Week 2 Checkpoint Final

Week 2 Checkpoint Final - Running head: WEEK 2 CHECKPOINT 1...

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Running head: WEEK 2 CHECKPOINT 1 WEEK 2 CHECKPOINT Sandy Edwards ACC/226 JUNE 24, 2011 MONIQUE HEWLING
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WEEK 2 CHECKPOINT 2 WEEK 2 CHECKPOINT BTN 10-3 Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large amount of borrowed funds was invested in a new building addition as well as in equipment and fixture additions. Choi’s banker requires her to submit semiannual financial statements so he can monitor the financial health or her business. He has warned her that if profit margins erode, he might raise the interest rate on the borrowed funds to reflect the increased loan risk from the bank’s point of view. Choi knows profit margin is likely to decline this year. As she prepares year-end adjusting entries, she decides to apply the following depreciation rule: All asset addition are considered to be in use on the first day of the following month. (The previous rule assumed assets are in use the first day of the month nearest to the purchase date.) 1). Identify decisions that mangers like Choi must make in applying depreciation
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This note was uploaded on 03/08/2012 for the course ACC 220 taught by Professor - during the Spring '10 term at University of Phoenix.

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Week 2 Checkpoint Final - Running head: WEEK 2 CHECKPOINT 1...

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