Essays on Bazley

Business Memo

Business Memo

Dear Sir:

This memo is written in response to your last week letter in which you asked about the implementation and usage of accounting software. I have made sure to include all the basic information of accounting software in this memo to help you make sound decision. Accounting software is an effective tool that is commonly used in all types of businesses to make sound decisions and reduce the chances of errors. The objective of using accounting software is to store valuable data of the company such as financial information. Also, the accounting software is useful in running queries ...

When the gift card is resolved the company receives revenue which is yet to be earned since the customer paid money but did not take any merchandise. As a result, the transaction creates a liability for the company in the form of gift cards outstanding. The transactions that will accompany the sale of the gift card are, therefore, the debit of the asset account Cash, in recognition of the cash received by Imel West and the crediting of a liability account Gift Card Outstanding in recognition of the liability created (Nikolai, Bazley, and Jones). This is a liability that ...

The analysis of the financial statements and projections gives financial information to both internal and external users. They can be used to establish a minimum interval for which a company can internally evaluate the operating performance and the financial position to the creditors. This helps the creditors to evaluate the strengths and weaknesses of the company. The company that shows a positive performance is in a better position to exploit sources to finance the new ventures. The financial analysis shows the ability of the company to pay expenses and debts that are almost due, which increases the chances of getting external sources to ...

Introduction

A lease is a common financing instrument used by companies in different industries. There is the purchasing option however the leasing option is better as it has more advantages. In this paper, I will show the benefits of a lease agreement and why it is preferable to the purchasing option.

Lease Agreements

The Financial Accounting Standards Board describes a lease as an agreement for the lessee to use the asset of the lessor for a specified period of time. It is the right to use another company’s plant, property and equipment. It is an agreement where the business owner pays an amount of money ...

Interest

Interest represent the payment for using money. It can be described as the difference between the amount of money repaid and the money originally borrowed. The interest is usually represented as a rate over a certain period of time (Nikolai, Bazley & Jones, 2010). Simple interest is the kind of interest on the original amount paid/received (principal), which does not take into consideration the interest accrued and paid before, as well as the time passed. Interest rate for simple interest is usually expressed as an annual rate, which is further adjusted for other periods. Therefore, Simple interest can be expressed as ...

Impairment of Assets and Goodwill

2(a) Why should asset impairment losses be accounted for in IFRS financial statements? Analyze the different circumstances that could indicate that an entity's assets may have been impaired.

Impairment of an asset occurs when the carrying value exceeds the actual recoverable amount of the asset (Norton, Diamond and Pagach, 2006, pp. 418). The carrying amount which is the amount reflected in the balance sheet is the original amount less the accumulated depreciation and impairment losses to date. The recoverable amount on the other hand refers to the amount that is higher of the assets fair value less associated selling ...