Free Financial Accounting Essays and Papers
Financial Accounting Financial accounting or ‘book-keeping’ is the process of recording financial transactions from the day-to-day operation of a business. The sale of goods to a customer and the subsequent settlement of the debt are two examples of financial transactions. Sales Accounting When credit sales are made to customers, a record needs to be kept of amounts owing and paid. Payment is normally requested with an invoice. An invoice usually gives details of goods supplied, quantities
Just Data 2-1.A. Given: A=$95,000; L=$40,000 OE = 95,000 - $40,000 OE = $55,000 2-1 B. Given: A = $65,000; OE = $40,000 L = $65,000 - $40,000 L = $25,000 2-1 C. Given: Current Assets = $25,000; L = $40,000; OE = $55,000 Non-Current Assets = $95,000 - $25,000 Non-Current Assets = $70,000 2-1 D. Given: Current Ratio = 2.2:1; Current Asset = $33,000, Non-current Asset = $55,000; Liabilities = $15,000 Current Liabilities = Current Assets / Ratio Current Liabilities = $33,000/2.2 Current
Financial Accounting Standards
Accounting for financial instruments and the issues that go along with it have been an ongoing issue throughout the years for businesses. As a result the Financial Accounting Standards Board have handed down decisions regarding the valuation method that should be used. Whether these decisions are truly the best way to value financial instruments has been up for debate. The earliest decision came down in May of 1993 when the Financial Accounting Standards Board passed Statement of Financial Accounting
Introduction Financial accounting that is about reporting and summarizing the transactions of business and provide an accurate financial reports or financial statements such comprehensive income and finacial position (Averkamp, 2014). However, if investing in a business and want to acquire more profit, the financial statemnet of company is must be analysed before taking a decision. This essay will explains that financial statements between two companies about four years comprehensive income statements
Financial Accounting Companies operate to achieve varies goals. They may be interested in providing a healthy work environment for their employees, in reaching a high level of control, or making contributions to civic and social organization and activities. However, to meet these goals, a company must first achieve its two primary objectives: earning a satisfactory profit and remaining solvent. If a company failed to meet either of these objectives, it will not be able to achieve its various
The Role of Financial Accounting in Business
paper is meant to give an informative view on how financial accounting is used to help small and large businesses make positive and safe financial decisions. It is designed to help small business owners without a vast knowledge or understanding of accounting or of financial reports achieves maximum growth. We will examine the importance of financial reports as well as being able to account for a company’s assets and spending. Through proper accounting and reporting companies have a better way of assimilating
Accounting - It is the process of identifying, recording and summarizing economic data about the organization and reporting it to decision makers. Financial Accounting - It serves external decision makers such as Stockholders, suppliers, banks, and government agencies Management Accounting – It serves internal decision makers, such as top executives, department heads, college deans, and other people at management levels within the organization. Questions on Financial situation about the
The Financial Accounting Standards Board (FASB)
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To help accounting professionals easily navigate through 50-plus years of unorganized US generally accepted accounting principles (GAAP) and standards the Trustees of the Financial Accounting Foundation approved the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification.) By codifying authoritative US GAAP, FASB will provide users with real-time and accurate information in one location. Concurrently, FASB developed the FASB Codification Research System; a web-based
Financial Accounting: The Purpose Of Cost Accounting
Cost accounting is a structure of determining the costs of services or products. It has fundamentally created to address the issues of administration. It gives exhaustive information about the cost to various levels of administration for proficient execution of their operations. Finance accounting gives data about profit, loss etc., of the combined activities of the business. It doesn't give the information with respect to expenses by departments, products and processes so on. Financial accounting
The Financial Accounting Standards For Lessee Accounting
activity for many organizations, lease accounting standard needs to provide users of financial statements a faithful representation of an entity’s leasing activity (FASB, Financial Accounting Standards Board). Currently, the accounting standard model requires the lessees or lessor to classify their lease as capital leases or operating leases and it should be accounted differently. This topic has always been a controversial for many people because the current accounting standards for leases allows corporations
Financial And Management Accounting, The Fundamentals Of Management Accounting
ACCOUNTING – UNIT 3 Explain the difference between financial and management accounting, the fundamentals of management accounting. Explain how costs are classified using examples. Accounting is a systematic process or work that identifies, records, reports and analyses financial transactions and information of a business. It allows a company to analyse the financial performance of a business and reveals profit or loss for a certain period of time and the value of assets, liabilities and owners’
Assignment: Financial Accounting
Accounting Individual Assignment Ma Jingwen Financial accounting is the process of recording and analyzing quantitative and financial information of business operations, which essentially are transactions between the company and external partners, in a certain period of time for the purpose of making better business decisions. Financial accounting is a key process of business management, some experts even believe that, without financial accounting, the business activities are temporary. In regard
Cost Accounting And Cost Accounting Vs. Financial Accounting
There are two branches of accounting: Management Accounting (Cost Accounting) (MA) and Financial Accounting (FA). MA is concerned with the provision of information to people within the organisation to assist them make better decision regarding business operations and this is called internal reporting. Where else, FA is concerned with providing information to external partied outside the organisation and this is called external reporting. The function of FA is the recording and control of business
Financial Accounting Essay
ACC4210 FINANCIAL AND MANAGEMENT ACCOUNTING FINANCIAL ACCOUNTING – ESSAY Prepared By TAUSEEFAHMED SHAIKH (M00481867) (M.Sc. in Financial Management) Topic Critically evaluate whether the extent of regulation relating to financial reporting is excessive and should be reduced. INTRODUCTION There are different understandings of financial reporting. In general terms, we can equate it to reporting of “external accounting”; which indicates an accounting that disseminates through internal business
Compare And Contrast Financial Accounting And Managerial Accounting
Comparimg and Contrasting Financial Managerial Acctounting American Public University ACCT 105 Joshua Bone Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards
Accounting and Financial Statements
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In this essay I am going to explain and identify external users of accounting information and give detail on the main characteristics and how these characteristics and the conceptual framework develop the benefits of financial statements for external users. Financial accounting includes information distributed to external users that are not part of the enterprise, e.g. stockholders, creditors, customers and suppliers, although the information is also of interest to the company's officers and managers
Mangerial And Financial Accounting Report
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Managerial and Financial Accounting Report The role of managerial accounting is increasing. These managers have to be able to increase effectively the involvement and size of organizations. These business managers also have to be aware of the rapid growth and enactment of technology. Managers also have to be familiar with the regulatory environment, be able to contend successfully globally and have an increase importance on excellence. When examining the major differences between financial and managerial
Principles Of Accounting: Accounting And Financial Management
BAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja Sarah Thomas Colleague of Electrical Electronics Engineering Introduction In this report I am going to write some of the important principle and assumption and guidance used to prepare accounting statements. In the world of business there are some general rules and principles which the universe of accounting uses them as a general guidance. There are some international framework like Financial accounting
An Interface Between Financial Accounting And Cost & Management Accounting
Introduction: The basic objective of accounting is to provide information that is useful in making business and economic decisions. What makes accounting information useful for decision-making? The answer is however the accounting information confirms to the qualities that should be possessed by the financial and cost & Managerial reporting. In view and addition to this, the importance of strategic cost management and costing techniques like Activity based costing should not be underestimated. This
Difference Between Financial Accounting And Managerial Accounting
Accounting has to be one of the most vital components when operating a business; regardless of the size of the business. According to Investopedia, accounting is the systematic and comprehensive recording of all financial transactions pertaining to a business and the process of summarizing, analyzing, reporting transactions to oversight agencies and tax collection entities (2017). Consequently, there are two types of accounting: Financial Accounting and Managerial Accounting that will be compared
