http://www.nytimes.com/2008/11/15/business/15citi.html?scp=1&sq=%22credit%20card%22&st=cse
Summary:
This is an article that talks about increasing the credit card rate in the U.S. This is a decision made by the citigroup, and it actually pledged for what they have said in the early 2007. By making such decision, the citigroup said it was due to the difficult market environment, which cut down too much of their profits. Most of the credit card holders’ interest rate will raise when they November statements. As a result, because of the fall of the economy, most of the business are not making as much as before, so one of the ways that most businesses think will help them is by increasing the amount of money that their customers have to pay.
Connection:
In chapter 14.2, we have learned about credit cards. Unlike debit card, people can use credit cards without pay the money in the first place. In another word, when people are using a credit card to purchase something, they are “buy first, pay later”. However, when the cardholder pays the credit card bill, one has to pay an interest on the amount they have used as well. Therefore, the higher the interest rate one’s credit card has, the more one needs to pay; however, the higher the interest rate one’s credit card has, the more money one can use at a time.
Personal Reflection:
In my opinion, I do not think that increasing the interest rate at this moment is a good idea. As everyone knows that we are now in an economy depression, and a lot of people are getting lay off from their jobs. For those people who just became unemployed, they may loss their ability to pay back the bank for the credits sooner or later. Also, some people may think that they don’t want to be in debt, so they would use cash instead use credit cards. As those people keep taking out money from the bank, the bank has less and less money to loan to other people, this may lead to bankruptcy. Therefore, I think that the bank should lower the interest rate which cause more people will use the credit card and save the cash, so that the bank will not run out the money.
Monday, December 8, 2008
Thursday, October 30, 2008
Chapter 12 article
http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9A06E4DB113CE733A25755C1A9619C946796D6CF&oref=slogin
Summary:
This is an article from The New York Times in July 6th, 1916. This is an article that talks about the problem of cash discounts which still exists today. The problem of cash discounts it is talking about in the article is that is cash discounts useful, and should they abolished cash discounts. Cash discounts’ primary purpose is to encourage business to quickly pay their bills. However, because of the growth of the banking system, cash discounts have been largely reduce. Therefore, some people found there are no point to give out discounts, since the discounts are so little which they can’t encourage anyone to pay faster.
Connection:
In chapter 12.3, it introduces cash discount. In order to encourage the customers to pay promptly or early, cash discounts have been offered to the consumer. Although this article is about a century ago, this issue still exists. From the textbook, we can see that most of the discounts are around one to two presents when the customer pays within a certain days. However, one or two presents discounts are not going to make that much difference if the customers purchase a small among of merchandises. In this case, those customers are not going to pay earlier for the discounts. As a result, the cash discount may not achieve its original purpose when it is offer to the small business.
Personal Reflections:
Even though the article is very old, I think it brings out an important issue that most students never think of. After I read this article, I do want to find out more about this topic: “Is cash discount effective on encouraging customer to pay on time?” I am also thinking besides cash discount some there other methods that may be as effective or more effective and are able to apply to both large and small business to get customers pay one time, such as providing some special services.
Summary:
This is an article from The New York Times in July 6th, 1916. This is an article that talks about the problem of cash discounts which still exists today. The problem of cash discounts it is talking about in the article is that is cash discounts useful, and should they abolished cash discounts. Cash discounts’ primary purpose is to encourage business to quickly pay their bills. However, because of the growth of the banking system, cash discounts have been largely reduce. Therefore, some people found there are no point to give out discounts, since the discounts are so little which they can’t encourage anyone to pay faster.
Connection:
In chapter 12.3, it introduces cash discount. In order to encourage the customers to pay promptly or early, cash discounts have been offered to the consumer. Although this article is about a century ago, this issue still exists. From the textbook, we can see that most of the discounts are around one to two presents when the customer pays within a certain days. However, one or two presents discounts are not going to make that much difference if the customers purchase a small among of merchandises. In this case, those customers are not going to pay earlier for the discounts. As a result, the cash discount may not achieve its original purpose when it is offer to the small business.
Personal Reflections:
Even though the article is very old, I think it brings out an important issue that most students never think of. After I read this article, I do want to find out more about this topic: “Is cash discount effective on encouraging customer to pay on time?” I am also thinking besides cash discount some there other methods that may be as effective or more effective and are able to apply to both large and small business to get customers pay one time, such as providing some special services.
Wednesday, October 8, 2008
Chapter 11 article
http://www.mbtmag.com/article/CA6600235.html&
Summary
This article is about the latest version of an IBM System named Info ERP XA. This system is a comprehensive system that can master order processing, inventory management, production reporting and many other functions. Compare to the previous system, info ERP XA 7.8 been improved in a lot of area. It is faster in retrieving data and all other performance. It can also automatically update the accounts such as accounts receivable, accounts payable, and cash. Besides, this version updates the currency decimal point for various foreign monies. Therefore, the newest version of info ERP XA helps the accountants save up a lot of time.
Connection
In chapter 11.5, the book talks about the history of the perpetual inventory system. First, people uses a card file to record all the information, and then made copies of receiving reports every time. All the financial statements were also written out. In now days, people will do the inventory management and financial statements on the computer. Now we also can use only a single system to do all those things, and it has so many extra functions, so the chance of making a mistake has reduced to the lowest.
Personal Reflection
After I read this article I am amaze by the numbers of things that the Info ERP XA can actually do. I realized that I really have a very limited knowledge of the accounting world. Before I thought that the financial statements and inventory management are all done in Microsoft Office. Then later on I knew that there are some specific softwares for doing those kinds of things such as Simple Accounting. However, I never thought of that one single system can manage to do all of the things in accounting.
Summary
This article is about the latest version of an IBM System named Info ERP XA. This system is a comprehensive system that can master order processing, inventory management, production reporting and many other functions. Compare to the previous system, info ERP XA 7.8 been improved in a lot of area. It is faster in retrieving data and all other performance. It can also automatically update the accounts such as accounts receivable, accounts payable, and cash. Besides, this version updates the currency decimal point for various foreign monies. Therefore, the newest version of info ERP XA helps the accountants save up a lot of time.
Connection
In chapter 11.5, the book talks about the history of the perpetual inventory system. First, people uses a card file to record all the information, and then made copies of receiving reports every time. All the financial statements were also written out. In now days, people will do the inventory management and financial statements on the computer. Now we also can use only a single system to do all those things, and it has so many extra functions, so the chance of making a mistake has reduced to the lowest.
Personal Reflection
After I read this article I am amaze by the numbers of things that the Info ERP XA can actually do. I realized that I really have a very limited knowledge of the accounting world. Before I thought that the financial statements and inventory management are all done in Microsoft Office. Then later on I knew that there are some specific softwares for doing those kinds of things such as Simple Accounting. However, I never thought of that one single system can manage to do all of the things in accounting.
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