Chapter 16 Payroll Accounting
Minimum wage in B.C. law and news
http://www.labour.gov.bc.ca/esb/facshts/min-wage.htm
http://canadaonline.about.com/gi/dynamic/offsite.htm?site=http://www.labour.gov.bc.ca/esb/esaguide/
http://bcfed.ca/node/1950
http://columbiavalleynews.com/2010/04/10/bc-has-lowest-minimum-wage-highest-poverty-rate/
Summary:
Canada has a certain law for minimum wages, but the minimum wage standards are different in each provinces. In British Columbia, the general minimum wage is $8/hour, however, for first-job worker, employers were allowed to pay them $6/hour for a total of 500 hours. The minimum wages standard in B.C. haven't change since the year 2001. But as the price of foods and services raising through years, most of the minimum wages workers are no longer able to cover their expenses. Because of this, the B.C provincial goverment is taking a fight between raise or not raising the minimum wage standard.The Liberal goverment said that no need to increase the minimum wage becauce they think raising the wages will also increase the poverty rate. However, the government is considering increase the minimum wage to $10/hour.
Connection:
The connection between those articles and chapter 16's payroll accounting is that both of them talks about wages and salary of workers. In Chapter 16, we are taught to calculate the payroll, payment to employees. By raising the payments to employees,it will leads to less demand of employees,also,the company's expenses will increase. With the expenses increasing there will be some changes made to the calculations payroll and recording payroll, for example, income tax, gross pay, insurance and pension plan By increasing the minimum wage the payment of employee will also change.
Reflection:
I was hopping that the government could increase the minimum wages as soon as possible. But after reading those articles about the concerns of the government, i know that the government have to think from every perspective and all the possibilities before and after raising the minimum wage. By increasing the wage, the expenses of each company will also increase, by increasing the expenses, there are two different ways to cut the expenses, first is to raise the products prices or service fees, second is to hire less employee as much as possible.
Monday, April 26, 2010
Friday, April 16, 2010
Chapter 15 From collapse to convictions: a timeline
From collapse to convictions: a timeline
http://www.cbc.ca/news/background/enron/
Summary:
The former chief executive officer,Kenneth Lay, of Hunston Natural Gas, then later he became CEO of the company. He started operation Enron(company) as an interstatepipeline company created from merger of Houston Natural Gas and Omaha-based InterNorth at 1985. By 1999, the company soon became the largest business site in the world. Ninty percent of Enron's income came from tade over Enron Online(and online trading website). The annual revenue keep hitting $100 billion US in 2000, making it Fortune 500 and the sixth largest energy company in the world. The stock price of the compnay peaked at $90 US. But after 2001, the cracks began to apear. In October of 2001, Enron reported a loss of $618 million, by that time Jeffery Skilling is the CEO. Chief financial officer Andrew fastow was replaced and the U.S. Securities and Exchange Commission launched an investigation into investment. The investgation show that complex web of parterships was designed to hide Enron's debt. On Dec.2,2001, Enron filed for bankruptcy potection in the biggest base of bankruptcy in the United States up to that point. The next month, the U.S. Justice Department opened its investigations of the company. Ken Lay and former CEO jeffrey Skilling were both convicted in May 2002.
Connection:
The above article relates to the study of financial statements in many ways. In Chapter 15 Analyzing Financial Statement, we are taught Users of Financial Statements, Comparing Financial Data, Simple Rations and Percentages,etc. In the above article the company named Enron was using fake financial statements, the insiders of the company such as its owners and executive & management groups known what is going to happen to the company and they made this decision to hide the real financial statements. The auditor of the financial statement is inresponsible , its rather the auditor didn't analyzing the financial statement well or he knews it but still passed it on.
Reflections:
After reading this article, I'm really surprised about they doing the fake financial statement.Normally, I thought that a big company wouldn't do such things. Also, i think the auditor is really inrresposible. The auditor's job is to make sure every information of the financial statement is 100% true but the auditor of Enron's company didn't find out or already knew that the financial statment is fake and passed it on. I think he should be punished too.
