Management and Decision Making

Management ordinarily considers both financial and non financial information in making business decisions.

Financial information _ Related to revenues and costs and their effect on the company’s overall profitability.
Non financial information _ Relates to factors as the effect of the decision on employee turnover, the environment, or the overall image of the company in the community.
Decision-Making Process
1.Identify the problem and assign responsibility.
2.Determine and evaluate possible courses of action.
( Decision-making process occurs primarily in this step, relevant revenue and cost data are provided for each possible course of action and shows the expected overall effect on net income).
3. Make a decision.
4. Review results of the decision (evaluating possible courses of action, and reviewing results.
Internal reports are prepared that review the actual impact of the decision).
Incremental Analysis Approach 
Financial data relevant to the decision could vary in the future among the possible alternatives, the process of identifying financial data that change under alternative courses of action is
called Incremental analysis. Gathering data for incremental analyses may involve market analysts, engineers, and accountants. In quantifying the data, the accountant is expected to produce the most reliable information available at the time the decision must be made.
Incremental analysis
• Management’s decision-making process • Incremental analysis approach • Accept special-
price order • Make or buy • Sell or process further • Repair, retain, or replace equipment
•Eliminate unprofitable segment • Allocate limited resources.
Incremental Analysis
• Evaluation process • Annual rate of return • Cash payback • Discounted cash flow: NPV and IRR.

The Recording Process

The Account

• Debits and credits • Owner’s equity relationships • Summary of debit/credit rules

Steps in the Recording Process

• Journal • Ledger • Posting • Chart of accounts • The recording process illustrated

The Trial Balance

• Limitations of a trial balance • Locating errors • Use of dollar sign. 

An account is an individual accounting record of increases and decreases in a  specific asset, liability, or owner’s equity item, consists of three parts: a title, a debit side, and a right or credit side, we call it a T-account. For example, a company would have separate accounts for Cash, Accounts Receivable, Accounts Payable, Service Revenue, Salaries and Wages Expense, and so on. 

Debits and Credits

The term debit indicates the left side of an account and the act of entering an amount on the left side of an account is called debiting the account.

The credit indicates the right side and Making an entry on the right side is crediting the account. 

They are commonly abbreviated as Dr; for debit and Cr; for credit, We use the terms debit and credit repeatedly in the recording process to describe where entries are made in accounts.

When comparing the totals of the two sides, if the total of the debit amounts exceeds the credits an account shows a debit balance and account shows a credit balance if the credit amounts exceed the debits.

DEBIT AND CREDIT PROCEDURE __ For each transaction if every transaction is recorded with equal debits and credits, then the sum of all the debits to the accounts must equal the sum of all the credits. The equality of debits and credits provides the basis for the double-entry system of recording transactions, Under the double-entry system, the dual (two-sided) effect of each transaction is recorded in appropriate accounts. This system provides a logical method for recording transactions and also helps ensure the accuracy of the recorded amounts as well as the detection of errors. 

Generally Accepted Accounting Principles

The common set of standards that are generally accepted and universally practiced is called generally accepted accounting principles (GAAP). These standards indicate how to report economic events. In United States Financial Accounting Standards Board (FASB) is primary accounting standard-setting body. The Securities and Exchange Commission (SEC) is the agency of the U.S. government that oversees U.S. financial markets and accounting standard- setting bodies. The SEC relies on the FASB to develop accounting standards, which public companies must follow. Many countries outside of the United States have adopted the accounting standards issued by the International Accounting Standards Board (IASB), these standards are called International Financial Reporting Standards (IFRS).

Ginseng lowers the risk of cancer

Ginseng contain minerals, amino acids, saponins and various water soluble low and high molecular weight compounds.
Ginseng has been mainly used as a general tonic and helps to maintain the body's resistance to adverse factors and homeostasis, are at lower risk of cancers in the stomach, lung, liver, pancreas, ovaries, colon, and oral cavity, improves physical
and sexual function, general vitality and anti aging.
Ginseng and ginsenosides seem to be beneficial for immunity, cancer, diabetes and other conditions.
Ginseng root is used to treat diabetes and is given as a tonic for chronic use without adverse effects.
More than 90% of patients have type 2 diabetes, which is related to aging, low physical activity, diet, and lifestyle. The observations suggest that ginseng is beneficial for patients with type 2 diabetes and for non diabetic subjects to prevent development of diabetes.

It has been documented that ginseng therapy decreased fasting glucose, lowered body weight, and increased glucose utilization and insulin regulation in diabetic patients.

