Archive
Smart.ly Platform
Smartly Institute
via Smart.ly Platform
02.08.2018
Online Educational Course “Accounting 1: Fundamentals”
Introducing the Balance Sheet
All companies must follow a set of rules that standardizes the reporting and recording of their financial data.
While US companies follow Generally Accepted Accounting Principles (GAAP), companies in most other countries follow the International Financial Reporting Standards (IFRS). The balance sheet gives a glimpse into the health and composition of a business.
Double-entry bookkeeping: A transaction requires at least two entries to keep the balance sheet balanced.
Dual-aspect concept: If there is a change in the total amount of assets, there needs to be a resulting change in liabilities, equity, or both.
Money-measurement concept: Only items expressed as monetary amounts can go on a balance sheet.
Entity: A business, company, or organization.
Entity concept: A business’ finances are separate from its owner’s finances.
Going-concern concept: Accounting assumes that an entity will operate indefinitely.
Assets, Liabilities, and Equity
Assets: Items owned and controlled by an entity, valuable to the entity, and acquired at a measurable cost.
Current assets are assets expected to be converted into cash or used up by the business within one year.
Accounts Receivable: Where a company records credit purchases by its customers. The company expects these customers to pay them in cash in the near future.
Inventory: Goods an entity intends to sell.
Prepaid Expenses: Monies paid in advance for pending expenses—for example, paying rent in advance. Noncurrent assets will not be used up or converted into cash for at least one year.
Property, Plant and Equipment (PP&E): Tangible assets that depreciate, or lose value, over time due to wear and tear.
Creditor: Anyone who lends money or extends credit.
Liabilities: Debts owed to outside entities (creditors) in return for borrowed goods, services, or monies.
Current Liabilities: Obligations that will be paid within one year.
Long-Term Liabilities: Obligations that won’t be paid until at least a year has passed.
Bank Loans (Bank Loan Payable) can be recorded under both current and long-term liabilities.
Accounts Payable: Obligatory monies owed by an entity for goods and services. The opposite of Accounts Receivable.
Estimated Tax Liability: The estimated amount of what will be due in taxes per year.
Equity: Money (capital) either supplied by equity investors or collected in the form of an entity’s retained earnings.
Paid-In Capital: Money supplied by investors.
Retained Earnings: Income generated by an entity’s successful operations that is reinvested in the entity.
Proprietorship: An entity with one sole owner and investor.
Account Types
T-accounts: Charts used to record increases and decreases of individual accounts found on the balance sheet.
Debits: Represent an increase in an asset but a decrease in a liability or equity.
Credits: Represent a decrease in an asset but an increase in a liabilty or equity.
Asset accounts will normally have debit balances. Liability & Equity accounts will normally have credit balances.
Two special equity accounts are Revenues and Expenses. Revenues are increases in equity and usually have a credit balance. Expenses are decreases in equity and usually have a debit balance. Revenues are debited and credited like other equity accounts, but Expenses are debited and credited like asset accounts.
Accounting Transactions
Income Statements are used to calculate net income.
Net Income: The difference between total revenues and total expenses.
Net Income = Total Revenues — Total Expenses
Balance Sheets record one point in history and show a company’s financial position. Income Statements measure a company’s financial performance over a period of time.
General Journal: The chronological record of every transaction. A journal uses the same rules as a T-account.
General Ledger: The collection of all T-accounts.
Revenues and Expenses are temporary accounts. At the end of a period they are closed out and their balances are transferred to the income statement. Other asset, liability, and equity accounts are permanent accounts. They are not closed out, and their balances are transferred to the balance sheet.
