Concepts of Money Measurement

Concepts of Money Measurement Business Entity Concept can also be known as separate entity concept. A business entity concept is the financial activities are record distinct from the people who finance it such as owners, creditors, customers, and employers. The accounting records reflect the financial activities of a specific corporate entity. So, the business should separately from the proprietor or investor. When the profit is return in to the business, the profit must be taken into account. For example, the sole trader invests available funds in the market share account. These available funds are not affecting the financial status of the business itself. Money Measurement Concept Money Measurement Concept is expressed in monetary term. Every transaction is records in terms of money. If the transaction cannot be measured in monetary term, then the transaction cannot be taken into account. Going Concern Concept Going concern concept is the business that expected that a business will continue to operate its business for the next 12 months or next accounting period. This concept assumes that the business is going on steadily training for year to year without reducing its operation. When an enterprise liquidates or scale down a part of operation of the enterprise, the ability of the enterprise to continue as going concern concept is not impaired normally. Materiality Concept This materiality concept is refers to purposes paying attention to important events and ignoring insignificant accounting items as well as suggests small aster purchases or improvements should be initially written off as an expense. Prudence concept Prudence concept is taking a proper caution in measuring profit and income. Prudence must be exercised when preparing financial statements because of the uncertainty surrounding many transactions. In this concept, income should not be anticipated at all possible losses should be provided for. a.) Give FOUR reasons why depreciation may occur. The definition of the depreciation is refers to noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time and must be replaced once the end of their useful life is reached. The main reason of the depreciation is due to the physical wear and tear and the passage of time. For example, the value of the car is reduced over time as new model is introduced to the market, or the value of used motor vehicles is lower than a similar model but new motor vehicles. The second reason is obsolescence of the asset. For instance, the old machine in a factory is become more obsolescence due to time that the machine used. After many years, the value of the machine is depreciated because the residual or scrap value of the asset and similar new machine is come out in the market. The third reason is passage of time. Some assets diminish in value on account of sheer passage of time, even though they are not used. For example, the patent rights, copy rights and lease hold property. The forth reason is depletion of the asset. The depletion is to provide for the consumption on charge against earnings, based on the amount of wasting natural resources that are taken out of total available reserves during an accounting period. 2 b.) A firm buys a motor vehicles in January 20X5 for RM10,000. Calculate the annual depreciation for the first four years using. Reducing Balance Method, at an annual rate of 20%. Reducing Balance Method: Depreciation: Reduced Balance: Year 1 (20X5) 20% x RM 10,000 = RM 2,000 (RM 10,000 2,000) = RM 8,000 Year 2 (20X6) 20% x RM 8,000 = RM 1,600 (RM 8,000 1,600) = RM 6,400 Year 3 (20X7) 20% x RM 6,400 = RM 1,280 (RM 6,400 1,280) = RM 5,120 Year 4 (20X8) 20% x RM 5,120 = RM 1,024 (RM5, 120 1,024) = RM 4,096 Straight Line Method, if the vehicle is to be sold in four years time for RM2,000. Straight Line Method: Depreciation per year = = = RM 2,000 Dt Motor Vehicle account Ct ÂÂ   ÂÂ   ÂÂ   RM ÂÂ   ÂÂ   RM 20X5 20X5 Jan 1 Bank 10,000 Dec 31 Balance c/d 10,000 ÂÂ   ÂÂ   ÂÂ   20X6 20X6 Jan 1 Balance b/d 10,000 Dec 31 Balance c/d 10,000 ÂÂ   ÂÂ   ÂÂ   20X7 20X7 Jan 1 Balance b/d 10,000 Dec 31 Balance c/d 10,000 ÂÂ   ÂÂ   ÂÂ   20X8 20X8 Jan 1 Balance b/d 10,000 Dec 31 Balance c/d 10,000 ÂÂ   ÂÂ   ÂÂ   ÂÂ   Dt