Cash Discount For Gas Is A Joke

Accounting 12, Chapter 12

Link: http://www.courant.com/news/local/columnists/hc-ubinas1005.artoct05,0,423379.column


Summary
Remember couple weeks ago the gas price was as high as 1.20-1.50. That's when people use as low of an amount of gas needed as possible. This article is about the Legislature in the States passing a bill in June, hoping that they'll help the people in the gas prices. This bill allows gas stations to offer a 10% discount to people who pay by cash. Some people are angry of how they thought they were going to get a discount for gas but only to find that it was offered to people who pay cash. People are blaming the gas station owners when the gas station owners are the ones that are pushed with fees by the oil company and credit card companies.

Connection
Cash discount--a deduction in the price of an item for sale allowed if payment is made within a stipulated period or earlier.

This is the connection between the article and chapter 12 of Accounting 12. It is stated in the article that if you were to pay 100% fully in cash when you purchase gas, you would immediately receive a 10% discount. This is a cash discount because unfortunately, if people were to pay by credit card, they will not get any discount. Although this is a bill passed by the legislature, I think the gas station owners would like this bill too. They could receive the cash right away without waiting for people to pay their credits and also their fees that they may need to pay for the credit company would be reduced.

Reflection
Although this sounds like a good idea to pay full cash when purchase, I think it is unfair to the credit card users. Society today uses enhanced technology so it is more common to bring a single plastic card instead of a bundle of cash. People can get robbed and lose their cash and never get it back while others can just cancel their credit card if it is lost or stolen. In other words, credit cards are more convenient. If the government would like to help people with the outrageous price of gas, maybe it would be more reasonable that their help would affect everyone, not just a group of people like the cash users.

Paying a price for houses that aren't homes

Accounting 12, Chapter 11

Link: http://www.canada.com/vancouversun/news/story.html?id=165a2f84-b1f0-41cf-a494-568c87bdf8a4

Summary:
This article or somewhat of a blog is written by Shelly Fralic, found in the Vancouver Sun website and it talks about how many people are buying houses not for living in but investing it. Everyone wants to know what's selling and where, how much it is and who's buying it. Fralic thinks that everywhere we go, there's people talking about houses. She's frustrated that people aren't buying houses because of habiting in it but instead, investing it. She wonders why people aren't celebrating the affordable houses, but instead complaining that value of real estates are going downwards.

Connections:
The connection between this article and chapter eleven is that this idea of people investing on houses instead of living in them is similar to businesses that buy goods for the pupose of selling them for a profit. Many people are buying houses, wishing that the value of it would rise so that they could resell it. Like what Fralic said "Does it matter so much that your home's value might fluctuate in price over time, or that the profit on its future sale won't be the bonanza we expect?", it is possible that the houses may depreciate a lot over time and maybe in the end, they are not profitable anymore.

Reflection:
I think this reason of buying houses is ridiculouse because houses are suppose to be meant to be lived in. People should be fortunate that houses are getting cheaper. It is difficult to expect such high prices on houses because of how stock markets are going through a dramatic change and possibly a recession. Also, because of how the economy is right now, it is hard to expect a major profit through investing houses.