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transactions on its Pro t and Loss Statement. As you may recall from 4, cash-basis companies do not recognize a transaction until a payment (for example, cash) is actually made or received by the company. In contrast, an accrual-based accounting system recognizes a transaction at the time a legal right or obligation to payment arises. Both cash-basis and accrual accounting systems recognize cash sales, but only an accrual-based accounting system recognizes all types of credit sales. For example, cash-basis and accrual systems treat the issuance of an invoice in dramatically different ways (if you can call accounting dramatic). An invoice is a form used to document a sale for which payment will occur at a later date. An invoice documents both a company s legal obligation to provide goods and/or services and its legal right to a payment. Issuance of an invoice is a recognizable accounting event for accrual companies, but it is not necessarily a recognizable accounting event for cash-based accounting systems. Accrual systems recognize and record an accounting event as having occurred at the time the rights to payment and delivery arose. Cash-based companies recognize an accounting event only to the extent that there has been a reduction in inventory or a payment along with the issuance of the invoice. Table 14-2 summarizes how cash and accrual accounting systems recognize cash sales, invoices, and statements.

(2.123)

Unlike the United States, where patients often demand the lat est drug therapies available, patients in Europe tend to be more comfortable with established, proven treatments..

So, to deal only with truly independent degrees of freedom, we use (2.123) to write E and B only in terms of half of the reciprocal space. We indicate that by writing a prime over the integral signs to indicate that they cover only half of reciprocal space:

In accounting, regardless of whether the term cash is used to describe an entire accounting system or a single event, it is used synonymously with payment by credit card or check. These forms of payment cash, credit card, and check are referred to as cash equivalents. For accounting purposes, the dollar value and legal rights associated with cash equivalents are assumed to be identical to the value and rights associated with payment in actual dollars.

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A useful tool for working out vector products is to write them down as determinants. Here is how the relation between vector products and determinants comes about. Let Xl. X2, and Xa be the unit vectors defining a right-handed Cartesian coordinate system, as in Figure E.1. Then the vector products between these vectors is given by

(E. 1) (E.2) (E.3)

The nancial status of the biotech industry in Europe is rated as fair on average The standouts are venture capital, rated as good and private in vestors, with a rating of poor Although venture capital nancing has re mained relatively strong since the global downturn in 2000, nancing through other sources is increasingly challenging Following nearly a decade of growth, the European biotech industry lost ground in 2002, with a drop in revenues by about 2 percent and pink slips issued to about 6 per cent of the biotech workforce, according to Ernst and Young The market cap of European biotech companies in 2002 was about $25 billion, com pared to about $200 billion in the United States The pharmaceutical industry nances about 20 percent of all research and development in Europe According to the EFPIA, this gure is higher than any other industrial sector in Europe.

QuickBooks allows you to easily record all types of customer payments and quickly allocate them to one or more invoices, including payments for sales that have not previously been invoiced. This Receive Payments window, shown

Also, for any vectors u, v, w, the vector product is distributive,

u/\(v+w) =u/\v+u/\w,

(E.4)

in Figure 14-10, allows you to enter speci c information about each payment. To enter a customer payment, follow these steps: 1. Go to Customers Receive Payments (or click the Receive Payments icon on your Customer Navigator screen). The Receive Payments window shown in Figure 14-10 appears.

u /\ (v /\ w)

However, the location of re search and development spending has shifted from domestic centers to off shore locations, including the United States In 1990, European pharmaceutical companies spent 73 percent of their research and develop ment funds in Europe By 1999, the gure was only 59 percent, due to the transfer of research and development activity to the United States Government nancing of the biotech industry varies considerably from one country to the next, and the results of government investment vary as well For example, the German government provided loans and develop ment programs to domestic biotech companies in 2000 However, accord ing to BusinessWeek, these companies, which were able to raise signi cant capital in 2000, were the hardest hit in the slump of 2002 In addition to loans, government support for biotech ranges from tax incentives to free advice for entrepreneurs and investors.

(u /\ v) /\ w,

2. Select an option for the Received From eld from the drop-down list, or choose <Add New> from the Received From drop-down list to set up a new job if you are tracking by the job. After you select the customer, a list of unpaid invoices appears in the window. 3. Select a payment method from the drop-down menu. QuickBooks allows you to select cash, check, barter, or credit card methods of payment.

(E.5)

(E.6)

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