Sunday, April 30, 2023
Saturday, April 29, 2023
My Trip To Elm St. in St. Charles, Missouri, USA, Where I Visit Jaycee Park, Kathryn Linnimann Library, and Lyon's Frozen Custard
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| From Lyon's Frozen Custard on Elm St. with Duchesne High School in the background to the left. |
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| This is a portrait of George Washington, the father of our country, inside the K. Linnimann Library, right next door to Lyon's Frozen Custard. |
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| Also from inside K. Linnimann Library, a historical portrait of the Lewis and Clark Expedition as they get their shindig started on the banks of the majestic Missouri River in good old St. Chuck on May 14, 1804. |
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| Also in the library, I found this portrait of the woman whom the library was named after, Kathryn Linnimann. |
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| A shot from the walking path at Jaycee Park. |
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| A nice shot of a big beautiful green tree at Jaycee Park. |
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| At the entrance from Elm St. to Jaycee Park. This might be a good spot to revisit with a better-quality, high-resolution camera, and after they put some flowers in the bed to take a shot for the contest. |
Friday, April 28, 2023
Accounting: The Language of Business - Vol. 2 (Intermediate: Part 67)
It is crucial that we develop real awareness of ourselves as citizens of Earth, linked by mutual and indissoluble bonds. When we clearly recognize this reality and ground ourselves in it, we are compelled to take a strict accounting of our way of life.
Statements of Financial Position and Cash Flows and the Annual Report (Part E)
by
Charles Lamson
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Stockholders' Equity Stockholders' equity, also referred to as shareholders' equity and owners' equity, is generally separated into four major categories: contributed capital, retained earnings, accumulated other comprehensive income, and noncontrolling interest. We will expand our discussion of stockholders' equity in a later post to include transactions such as treasury stock and dividends. Contributed Capital. Contributed capital (also called paid-in capital) primarily represents the amounts invested by shareholders. It includes the stock sold by the entity at face or par value and amounts received above par value, known as additional paid-in capital or paid-in capital in excess of par. The face or stated value on the share certificate is its par value which is an arbitrary value that the organizers of the corporation place on the stock. We discuss capital stock in greater detail in a later post. Retained Earnings. Retained earnings are the cumulative earnings (losses) of the company that have not been distributed as dividends to shareholders. Accumulated Other Comprehensive Income. Comprehensive income is the change in an entity's equity during the period resulting from transactions with nonowners. In other words, it includes all changes in equity during a period except those changes that result from investments and distributions to owners. Comprehensive income is the sum of net income and other comprehensive income. Other comprehensive income includes revenues, expenses, gains, and losses that are excluded from net income but included in comprehensive income.  Accumulated other comprehensive income (or loss) is the cumulative amount of other comprehensive income (or loss) over the life of the entity. International financial reporting standards (IFRS) uses the term reserves for accumulated other comprehensive income. Noncontrolling Interest. A noncontrolling interest exists when one company controls another company (e.g, a subsidiary) but owns less than 100% of its voting shares. The controlling company adds all of the subsidiary assets and liabilities to its own balance sheet. However, because it does not own 100% of the voting shares, it must separate the amount that is owned by outside shareholders. [The noncontrolling interest is the amount of the company's net assets owned by outside shareholders. The noncontrolling interest is a required classification in the stockholders' equity section of corporate balance sheets. The accounting for the ownership and control of other companies will be covered in detail in Vol. 3 (Advance Accounting) of this analysis.] To illustrate, assume a parent company owns 90% of the voting shares of a subsidiary that reports $100 in assets and $40 in liabilities. The shareholders' equity (net assets) of the subsidiary is equal to $60 with $6 (10% * $60) of the net assets owned by the noncontrolling interest. IFRS Balance Sheet Classification International Financial Reporting Standards (IFRS) has additional requirements for the presentation of specific asset and liability line items. Assets: IFRS. As an additional requirement, IFRS specifies that, at a minimum, companies report the following asset categories [This list is from IASC, International Accounting Standard I, "Presentation of Financial Statements" (London UK: International Accounting Standards Committee, Revised). Paragraph 54. Although the Financial Accounting Standards Board (FASB) does not require that any particular asset categories be reported, the U.S. Securities and Exchange Commission (SEC) does have this requirement. See regulation S-X Rule 5-02.]:
