Profit and Loss
Profit
The focus of a business of any kind is to make a
profit.
Revenue is the amount of money your business
makes before you subtract the costs.
Profit is the money you take home after you
Have paid all of the expenses for the business.
Y
1.
Figure 3-2
Refer to Figure 3-2. An increase in the price of the product would be
represented by a movement from
Student Response
Value Correct
Answer
A. S2 to S1.
B. A to B.
C. B to A.
D. S1 to S2.
Score: 0/1
2.
Figure 3-2
Refer to Figure 3-2. An incre
Goal 5 Review Answers
a) Dh 190.31 ' b) Dh 147.59 c) Dh 24.66 d) Dh 33.75
a) 236 days b) 269 days c) 309 days d 474 days
Dh 960
Dh 36 112.85
4%
8.88%
0.757 years
82 days
2.5 years
Dh 3704
. a) Dh 270
b) 12.25%
12. Die 133 255.88 (if calcuiated using 9 mon
Exercise 5.1
1. Find the interest'that a bank will charge on the following loans:
(3) Dh 16 000 at 7% p.a. simple interest for 2 years.
(b) Dh 4250 at 8% p.a. simple interest for 9 months.
(c) Dh 3500 at 6% p.a. simple interest for 90 days.
(d) Dh 875
CHAPTER4
The Recording
Process
4-1
PreviewofCHAPTER4
4-2
FINANCIAL STATEMENTS
Income
Statement presents the revenues
and expenses resulting net income or loss
for a specific period of time.
Owners Equity Statement summarizes the
changes in owners equity
CHAPTER23
Budgetary
Planning
23-1
Budgeting Basics
Budget
Formal written statement of managements plans for a
specified future time period, expressed in financial
terms.
Primary way to communicate agreed-upon objectives
to all parts of the company.
Promot
1.
Figure 11-1
Refer to Figure 11-1. If the firm is producing 200 units,
Student Response
Value Correct
Answer
A. it is making a loss.
B. it should cut back its output to maximize profit.
C. it should increase its output to maximize profit.
100%
D. it bre
Compound Interest
Compound interest is when the interest earned
at the end of a first interest period is added to
the principal.
In the next period, you find the interest of the
first periods principal + interest.
Example 1
Find the amount of interest ear
8
Part One Defining the Managers Terrain
QUICK LEARNING REVIEW:
LEARNING OUTCOME 1.2
Define management.
Explain why efficiency and effectiveness are
important to management.
Go to page 19 to see how well you know this material.
LEARNING
OUTCOME 1.3
WHA
Simple Interest
When you borrow money from the bank, the
bank charges you for the privilege of using its
money.
This charge is called interest and it is usually
calculated as a percent of the amount
borrowed.
On the other hand, if you keep money in the
ba
Simple Percentage Word
Problems
Example 1
Eighty
students
took a math
b) What
percentage
of
test.
Thirty-two
students
didstudents
not getgot
an A
anonA?the test.
a) What percentage of
students got an A?
100 % - 40% = 60%
Write the fraction first.
32 or
80
Introduction to Statistics
What is statistics?
Statistics involves:
Collecting data
Organizing and analyzing data
Drawing conclusions from data
Example:
They could test all of the boxes
produced.
A company produces a
million
boxes of cereal per day. It
wa
Fractions/Decimals/Percent
Changing Fractions to Decimals
Do you remember how to change a fraction to a decimal?
4
5
=
4 5 = 0.8
2
3
5
=
3 5 = 0.6
Top divided by bottom.
2._
gives
2.6
Rounding
Do you remember how to
round decimal numbers?
Change the follo
Chapter One Introduction to Management and Organizations
7
LEARNING
OUTCOME 1.2
WHAT IS MANAGEMENT?
Simply speaking, management is what managers do. But that simple statement
does not tell us much does it? A better explanation is that management involves
The Basic Accounting Equation
Assets
=
Liabilities
+
Owners
Equity
Provides the underlying framework for recording and
summarizing economic events.
Assets are claimed by either creditors or owners.
Claims of creditors must be paid before ownership claims.
What is culture?
Language: the oldest human institution and the most sophisticated medium of expression.
Arts & Sciences: the most advanced and refined forms of human expression.
Thought: the ways in which people perceive, interpret, and understand the wo