http://www.cbc.ca/news/background/enron/
Summary:
The former chief executive officer,Kenneth Lay, of Hunston Natural Gas, then later he became CEO of the company. He started operation Enron(company) as an interstatepipeline company created from merger of Houston Natural Gas and Omaha-based InterNorth at 1985. By 1999, the company soon became the largest business site in the world. Ninty percent of Enron's income came from tade over Enron Online(and online trading website). The annual revenue keep hitting $100 billion US in 2000, making it Fortune 500 and the sixth largest energy company in the world. The stock price of the compnay peaked at $90 US. But after 2001, the cracks began to apear. In October of 2001, Enron reported a loss of $618 million, by that time Jeffery Skilling is the CEO. Chief financial officer Andrew fastow was replaced and the U.S. Securities and Exchange Commission launched an investigation into investment. The investgation show that complex web of parterships was designed to hide Enron's debt. On Dec.2,2001, Enron filed for bankruptcy potection in the biggest base of bankruptcy in the United States up to that point. The next month, the U.S. Justice Department opened its investigations of the company. Ken Lay and former CEO jeffrey Skilling were both convicted in May 2002.
Connection:
The above article relates to the study of financial statements in many ways. In Chapter 15 Analyzing Financial Statement, we are taught Users of Financial Statements, Comparing Financial Data, Simple Rations and Percentages,etc. In the above article the company named Enron was using fake financial statements, the insiders of the company such as its owners and executive & management groups known what is going to happen to the company and they made this decision to hide the real financial statements. The auditor of the financial statement is inresponsible , its rather the auditor didn't analyzing the financial statement well or he knews it but still passed it on.
Reflections:
After reading this article, I'm really surprised about they doing the fake financial statement.Normally, I thought that a big company wouldn't do such things. Also, i think the auditor is really inrresposible. The auditor's job is to make sure every information of the financial statement is 100% true but the auditor of Enron's company didn't find out or already knew that the financial statment is fake and passed it on. I think he should be punished too.
Thursday, April 15, 2010
Chapter 14 Fake credit card factory found
Fake credit card factory found
By Monique Tamminga - Langley Times
http://www.bclocalnews.com/news/90040847.html
Summary:
Langley RCMP arrested a person who was trying to buy a cellphone with fake ID at walmart. This arrest led police to execute a search warrant of property where 600 counterfeit credit cards, a laptop computer and various pieces of false identification were found. Police later found out that the labtop computer contained over 80,000 lines of credit card data that could be encoded into the counterfeit credit cards.
Connections:
In chapter 14 Cash Control and banking, we learned the basic knowledges of credit cards and personal banking. The connection between the article and this chapter is that both of them talk about credit cards. The chapter is only an introduction of using the credit card but the article warns us about the safty of using the credit cards. Credit card contain a compelete user's personal informations, what they didnt metion in this chapter is that when the credit card is stolen all the informations will be known by someone else, sometines other people can steal credit card informations even without stealing the cards.
Reflections:
I felt that credit cards are unsafe after i read the article. It's really easy to be stolen and used by someone else. I was suprised about the huge amount of credit card data the police found in that person's computer. This means our personal informtions and our credit card informations are really easy to be stolen by someone else and we might not even realize it. I can't understand how did he steal so many different creadit card datas. I think it will be safter if the cashier will check their picture ID when a customer is using a credit card.
By Monique Tamminga - Langley Times
http://www.bclocalnews.com/news/90040847.html
Summary:
Langley RCMP arrested a person who was trying to buy a cellphone with fake ID at walmart. This arrest led police to execute a search warrant of property where 600 counterfeit credit cards, a laptop computer and various pieces of false identification were found. Police later found out that the labtop computer contained over 80,000 lines of credit card data that could be encoded into the counterfeit credit cards.
Connections:
In chapter 14 Cash Control and banking, we learned the basic knowledges of credit cards and personal banking. The connection between the article and this chapter is that both of them talk about credit cards. The chapter is only an introduction of using the credit card but the article warns us about the safty of using the credit cards. Credit card contain a compelete user's personal informations, what they didnt metion in this chapter is that when the credit card is stolen all the informations will be known by someone else, sometines other people can steal credit card informations even without stealing the cards.
Reflections:
I felt that credit cards are unsafe after i read the article. It's really easy to be stolen and used by someone else. I was suprised about the huge amount of credit card data the police found in that person's computer. This means our personal informtions and our credit card informations are really easy to be stolen by someone else and we might not even realize it. I can't understand how did he steal so many different creadit card datas. I think it will be safter if the cashier will check their picture ID when a customer is using a credit card.
