
Career Development, Delaware Investments, Good News



The $70,000 is added (via debit) to the Assets. At the same time, to maintain the equality in the accounting equation, there is also $70,000 added to the Owners' Equity (via credit).
I think you are starting to get the idea! You had an increase in assets (via debit) when you received the money, and an equal increase in the Owners' Equity (via credit). If take a look, the accounting equation remains true and the debits equal the credits.
This time you are merely exchanging one asset for another, so there is no change to the Liabilities or to the Owners' Equity.
In this final example, the company has made an obligation for itself which must be recorded. There is a decrease in the Owners' Equity (via debit) and a corresponding increase in the Liabilities (via Credit).

Event: A happening that will cause a change in assets, liabilities, or equity.
Transaction: An external event between two or more entities.
Account: An arrangement of transactions to show the effect of transactions and events on assets and equity. There should be an account for each asset, liability, expense, and for capital.
Real Accounts: Permanent accounts set up for assets, liabilities, and equity. These accounts will appear on the balance sheet.
Nominal Accounts: Temporary accounts such as revenue, expenses, and dividends. These accounts will be closed periodically.
Ledger: The book or computer file that contains all of the accounts.
Journal: The book of original entry. All transactions and events are recorded here first, and later posted from here to the ledger.
Trial Balance: A list of all open accounts in the ledger and their balances. Two types of trial balances are the "adjusted trial balance" and the "post-closing" trial balance.
Adjusting Entries: These are made at the end of an accounting period so that accurate financial statements may be prepared.
Financial Statements: Final summaries (or scorecard) of accounting data for a given period. The types of financial statements are the balance sheet, the income statement, the statement of cashflows, and the statement of retained earnings.
Closing Entries: The entries that close out the nominal accounts for the period, reducing them to zero. This is when a net income would be determined and transferred to an owners' equity account.
So what is this thing called "Accounting" anyway? It's simply a series of methods and processes used to track and report the financial flow in a business. ACCOUNTING TOPICSIntroduction To Accounting Useful Terminology Debits & Credits Basic Accounting Equation The Accounting Cycle
- Journalizing
- Posting To The Ledger
- Trial Balance
- Adjusting Entries
- Adjusted Trial Balance
- Closing Process
- Post Closing Trial Balance & Reversing Entries
Work Sheet Preparing Financial Statements
- Review Of The Elements of A Financial Statement
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
Ethics in Accounting Summary of Topics Covered

Companies are in the business of making money.
This is a measure of telling how much money a company made in profit for every dollar the company made in sales. This can be useful for investors and analysts, it can be more useful tool for the decision makers inside the company. It can be a way for them to see what products or services are costing too much and if cost controls are working.
Rome Inc.: The Rise and Fall of the First Multinational Corporation
Julius Caesar was more than just a pre-modern day Mogul and CEO. He was an example of how to acquire an empire and how to lose it. The book describes some of Caesar's attributes such as:
Ambition - he set a higher standard for himself. He compared himself to the great Greek CEO tyrant Alexander.
Boldness - He did what he thought needed to be done, when he wanted to do it. He didn't feel that it was always necessary to follow what was done in the past.
Planning and Strategy - Caesar followed the old Sun Tzu dictum that you should not engage in battle until you are assured victory. In the rare situation where his army was outmatched, Caesar had no problem with calling it a day. How many others would continued to waste resources on projects that are destined for failure simply to save face.
Quotable - Caesar was much like President Reagan. He was a master communicator and he could turn a phrase that could encourage all of the land.
A discussion about Ben Bernanke and the Fed would not be complete without a discussion of where the Fed Funds Rate is going? The current rate is a 4.25%. How can you predict this ahead of time, and perhaps ahead of the markets? Can managers prepare for these changes? Predicting what decision the Fed is likely to make can be a valuable tool for financial analysts, managers, and investors. An article by Michael Hunstad in the November "AFP Exchange" journal describes 5 predictive indicators that can be observed prior to a fed decision.Sudden CPI Shock: A slow growth or decline in the CPI is less likely to prompt Fed Rate action than that of a rapid, sudden jump. Should there be a spike in the CPI, inflation may be perceived as quickly rising and the Fed will be more likely to raise rates to curb spending.
Long Leading Indicator: Put out by The Conference Board, this is an indicator relating to economic growth. When there is stronger growth, the Fed may be more likely to raise rates to keep the economy from overheating. The Fed may also be more likely to lower rates if economy appears to be contracting.
Corporate Credit to 10-Year Treasury Spreads: The difference in yield between a "Baa" rated corporate bond and a 10-year U.S. Treasury Bond can be important. The greater the spread, the greater the perception of risk of companies with low credit ratings. As these companies are often the ones most affected by a recession, a greater spread can be a leading indicator of a coming downturn in the economy. The Fed in observing this my lower rates to reduce the severity and duration of the recession.
Spread between 6-mo T-Bill and Fed Funds Rate: When these bonds approximately equal the Fed Funds Rate, the economy is in near equilibrium. However, a deviation in which the 6-mo T-Bill rate is lower than the Fed Funds Rate represents investor confidence in anticipating a rate cut. As Mr. Hunstad states in his article "This results as T-Bill investors are willing to take a lower yield today because they expect future interest rates to be lower". The Fed may be likely to move in that anticipated direction.
Previous Fed Action: This is the easy one. A Fed Funds Rate in motion is likely to remain in motion, a Rate at rest is likely to remain at rest.



