http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20090522.wcurrencies0522/business/Business/businessBN/ctv-business
Summary
In this chapter, we learned about various assets as well as recognizing gains and losses. As it says in the article, the United States dollar is on the decline and is reaching new lows in 2009. The United States is perhaps the country that was hit the hardest by the recession. This meant that the government would have to undergo a process of inflation, which would cause the value of their dollar to go down because there is more money flowing through the country. When a country that big is running out of money, there is going to be a big problem. The value of money – their biggest asset – is going down. With that being said, we can look forward to more financial woes, as the US government will have to continue to borrow money and assets. The question is how will they repay their future debts and current debts at the same time?
Connections
The connections in the article come from the lowering value of the United States dollar. With the value lowering, the government will have to recognize the losses as well as reassess the actual value of their assets. The value of a currency will undergo change on the market every single day. Once the influx of cash pours in from inflation, the value of the dollar will go down. It will also cause the price of everything to increase. Also, the sources that the US is getting this money from will have to valuate the US government and figure out if they are good for the money, and maybe even use the direct write-off method just to make sure that this powerful nation receives the money that it needs, or even the allowance method if things go too far.
Reflections
It’s hard to come up with a solution for this huge problem that the US is facing. The superpower nation will have to continue to borrow money (which it can’t pay back), and will also need to print more money, which will hurt the economy too. You have to wonder why the US is continuing to use the same void solution to the same problem. Printing more money will not help because it is lowering the value of all US currency in circulation, and borrowing money will only put them in further debt. If this keeps up, then lenders will be wondering whether or not they will get their money back not just in the future but at all. Do you think that receivables from the world’s most powerful nation will not be able to be collected?
C. Tut
FAC12
Block A
Sunday, May 24, 2009
Sunday, April 5, 2009
Chapter 5 Blog - MLB feeling the effects of the recession
http://www.nationalpost.com/sports/story.html?id=1462391
Summary
There are 4 major sports leagues in North America: the NFL, NBA, NHL, and MLB. Most of these leagues are feeling the effects of the recession. Player salaries are being cut, admission prices are increasing, and there are all sorts of advertising strategies being used to get more people at games. Of those four leagues however, there is one that was thought to be immune to the effects of the recession, the MLB (Major League Baseball). Since the recession hit however, baseball teams have been forced to pay their players less than they would expect. This is a major sign of the effect the economy is having on baseball because the MLB does not even have a salary cap that teams must comply with. Baseball teams no longer have the financial freedom to sign players that they want, when they want like they were able to in the past.
Connections
Chapter 5 tells us about the cash flow statement and its parts (financing activities, operating activities, and investing activities), and shows us how to take information from the past and present to try to improve the fiscal future of a company. Major League Baseball is feeling the effects of the weak economy, which means that there might be more cash flowing out of teams than into them during the upcoming season. Fans of teams may not be able to go to as many games as they would like to, seeing as they may not have the money. So, this means that the MLB and the teams themselves are going to have to see where their money is going now and try to send it somewhere that will get people into the stadium.
Reflection
When everything is said and done, baseball will survive. America’s pastime is not going anywhere any time soon. Until then, teams will have to reassess their investing and operating activities. Better players will always demand higher salaries, so teams will have to start looking for players that will play for less money, but will still contribute to the team. My assumption for lower profile teams is that they will see less revenue than before. Why? It is because people don’t have the money to go to games, and the teams don’t have the money to sign a superstar that everyone will want to go and see. Activities in the field of operations and investing will definitely be difficult ones seeing as baseball players are a spoiled bunch, and do not take too kindly to pay cuts.
C. Tut
FINAC12
Block A
Summary
There are 4 major sports leagues in North America: the NFL, NBA, NHL, and MLB. Most of these leagues are feeling the effects of the recession. Player salaries are being cut, admission prices are increasing, and there are all sorts of advertising strategies being used to get more people at games. Of those four leagues however, there is one that was thought to be immune to the effects of the recession, the MLB (Major League Baseball). Since the recession hit however, baseball teams have been forced to pay their players less than they would expect. This is a major sign of the effect the economy is having on baseball because the MLB does not even have a salary cap that teams must comply with. Baseball teams no longer have the financial freedom to sign players that they want, when they want like they were able to in the past.
Connections
Chapter 5 tells us about the cash flow statement and its parts (financing activities, operating activities, and investing activities), and shows us how to take information from the past and present to try to improve the fiscal future of a company. Major League Baseball is feeling the effects of the weak economy, which means that there might be more cash flowing out of teams than into them during the upcoming season. Fans of teams may not be able to go to as many games as they would like to, seeing as they may not have the money. So, this means that the MLB and the teams themselves are going to have to see where their money is going now and try to send it somewhere that will get people into the stadium.