Sunday, February 28, 2010
Chpt 12 BLog
What is a Cash discount?
http://www.wisegeek.com/what-is-a-cash-discount.htm
Summary:
"Cash discount is a marketing and cilent realations strategy that is often emplyed to provide consumers with added incentive to do business with a particular company." This statement from the article tells us that the main purpose of the cash discount is to get attention from other company, attract those company to do business with them. The cash discount will be issue only in the a certain period, and the amount of the cash discount will be either in percentage or a flat number. The second purpose is to encourage their customer to pay the payment as soon as possible which means not through credit card,loans,etc. Traditionally, the cash discount is applied if the customer pays the payment within 10 days after the invoice was issued. But recently, the cash discount will be applied only if the customer pays the payment in cash.
Connection:
This article links with chapter 12 because in chapter 12 it also talks about cash discount. This article introduced cash discount more deeply than the text book. In the Chapter it introduced the cash discount as in a traditional way, which customer pays the invoice within a certain period of time, then they will get the discount on their total payment. but the article tells us the role of the cash discount has been changed. Recently, instead of paying the payment early, they more prefer paying the payment in cash, because fees were charged if the payment is pay through credit cards.
Reflection:
People are really attracted to discount,sales and free stuffs. Everytime when a store is on sale, or a product is on discount, more people will likely to purchase at that period of the time. For example, the biggest sales day we have every year, the boxing day, every mall in vancouver is crowed with people, there are line-up infront of every store and its really hard to find a parking spot on that day. Cash discount is a really attractive idea, business use this to control our desires to buy stuffs, because every one is greedy.
http://www.wisegeek.com/what-is-a-cash-discount.htm
Summary:
"Cash discount is a marketing and cilent realations strategy that is often emplyed to provide consumers with added incentive to do business with a particular company." This statement from the article tells us that the main purpose of the cash discount is to get attention from other company, attract those company to do business with them. The cash discount will be issue only in the a certain period, and the amount of the cash discount will be either in percentage or a flat number. The second purpose is to encourage their customer to pay the payment as soon as possible which means not through credit card,loans,etc. Traditionally, the cash discount is applied if the customer pays the payment within 10 days after the invoice was issued. But recently, the cash discount will be applied only if the customer pays the payment in cash.
Connection:
This article links with chapter 12 because in chapter 12 it also talks about cash discount. This article introduced cash discount more deeply than the text book. In the Chapter it introduced the cash discount as in a traditional way, which customer pays the invoice within a certain period of time, then they will get the discount on their total payment. but the article tells us the role of the cash discount has been changed. Recently, instead of paying the payment early, they more prefer paying the payment in cash, because fees were charged if the payment is pay through credit cards.
Reflection:
People are really attracted to discount,sales and free stuffs. Everytime when a store is on sale, or a product is on discount, more people will likely to purchase at that period of the time. For example, the biggest sales day we have every year, the boxing day, every mall in vancouver is crowed with people, there are line-up infront of every store and its really hard to find a parking spot on that day. Cash discount is a really attractive idea, business use this to control our desires to buy stuffs, because every one is greedy.
Friday, October 9, 2009
Oil closes in on $75 as the U.S. dollar weakens further; Retail prices up
Oil closes in on $75 as the U.S. dollar weakens further; Retail prices up
http://ca.news.yahoo.com/s/capress/091013/business/oil_prices
Summary:
The slightly risen gas prices in U.S. last week was because the weakening of U.S. dollar. The gasoline price had been rised by two cents to US $2.489 per gallon. Gasoline prices in Midwest rose especially quick, but the price of gasoline was still so low. In Canada the average gasoline price is 95.9 cents per litre. Beacause of the increasing gasoline price, the consumers will begin to weighing what they need more, for example they will choose between the colder weather or higher gasoline price in winter. The Refiner are going to take facilities off line, which means they will make less fuel since less people will be using it.
Connection
This article links with chapter ,. They linked because in order for an accountant working in gasoline company to calculate the cost of the gasoline and the net profit, the accountant will needs to be knowledgeable to the comodity market. ALso accountants will be dealing with the currency exchange rate because they have to be updated with information about the currency exchange. The accuracy of the currency exchange will affect the company's revenue and expenses that might incur from foreign trades.
Reflection:
After i read this article, I think it is not fair that the gasoline price in Canada is a lot more higher than U.S. Since the currency of U.S. dollar is decreasing, the gasoline price in Canda should decrease as well, but while the gasoline price in U.S. reach US$75, it is still CND$98 in Canada. I think the $20 differences is not necessary while $1 U.S dollar is equal to $1.029 Canadian dollar.
http://ca.news.yahoo.com/s/capress/091013/business/oil_prices
Summary:
The slightly risen gas prices in U.S. last week was because the weakening of U.S. dollar. The gasoline price had been rised by two cents to US $2.489 per gallon. Gasoline prices in Midwest rose especially quick, but the price of gasoline was still so low. In Canada the average gasoline price is 95.9 cents per litre. Beacause of the increasing gasoline price, the consumers will begin to weighing what they need more, for example they will choose between the colder weather or higher gasoline price in winter. The Refiner are going to take facilities off line, which means they will make less fuel since less people will be using it.