Provision for Depreciation on Vehicle Ct ÂÂ   ÂÂ   ÂÂ   RM ÂÂ   ÂÂ   ÂÂ   RM 20X5 20X5 Dec 31 Balance c/d 2,000 Dec 31 Profit Loss A/C 2,000 ÂÂ   20X6 20X6 Dec 31 Balance c/d 4,000 Jan 1 Balance b/d 2,000 Dec 31 Profit Loss A/C 2,000 4,000 4,000 ÂÂ   ÂÂ   20X7 20X7 Dec 31 Balance c/d 6,000 Jan 1 Balance b/d 4,000 Dec 31 Profit Loss A/C 2,000 6,000 ÂÂ   6,000 ÂÂ   ÂÂ   20X8 20X8 Dec 31 Balance c/d 8,000 Jan 1 Balance b/d 6,000 Dec 31 Profit Loss A/C 2,000 8,000 ÂÂ   8,000 Profit Loss Account ( extract ) for the year ended 31 December ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   20X5 20X6 20X7 20X8 Operating expenses : RM RM RM RM Depreciation of Motor Vehicle 2,000 2,000 2,000 2,000 Balance Sheet ( extract ) as at 31 December ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   20X5 20X6 20X7 20X8 Fixed Assets RM RM RM RM Motor Vehicle, at cost 10,000 10,000 10,000 10,000 Less : Provision for depreciation 2,000 4,000 6,000 8,000 Net book value 8,000 6,000 4,000 2,000 ÂÂ   ÂÂ   ÂÂ   ÂÂ   Calculate the cost of raw materials issued from the following data using : DATE PURCHASES SALES JAN 15 units x RM 10.00 FEB 10 units x RM 10.50 APRIL 20 units x RM 25.00 JUN 8 units x RM 11.00 AUG 10 units x RM 25.00 SEPT 20 units x RM12.00 NOV 13 units x RM 25.00 a.) LIFO method Date Purchases Cost of goods sold Balance Jan 15units x RM 10 15units x RM 10 = RM 150 Feb 10units x RM10.50 10units x RM 10.50 = RM 105 TOTAL 25 units @ RM 225 April 10units x RM10.50 10units x RM 10 10units x RM10.50 = RM105 10units x RM 10 = RM100 TOTAL 5 units x RM10 = RM 50 Jun 8 units x RM11 8 units x RM 11 = RM 88 TOTAL 5 units x RM10 = RM 50 8 units x RM 11 = RM 88 13 units @ RM 138 August 8 units x RM 11 2 units x RM 10 8 units x RM 11 = RM 88 2 units x RM 10 = RM 20 10 units @ RM 108 TOTAL 3 units x RM 10 = RM 30 Sept 20 units x RM 12 20 units x RM 12 = RM 240 TOTAL 3 units x RM 10 = RM 30 20 units x RM 12 = RM 240 23 units @ RM 270 Nov 13 units x RM 12 13 units x RM 12 = RM 156 Closing stock 3 units x RM 10 = RM 30 7 units x RM 12 = RM 84 10 units @ RM 114 Sales = ( 20 units + 10 units + 13 units ) x RM 25 = RM 1075 Cost of goods sold = (10units x RM10.50) + (10units x RM 10 ) + (8 units x RM 11 ) + (2 units x RM 10 ) + ( 13 units x RM 12 ) = RM 105 + RM 100 + RM 88 + RM 20 + RM 156 = RM 469 GROSS PROFIT =Sales Cost of Goods Sold = RM1075 RM469 = RM606 b.) FIFO method Date Purchase Cost of goods sold Balance Jan 15 units x RM 10 15 units x RM 10 = RM 150 Feb 10 units x RM 10.50 10 units x RM 10.50= RM 105 TOTAL 25 units @ RM155 April 15 units x RM 10 5 units x RM 10.50 15 units x RM 10 = RM 150 5 units x RM 10.50= RM 52.50 20 units @ RM 202.50 TOTAL 5 units x RM 10.50 = RM 52.50 Jun 8 units x RM 11 8 units x RM 11 = RM 88 TOTAL 5 units x RM 10.50 = RM 52.50 8 units x RM 11 = RM 88 13 units @ RM 140.50 August 5 units x RM 10.50 5 units x RM 11 5 units x RM 10.50 = RM 52.50 5 units x RM 11 = RM 55 10 units @ RM 107.50 TOTAL 3 units x RM 11 = RM 33 Sept 20 units x RM 12 20 units x RM 12 = RM 240 TOTAL 3 units x RM 11 = RM 33 20 units x RM 12 = RM 240 23 units @ RM273 Nov 3 units x RM 11 10 units x RM 12 3 units x RM 11 = RM 33 10 units x RM 12 = RM 120 13 units @ RM 153 Closing stock 10 units x RM 12 = RM 120 Sales = ( 20 units + 10 units + 13 units ) x RM 25 = RM 1075 Cost of goods sold = ( 15 units x RM 10 ) + ( 5 units x RM 10.50 ) + ( 5 units x RM 10.50 ) + ( 5 units x RM 11 ) + ( 3 units x RM 11 ) + ( 10 units x RM 12 ) = RM 150 + RM 52.50 + RM 52.50 + RM 55 + RM 33 + RM 120 = RM 463 GROSS PROFIT =Sales Cost of Goods Sold =RM1075 RM463 =RM612 c.) Average cost method Date Purchases Cost of goods sold Balance Jan 15 units x RM 10 15 units x RM 10 = RM 150 Feb 10 units x RM 10.50 10 units x RM 10.50 = RM 105 WAVCO 15 units x RM 10 = RM 150 10 units x RM 10.50 = RM 105 25 units @ RM 225 = RM 10.20 / units April 20 units x RM 10.20 20 units x RM 10.20 = RM 204 TOTAL 5 units x RM 10.20 = RM 51 Jun 8 x RM 11 8 units x RM 11 = RM 88 WAVCO 5 units x RM 10.20 = RM 51 8 units x RM 11 = RM 88 13 units @ RM 139 = RM 10.69 / units August 10 units x RM 10.69 10 units x RM 10.69 = RM 106.90 TOTAL 3 units x RM 10.69 = RM 32.07 Sept 20 units x RM 12 20 units x RM 12 = RM 240 WAVCO 3 units x RM 10.69 = RM 32.07 20 units x RM 