Reflection
When everything is said and done, baseball will survive. America’s pastime is not going anywhere any time soon. Until then, teams will have to reassess their investing and operating activities. Better players will always demand higher salaries, so teams will have to start looking for players that will play for less money, but will still contribute to the team. My assumption for lower profile teams is that they will see less revenue than before. Why? It is because people don’t have the money to go to games, and the teams don’t have the money to sign a superstar that everyone will want to go and see. Activities in the field of operations and investing will definitely be difficult ones seeing as baseball players are a spoiled bunch, and do not take too kindly to pay cuts.
C. Tut
FINAC12
Block A
Thursday, February 12, 2009
Ch.4 Blog - RIM Records Lower Revenues Than In Previous Years.
http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20090211.wrim0211/business/Business/businessBN/ctv-business
Summary
Chapter 4 focuses very strongly on revenue recognition. It stresses how important it is to not only know how much money is flowing into a business, but when to record that amount of money on the financial statements. The financial statements are the lifeblood of any organization and need to be kept accurate. Financial statements would be out of balance and accounts would be out of whack if it weren’t for revenue recognition. Just think of it this way, if you make money on the stock market, you would have to take into account the money that you had originally invested. The only money you have made is on top of your original investment. The expenses that helped create the revenue must be accounted for.
Connections
This story connects to Chapter 4 in that it is mainly about revenue. Research In Motion, the makers of the popular BlackBerry seem to have been losing money on the stock market recently. This may not have a major effect on internal employees of the company who are making millions of dollars, but it will have an effect on the external investors. The money that they have invested in the company is being lost, as the share prices will continue to drop for what seems to be until the end of this quarter. This may be easier to watch for executives, but for your typical investor, this will have a huge effect on the money coming into your business or household.
Reflections
What this chapter seems to stress is that there are many ways and many different times at which revenue can be recognized. While it may seem that poor sales are the sole cause of this performance, revenue recognition may have something to do with it. One possible answer is that a deal has been made with another company looking to buy phones, but the contracts haven’t been signed yet. Since the contracts haven’t been signed, the revenue can’t be recorded, which in turn means that it seems that money is being lost when it is indeed being made. This could be why the executives at RIM had such great confidence in a rebound next quarter. The dropping prices may also be caused by RIM not making as many BlackBerry’s as before, or RIM may not be collecting payments from a customer until a later date. All of these reasons may have something to do with the lower profits; however, we must remember not to jump to conclusions about the future. Revenue recognition can lead to confusion about a company because of the way that revenue is recorded at different times. Besides, RIM is a very successful company and I don’t see it going out of business any time soon.
C. Tut
FINAC12
Block A
Summary
Chapter 4 focuses very strongly on revenue recognition. It stresses how important it is to not only know how much money is flowing into a business, but when to record that amount of money on the financial statements. The financial statements are the lifeblood of any organization and need to be kept accurate. Financial statements would be out of balance and accounts would be out of whack if it weren’t for revenue recognition. Just think of it this way, if you make money on the stock market, you would have to take into account the money that you had originally invested. The only money you have made is on top of your original investment. The expenses that helped create the revenue must be accounted for.
Connections
This story connects to Chapter 4 in that it is mainly about revenue. Research In Motion, the makers of the popular BlackBerry seem to have been losing money on the stock market recently. This may not have a major effect on internal employees of the company who are making millions of dollars, but it will have an effect on the external investors. The money that they have invested in the company is being lost, as the share prices will continue to drop for what seems to be until the end of this quarter. This may be easier to watch for executives, but for your typical investor, this will have a huge effect on the money coming into your business or household.
Reflections
What this chapter seems to stress is that there are many ways and many different times at which revenue can be recognized. While it may seem that poor sales are the sole cause of this performance, revenue recognition may have something to do with it. One possible answer is that a deal has been made with another company looking to buy phones, but the contracts haven’t been signed yet. Since the contracts haven’t been signed, the revenue can’t be recorded, which in turn means that it seems that money is being lost when it is indeed being made. This could be why the executives at RIM had such great confidence in a rebound next quarter. The dropping prices may also be caused by RIM not making as many BlackBerry’s as before, or RIM may not be collecting payments from a customer until a later date. All of these reasons may have something to do with the lower profits; however, we must remember not to jump to conclusions about the future. Revenue recognition can lead to confusion about a company because of the way that revenue is recorded at different times. Besides, RIM is a very successful company and I don’t see it going out of business any time soon.
C. Tut
FINAC12
Block A
Sunday, December 7, 2008
Chapter 3 Blog
http://www.nationalpost.com/news/world/story.html?id=1039765
Summary
Who ever said that crime doesn’t pay? Just recently on December 6th, four men went into the Harry Winston jewellery store in Paris and made off with $137 million in stolen merchandise. The men went into the jewellery store with concealed weapons and were also disguised. Paris police are saying that this was a very well organized and unfortunately, very successful mission as the four men easily walked in, and walked out with a bags full of “merchandise”. This is not the first time that the shop was robbed, as it suffered a loss of $16 million just over a year ago.