- Financial Aid
- Financial Analysis
- Financial Analyst
- Financial Aspects
- Financial Comparison
- Financial Crisis
- Financial Data
- Financial Education
- Financial Effects
- Financial Institutions
- Financial Intermediaries
- Financial Management
- Financial Manager
- Financial Markets
- Financial Performance
- Financial Ratio Analysis
- Financial Ratios
- Financial Report
- Financial Reporting
- Financial Services
- Financial Statements
- Financial Status
- Financial Support
- Financial System
financial accounting Essay
Outline 1. Introduction (1) The definition of financial accounting (2) Trends of financial accounting and business management (3) Thesis statement 2. Principles and standards of financial accounting (1) Consists of financial accounting (2) Principles of financial accounting (2) Standards of financial accounting 3. Financial accounting perform useful information to make decision (1) Introduction of users in financial accounting (2) Roles in business management (3) Importance of financial accounting for managers 4. Financial accounting assists business in analysing past events and in planning future events (1) Assistance business in analysing past events (2) Assistance business in planning future events 5. Benefits of financial accounting for business management 6.Conclusion Accounting is often called the “language of business”. Accounting is part of the total information system within a business and one of main strands is financial accounting. Financial Accounting plays an important role in our economic and social system. Financial accounting is the way in which a business, company or other economic entity measures and record transactions in a regular period (Warren & Fess 1988).These periodic reports will accord different requirements to use for different users. The current economic environment has had a significant impact on financial accounting due to the globalization and the financial crisis. For example, Greece has faced a debt in crisis and major companies such as Lehman Brothers Investment Company have become bankrupt recently. It is argued that financial accounting system has safe issues which are principles and standards of it. At the same time, financial accounting reports or statements are becoming more and more complex than before. Nonetheless, many problems and situations still cannot be avoided. This paper will argue that financial accounting is vital to business managers as it allows for effective analysis of past performance and so the ability to make sound decisions about future polices and directions. The purpose of this essay is to firstly explain the meaning of financial accounting and its role in assisting all stakeholders with accurate decision making. Specifically it will analyse how business managers can use accounting records from the past tomak strong management decisions for the future. Financial accounting is made up of four parts, these being the balance sheet; the income sheet; the statement of cash flows; and the notes that provide essential details (Porter & Norton 2007). The balance sheet shows a summary of a company’s assets and liabilities and communicates information about the financial position of an entity at a particular point in time. The income statement describes the income and the expenses in a period of time, while the statement of cash flows shows cash resources and how much cash can be used. Finally, the notes provide essential descriptions giving the company’s accounting policies and other crucial information (Porter& Norton 2007). All business activities will involve accounting, especially financial accounting. Financial accounting itself is a complex activity and accountants need to be guided in their work by relevant principles. Hence, the principles of financial accounting are fundamental in the business process. There are six accounting principles that are generally accepted. As Collis and Hussey (2007) describe, these six principles that underpin financial accounting are: the materiality concept; money measurement concept; historical cost concept; consistency concept; prudence concept and the business entity concept. The concept of materiality is the principle which states only accounting information that crucial materials are included in the financial statement. The concept of money measurement is the principle that only items that provide Show More
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Financial Accounting and Its Importance Essay
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Financial accounting is an important part of every business, corporation, and other organizations that operate with various sums of money. This system helps people count their profits, calculate their regular expenses, and operate their financial means properly. The following paper will explain what financial accounting is and what role does it play in a corporate environment.
Financial accounting is a number of certain operations in any business or profitable organization that are intended to summarize, analyze, and report every transaction that is somehow related to the company’s activity. People who work in this sphere are usually responsible for making quarterly and annual reports that should reflect all the expenses and earnings of the business for a set period. Sometimes, accountants are expected to prepare financial statements that will be published on sources open to consumers or other people interested in this information (Bushman, 2014). Usually, this data is beneficial for stakeholders, workers, government services, financial institutions, and businessmen to help them make correct decisions as to their investments or collaboration with a particular company. Financial accounting departments’ employees must follow professional standards established by both transnational and local organs related to the given industry. Nevertheless, the rules set by GAAP (Generally Accepted Accounting Principle) always have to be regarded by people who work with financial operations and reports. This doctrine includes all the ethical, professional, and organizational rules accountants must refer to when they summarize and prepare different financial statements. There is another set of accounting rules called IFRS (International Financial Reporting Standards). Information presented in this source is used by professors of all Universities in the world and qualified specialists to identify how various types of transactions have to be reported not to confuse individuals who will have to deal with the given records in the future (Narayanaswamy, 2017). As IFRS develops and becomes more accurate every year, transnational corporations use its standards more often recently. When professional accountants work on their reports, they must remember every factor presented below:
- Relevance. All the provided data must be accurate as it has to help people make their decisions based on the statistics they obtain from financial departments of different firms.
- Materiality. Every mistake made in a report might lead to other individuals’ material loses. Therefore, every recorded number or a sum of money has to be checked several times before publishing.
- Reliability. Only people who are trusted and have enough experience can be allowed to operate such financial operations as making reports as their competence can influence several consequential mistakes (Wang, 2014).
- Lucidity. Every person who reads financial reports has to understand all the presented information clearly and without any difficulties. This requirement can be accomplished only by a skilled professional.
- Comparability. As financial reports are updated once a set period, they have to be comparable because other employees need this factor to define and calculate certain tendencies in their company’s profits and expenses.
The number of small business has been increasing rapidly all over the world within the past two to three decades. Therefore, the profession of financial accountants is now valued and appreciated more than it was in the previous century. It appears that accounting is a crucial element of every business, regardless of its size, profits, and other similar factors. Profitable organizations cannot exist without making and summarizing their financial reports. The significance of accounting in any corporate environment is tremendous because it lets managers see all the transactions their companies made for a specified period. This statistic is helpful as it demonstrates all the results that were achieved according to a certain plan or without it. The organization of the cash flow must be managed correctly to allocate all the earned money properly and to maintain the business profitable (Pratt & Peters, 2017). There are many examples in the history when people forgot about making financial reports after establishing their businesses. This mistake influenced specific difficulties in these companies that led to their bankruptcy. It would be proper to mention that all the earnings have to be recorded correctly as minor mistakes in financial statements might lead to various unintended law violations. All these reports have to be provided to the State Tax Inspectorate in time (Warren & Jones, 2018). Otherwise, the business owner might have to pay additional fees for not following the requirements of his or her professional activity. It is necessary to state that financial accounting is also used in a corporate environment to assess the amount of financial means that can be invested in the development of a certain organization and the sum that has to be kept to cover all the utilities, supplying services, and other monthly expenses. In general, accounting is a central activity of any organization that deals with money (Henderson, Peirson, Herbohn, Artiach, & Howieson, 2017). Every profit loss can be determined with the help of monthly reports as well.
Financial accounting is a process of reports that display all the expenses and earnings of a particular firm. This factor is essential for every profitable organization because it controls all the cash flows in a corporate environment. This work has to be completed accurately and only by skilled professionals that can calculate every figure appropriately and without any mistakes.