12 = RM 240 23 units @ RM 272.07 = RM 11.83 / units Nov 13 units x RM 11.83 13 units x RM 11.83 = RM 153.79 Closing stock 10 units x RM 11.83 = RM 118.30 Sales = ( 20 units + 10 units + 13 units ) x RM 25 = RM 1075 Cost of Goods Sold = ( 20 units x RM 10.20 ) + ( 10 units x RM 10.69 ) + (13 units x RM 11.83 ) = RM 204 + RM 106.90 + RM 153.79 = RM 464.69 GROSS PROFIT =Sales Cost of Goods Sold = RM1075 RM 464.69 = RM 610.31 5a.) Explain clearly the difference between capital expenditure and revenue expenditure. Capital expenditure is acquired to be used in business operation to generate revenue for a period of more than one year. Capital expenditure is the money that spends on buying asset. For instance, office equipment and motor vehicle are the examples of the capital expenditure. Capital expenditure also can be considered as the useful economic life of the asset. Therefore, the expenditure incurred is allocated over the period it is used to match the revenue earned. On the other hand, revenue expenditure are incur in the current year in the business operation. The revenue expenditure is the expenditure on the wages, premises, and utility bills. Therefore, the revenue expenditure need to written off to the profit and loss account in the year in order to measure the profit or loss. This is an accounting concept termed matching and accruals concept. Revenue expenditure also is the money that spends to obtain the use of the asset and maintain the dairy operation of the business. b.) Classify the following items as capital or revenue expenditure. i .) Cost of new machinery Capital expenditure ii . ) Petrol and oil for the motor vehicle Revenue expenditure iii . ) Wages of office staff Revenue expenditure iv . ) Extension of factory Capital expenditure v . ) Repainting office Revenue expenditure vi . ) Cost of road tax and insurance for new van Capital expenditure vii . ) Cost of road tax and insurance for existing van Revenue expenditure viii . ) Repair and maintenance of existing van Revenue expenditure ix . ) Legal fees paid in connection with factory extension Revenue expenditure x . ) Cost of painting firms name on new van Capital expenditure Bibliography Internet sources Wikipedia 2009, Entity concept, 5 Dec, viewed by 3 July 2010 BusinessDictionary.com 2010, business entity concept, viewed by 18 June 2010 Tutor2u, accounting concept and conventions, viewed by 18 June 2010 Anil Kumar Gupta 2007, Depreciation, Causes of Depreciation, Need for Provision of Depreciation , 2 June ,viewed by 18 June 2010

Analysis of Out, Out by Robert Frost :: Out, Out Robert Frost Poems Poetry Essays

Analysis of Out, Out by Robert Frost "Out, Out--" by Robert Frost is a poem about a young boy who dies as a result of cutting his hand using a saw. In order to give the reader a clear picture of this bizarre scenario, Frost utilizes imagery, personification, blank verse, and variation in sentence length to display various feelings and perceptions throughout the poem. Frost also makes a reference to Macbeth's speech in the play by Shakespear called Macbeth which is somewhat parallel to the occurrences in "Out, Out-." Frost begins the poem by describing a young boy cutting some wood using a "buzz-saw." The setting is Vermont and the time is late afternoon. The sun is setting and the boy's sister calls he and the other workers to come for "Supper." As the boy hears its dinnertime, he gets excited and cuts his hand on accident. Immediately realizing that the doctor might amputate his hand, he asks his sister to make sure that it does not happen. By the time the doctor arrives, it is too late and the boy's hand is already lost. When the doctor gives him anaesthetic, he falls asleep and never wakes up again. The last sentence of the poem, "since they (the boys family and the doctor) were not the one dead, turned to their affairs" shows how although the boys death is tragic, people move on with their life in a way conveying the idea that people only care for themselves. Frost uses different stylistic devices throughout this poem. He is very descriptive using things such as imagery and personification to express his intentions in the poem. Frost uses imagery when he describes the setting of the place. He tells his