 Similar to Generally Accepted Accounting Principles (GAAP or U.S. GAAP), IFRS defines current assets as resources that the firm expects to convert to cash, use, or consume within one year or one operating cycle, whichever is longer. However, IFRS also requires that current assets be held primarily for trading or cash and cash equivalents (unless they are restricted for use). Liabilities: IFRS. IFRS specifically requires that at a minimum, companies report the following liabilities [This list is from International Accounting Standards Committee (IASC), International Accounting Standard I, "Presentation of Financial Statements," Paragraph 54. Although FASB does not require that any particular liability categories be reported, the SEC does have this requirement. See regulation S-X Rule 5-02.):
 \IFRS defines current liabilities similarly to U.S. GAAP as obligations that the firm expects to liquidate through the use of current assets or the creation of other current liabilities that will typically be paid within one year or operating cycle, whichever is longer. In addition, IFRS specifies that current liabilities are obligations held primarily for trading and for which a company does not have the right to defer settling beyond the current year. *GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 240-241* end |
Thursday, April 27, 2023
Wednesday, April 26, 2023
Tuesday, April 25, 2023
Accounting: The Language of Business - Vol. 2 (Intermediate: Part 66)
Fashion is not just about what we wear, but...fashion is also a business. It is an art, it's a career that involves science, engineering, accounting and so much more. People can learn about the math behind Charles James' designs, and think, 'Maybe I should pay closer attention to geometry this semester'
Statements of Financial Position and Cash Flows and the Annual Report (Part D)
by
Charles Lamson
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Liabilities Liabilities are generally classified on the balance sheet as either current or noncurrent. We discuss each next. Current Liabilities. Current liabilities are obligations that the firm expects to liquidate through the use of current assets or the creation of other current liabilities. Current liabilities will typically be paid within one year or operating cycle, whichever is longer. Current liabilities commonly include:
Accounts payable (also called trade payables) are obligations due to suppliers of goods or services incurred in the normal course of business operations. There is no formal, written agreement for an accounts payable. If a formal agreement exists, then the payable is classified as a note payable. If customers pay on time, there is no interest on accounts payable. Accounts payable are classified as current liabilities because they are generally due within 30 to 60 days. Short-term notes payable are formal written promises to pay cash at a fixed maturity date in the future. The maturity date is within the next year or operating cycle, if longer. Notes payable will usually carry a fixed rate of interest but may have an interest rate of zero. We will discuss these notes payable in a later post.  Current maturities of long-term debt represent the portion of any long-term debt that is payable within the next year or operating cycle, if longer. However, this amount must be paid from current assets or results in the creation of other current liabilities in order to be classified as current. For example, if the maturity of the debt is extended or if the debt is replaced by equity or other long-term debt, the debt is classified as long-term. Accrued liabilities represent expenses incurred by an entity that remain unpaid at the end of the accounting period. Accrued liabilities include items such as utilities payable, wages and salaries payable, interest payable, and taxes payable. These accounts will be paid within the next year or operating cycle, if longer. If the entity will not pay an accrued liability within the next year, it classifies it as a long-term liability. Unearned revenues (sometimes referred to as deferred revenues) are liabilities resulting from advanced collections of cash from a customer for goods or services to be provided in the future under existing sales or service contracts. The firm removes the liability from the balance sheet when it provides the goods or services to the customer. If the firm will not provide the goods or services associated with the unearned revenues to the customer within the next year (or operating cycle, if longer), it classifies the unearned revenue as a long-term liability.  Noncurrent Liabilities. Noncurrent liabilities are obligations an entity does not expect to satisfy within one year or operating cycle, whichever is longer. Noncurrent liabilities are not liquidated through the use of current assets or the creation of other current liabilities. Long-term notes payable, the long-term portion of capital lease obligations, bonds payable, and pension obligations are examples of noncurrent liabilities. *GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 239-240* end |
My Trip To Dusable Park and Historic Frenchtown Second St. in Downtown St. Chatles, Missouri, USA
These are some photos I took at Dusable Park at the North end of N. Second St. and Frenchtown Park right on Second St. in the Frenchtown area in downtown St. Charles, Missouri, USA for the upcoming St. Charles Parks Photo Contest. Though it was more of a scouting mission, because I'm sort of dealing with inferior equipment. I may want to switch to a higher quality camera at some point. And, also, I feel it may be a bit too early in the season to get some real contender photo entries for the big contest, because as in my last two trips in this project, the foliage has just recently started to appear on the trees and they still haven't put any flowers in the flower beds yet. However, I still got off a few nice shots of the Missouri River from the hike and bike trails at Dusable Park. Also I took a shot of the tiny but quaint Frenchtown Park located right on Second St. To see the YouTube video of my trip: https://www.youtube.com/watch?v=OA3ZND-f8Ys.