Connections
The connection to chapter 3 is found in the accounting cycle. Even though this was not a conventional transaction, it still has to be recorded as if it was. The jewellery is a permanent account and will be part of the accounting done during the accounting cycle. This means that the transaction will be posted, journalized, put in the ledger, and will be subject to all the steps after that. As a result, there will be a major decrease in shareholder equity, seeing as $137 million of merchandise is no longer part of the company, and nothing was given back to the company in order to complete, and balance out the equation.
Reflection
The accounting cycle is here for us to use as a tool to make sure that all transaction are on the record and can be referred back to at any time. This is a great way to make sure that accounting stays legitimate, especially for shareholders or potential buyers in a company. If the accounting cycle was altered or disregarded completely, then a company could do whatever it wants to make sure that it remains attractive in the eyes of and investor. Take the robbery for example, what stops the accountants from posting this entire ordeal as a legitimate transaction? If this were done, then people would look at this company thinking that they not only make expensive jewellery, but also their product is in demand since they just made a $137 million deal. Who would the real thieves be then?
C. Tut
FINAC12
Block A
Summary
Who ever said that crime doesn’t pay? Just recently on December 6th, four men went into the Harry Winston jewellery store in Paris and made off with $137 million in stolen merchandise. The men went into the jewellery store with concealed weapons and were also disguised. Paris police are saying that this was a very well organized and unfortunately, very successful mission as the four men easily walked in, and walked out with a bags full of “merchandise”. This is not the first time that the shop was robbed, as it suffered a loss of $16 million just over a year ago.
Connections
The connection to chapter 3 is found in the accounting cycle. Even though this was not a conventional transaction, it still has to be recorded as if it was. The jewellery is a permanent account and will be part of the accounting done during the accounting cycle. This means that the transaction will be posted, journalized, put in the ledger, and will be subject to all the steps after that. As a result, there will be a major decrease in shareholder equity, seeing as $137 million of merchandise is no longer part of the company, and nothing was given back to the company in order to complete, and balance out the equation.
Reflection
The accounting cycle is here for us to use as a tool to make sure that all transaction are on the record and can be referred back to at any time. This is a great way to make sure that accounting stays legitimate, especially for shareholders or potential buyers in a company. If the accounting cycle was altered or disregarded completely, then a company could do whatever it wants to make sure that it remains attractive in the eyes of and investor. Take the robbery for example, what stops the accountants from posting this entire ordeal as a legitimate transaction? If this were done, then people would look at this company thinking that they not only make expensive jewellery, but also their product is in demand since they just made a $137 million deal. Who would the real thieves be then?
C. Tut
FINAC12
Block A
Saturday, October 18, 2008
Ch. 2 Blog Entry
Ch.2 Blog
Money Remaining In BC Education Budget
No website!!! Ask Ms. Cloutier for details.
Summary
As is sat in my English class just days ago, who else would walk into class but Ms. Cloutier. After making small talk she went on to pull an unfortunate student out of the class, then went on to say she will be pulling more people shortly. Why was this happening so late in the year? Well, apparently the BC government had money left over from last years education budget and wanted to decrease class sizes by spending that money now to hire more English teachers (English classes are generally the largest). While many students were upset by the thought of being moved so late in the year, this may be a mistake that was made by our own government. It was said to us that the government only uncovered this money recently and decided to spend it on the overcrowding in classrooms.
Connections
How does this little financial upturn relate to this chapter? Well, this chapter is about the analysis of financial statements. When it comes down to it, someone overlooked a certain amount of money that was untouched. The government probably had a cash flow statement or balance sheet so they knew where the money in the budget was going, but there may be a possibility that an amount of money was not accounted for and just sat in the government’s pocket until someone dug it out. If someone had properly analyzed either document at the end of the fiscal period, they would have realized that there was a huge chunk of money remaining in the budget. Even in the worst scenario, the remaining money may be money that one unlucky school never received, but the mistake wasn’t caught because of poor analysis.
Reflection
When you look back on this event, this could have all been avoided if it was known simply how much money was remaining in the budget. When you reach this point in the school year, students have already adapted to their teachers. What the government is doing here is just dumping leftover money that should have already been accounted for on schools now. If the money had been accounted for earlier, then this change could have been at a sooner date, meaning that many students wouldn’t be inconvenienced. When it comes to money, it is important that you know not only where it’s coming from, but where it is going. Not to mention analyzing transactions to make sure that they have been recorded correctly and balance, so you always know where your money is, was, and should be.
C. Tut
FINAC12
Block A
Money Remaining In BC Education Budget
No website!!! Ask Ms. Cloutier for details.
