
Hadj Ounis's most notable work is his sculpture titled "Metamorphosis." This piece showcases Ounis's mastery of form and texture, as he seamlessly combines metal and wood to create a dynamic and visually striking composition. The juxtaposition of the two materials creates a sense of tension and harmony, inviting viewers to contemplate the relationship between nature and industry.
2137ad Merindol Colony Interiors where refugee try to build a seemengly norm...luforfor
This are the interiors of the Merindol Colony in 2137ad after the Climate Change Collapse and the Apocalipse Wars. Merindol is a small Colony in the Italian Alps where there are around 4000 humans. The Colony values mainly around meritocracy and selection by effort.
2. Learning Objectives
LO1 Describe techniques to manage short-term assets
LO2 Calculate the value of assets in your business
LO3 Describe techniques for managing fixed assets
LO4 Calculate ratios used to analyze capital
investment decisions.
16-2
3. Learning Objectives
LO5 Describe the advantages of renting or leasing
capital equipment
LO6 Describe techniques to manage and improve
the operations of your business
16-3
4. Question
Money that is owed to your business by your
customers is called ________.
A. Accounts payable
B. Accounts receivable
C. Credit extension
D. Lender equity
16-4
6. The Pros and Cons of Offering
Credit to Customers
Providing credit usually results in higher sales
revenue because of increased repeat business
Reduces cost of selling
Credit delays receipt of cash
Must replace the “missing” cash
Sooner or later a customer will not pay
16-6
7. Managing Accounts Receivable
Your goal is to:
1. Minimize the time that passes between
credit sale and when the cash is received
2. Keep number of bad accounts as low as
possible
16-7
8. Using Your Accounts Receivable as
a Source of Financing
Use your receivables in two ways to quickly
lay your hands on cash:
Pledge receivables as collateral for a
commercial loan
You can sell your receivables to a finance
company in a process called factoring
16-8
9. Using Your Accounts Receivable as
a Source of Financing
Factoring
– Selling the rights to collect accounts
receivable to an entity outside your business.
Pledging receivables
– Giving a third party legal rights to debts owed
your business in order to provide assurance
that borrowed money will be repaid.
16-9
10. Determine the Appropriate Level of
Inventory
Right amount of inventory is determined
by:
1. Cost of processing an order
2. Cost of keeping merchandise in inventory
3. Cost of lost sales if you run out
4. Time it takes to receive inventory after it’s
ordered
16-10
11. Determine the Appropriate Level of
Inventory
Economic order quantity (EOQ)
– A statistical technique that determines the
quantity of inventory that a business must
hold to minimize total inventory cost.
16-11
14. Scheduling Ordering and
Receipt of Inventory
Optimum stocking level
– The amount of inventory that results in the
minimum cost, when considering the cost of
lost sales resulting from running out of stock,
the number of units sold per day, and the
number of days required to receive inventory
– Also known as the reorder point
16-14
15. Scheduling Ordering and
Receipt of Inventory
Safety stock
– An amount of inventory carried to ensure that
you will not run out of inventory because of
fluctuating levels of sales.
16-15
16. Just-in-Time Inventory Systems
Just-in-time inventory
– The practice of purchasing and accepting
delivery of inventory only after it has been
sold to the final customer.
16-16
17. Just-in-Time Inventory Systems
Pull-through system
– A term for just-in-time inventory systems in
which product is ordered and placed into
production only after a sale has been
completed.
Microinventory
– The purchase of inventory only after a sale is
made; very typical with Internet firms.
16-17
18. Other Approaches to Inventory
Control
Periodic inventory
– process of physically counting business
assets on a set schedule
Perpetual inventory
– recording the receipt and sale of each item as
it occurs
16-18
19. Other Approaches to Inventory
Control
Bar coding
– Obtaining a Universal Product Code number
and scan-ready visual tag, and printing it on
the product or its packaging. Bar codes can
then be scanned and recognized by others.
16-19
20. Other Approaches to Inventory
Control
Point-of-sale system
– Hardware and software combinations that
integrate inventory management directly into
accounting software.
16-20
21. Value of Assets in Your Business
Capital assets
– Assets that are expected to provide economic
benefits for periods of time greater than one
year.
16-21
22. Determining the Value of Your
Operating Assets
Book value
– The difference between the original cost of an
asset and the total amount of depreciation
expense that has been recognized to date.
Disposal value
– The net amount realized after subtracting the
costs of getting rid of an asset from its selling
price.
16-22
23. Determining the Value of Your
Operating Assets
Arm’s length transaction
– A business deal where the parties have a
prior relation or affiliation, but where the
business is conducted as if they were
unrelated.
– approach is done to help guard against
potential conflicts of interest.
16-23
24. Determining the Value of Your
Operating Assets
Replacement value
– The cost incurred to replace one asset with an
identical asset.
Fair market value
– The price at which goods and services are
bought and sold between willing sellers and
buyers in an arm’s-length transaction.
16-24
25. Determining the Value of Inventory
Inventory valuation
– Determination of the
amount of assets
held by the firm for
sale or production.
Physical inventory
– A count of all the
inventory being held
for sale at a specific
point in time.
16-25
26. Determining the Value of Inventory
Acquisition cost
– The total cost of acquiring an asset, including
such costs as purchase price, transportation,
installation, testing, and calibrating in order to
ready it for its first productive use.
Replacement cost
– The total cost of replacing an asset with an
essentially identical asset.
16-26
27. Property, Plant, and Equipment
Property
– A general term for real estate, but it can also be
applied as a legal term for anything owned or
possessed.
Plant
– A general term for the facilities of a business.
Equipment
– Machinery, tools, or materials used in the
performance of the work of the business.
16-27
28. Property, Plant, and Equipment
Whole of life costs
– The sum of all costs
of capital assets,
including acquisition,
ownership,
operation, and
disposal.
Cost of owning
– Cost incurred in
financing, insuring,
taxing, or tracking an
asset.
16-28
29. Property, Plant, and Equipment
Cost of operating
– The direct cost
incurred in using an
asset for the purpose
for which it was
intended.
Cost of disposition
– Cost incurred in the
activities necessary
to get rid of an asset.
16-29
30. The Capital Budgeting Decision
Capital budgeting
– The process of deciding among various
investment opportunities to create a specific
spending plan.
Payback period
– The amount of time it takes a business to
earn back the funds it paid out to obtain a
capital asset.
16-30
31. The Capital Budgeting Decision
Return on investment (ROI)
– A capital budgeting equation used to measure
the relationship between initial investment and
the profits that are expected to be received
from making the investment.
16-31
32. Financing with Leases
Operating lease
– A long-term rental in which ownership of the
asset never passes to the person paying for
the lease.
Capital lease
– A lease in which at the end of the lease period
the asset becomes the property of the lessee,
possibly with an additional payment.
16-32
33. Managing Operations
Inputs
– The materials, labor,
and energy put into
the production of a
good or service.
Outputs
– The service or product
that is produced for
sale.
Operations
– The process of
transforming
materials, labor, and
energy into goods or
services.
16-33
34. Managing Operations
Feedback
– The process of communicating within or to the
organization about how the outputs worked or
were received.
16-34
39. Operations Management Challenges for
Product-Based Firms
Supply chain
– the line of distribution of a product from its
start as materials outside the target firm to its
handling in the target firm to its handling by
sellers into the hands of customers.
16-39
40. Operations Management Challenges for
Product-Based Firms
Best practices
– Activities identified by authoritative bodies as
examples of optimal ways to get things done
in a particular industry, profession, or trade.
16-40