aloe vera benifits

Aloe Vera is one of the few herbal medicines in common usage and it is widely used in the cosmetic, pharmaceutical and food industries. Topical Aloe Vera play important role in conditioning skin and wound healing management including psoriasis, dermatitis, bum injuries and surgical wounds. Aloe Vera is good for constipation and gastrointestinal disorders.
Fresh whole-leaf extract  provide rapid relief from the itching and burning associated with severe roentgen (radiation) dermatitis and complete skin regeneration.
 Aloe Vera is used in the cosmetic, food, and pharmaceutical industries.
It is used as a base material for skin moisturizers, shampoos, soaps,  sun blocks, makeup creams, perfumes, shaving creams and many other products.
The food industry uses Aloe in the manufacturing of functional foods, especially health drinks.
Oral application of the Aloe Vera latex is promoted as a laxative, whereas gel and whole-leaf oral preparations have been variously recommended for use as an adjunct to chemotherapy treatment and to ameliorate diverse disorders such as  infectious diseases, metastatic cancer and ulcerative colitis.
Aloe Vera gel preparation in the treatment of slight to moderate psoriasis vulgaris.
Aloe Vera has long been associated with the treatment of burns.
Use oral Aloe Vera in the treatment of a wide range of conditions, such as alopecia. Alzheimer's disease, congenital heart failure, depression, glaucoma, hemorrhoids, hepatitis, multiple sclerosis, and varicose veins; however, scientific investigations of such claims are limited.
It is used in the treatment of constipation, metastatic cancer, and ulcers and inflammation of the gastrointestinal tract.
Aloe Vera , celandine, and psyllium was found to improve a range of constipation indicators (bowel movement frequency, consistency of stools, and laxative dependence. Aloe Vera laxative preparations has been approved by the German Commission K governmental regulatory agency for use in the treatment of constipation as a second-line agent.
Aloe Vera gel or placebo combination lower blood glucose.

Bilbarry promotes vision

Vaccinium myrtillus L. Bilberry  is one of the richest natural sources of anthocyanins and is classified as a Class 1 herb by the American Herbal Products. It can be safely consumed when and there are no contraindications to its use.
Bilberry is sold as fresh, frozen, and dried whole berries, It contains a variety of phenolic compounds, including flavonols (quercetin, catechins), tannins, ellagitannins, and phenolic acids, but anthocyanins make by far the largest contribution to its phytochemical mix.
These poly phenolic components give bilberry its blue/black colour and high antioxidant content and they are believed to be the key bio actives responsible for many health benefits of bilberry and other berry fruits, these naturally occurring phenolic compounds are redox-active antioxidants as well as iron chelators and are found in red-, blue-, and purple-colour flowers, fruits and vegetables.
Bilberry  jams, juices, liquid or powdered concentrates are sold as food supplements.
Bilberry is promoted most commonly for improving vision, lower blood glucose, promote antioxidant defence and lower oxidative stress.
Besides its use as a delicacy, bilberry is widely used to improve night vision and to decrease vascular permeability and capillary fragility, prevent the conditions associated with inflammation, increased oxidative stress, cardiovascular disease (CVD), cancer, diabetes and other age-related diseases.
Anthocyanins and bilberry have antiobesity and hypoglycemic effects, which would bring cardio protective benefits.
Regarding blood pressure and vascular health, bilberry fruit anthocyanins  inhibit smooth muscle contraction and  platelet aggregation.
Inflammation is a protective mechanism, but chronic inflammation increases oxidative stress and underlies many age-related diseases, including CVI) and cancer.
Bilberry has a long history of use for eye disorders and in promoting vision. There have been numerous studies of the effects of bilberry on various aspects of vision and ocular disorders, including cataract, retinopathy, macular degeneration, and night vision.
Many studies have shown positive effects, including improvement in retinal abnormalities, increased capillary resistance, slowing of progression of lens opacity and myopia, and improved dark adaptation.
Improved memory, vision, and sensory input, Prevention of diabetic retinopath and preservation of vision.
Less insulin resistance; lower risk of/better control of type 2 diabetes; fewer micro- and macro vascular complications, less obesity, lower risk of inflammation-related disease.
Lower blood pressure; improved lipids; lower risk of CVD and stroke, Less mutation; belter detoxification of xcnobiotics; belter control of cell growth; lower risk of cancer, Less risk of oxidative stress-related disease.
Better treatment of infectious disease and have anti-inflammatory effects.

Although most attention has been focused on the antioxidant properties of anthocyanins in relation to health benefits of bilberry, the effects are likely to extend beyond simple antioxidant action to involve cell-signaling pathways, gene expression, DNA repair, and cell adhesion, as well as anti-neoplastic and antimicrobial effects.

citric acid cures acne

Fruit acids such as citric, tartaric acids, gluconic, glycolic, gluconolactone and malic because of their exfoliative properties can be used topically to treat acne. Gluconolactone is effective in clearing inflamed and non inflamed acne lesions as 5% benzoyl peroxide and more effective than placebo. Irritation is the main adverse effect of fruit acids, especially in higher concentrations.
Due to astringent properties Tannins can be used topically to treat acne.
Hamamelis virginiana__Witch hazel bark extract is commonly used remedy by making a decoction from 5 to 10 g of herb in a. cup (0.24 L) of water, it is considered very safe to use topically.
Similar astringents can be made from white oak tree bark or the English walnut tree bark, should be strained before use and can be used two or three times a day.
Tea tree oil is an essential oil extracted from the leaves of Melaleuca alternifolia, dissolve 5% tea tree oil in a water-based gel with 5% benzoyl peroxide.
Bitter herbs  stimulate digestive function, including acid secretion improves acne. It is also approved that topical bittersweet nightshade and orally administered brewer's yeast for the treatment of acne because of their antimicrobial effects.
Topical duckweed is used in China to treat acne, herbal mixtures are also used in China both internally and externally to treat acne.