Connection
This article links with chapter ,. They linked because in order for an accountant working in gasoline company to calculate the cost of the gasoline and the net profit, the accountant will needs to be knowledgeable to the comodity market. ALso accountants will be dealing with the currency exchange rate because they have to be updated with information about the currency exchange. The accuracy of the currency exchange will affect the company's revenue and expenses that might incur from foreign trades.
Reflection:
After i read this article, I think it is not fair that the gasoline price in Canada is a lot more higher than U.S. Since the currency of U.S. dollar is decreasing, the gasoline price in Canda should decrease as well, but while the gasoline price in U.S. reach US$75, it is still CND$98 in Canada. I think the $20 differences is not necessary while $1 U.S dollar is equal to $1.029 Canadian dollar.
Thursday, September 24, 2009
AbitibiBowater to suspends at several plants, affects 1,500 jobs in Canada
AntibiBowater to suspends at several plants, affects 1,500 jobs in Canada.
http://ca.news.finance.yahoo.com/s/17092009/2/biz-finance-antibibowater-suspends-at-several-plants-affects-1-500-jobs.html/
Summary:
A Montreal-based company, Antibibowater,has to stop its production at several facilities due to its financial problems. aside from stopping production, as much as 1500 jobs will be affected due to the outcome of this decision. The reason for this decision is the lessening demand for newsprint. A spokeman for the company said that the demand for newsprint has dropped as much as 30% within a year. Along with many forestry industries in Canada, AntibiBowater has been greatly affected during the recession. An attempt to restructure the company would be difficult since AntibiBowater is operating with little profit while carrying a huge debt load.
Connection:
This article links with accounting because it is possible that a bad accounting system was a factor leading them to bankruptcy. If Antibibowater have a good accounting system, they might have been able to detect a financial crisis sooner which would have allowed them to take precautionary steps sooner. Good Accounting practice is important for a company because it helps determine how well a company is doing at a given point in time. So if Antibibowater knew that they were suffering from financial problems sooner, they might have been able to take steps to avoid bankruptcy.
Reflection:
I think aside from accouting practices, the economy also play a role in affecting Antibibowater's financial state. If the economy is doing bad, it might not have been a bad accounting system that led Antibibowater to bankrupty but I still believe that good accounting practices are important to every company. This article made me realize how useful accounting is in helping a company determine its successfulness and also helping them figure out if they are in need of external help and if they are in risk of having financial problems. In conclusion, accounting is an important system that determines and decides how a company should run and if they are in need of acquiring more assets.
http://ca.news.finance.yahoo.com/s/17092009/2/biz-finance-antibibowater-suspends-at-several-plants-affects-1-500-jobs.html/
Summary:
A Montreal-based company, Antibibowater,has to stop its production at several facilities due to its financial problems. aside from stopping production, as much as 1500 jobs will be affected due to the outcome of this decision. The reason for this decision is the lessening demand for newsprint. A spokeman for the company said that the demand for newsprint has dropped as much as 30% within a year. Along with many forestry industries in Canada, AntibiBowater has been greatly affected during the recession. An attempt to restructure the company would be difficult since AntibiBowater is operating with little profit while carrying a huge debt load.
Connection:
This article links with accounting because it is possible that a bad accounting system was a factor leading them to bankruptcy. If Antibibowater have a good accounting system, they might have been able to detect a financial crisis sooner which would have allowed them to take precautionary steps sooner. Good Accounting practice is important for a company because it helps determine how well a company is doing at a given point in time. So if Antibibowater knew that they were suffering from financial problems sooner, they might have been able to take steps to avoid bankruptcy.
Reflection:
I think aside from accouting practices, the economy also play a role in affecting Antibibowater's financial state. If the economy is doing bad, it might not have been a bad accounting system that led Antibibowater to bankrupty but I still believe that good accounting practices are important to every company. This article made me realize how useful accounting is in helping a company determine its successfulness and also helping them figure out if they are in need of external help and if they are in risk of having financial problems. In conclusion, accounting is an important system that determines and decides how a company should run and if they are in need of acquiring more assets.
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