Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 2EA
Derek DingIer conducts corporate training seminars on
Derek will be in New York City. He plans to stay in Philadelphia the night of the seminar, as the next morning he plans to meet with clients about future training seminar possibilities. One travel option s to fly from New York to Philadelphia on the first flight on Friday morning, which will get him to Philadelphia two hours before the start of his seminar. The cost of that flight is $287. Uber fees for his time in Philadelphia will cost $68. His meal per diem is $40 for each full day and $25 for each half day. The hotel cost is $225 per night. His second option is the rent a car and drive the two hours to Philadelphia from New York City the afternoon before the seminar. The cost of the rental car including gas is $57 per day and the car will be needed for two full days. At the end of the meetings he will return to New York City. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs that Derek DingIer has to consider in making the decision whether to fly or drive from New York City to Philadelphia?
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Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
II. Discussion :
a. As an accountant of the Al Rahim clothing Company, prepare a report of the Income Statement and Balance Sheet.
b. Discuss the differences between the Straight Line Method of Depreciation and Diminishing Balance Method of Depreciation. Give examples.
Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
a. Explain the meaning of Accounting Standards and discuss its main objectives.
b. Discuss the difference between Financial Accounting and Management Accounting.
c. Discuss the differences between the Straight Line Method of Depreciation and Diminishing Balance Method of Depreciation. Give examples.
Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
II. Discussion :
a. Discuss the accounting conventions and concepts relating to matching and dual aspect principle.
b. Explain the objectives of preparing a comprehensive income statement and statement of financial position represent Al Rahim clothing Company.
c. Briefly discuss what is contained in the Income Statement and Balance Sheet of Al Rahim clothing Company.…
Chapter 10 Solutions
Principles of Accounting Volume 2
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