Bushman, R. M. (2014). Thoughts on financial accounting and the banking industry. Journal of Accounting and Economics, 58 (2-3), 384-395. Web. Henderson, S., Peirson, G., Herbohn, K., Artiach, T., & Howieson, B. (2017). Issues in financial accounting . Melbourne, AU: Pearson Australia. Narayanaswamy, R. (2017). Financial accounting: A managerial perspective (6th ed.). Delhi, ND: PHI Learning Private Limited. Pratt, J., & Peters, M. (2017). Financial accounting in an economic context . Hoboken, NJ: John Wiley & Sons, Inc. Wang, C. (2014). Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research, 52 (4), 955-992. Web. Warren, C., & Jones, J. (2018). Corporate financial accounting . Saint Louis, MO: Cengage Learning.
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Accounting in Australia Accounting Basically Incorporates the
Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for more than two centuries. Currently, the regulatory framework in Australia is characterized by various regulatory agencies since there is no single organization that is responsible for setting standards for the accounting profession in Australia. There are claims that the current system of setting standards for accounting in the country is over-regulated. egulation of Accounting: Similar to other professions, the accounting profession is described by the knowledge, skills, attitudes, and ethics of the professionals in the field. Therefore, the regulation…
Australian Government -- The Treasury (n.d.), Self-regulation of the Accounting Profession,
Australian Government -- The Treasury, viewed 21 March 2012,
Gaffikin, M.J.R. (2009), Regulation as Accounting Theory, University of Wollongong, viewed
21 March 2012,
Accounting and the Public Interest The Accounting
Accounting and the Public Interest: The accounting profession is not only an integral aspect of the society but it also plays a critical role in the nation and the corporate sector. As a result, this profession is expected to serve or contribute towards the public interest. The ability of the accounting profession to contribute towards the public interest is determined in the context of its standard setting process and legislation. In this case, the public interest is described as the net benefits developed for, and practically used on behalf of, every society with regards to any decision, action, or policy ("A Definition of Public Interest," 2012). The term public is basically inclusive of each society through identification of broad groups and how they are affected by the accountancy profession. On the other hand, interests are considered as benefits that should be accomplished from the responsibilities of this profession and the…
"A Definition of the Public Interest." (2012, June). IFAC Policy Position 5. Retrieved April 14,
2013, from http://www.ifac.org/sites/default/files/publications/files/PPP%205%20 (2).pdf
Kaidonis, M. (2008). The Accounting Profession: Serving the Public Interest or Capital Interest?
Australasian Accounting Business and Finance Journal, 2(4)1-5. Retrieved from http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1041&context=aabfj
Accounting in Just About Any Part of
Accounting In just about any part of the world, accrual accounting is preferred by government over cash accounting, for several good reasons. To understand these reasons, the first step is to understand what the difference is between accrual accounting and cash accounting. Cash accounting is a standard form of accounting for very small businesses and for households, where the entire basis of accounting is the cash flows in and out. Under the cash method, income is not counted until the cash is received, and expenses are not recorded until the cash goes out (Fishman, 2013). This principle treats cash flow as the only thing that matters. It is often used by very small businesses because it mirrors their daily reality -- cash is the only thing that really matters. Accrual accounting is based on a different principle altogether. Accrual accounting is based on the idea that transactions are recorded when…
Fishman, S. (2013). Cash vs. accrual accounting. Nolo.com. Retrieved November 4, 2013 fromhttp://www.nolo.com/legal-encyclopedia/cash-vs.-accrual-accounting-29513.html
No author. (2013). Cash vs. accrual accounting. Inc. Magazine. Retrieved November 4, 2013 from http://www.inc.com/articles/2000/04/19194.html
SBA.gov (2013). Cash vs. accrual accounting for taxable income and expenses. U.S. Small Business Administration. Retrieved November 4, 2013 from http://www.sba.gov/community/blogs/community-blogs/small-business-cents/cash-vs.-accrual-accounting-taxable-income-and-e
Shanker, S. (2013). Accounting methods: Cash vs. accrual. Houston Chronicle. Retrieved November 4, 2013 from http://smallbusiness.chron.com/accounting-methods-cash-vs.-accrual-3732.html
Accounting Approaches Deductive vs Inductive Approaches Two
Accounting Approaches: Deductive vs. Inductive Approaches Two major divisions exist regarding the classification of accounting approaches: the inductive and deductive method. "In the deductive or judgmental approach, relevant environmental factors are identified, and, by linking these to national accounting practices, international groupings or development patterns are proposed. In the inductive or empirical approach, individual accounting practices are analyzed, development patterns or groupings are then identified, and finally explanations keyed to a variety of economic, social, political, and cultural factors are proposed" (International accounting patterns, culture, and development, 2012, Wiley: 35-36). In other words, much as in philosophy, in the deductive approach, the analysis proceeds from the general to the specific, while in the inductive approach, the classification system proceeds from the specific to the general. The first and still one of the most popular deductive methodologies was first developed in 1967 by Gerhard Mueller. Mueller identified four classifications of accounting…
International accounting patterns, culture, and development. (2012). Wiley. Retrieved:
Johnson, Sarah & Marie Leone. (2008). The end of GAAP could begin next year.
CFO Magazine. Retrieved:
Accounting What Is Accounting Is a Term
Accounting What is Accounting Accounting is a term which is usually referred to when there is a formalized manner to hold an individual, firm or other organization to account. The process of accounting will usually involves the collection of data that measures or quantifies actions or transactions, to allow for an evaluation or assessment of performance. The most common type of accounting will be used to measure and quantify financial data. A comprehensive definition of accounting is provided by the American Accounting Association, where accounting is defined as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the users of that information" (p.1). The definition by the American Accounting Association provides for three main activities to be undertaken when accounting takes place; the identification of the relevant information, the measurement of the data and then the communication to those may wish to use…
American Accounting Association, (1965), A Statement of Basic Theory, Evanston, American Accounting Association
Collins, B; McKeith J, (2009), Financial Accounting and Reporting, McGraw-Hill Higher Education
Elliott B, Elliott J, (2012), Financial Accounting and Reporting, London, Prentice Hall.
Porter GA; Norton, CL, (2010), Financial Accounting: The Impact on Decision Makers, South Western Educational Publishing
Accounting Systems There Are Many Ways in
Accounting Systems There are many ways in accounting to get the job done right but two basic approaches give accountants a foundation to work upon. The purpose of this essay is to examine the differences between manual and computerized accounting systems. This essay will explain the history and development of both types of systems and will break down the advantages and disadvantages of them as well. Explanation and History of the Manual ACC System Before computer technology, everything was manual. Things were done by the methods that were available at the time. Manual accounting systems are the same way and have developed in similar fashion. Manual accounting systems are methods in which each step within the accounting process is done and cycled by hand (p.302). Since computer systems are based on manual systems, these systems are the base line information that is necessary to understand the fundamentals of accounting procedures.…
Weygandt, J. Kimmerl, P. Keiso, D. (2008). Accounting Principles, 9th Edition.