readers the boy is standing outside by describing the visible mountain ranges and sets the time of day by saying that the sun is setting. Frost gives his readers an image of the boy feeling pain by using contradicting words such as "rueful" and "laugh" and by using powerful words such as "outcry". He also describes the blood coming from the boy's hand as life that is spilling. To show how the boy is dying, Frost gives his readers an image of the boy breathing shallowly by saying that he is puffing his lips out with his breath. When talking about the saw, Frost uses personification and repetition. Personification is seen when he says that at times it can run light and at others it has to "bear a load", talking as if the saw was a person which had to carry something.

Genetically Modified food should not be banned Essay

Food is the basic requirement for living, as more and more people need food while the population was increased every year, food is becoming an important issue in the world. The invention of Genetically Modified food is a reasonable solution to solve this issue. Therefore, the Genetically Modified food should not be banned for several reasons. In addition to the fact that Genetically Modified food already provides benefits to us, there are several considerable profits to agriculture, environment and human health. Genetically Modified food should not be banned while they provide benefits to agriculture. The high productivity is creating by Genetically Modified food; the GM crops double the food yield by improves the pesticides and fertilizers in the crops. â€Å"the productivity gains from G. M. crops, as well as improved use of synthetic fertilizers and pesticides, allowed the world’s farmers to double global food output during the last 50 years, on roughly the some amount of land, at a time when global population rose more than 80percent. † (Prakash, C. S. , Conko Gregory, 2004, p17) The GM food not only improves the productivity, but it also put the insect resistance and weather resistance into the crops. â€Å"Examples include insect-resistance rice for Asia, virus-resistance sweet potato for Africa, and virus-resistance papaya for Caribbean nations. † (Prakash, C. S. , Conko Gregory, 2004, p18). Compare to the traditional crops, GM crops can provide resistance to bugs and insect or virus-resistance, thus, the GM crops can grow well then the traditional crops. Because the GM crops have resistance to insect, farmers do not need use pesticide to their crops. Furthermore, using of GM crops can reduce the damage from pesticide to the land, and protect environment. Genetically Modified food has benefits to the environment when they provide advantage to agriculture. GM food can reducing the using of natural resources while they growing, such as water. â€Å"In 2000 alone, U. S. farmers growing bioengineered cotton used 2. 4 million fewer gallons of fuel and 93 million fewer gallons of water, and were spared some 41,000 ten-hour days needed to apply pesticide. † (Prakash, C. S. , Conko Gregory, 2004, p18). GM crops not only reduce the using of natural resources, but it also decreases the damage of farming land. â€Å"With potentially reduced environment consequence, such as reductions in agrochemical use, including pesticides, herbicides, and fertilizers. † (Schaal, Barbara, 2002, p110), the less herbicide used on land, the less damage that land have. In addition, the GM crops protected environment by reducing the using of natural resources and herbicide. GM food provides benefits for human health, it not only decreases the negative effect, but it also proffers nutrition which human need. The indirect negative effect from pesticide is worked on human body, and it is damaged human health, â€Å"In China, where pesticide are typically sprayed on crops by hand, some 400 to 500 cotton farmers die every year from acute pesticide poisoning. † (Prakash, C. S. , Conko Gregory, 2004, p18). Every year, people and farmers were dying from acute pesticide. However, GM crops contain the insect resistance which means farmer does not need acute pesticide to the crops. Therefore, GM food can provide advantage to human health by reduce pesticide need. GM food also can furnish nutrition that human