QUADRANT I: IMPORTANT AND URGENTTime management can be a daily struggle, but it is a struggle worth undertaking. It can help guide you and help you find your limits. Proper use of the guide above will help you answer the question: "What is the best use of my time?"
If you are spending most of your time in quadrant I, then you are likely always stressed and putting out fires. One of the primary problems faced by people living in Quadrant 1 is that when everything is important, nothing is important. By understanding that, you can begin to prioritize tasks. Does that task really need done now, by me? Can that be delegated? Do I need to volunteer for it? How important is it really? With proper planning, fewer tasks will become urgent since they can be taken care of ahead of time.
QUADRANT II: IMPORTANT BUT NOT URGENT
Here is where you are going to get things done. You can spend time working today to prepare for tomorrow. Why put off tomorrow what can be done today? You don't need to finish these tasks right away, but get them started. Think about it like you were building Rome. Before you can build the Colosseum, you should lay down some thick slabs of stone to act as a foundation. These first steps in your long range tasks may be that important, even if they are not urgent or pressing upon you immediately. All of those later steps will build one upon another, like brick upon brick. Before you know it, your task will be done (or Colosseum built if you're a Roman). To maximize your productivity, you should spend most of your time in Quadrant II.
QUADRANT III: NOT IMPORTANT BUT URGENT
Here is a tough choice- to pick up that ringing cell phone or to let it go to voicemail? It can be a tough choice because you may not know who it is or why they are calling. It is something that is urgent, but not necessarily important. There are many tasks that can fill a person's day, but they may not all be the most productive choices. Look at what you need or want to do, and determine which tasks you don't really need to do because they are not really that important. One task that I've had trouble with is the news. I'm a news junkie and I love checking sites like the Drudge Report to see what's going on minute-by-minute. However, I need to fight that urge because it is a waste of time. The news, if not applicable to your life, may be urgent but not important.
QUADRANT IV: NOT IMPORTANT AND NOT URGENT
This is the most useless waste of time. Nothing accomplished here will actually change anything in your life or anyone else's. This is the quadrant of "waste" as Mr. Covey would call it. Hours checking Wikipedia for useless facts, watching 85 episodes of Stargate, or mindless debate of unimportant issues fill this quadrant. Although it can be enticing to lose yourself for a while, Quadrant IV can be destructive if you spend large amounts of time there.
Product #1: Halls Cough Drops - I've used a ton of these. It helps clear up my nose with "Vapor Action". Produced by CadburyAdams, a unit of Cadbury Schweppes, you can invest in through ADRs (American Depository Receipts) on the New York Stock Exchange under the symbol CSG.
Here's the company website for Cadbury Schweppes.
Product #2: Wawa Black Tea with Lemon & Honey - really soothing on the throat, and I highly recommend it. It's a privately owned company, so you really can't invest.
Here's the company website for Wawa.
Product #3: Tylenol Cold Multi-Symptom Day & Night Pack - This helped me get through last night when I was having trouble sleeping and breathing at the same time. Tylenol is a product of Johnson & Johnson, McNeil. You can invest in Johnson & Johnson under the stock symbol JNJ.
Here's the company website for Johnson & Johnson.
Product #4: Zicam Cold Remedy - I don't know if these will work yet or not. My girlfriend Chris convinced me that they are really good, so we'll have to wait and see. This is a product of Matrixx Initiatives, which is on the NASDAQ under stock symbol MTXX.
Here's the company website for Matrixx Initiatives.