Accounting Qualitative Characteristics of Financial Statements There
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience. The first principal qualitative characteristic is understandability. This relates not only to the information but to the way it is presented. There are three factors in understandability -- the users' abilities, aggregation and classification of information. There are a number of different stakeholders for financial accounting data, including shareholders, potential shareholders, creditors, regulators and internal stakeholders. hile some of these groups, such as regulators and creditors, are expert in deciphering financial information, shareholders might not be (and often aren't). The information contained in financial statements is valuable to shareholders only if they…
No author. Chapter 6: The qualitative characteristics of financial information. McGraw Hill. Retrieved April 9, 2013 from http://highered.mcgraw-hill.com/sites/dl/free/0077132688/936874/ch06.pdf
Accounting Earnings and Profits Earnings
This is mainly because some funds are earned over time across different transactions making them to be recorded as adjustments. In some cases, earnings are not accounted or recorded since the revenue was earned even though the cash was not received (Frenz, n.d.). During the period of accounting, accountants usually account earnings and profits in informal ledgers. This data is later transferred to informal worksheets or formal accounting statements at the end of this period when accountants close the accounts through adjusting ending balances in the informal ledgers. Some of the common earnings and profits adjustments include addition to taxable income, subtraction from taxable income, and timing adjustments. Importance of Accounting E&P: As previously mentioned, accounting earnings and profits is a challenging process despite of its importance to a company. First, it helps the company to know how much profit it has realized on every financial year hence showing the…
Frenz, R. (n.d.). Adjustments to Earnings & Profits. Retrieved July 10, 2012, from http://smallbusiness.chron.com/adjustments-earnings-profits-25202.html
"What Are Accounting Earnings?" WiseGeek -- Clear Answers for Common Questions.
Retrieved July 10, 2012, from http://www.wisegeek.com/what-are-accounting-earnings.htm
Accounting Profession in 2014 in
However, they have also changed the face of the accounting profession in a way that will affect the education and conduct of accountants in the future. In the future, the accountant will have to do more than to balance the books. In order to understand the potential educational requirements for accountants in the future, we will examine how they have changed historically and then apply the changes that have occurred due to new regulations in order to paint a picture of what the future of accountancy looks like. The profession of accounting has been around almost as long as economic trade. An intimate relationship exists between accounting, finance, and the economy. Accounting differs from bookkeeping. When one thinks of bookkeeping, it generally refers to the recording of transactions. This is where bookkeeping stops. Bookkeeping is a part of accounting, but accounting goes farther and tries to paint a picture of…
Giroux, G. (n.d.). American Big Business and Cost Accounting. In a Short History of Accounting and Business. Retrieved March 30, 2009 from http://acct.tamu.edu/giroux/history.html
The American Assembly. (2003). The Future of the Accounting Profession. 103rd American
Assembly. November 13-15, 2003. Leesburg, Virginia. Retrieved April 1, 2009 from http://www.americanassembly.org/programs.dir/report_file.dir/accounting_report_report_
Accounting for Income Taxes the
This process has been ongoing since then. One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a principle-based approach. Implementing a principles-based approach has significant implications for American tax practice. Many of the specific differences between the two systems will have a direct impact on tax practice. In IFRS, LIFO is prohibited and inventory write-downs may be reversed in certain circumstances (Gill, 2007). The impact on tax practice will be a shift in emphasis on the profession towards finding ways to leverage the looseness of the principles in IFRS to lower the entity's tax burden. The SEC announced in 2008 that IFRS could come to the U.S. As early as 2014. This move would impact on all publicly-traded U.S. firms (PriceaterhouseCoopers, 2010). Accounting firms are already preparing for this shift. The most significant implication for the industry will…
AICPA. (2009). Summary of the provisions of the Sarbanes-Oxley Act of 2002. AICPA. Retrieved April 19, 2010 from http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Summary+of+the+Provisions+of+the+Sarbanes-Oxley+Act+of+2002.htm
Ciesielski, J. & Weirich, T. (2006). Ups and downs of audit fees since the Sarbanes-Oxley Act. The CPA Journal. Retrieved April 19, 2010 from http://www.nysscpa.org/cpajournal/2006/1006/essentials/p28.htm
Durst, M. (2003). "Audit" versus "non-audit" tax services under Sarbanes-Oxley. Tax Executive. Retrieved April 19, 2010 from http://www.allbusiness.com/accounting-reporting/auditing/749044-1.html
Gill, L. (2007). IFRS: Coming to America. Journal of Accountancy. Retrieved April 19, 2010 from http://www.journalofaccountancy.com/Issues/2007/Jun/IfrsComingToAmerica.htm
Accounting Information System Role of Relevance and
Accounting Information System: Role of Relevance and Reliability in the Conceptual Framework The development any system, whether manual or automated, requires a conceptual framework that serves as the foundation for the establishment of requirements, policies, standards and procedures. From the conceptual framework, the various applications can be developed and when these proved to be effective and efficient, best practices are established and become the model for other systems to follow. Developing an accounting information system is no different and the conceptual framework thereto requires an even more thorough understanding of what is needed and what the end state should be especially with regards to the information. The different information needs of the various decision makers results in two related, but different accounting information systems; managerial accounting and financial accounting (McMenimen 2003). ut whatever information -- or even data, gathered for the development of the conceptual framework or the whole accounting…
Barrett, P 2004, Developments in Government Accounting and Auditing in Australia. Available from: [22 August 2011].
Bullen, H 2005, 'A new conceptual framework project'. Revisiting the Concepts. Available from:
Accounting in Crisis Between December
(Ibid.). Major Changes in the Accounting Profession The financial scandals proved to be a turning point in many ways for the accounting profession. The public outcry forced the legislatures to reexamine the regulatory environment for businesses, resulting in the enactment of the Sarbanes-Oxley Act in July, 2002, which is the most significant accounting legislation since 1933. It also forced the accounting professionals and their organizations such as the American Institute of Certified Public Accountants (AICPA) to make a concerted effort at restoring their fallen reputation. One of the key lessons of the scandals was the realization that accountants and auditors could play an important role in creating an ethical business environment and promoting ethical business practices. The importance of ethics in accounting education, examinations and the licensing process is, thus, now widely recognized. For example, changes have been made in the Certified Public Accountants (CPA) exams by increasing the emphasis…
Colson, R.H. (2002). "CPA Journal Education Forum Anticipates Future." The CPA Journal, 72 (8). 20+.
Gabbin, a.L. (2002). "The Crisis in Accounting Education; the CPA's Role in Attracting the Best and the Brightest to the Profession." Journal of Accountancy, 193(4), 81+.
