Accounting: Tools for Business Decision Makers by Paul D. Kimmel

By Paul D. Kimmel

With this fourth variation, accountants will gather a pragmatic set of instruments and the arrogance they should use them successfully in making company judgements. It larger displays a extra conceptual and decision-making method of the fabric. The authors keep on with a "macro- to micro-" procedure by way of beginning with a dialogue of actual monetary statements first, instead of beginning with the Accounting Cycle. the target is to set up how a financial plan communicates the financing, making an investment, and working actions of a enterprise to clients of accounting info. This motivates accountants through grounding the dialogue within the genuine global, exhibiting them the relevance of the themes lined to their careers.

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Many businesses start as sole proprietorships or partnerships and eventually incorporate. For example, in 1896 Leo Hirshfield started Tootsie Roll as a sole proprietorship, and by 1919 the company had incorporated. Other factors to consider in deciding which organizational form to choose are taxes and legal liability. If you choose a sole proprietorship or partnership, you generally receive more favorable tax treatment than a corporation. However, proprietors and partners are personally liable for all debts of the business; corporate stockholders are not.

_____ 5. All states require a par value per share for capital stock. Solution 1. False. The liability of stockholders is normally limited to their investment in the corporation. 2 True Comprehensive Jan. 10 Issued 400,000 shares of stock at $8 per share. Sept. 1 Purchased 10,000 shares of common stock for the treasury at $9 per share. Dec. 24 Declared a cash dividend of 10 cents per share on common stock outstanding. Instructions (a) Journalize the transactions. (b) Prepare the stockholders’ equity section of the balance sheet, assuming the company had retained earnings of $150,600 at December 31.

This problem asks you to evaluate that decision, using various capital budgeting techniques. The Waterways Continuing Problem uses the business activities of a fictional company, to help students apply managerial accounting topics to a realistic entrepreneurial situation. qxd 11/1/10 9:12 AM Page xxxiv broadening your perspective The Broadening Your Perspective section helps to pull together concepts from the chapter and apply them to real-world business situations. The Financial Reporting Problem focuses on reading and understanding the financial statements of Tootsie Roll, which are printed in Appendix A.

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