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.
Friday, October 9, 2009
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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