The profession's reputation reached a nadir in June 2002, when a federal jury convicted Andersen, Enron's independent auditor, of obstruction of justice, and prohibited the firm from practicing before the SEC, effectively ending its audit practice
Accounting Gapp or Generally Accepted Accounting Principles
Accounting GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the standards of accountants and guide in licensing. They were designed so that there was a more even playing field, level of transparency, and trust in the accounting industry (see, for example, www.fasab.gov/accepted.html). While not always absolutes, these types of guidelines are a template for the way in which CPAs and accounting processionals work through documents, report figures, and are responsible for the manner in which information is disclosed (for more, review the site AICPA, at www.aicpa.org). There are two different ways to look at accounting data, according to GAPP: accrual or cash. Cash Method- Cash accounting (receipts and disbursements) is a way of recording revenue when cash is received and recording expenses when they are paid. There are some advantages in…
Accrual Accounting. (2012). Investopedia. Retrieved from:
Stickney, C.P., et.al. (2010). Financial Accounting: An Introduction. Mason, OH: South Western
Accounting Information The revolution in information technology is touching every aspect of one's life. Whether one is making an airline reservation, tracking a shipment of merchandise, or accessing our account at an Automatic Teller Machine, one is relying on computerized information systems. Based on changes in which business is being conducted, the marketplace is demanding more complex, real-time financial advice and accounting services, thus presenting unlimited opportunities for accountants who specialize in information systems. All businesses, irrespective of their size, are conducting business in a world of commerce that is global, technological, and instantaneous. The leadership that businesses demand requires new insights and new skills that accountants of the new millennium are expected to provide. The accounting profession has been changing; revenues from core businesses such as auditing and accounting services have been declining, whereas revenues from consulting services have been increasing. The forces of information technology continue to produce…
Accounting Cycle for La Rue Catering La
Accounting Cycle for La ue Catering La ue Catering is a small catering company owned and operated by an acquaintance of mine, name Keri. La ue Catering is located in a middle class neighborhood. Keri mainly caters weddings, birthdays and anniversaries. La ue Catering caters and decorates for parties and special occasions. The owner works out of her home, where she has a storage room with all the products and foods for the business. The company is operated and managed by the owner (Keri) and has one full-time employee, who is a great support for Keri. Whenever Keri needs additional help for food preparation or service, she uses temporary staff through and outside agency. La ue Catering accepts two major forms of credit cards, Visa and MasterCard, along with cash; however they do not accept checks. Keri has a very simple accounting cycle to ensure she is keeping the proper…
The accounting process. (2010). Retrieved on November 19, 2010 from http://www.netmba.com/accounting/fin/process
Accounting Generally Accepted Accounting Principles
The balance sheet presents the three elements of financial position namely, assets, liabilities and equity. The balance sheet highlights the accounting equation which provides: Assets = Liabilities + Equity. In a balance sheet presentation, assets and liabilities are further classified into current and non-current to distinguish those used directly for operations as to those for long-term usage. An income statement is a formal statement prepared for a given period of time showing the performance of the enterprise. Performance is primarily measured in terms of the level of income earned by through the effective and efficient use of its resources. An income statement generally follows the equation: Net Sales/Revenue - Direct and Operating Expenses = Income. The Statement of Cash flow provide information about the historical changes in cash and cash equivalents which classifies cash flows during the period from operating, investing, and financing activities. For the companies Ford Motor Company,…
Meigs and Meigs, Accounting, the basis for Business Decisions. (McGraw-Hill International Book Company) 1982
Skousen, Stice and Stice, Intermediate Accounting (Southwestern College Publishing) 2000.
Accounting fraud is defined as the "intentional misstatement of financial reports, in violation of generally accepted accounting principles, with the objective of making certain people act in detriment to their best interests" (Wuerges & Borba, 2010). The GAAP are the principles by which financial accounting statements are produced, and for a public company these need to be followed, so deviating from GAAP will constitute a violation. Where it becomes a criminal fraud case is usually when the errors are deliberate. They may overstate the company's financial position (i.e. cooking the books), or they may understate that position for the purposes of committing tax fraud. In the famous case of Enron, not producing financial statements in a timely manner can also be considered accounting fraud, along with the general lack of accuracy of those statements. Accounting fraud can be committed in a number of ways, but the underlying reason almost always…
Fabrikant, G. & Romero, S. (2002) How executives prospered as Global Crossing collapsed. New York Times. Retrieved December 4, 2014 from http://www.nytimes.com/2002/02/11/business/how-executives-prospered-as-global-crossing-collapsed.html
Sadka, G. (2006). The economic consequences of accounting fraud in product markets: Theory and a case from the U.S. telecommunications industry (WorldCom). Columbia University. Retrieved December 4, 2014 from https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/2134/G_SADKA.pdf
Seabury. C. (2014). Enron: Fall of a Wall Street darling. Investopedia. Retrieved December 4, 2014 from http://www.investopedia.com/articles/stocks/09/enron-collapse.asp
Sharma, A. & Panigrahi, P. (2012). A review of financial accounting fraud detection based on data mining techniques. International Journal of Computer Applications. Vol. 39 (1) 37-47.
Accounting of Enron in Recent Months the
Accounting of Enron In recent months the rules regarding special purpose entitles have come under great scrutiny. Special purpose entities allow firms to raise debt while at the same time making it almost impossible for investors to determine the actual amount of debt exposure. ("Special Purpose Entities are Often a Clever ay to Raise Debt Levels") Thus was the case with Enron, which collapsed in 2001 when their fraudulent accounting practice were exposed. The purpose of this discussion is to investigate which accounting practices were violated as it relates to the SEC rules on Special Purpose Entities and full disclosure. e will also discuss the ethical issues that the company made regarding the firms' accounting practices. Special Purpose Entities and the SEC Rules that Enron Broke Special Purpose Entities are also called the securitization of debt. They are totally legal and most companies use them for legitimate reasons such as…
Berenbeim, Ronald. "The Enron Ethics Breakdown." Executive Action. February 2002. volume no.15.
Horn, Charles. "IN DEFENSE OF MODERATION: AVOIDING OVERREGULATION OF "SPECIAL PURPOSE ENTITIES." Legal Backgrounder. September 20, 2002 Vol. 17 No. 39.
Thomas, William. "The Rise and Fall of Enron: When a company; looks to good to be true it Usually is." The Journal of Accountancy. April 2002.
Special Purpose Entities are Often a Clever Way to Raise Debt Levels. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/articles/specpurpentity.htm
Accounting According to FASB Discuss
Given this situation then, it is required that any modification in stocks be operated in the financial statements as well. As such, when an executive resigns and forfeits on his stock before vesting, the financial statements will reflect this situation. On the one hand, the stocks would be registered as new equity. On the other hand, they would be presented to the other stakeholders -- already existent ones or new ones -- and these would be able to purchase them. In other words, changes would be operated at the level of capitals and equity. 4. If options are allowed to lapse after vesting, what is the effect on the financial statements? Firms will often intentionally let their stock options suffer devaluations either because they do not wish to interfere within the market and they maintain their objectivity, either because they have a direct interest. In the first scenario, the underlying…
2005, Explain fair value, Teach Me Finance, http://www.teachmefinance.com/Financial_Terms/fair_value.html last accessed on January 6, 2011
2008, Share-based payments, BT Plc., http://www.btplc.com/report/report08/Financialstatements/Consolidatedfinancialstatements/sharebasedpayments.htm last accessed on January 6, 2011
Website of the FASB, http://www.fasb.org last accessed on January 6, 2011
Accounting Several Terms and Definitions Are Valuable
Accounting Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted Accounting Principles. These principles govern how the information for financial statements is compiled and presented. The purpose of these principles is so that all stakeholders can easily understand the statements and make comparisons across both time and across different companies, because the statements are produced and presented in a consistent manner. The International Financial eporting Standards (IFS) are the international equivalent of GAAP. While several countries utilize a national version of GAAP (U.S., Canada, UK, etc.), more than 100 countries use IFS, making this set of standards the most widely-adopted in the world. There is a move to converge national GAAP standards with IFS, including a multi-year project to converge U.S. GAAP with IFS. For now, however, IFS represents a different…