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| Dusable Park |
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| A shot of the majestic Missouri River from the hike and bike trail at Dusable Park. |
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| This is probably my favorite of the day; another shot of the scenic Missouri River from Dusable Park. |
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| One of the entrances to Dusable Park. |
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| This may be a good place to come back to get a photo for the contest with a better high resolution camera and after they put some flowers in the flower bed. |
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| The tiny but quaint Frenchtown Park on |
Monday, April 24, 2023
Sunday, April 23, 2023
Accounting: The Language of Business - Vol. 2 (Intermediate: Part 65)
Between a tyrant and a prince there is this single or chief difference, that the latter obeys the law and rules the people by its dictates, accounting himself as but their servant.
Statements of Financial Position and Cash Flows and the Annual Report (Part C)
by
Charles Lamson
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Assets As indicated in Exhibit 6.1, from Part 64 and reintroduced below, assets are generally subdivided on the balance sheet as current assets; long-term investments; property, plant, and equipment; intangible assets; and other assets. EXHIBIT 6.1 Balance Sheet Classifications %20(1).jpg) Current Assets. Current assets are resources that the firm expects to convert to cash, to use, or to consume within one year or one operating cycle, whichever is longer. The operating cycle is the period of time from the acquisition of goods to the point at which the entity receives cash from the sale of the goods. For example, consider a clothing wholesaler whose operating cycle begins when it purchases clothing inventory. It will then sell the inventory to retailers on credit. The operating cycle is completed when the wholesaler receives payment from its customers. Current assets primarily include:
Cash and cash equivalents include cash (coins, currency, and money orders) and cash equivalents (short-term, highly-liquid investments acquired with three months or less to maturity). Cash equivalents include:
For example, a three-year Treasury instrument acquired with two months to maturity to a cash equivalent.  Short-term investments not classified as cash equivalents are investments in debt or equity securities of other corporations or governmental entities that the entity has the ability and intent to sell within the next year or operating cycle, whichever is longer. For example, an entity would classify 100 shares of Microsoft that it intends to sell within the next year as a short-term investment. Accounts receivable (also called trade receivables) are amounts owed to the entity resulting from the sale of goods or services to customers on credit. Accounts receivable arise in the normal course of a company's trade or business and do not require a formal written agreement (A note receivable is a receivable supported by a formal agreement that specifies payment terms.) Accounts receivable are measured net of an allowance for estimated bad debts and are classified as current assets because they are usually due within 30 to 60 days. Inventory is tangible property that is either (a) held for sale in the ordinary course of business, (b) used as raw materials in the manufacturing process to produce finished goods to be sold in the ordinary course of business, or (c) held as supplies to be currently consumed when providing goods or services. For a small or wholesale business, inventory includes all goods held for resale. In the case of a manufacturing company, inventory is made up of three components: raw materials, work in process, and finished goods. Inventory is classified as a current asset. Prepaid expenses are assets that arise when expenses are paid before they are incurred. Common examples are prepaid rent and prepaid insurance. Prepaid expenses are typically considered current assets because the benefits associated with these prepayments are usually consumed within a year or operating cycle if longer. However, any portion of the associated benefit that extends beyond the upcoming year is classified as non-current in other assets.  Long-Term Investments. Long-term investments are non-current assets that are not used directly in the operations of the business. Examples are investments in debt and equity securities and investments in land and other property that are not used in operations. Property, Plant and Equipment. Property, plant, and equipment are tangible, long lived, and used in the production and sale of the company's goods and services. This balance sheet category includes items such as buildings, land, machinery and equipment, office furniture and equipment, and natural resources. With the exception of land (which is depreciated), all property, plant, and equipment is reported on the balance sheet net of accumulative depreciation or depletion. Intangible assets. Intangible assets are assets that lack physical substance but have economic value due to the rights they confer upon the holder. This classification does not include financial assets. Common examples of intangible assets include trademarks, trade names, broadcast licenses, patents, copyrights, and franchises. Certain intangible assets are reported on the balance sheet net of accumulated amortization, but others are not subject to amortization. Intangible assets that have a definite or finite useful life are amortized whereas those that have an indefinite life are not amortized.  Other Assets. This other assets category includes any non-current asset that does not fall into any of the primary balance sheet classifications. For example, long-term prepaid expenses and land held for resale may be classified as other assets. *GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 238-239* end |
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Measurement Methods by Charles Lamson There are two major measurement methods: counting and judging. While counting is preferre...
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Product Life Cycles by Charles Lamson Marketers theorize that just as humans pass through stages in life from infancy to death,...