Summary
As is sat in my English class just days ago, who else would walk into class but Ms. Cloutier. After making small talk she went on to pull an unfortunate student out of the class, then went on to say she will be pulling more people shortly. Why was this happening so late in the year? Well, apparently the BC government had money left over from last years education budget and wanted to decrease class sizes by spending that money now to hire more English teachers (English classes are generally the largest). While many students were upset by the thought of being moved so late in the year, this may be a mistake that was made by our own government. It was said to us that the government only uncovered this money recently and decided to spend it on the overcrowding in classrooms.
Connections
How does this little financial upturn relate to this chapter? Well, this chapter is about the analysis of financial statements. When it comes down to it, someone overlooked a certain amount of money that was untouched. The government probably had a cash flow statement or balance sheet so they knew where the money in the budget was going, but there may be a possibility that an amount of money was not accounted for and just sat in the government’s pocket until someone dug it out. If someone had properly analyzed either document at the end of the fiscal period, they would have realized that there was a huge chunk of money remaining in the budget. Even in the worst scenario, the remaining money may be money that one unlucky school never received, but the mistake wasn’t caught because of poor analysis.
Reflection
When you look back on this event, this could have all been avoided if it was known simply how much money was remaining in the budget. When you reach this point in the school year, students have already adapted to their teachers. What the government is doing here is just dumping leftover money that should have already been accounted for on schools now. If the money had been accounted for earlier, then this change could have been at a sooner date, meaning that many students wouldn’t be inconvenienced. When it comes to money, it is important that you know not only where it’s coming from, but where it is going. Not to mention analyzing transactions to make sure that they have been recorded correctly and balance, so you always know where your money is, was, and should be.
C. Tut
FINAC12
Block A
Saturday, September 20, 2008
Chapter One Blog Entry
Summary: http://www.sportsnet.ca/hockey/2008/09/19/nichols_top100/
As it has become well known, fantasy sports have become all the rage and everyone is getting in on being the General Manager for a season. Checking stats every minute, forcing themselves to watch bad teams play because the picked a certain player, or even replacing their hometown hero with a rival "point machine" may not seem like fun by any stretch of the imagination. But, in order to succeed, these are the things that need to be done. You must understand who a player will perform best against, know how long a player will stay on top, and make sure your picks are getting you points.
Relationship To Chapter One
Chapter One speaks extensively about financial statements and their users. When looking to invest in a business (player), it is necessary to know which direction your investment will take you in. Will it bring you success or hardship? You must not only look at where your investment can go, but where it has already been. Is a player coming off an MVP season? Are they rusty from coming back from injury? Has a stock already peaked so high that it has nowhere to go but down? These are the questions you must ask yourself before making an investment and becoming a shareholder. Anything can happen in the world of business.
Reflection
Fantasy sports and the world of finance reporting aren't so different. You can invest money (points) on a player on the rise, or you can end up wasting everything away on a moneymaking scheme that never panned out because no research went into it. People will drive themselves insane trying to find a player who will produce on the ice and fit onto their roster with the allotted points. It all depends on the research you do, the stats you check, and the player's progression over the course of the season. A player's statistics are recorded so an informed decision can be made as to whether or not they are a safe investment. After all, everyone is in it to win it.
- C. Tut
As it has become well known, fantasy sports have become all the rage and everyone is getting in on being the General Manager for a season. Checking stats every minute, forcing themselves to watch bad teams play because the picked a certain player, or even replacing their hometown hero with a rival "point machine" may not seem like fun by any stretch of the imagination. But, in order to succeed, these are the things that need to be done. You must understand who a player will perform best against, know how long a player will stay on top, and make sure your picks are getting you points.
Relationship To Chapter One
Chapter One speaks extensively about financial statements and their users. When looking to invest in a business (player), it is necessary to know which direction your investment will take you in. Will it bring you success or hardship? You must not only look at where your investment can go, but where it has already been. Is a player coming off an MVP season? Are they rusty from coming back from injury? Has a stock already peaked so high that it has nowhere to go but down? These are the questions you must ask yourself before making an investment and becoming a shareholder. Anything can happen in the world of business.
Reflection
Fantasy sports and the world of finance reporting aren't so different. You can invest money (points) on a player on the rise, or you can end up wasting everything away on a moneymaking scheme that never panned out because no research went into it. People will drive themselves insane trying to find a player who will produce on the ice and fit onto their roster with the allotted points. It all depends on the research you do, the stats you check, and the player's progression over the course of the season. A player's statistics are recorded so an informed decision can be made as to whether or not they are a safe investment. After all, everyone is in it to win it.
- C. Tut
Monday, September 15, 2008
Blue Jays out of the playoffs!!!
Greg Zaun. What are you doing. How do you ground out in the most important regular season series of the schedual.
There's next year though - The season, the 09 Jays!!!
There's next year though - The season, the 09 Jays!!!
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