Certificate
Alison Platform
Alison
via Alison.com Platform
29.05.2018
Online Educational Course “Global Supply Chain ReDesign”
by N. Viswanadham
It is said that in today’s market, firms don’t compete, supply chains do, and supply chain design can give supply chains a competitive advantage over competing supply chains. The course begins by explaining what supply chain design is, the importance of supply chain design and the design process itself. You will learn how supply chains determine the ability of the businesses included in them to compete, and the design of their supply chains will affect their ability to compete in the marketplace. For example, a business that is attempting to compete in a market where low cost is paramount will have difficulty if it includes high cost suppliers in its supply chain.
This course will be of great interest to all professionals who work in the areas of operations management, logistics, procurement and information technology, and to all learners who are interested in developing a career in the area of supply chain management. Prerequisites: It is recommended that you have studied the courses ‘Introduction To Supply Chain Management – Revised 2018’, and ‘Understanding Supply Chain Ecosystems – Revised 2018’.
The key points from this module are:
Current day supply chain networks are subjected to disruptions and innovations in the ecosystem elements, resources and other factors.
Disruptions can originate from the banks, governments, bankruptcy of the supplier’s suppliers, natural disasters, piracy, cyber attacks, port strikes and other unknown factors.
Innovations in products, manufacturing and delivery processes, business models, government to government relations such as Free Trade Agreements, regulations and deregulations and many more affect the supply chain.
Global Supply Chain design involves two steps:
1) Global supply chain formation
2) Building Governance mechanisms or frameworks for partner selection, coordination and control
Global Supply Chain Formation:
1) Map the supply chain ecosystem for the industry vertical
2) Formulate the supply chain strategy
3) Select possible locations for the factories
4) Identify the supply chain risks
5) List the feasible supply chain configurations
The Governance Function involves:
Partner selection from group of pre-selected suppliers from Supply Chain Formation stage
Coordination – Determining who does what and when and communicating to everyone
Execution – Build a control tower to monitor order status so that processes work as per plan and control exceptional events
Business Model Innovation (BMI) is a reconfiguration of activities in the existing business model of a firm that is new to the product/service market in which the firm competes.
Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions present in a region.
The proximity of companies and institutions in one location fosters better coordination and trust lowering the transactions costs, minimizing the inventory, importing costs and delays.
Types of Supplier Asset Specificity
Physical asset specificity refers to the mobile and physical features of assets such as specific dies, molds, and tooling for the manufacture of a contracted product.
Dedicated asset specificity represents discrete and/or additional investment in generalized production capacity in the expectation of making a significant sale of a product to a particular customer.
Human asset specificity arises in a learning-by-doing fashion through long-standing customer-specific operations.
Site asset specificity refers to the successive stages that are immobile and are located in close proximity to one another so as to economize on inventory and transportation.
Global Competitiveness Indicators – Based on which countries are evaluated include:
– National Policies for Openness in Trade and Markets
– Best Practices for International Trade
– Effective Legal and Enforcement Systems
– Infrastructures for a Global Economy
– Financial Services for Cross-Border Commerce
– Human Capital
Risks to supply chain ecosystems include all possible social, political and environmental risks that may affect the ecosystem and the flows of goods, information and finance.
Risks to Supply Chains:
– Outsourcing
– Mergers or acquisitions
– Large scale and a high degree of concentration
– Political and societal risk
– Resource intensive shortages
Transaction costs include:
Observable costs – Transport costs, import duties, customs tariffs and other formal trade barriers
Soft costs – Costs for information gathering, negotiation and monitoring contracts, trust building, networking, risk handling and mitigation, making up for cultural differences and miscommunication, compliance with safety regulations, labor laws etc.
Three characteristics of transactions affect the transaction costs:
– Asset specificity
– Uncertainty
– Frequency
Transaction Cost Economics (TCE) Theory:
When transaction cost are low, use the spot market governance
When transaction costs are high, hierarchy is efficient
Asset Specificity: Supply chain specific assets, Resources, Institutions, Delivery infrastructure.
Environmental uncertainty can come from suppliers, customers, competitors, regulatory agencies, unions or financial markets.
Frequency of interactions between the buyer and supplier is importance for reasons of economies of scale.
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