No author. (2012). Generally accepted accounting principles (GAAP). Investopedia. Retrieved August 18, 2012 from http://www.investopedia.com/terms/g/gaap.asp#axzz23vrKSd9Q
PCAOB.org (2012) PCAOB oversees: The auditors of companies to protect investors. Public Company Accounting Oversight Board. Retrieved August 18, 2012 from http://pcaobus.org/Pages/default.aspx
SEC.gov. (2012). The investor's advocate. Securities Exchange Commission. Retrieved August 18, 2012 http://www.sec.gov/about/whatwedo.shtml
Accounting the Role of Financial Statements in
Accounting The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company. There are several components that facilitate this happening. For publicly-traded firms, Generally Accepted Accounting Principles (GAAP) play a key role in the creation of financial statements. GAAP is a common set of accounting principles and procedures that companies use to compile their financial statements (Investopedia, 2012). ith companies having to produce their statements according to a common set of criteria, the information is easier to compare not only between different years at the same company, but also against other firms in the industry and all other publicly-traded firms. The IFRS is essentially the international version of GAAP. Financial statements in many countries, especially those in Europe, are produced according to IFRS. There are a many areas where GAAP and IFRS diverge,…
AICPA. (2011). International financial reporting standards (IFRS): An AICPA backgrounder. AICPA. Retrieved March 22, 2012 from http://www.ifrs.com/pdf/IFRSUpdate_V8.pdf
Beiersdorf 2011 Annual Report. Retrieved March 22, 2012 from http://www.beiersdorf.com/GetFile.ashx?id=3243
Investopedia (2012). Generally Accepted Accounting Principles (GAAP). Investopedia. Retrieved March 22, 2012 from http://www.investopedia.com/terms/g/gaap.asp#axzz1pmKm2c8C
Revlon Fiscal Year 2011 Form 10-K. Retrieved March 22, 2012 from http://services.corporate-ir.net/SEC/Document.Service?id=P3VybD1odHRwOi8vaXIuaW50Lndlc3RsYXdidXNpbmVzcy5jb20vZG9jdW1lbnQvdjEvMDAwMTE5MzEyNS0xMi0wNjUzMTAvZG9jL1JldmxvbkluYy5wZGYmdHlwZT0yJmZuPVJldmxvbkluYy5wZGY=
Accounting This Discussion Contains Research Pertaining to
Accounting This discussion contains research pertaining to the impact of cash-basis accounting on the distortion of the financial position and operating results of a business. We began our discussion with a definition of cash base analysis. We concluded that this accounting tactic is used to examine cash and cash equivalents. This is done by separating cash flow transaction into one of three activities which include; operating, financing and investing activities. Our investigation then explored why and how financial statements completed using cash-basis accounting can be distorted to present a misleading picture about the financial position and operating results of a company. Our investigation found that these distortions exist when accountants fail to provide a report of additional information that may not appear on the face of the financial statement. Additionally, we found that inconsistencies in the presentation of a financial statement can greatly influence the distortion of information that is…
Financial Reporting under the Cash Basis of Accounting (2000) Standards Report International Federation of Accountants.
Live on the Lakeshore Financial Statements. (2003) Retrieved August 19, 2003 at http://aliveonthelakeshore.gospelcom.net/aotlfinancial03.pdf.
Navani, Vinay S. (2002) IRS eases cash-accounting rules for small businesses
Journal of Accountancy, Vol. 193
Accounting Research in the Past
In aaccounting research, the model used would be called analytical modeling, which consists of sstudies that use models with no specific underlying economic theory but use mathematical techniques. The mathematical formulas are applied to test and establish laws and accounting practices. Simulation, or the practice where the analysis is so complex that it requires a computer, is also an example of an inductive accounting practice research methodology. Finally, pragmatic research utilizes pragmatic validity, which views research from a prescriptive-driven perspective. For example, solutions to problems that actually occur in the complex and high field of practice are developed in a way that, while valid for a specific situation, need to be adjusted according to the context in which they are to be applied. In the accounting area, general empirical research is a catchall that includes primarily descriptive empirical work. Another example of an accounting research methodology that consists of pragmatic…
Blaikie, N. (2007). Approaches to Social Inquiry. ISBN 0745634486.
Fleming, R., Graci, S. & Thompson, J. (2000). Dawning of the Age of Quantitative/Empirical Methods in Accounting Research. The Accounting Historians
Journal. (June 2000).
Accounting Information System for Harmonization
This model could then be customized for the needs of the different companies. Sankaran and AlHashim (2006) make a compelling case regarding the need for harmonized accounting standards and practices. In addition to the globalized economy, they also rightly point to the benefits of such harmonization for corporations - including a greater ability to keep track of expenses and a better way of reconciling different accounting practices in its branches worldwide. Furthermore, Sankaran and AlHashim (2006) also allay fears that harmonization is equivalent to imposing only one accounting system around the world. Instead, they highlight the need for commonality, for a web-based accounting system that lends itself to different accounting practices. The paper makes a strong argument, and the data regarding the need for a harmonized accounting system is compelling. hile this article may present a challenge for readers unfamiliar with basic programming language, the inclusion of a generic algorithm…
Sankaran, Siva and Dhia D. AlHashim. 2006. "An Accounting Information System for Harmonization."
Journal of American Academy of Business, Cambridge. 9(2): September.
Accounting Forms the Overall Backbone of the
Accounting forms the overall backbone of the financial world. Financial markets are predicated on consumer and user confidence. Without confidence, consumers attempting to make financial decisions will be doing so using inaccurate and incomplete information. The lack of transparency regarding the truthfulness of reported numbers creates uncertainty within the capital markets. This uncertainty regarding the accuracy of information ultimately undermines the overall financial system, causing harm to society in the process. Investors will require higher rates of return, individuals will become unlikely to invest, and innovation could become stifled, harming the quality of life for society overall. Accounting standards, particularly those from the IFRS, are required to help maintain confidence in the reliability of reported financial performance. These standards, such as IFRS , are often amended to reflect the economic realities of business transactions. These changes, although well intended, may often have unintended consequence. This is particularly true for IFRS…
8) Jeffers, Agatha; Mengyu Wei; Sidney Askew (2010). "The Switch from U.S. GAAP to IFRS." Proceedings of the Northeast Business & Economics Association: 48 -- 54
9) Oler, Derek K., Mitchell J. Oler, and Christopher J. Skousen. 2010. "Characterizing Accounting Research." Accounting Horizons 24 (4): 635 -- 670
10) Perks, R.W. (1993). Accounting and Society. London: Chapman & Hall. p. 16. ISBN 0-412-47330-5.
Accounting Scandals With the Accounting
Sarbanes-Oxley stipulates criminal and civil penalties for securities violations. Also, it mandates auditor independence from the interests of the firm, meaning that accountants cannot have a financial interest in the success or failure of the firm. Additionally, it mandates the certification of internal audit work by external auditors and mandates increased disclosure regarding executive compensation, insider trading and financial statements, in the interest of making more information public to investors. ("Sarbanes-Oxley Compliance," Technet 2005) Although the act is not a panacea, increased objectivity on the part of auditors and greater insistence on free and fair disclosure on the part of firms will hopefully ameliorate the some of the hiding of vital information that created the climate of secrecy within the firms of Enron and orldCom that helped give rise to the 2002 scandals. orks Cited Sarbanes-Oxley Compliance." (2005) Technet. Retrieved on 23 Oct 2005 at http://www.techlistings.net/xlist/tech/bizsoft/compliance/sox?id=1 Sarbanes-Oxley. (2002) Law retrieved…
Sarbanes-Oxley Compliance." (2005) Technet. Retrieved on 23 Oct 2005 at http://www.techlistings.net/xlist/tech/bizsoft/compliance/sox?id=1
Sarbanes-Oxley. (2002) Law retrieved by findlaw on 23 Oct 2005 at http://news.findlaw.com/hdocs/docs/gwbush/sarbanesoxley072302.pdf
Accounting Principles to Expressly Explain the Similarities
Accounting Principles To expressly explain the similarities and differences that exist between the GASB and FASB accounting standards it is imperative that we first examine the philosophical approaches that the boards have taken (Marsh & Fischer, 2011). These are found in the board's concept statements. The boards use the concept statements to develop accounting standards. The FASB conceptual framework focuses on provision of best information that influences decisions made by creditors, investors, and entities interested in commercial and not-for-profit activities. The GASB's framework, on the contrary, focuses on accountability and opposed to aiding in decision making processes (Marsh & Fischer, 2011). Areas of potential differences between GASB and FASB lie in recognition, measurement, display, and disclosure. ecognition differences arise on whether an item should or should not appear in a financial statement. In as much as SFAS No. 116(1993a) addressed contributed services, the GASBS No. 33(1998) failed to (Marsh &…
Marsh, T. & Fischer, M. (2011). FASB/GASB Recognition and Reporting Differences: A
Nonprofit Sector Perspective. Journal of Accounting and Finance, 11(1).