require, â€Å"Among the most well known is Golden Rice-genetically enhanced with added beta carotene, which is converted to Vitamin A in the human body. â€Å". In next a few years, GM food will improve to provide further nutrition to benefit human health. There people who oppose Genetically Modified food suspect that long-term effects are unknown. However, the Genetically Modified food have been investigated, there are no negative effect found on GM food on current market. â€Å"While traditionally developed foods are not generally tested for allergenicity, protocols for tests for GM foods have been evaluated by the Food and Agriculture Organization of United Nations (FAO) and World Health Organization (WHO). (Campbell, Jonathan, 2006 p67). In addition, scientist still focus on develop Genetically Modified food to achieve more and more benefits to human. GM foods may give us a long-term effect, but it will not be find on the current market. The opponents also consider that Genetically Modified food is not safe and it has negative effect on human health. Nevertheless, Genetically Modified foods on the international market have no risk for human heath. â€Å"GM foods currently available on the international market have passed risk assessments and are not likely to present risks for human health. In addition, no effects on human health have been shown as a result of the consumption of such foods by the general population in the countries where they have been approved. † (Campbell, Jonathan, 2006 p67) Thus, the GM foods will not provide a negative effect on human health. Although Genetically Modified food is not used in every single country, Genetically Modified food is still the suitable solution to solve the food for hungry people. Furthermore, people will not banned Genetically Modified food, and stop the development. In the future, as Genetically Modified food will get more development, it will achieve further benefits to our agriculture, environment and human health. ReferenceCampbell, Jonathan. â€Å"Genetically Modified Organisms Production, Regulation, and Marketing. † International Debates, 4, 2006, 66-69. Prakash, C. S. , and Conko Gregory. â€Å"Technology for Life: How Biotech Will Save Billions From Starvation. † American Enterprise,15,2004,16-20. Schaal, Barbara. â€Å"Genomics and Biotechnology in Agriculture. † The Genomic Revolution, 2002, 108-123.

The Crucible By Arthur Miller - 1497 Words

Michael Stukan A.P. Language and Composition Period 2 September 18, 2015 The Crucible by Arthur Miller Plot and Conflict The Crucible, written by Arthur Miller as an allegory for the Red Scare after World War II, tells of the infamous Salem witch trials of 1692. The play opens in the house of Reverend Samuel Parris, whose daughter Betty is unconscious in a trance. At midnight on the previous night, the Reverend witnessed his daughter, slave Tituba, and niece Abigail Williams perform a ritual in the woods. Soon there is talk amongst the villagers that witchcraft is involved. Prior to the start of the play, the misleading and vengeful Abigail committed adultery with John Proctor. Viewing his wife Elizabeth as the only obstacle to her desires, Abigail consumed blood that night in the forest to kill her. Amidst the ensuing chaos, Reverend Hale, a man of faith and intellect, is summoned to diagnose Betty’s illness, thereby bringing about the main plot’s conflict. Once Abigail confesses, â€Å"I danced for the Devil; I saw him, I wrote in his book† and repents, she accuses other townspeo ple of practicing black magic; the others follow her lead (50). Those loathed by the bewitched party are indicted and apprehended, but are freed upon admitting their crime. The girls’ scheme escalates when Mary makes a poppet to plant in the Proctor household; she realizes this is her solution to eliminating Elizabeth. Elizabeth is imprisoned upon discovery of the evidence. The play reaches its climaxShow MoreRelatedThe Crucible By Arthur Miller1269 Words   |  6 PagesAt first glance, the playwright Arthur Miller in The Crucible highlights the historical significance of the Salem Witch Trials of 1692, but in fact it is an allegorical expression of his perception of McCarthyism. 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