Essays on Amortization

Did Jim and Laura Buy a New Car

Business

Did Jim and Laura Buy a New Car The case recalls Jim and Laura as the complainants against Stan who is a car salesman claiming that the couple had entered into an agreement to purchase the 4-door blue Sedan by depositing $100. The facts of the case show that Jim and Laura visited the car dealership where Stan is an attending salesman who accommodated the former. Jim and Laura was interested about the blue 4-door sedan, and decided to give Stan $100 for the purpose of holding the unit for a ...

Conforming to GAAP, Mandatory or Not

In true sense, GAAP represents a set of accounting procedures, standards and principles which an organization must follow to enhance clarity in financial statements in order for them to be useful to analysts. Conforming to GAAP is important because it facilitates consistency in recording and reporting financial statements. This way, investors and other market analysts will gain a clear understanding about any publicly traded company’s financial performance throughout and at end of certain financial accounting period. Conformance to GAAP provides investors and analysts with a guarantee about transparency and accuracy of financial records and statements. Generally, for the ...

Discussion

The remaining principal in the column after payment #1 and payment # 2 would be $ 47,500. The accounting term amortization refers to the method of distributing the cost of intangible assets over a time period (Ross, 2015). It also refers to the method by which the principal component of a loan is repaid over years. Even as the number of years over which certain intangible assets are amortized varies, assets are amortized over their useful life. In case of loans or bonds, the amortization period is usually the loan period or the maturity time.

When I avail a personal ...

Exit Partner Analysis: Schneider Company

Brief Summary and History of Schneider Company Schneider Company is one of the largest trucking firms in America. The company was started in 1935 after Al Schneider sold his car to buy the first truck. The company provides a range of services that include intermodal, truckload and logistics. Schneider deals with different solutions that include expedited, bulk, dedicated, long haul, supply chain management, cross dock logistics, regional, intermodal and port logistics (Muller, 2012). The company was privately owned by members of Schneider and was a small player until 1980s when the industry of trucking was deregulated. During this time, ...

Delta Airlines Inc. is a household brand not only the United States but also in 64 other countries around the world. The company was founded on May 30, 1924, marking a 91 years reign since it first opened doors as a crop dusting operation, Huff Daland Dusters, in Macon, Georgia. Delta started providing passenger services on June 17, 1929, making it one of the oldest airlines in the world. In 2013, Delta Airlines Inc. was reported to be the world's largest airline based on the number of scheduled passengers. The company was the second largest concerning the revenue passenger ...

Section 195 of the Internal Revenue Code encompasses the provisions concerning amortization of the start-up expenditures and is applicable to any trade or business. Start-up expenditures include all the money spent on creation of a trade or business or investigation of the creation or acquisition of an active trade or business, as well as on any activity that is supposed to bring profit before the beginning of active trade or business (Internal Revenue Code). Start-up costs can be amortized if they meet the following criteria: they incurred for operation of the existing active trade or business in the same ...

Accounting and Recording

Summary Financial accounting and reporting is a mode of communication used by different companies to communicate with the investors. This study uses two modes of accounting and reporting recognized by the international accounting and reporting body. The two methods used in this study are the Handelsgesetzbuch, HGB, which are the German commercial code and the US GAAP. The two multinational firms used in this study are from German and USA but operate in the global market. The German firm has its headquarters in Germany but operates in the international market while the USA firm also has it’s headquarter ...

Organization Performance Using Financial Ratios

Organization Performance Using Financial Ratios Ratio analysis refers to the process of determining, analysing and interpreting relationships by using financial statements. It is majorly used to evaluate various aspects of a firm’s financial and operating performance, such as profitability, liquidity, efficiency and solvency. The trend is then studied to determine whether they are deteriorating or improving (Nezlobin, Rajan, & Reichelstein, 2014). Financial ratio is an indicator used to analyse firm’s financial performance. The ratios are used by the creditors, accountants, analysts, shareholders and bankers to examine and evaluate data presented on a company’s financial statements (Nezlobin, Rajan, & ...

Part One

Risk There is no standard way to define risks. However, one of the definitions of risk is the probability that the return on an investment will be lower than the expected return (Business Dictionary, n.d.). Examples of risk include business risk, transactional risks and exchange rate risk.

Beta

Beta is a measure of systematic risk of a stock. The value measures the volatility of the stock compared to the volatility of the market (Forbes, n.d.). The value of Beta can be either positive or negative while the beta value of the market is always one. As such, in interpreting the ...