Accounting Errors Even Though Bedrock's Capitalization Policy
Accounting Errors Even though Bedrock's capitalization policy may have been in alignment in prior years, the policy does create a material unadjusted error in the third quarter that would require adjustment. By simply following the Bedrock capitalization policy simply means the quantifying effects of an unadjusted material error would occur, more especially with continuing capital expenditures due to the expansion of the additional quarry and rock finishing plant. The quantifying effects of capital expenses with the expansion alone would result in a material error for the current year, including the third quarter. The evaluation of materiality must be based on all relative quantitative and qualitative factors. The process begins with quantifying potential misstatements, including prior year misstatements that were not corrected. This also adds the question of whether the capitalization policy has really been in alignment with ASC 250-10 (SAB 108) in prior years. Depending on the capital expenditures in…
Accounting Deals With Financial Transactions
The Statement of Owners' Equity The statement of owner's or shareholders' equity is designed to show the components of the change in equity from the end of one fiscal year to the next. Beginning with the amount of equity shown at the end of the previous fiscal year, net income is added and cash dividends paid to the owners are subtracted. If owners contributed any additional capitol this amount (such as the sale of new shares) it is added to the equity. On the other hand, if the owners withdrew capitol, equity declines. All the additions and subtractions, taken together, equal the changes in owner equity from one fiscal year to the next (Kurtz, 2010). The Statement of Cash Flows Public companies are required to prepare and publish a statement of cash flows. This statement provides investors and creditors with relevant information about a firm's cash receipts and cash payments…
Kurtz, D.L. (2010). Contemporary Business, 13th ed. Hoboken, NJ: John Wiley & Sons Inc.
"The Four Financial Statements" (NDI). The four financial statements. QuickMBA. Retrieved July 24, 2011, from http://www.quickmba.com/accounting/fin/statements/
Accounting Is the Basic Function
Yet, financial statements and managerial accounting reports can be highly effective nonetheless. Sometimes they will merely confirm what the proprietor already knows, but there are inevitably going to be times when they will reveal that the proprietor's assumptions about the nature of the business are false. Moreover, accounting can act as essentially a second opinion. The proprietor may feel one thing is true, but the numbers can reveal something different. Overall, accounting is an essential component of any business. Sole proprietorships often make less use of accounting, in part because the law does not obligate them to engage in any more than the most rudimentary accounting. However, proprietors should not overlook the value of accounting. Accounting helps to reveal the business' past performance, but can also be used to enact organizational controls today and to help plant for more effective operations in the future. By understanding the firm's cost structure…
Marshall, David H.; McManus, Wayne W & Viele, Daniel F. (2008). Accounting - What the Numbers Mean. McGraw-Hill/Irwin, New York, 2008.
Accounting Adjusting Entries Are Required
Such adjusting entries will help to improve the accuracy of financial statements. Adjusting entries is necessary because accrual accounting systems demand that the events are recorded accurately. They are not to be recorded strictly on the basis of cash transactions, and all of these adjustments serve to translate the accounting figures that arise from the cash accounting to accrual accounting by incorporating all of the different non-cash transactions and ensuring that every element of the income statement and balance sheet is correct. On a computerized accounting system, there might be software that can actually make these entries. If not they will need to be entered manually into the system. As with any accounting, there are certain ethical issues that need to be understood. The accrual statements are where we report our profits and losses. It is important that they are completed accurately. Any fraud is illegal and cannot be tolerated.…
No author. (2012). Adjusting entries. Accounting Coach.com. Retrieved November 29, 2012 from http://www.accountingcoach.com/online-accounting-course/08Xpg01.html
Accounting Convergence the State of
Purpose/Perceived Value The findings of this report will be valuable to two different audiences. The first consists of accounting regulatory bodies. These bodies are working towards convergence and are presently struggling with the resistance from the business community. Understanding the nature of that resistance is key to finding ways of overcoming it. For the large publicly traded corporations themselves, this report will help them understand why they and their peers are resistant, and this will shed light on whether or not that resistance is justified. Convergence is coming whether the corporate world is ready for it or not, but the key for corporations is to understand what convergence is, why it is important, and which elements of their resistance are not worth the effort. For both parties, it is important to work together to make the convergence process as smooth as possible, and that is going to take a greater…
Qu, X. & Zhang, G. (no date). Measuring the convergence of national accounting standards with International Financial Reporting Standards: The application of fuzzy clustering analysis. Xiamen University. In possession of the author.
Larson, R. & Street, D. (2004). Convergence with IFRS in an expanding Europe: Progress and obstacles identified by large accounting firms' survey. Journal of International Accounting, Auditing and Taxation. Vol. 13 (2004) 89-119.
AICPA. (2011). International Financial Reporting Standards (IFRS): An AICPA backgrounder. American Institute of CPAs. In possession of the author
AICPA (2010). Financial system considerations in IFRS conversion projects. American Institute of CPAs. In possession of the author.
Accounting and Intrusion Detection in a Report
Accounting and Intrusion Detection In a report issued by Paladin Technologies, Inc., entitled: "Security Metrics: Providing Cost Justification for Security Projects," 273 organizations were surveyed on the topic of security. The report illustrates in quantifiable terms the depth and reach of intrusion detection on the financial viability of the organization. The combined reported losses from the firms surveyed totaled $265.6 million in 1999. The highest loss categories were reported as follows: Type of Loss Estimated Dollar Value Number of espondents Theft of intellectual capital m Financial Fraud m Sabotage m The average annual financial loss of firms surveyed was estimated at $40 million. Forty three percent of respondents were able to quantify financial losses, and seventy four percent were able to acknowledge financial loss. Ninety percent detected cyber attacks within the most recent twelve-month period and seventy percent reported serious breaches other than viruses, laptop theft, and employee abuse of…
Risk Assessment risk assessment involves estimating the likelihood and severity of an occurrence, the relative impact of risk on the facility, information handler, processing, support, and the mission of the organization. Assessing the likelihood means determining the probability that existing controls will be skirted. Pfleeger has identified a series of steps for examining the likelihood of adverse occurrences:
Calculate the probability that the risk may happen, found in the observed data for the specific system.
Estimate the likely number occurrences in a given time period. The analyst gives a rating based on several different risk analysis methodologies, and then creates a table to hold and compare the ratings.
The Delphi approach: several raters individually estimate the probable likelihood of an event, combine their estimates, and choose the best one.
Accounting Fundamentals for Health Care Management
Accounting Fundamentals for ealthcare Management This paper examines governmental and nonprofit accounting and discusses how it differs from commercial accounting. In the accounting field, there may not always be a clear distinction between the three types of organizations. The dividing line between business and nonbusiness organizations may depend on the incidence and relative importance of the nonbusiness characteristics found in an entity. The funds of such organizations are usually earmarked for specific purposes and must be used in accordance with laws, regulations, or contractual requirements. One distinction of nonbusiness organizations is that they generally have no single indicator of performance, such as profit or net income. FASB:CS-4 provides two performance indicators for financial reporting for nonbusiness organizations: They provide information about the nature and relationship between inflows and outflows of resources. They provide information about service efforts and accomplishments. FASB: CS-4 also sets forth the distinctive features of the nonbusiness…
Horowitz, K.J. (2006, February 26). State and Local Government Accounting Principles. Retrieved on Aril 15, 2011 from Mercer County Community College website: http://www.mccc.edu/~horowitk/documents/Chapter02D.pdf
Ruppel, W. (2010). Governmental Accounting Made Easy. Hoboken, New Jersey: John Wiley & Sons, Inc.
Siegel, J.G., & Shim, J.K. (2006). Barron's Accounting Handbook (4th ed.). Hauppage, New York: Barron's Educational Series.
Accounting History Accounting Texts Were
Wood was used more for recording, ink and seals were used to write accounts on top of a piece of wood. It was used mostly by everyone as it was inexpensive plus it was very easy to write on top of it. Marked stick also played many roles, also known as counting tally. ut in fourteenth century, there was an argument for a decline in tallies and to increase the use of paper which was found in England. Still this was an expensive import, in a result tally remained there for many years along for efficient calculation's an abacus was used. y 1700, few professional accountants were found in Scotland for the Italian method of book keeping. ut by 1800 there were many professional accountants who were operating in the major Scottish towns as the knowledge of accounting became even more common in the business community. The notable accountants were…
Basil Selig & Robert Henry. "Accounting History: Some British Contributions" 1994. http://www.google.com.pk/books?id=avQ6KzZEzHoC&printsec=frontcover&dq=accounting+history&sig=BzfVxGuY9YCOP2zRSRbDXtQIeCM
Accounting by Its Nature Requires a Set
Accounting, by its nature, requires a set of standards that are exactly the same industry-wide. If there were not established rules for determining revenues, profits, expenses, and other influences on a company's bottom line, there would be no way to evaluate a corporation's effectivity, production, or potential. A lack of established standards would also mean that no two companies could be honestly compared, since their accounting methods could be so significantly different that their financial statements showed vastly different accounting methods. In light of these potential discrepancies in reporting methods, the bodies that govern accounting have established Generally Accepted Auditing Standards, or GAAS. Generally These principles are required to be applied in all accounting situations, and they are extensive enough so that almost every possible scenario has a standard response. Interest owed in Houston is reflected on a financial statement in the exact same way that interest owed in New…
Accounting Report Generation Tackling Exercises and Answering
Accounting report generation, tackling exercises and answering exams is vital, especially when testing the competency of each student. The accounting profession is a demanding course and requires accuracy in the presentation of information: almost all skills taught in class are implemented directly in the field. This analysis presents some findings in favor of three integral exams-based learning methodologies. The ideas are extracted from chapter twelve of "Effective Writing: A Handbook for Accountants" as written by May and May (2012). The first section focuses on essay exams, which may be handwritten, or in computer-generated documents whilst appreciating the importance of cognitive reasoning in responding to essay exams. The second section- professional exam- attempts to expose a handler into real accounting situations. In most cases, the handler will tackle similar assignments as those in a real company in the form of reports. Main ideas Essay Exam This chapter commences with a clear…
May, C, & May, S. (2012). Effective Writing: A Handbook for Accountants. New York: Pearson Prentice Hall
Accounting Maryville Online Company Trial
Absence of adjusting entries would most likely to either understate or overstate the accounts in the period of reporting and will have an adverse effect on the following reporting period. This is true except for bad debts or doubtful accounts and depreciation. eing in nature of an expense accounts and valuation accounts, absence of adjustments would overstate the operational performance of the business and at the same time overstate valuation of the particular asset it is supposed to reduce to its realizable value. Such absence would affect only the particular period where adjustment was omitted. To illustrate, salaries and wages of workers should be recorded as expense for the period, even if the actual payment falls on the following period. Failure to record the expense would understate salaries and wages for the year as well as understatement or omission of a liability regarding the same. The effect is an overstated…
Adjusting Entries (2007). Retrieved April 19, 2007, at
Accounting Method and Coca Cola
Does Coca-Cola have the ability to influence CCE's debt levels? The debt to equity ratio of Coca Cola is: .92 for 2009 and 1.33 for 2010. While CCE has a debt to equity ratio of: 1.51 for 2009 and 1.3 for 2010. Coca Cola does have the ability to influence the debt levels of CCE. The way that this can take place is to use Coca Cola's credit line to help the firm raise additional working capital in the public markets. This would cause the debt levels of CCE to increase. Another option is that Coca Cola can purchase CCE and assume a percentage of their debt. A good example of this can be seen with Coca Cola's acquisition of CCE North America. In exchange for increasing their ownership in this segment, there was also an agreement for Coca Cola to take on CCE North America's debt of $7.9 billion.…
2010 Annual Report. (2011). The Coca Cola Company. Retrieved from: http://www.thecoca-colacompany.com/investors/pdfs/form_10K_2010.pdf
Kothari, S. (2010). Implications for GAAP. Journal of Accounting and Economics, 2 (3), 246 -- 286.
Accounting Contingent Liabilities Are Could
Common buzz words management uses in regards to loss are, "Probable," "easonable," or "emote." Although these words can vary, management must be careful to provide an accurate account of the likelihood of loss and a reasonable estimate of loss. It is important to note that many contingent liabilities are not currently a liability but may become one in the event of adverse circumstances in the future. An example of an accounting journal entry for a contingent liability is listed below Accounting Example: A manufacturer of XYZ shoes provides products to various consumers worldwide. XYZ Company provides itself on excellent customer service. As such, it provides a one year warranty on its shoes. Using the company's proprietary information, they estimated that each shoe sod is equivalent to roughly $2 of warranty expenses. During the current year, XYZ Company sold 20,000 pairs of shoes. As it is probable that XYZ company will…
1) Keenan, Denis.Accountancy; Jan1980, Vol. 91 Issue 1037, p91
2) Management Accounting: Magazine for Chartered Management Account; Jan97, Vol. 75 Issue 1, p10
Accounting Information System Greater Providence
This would immediately flag the loans going outside their own bank and also provide greater insights into how customers were using funds over time. Another approach is to incent auditors to find fraud and embezzlement and make it widely known in the bank that anyone finding illegal practices would receive a reward up to 20% of the error found. Auditors, who are traditionally not paid that much, would work overtime looking for fraud, hoping to earn 20% of the fraud found, thereby drastically reducing the threat. While this may appear expensive, without this strategy a bank could go for years, losing millions of dollars, if no action was taken. In the case study, it is apparent that Greater Providence Deposit and Trust auditors were not organized or incented in their job design and rewards to actively seek out embezzlement and fraud. This is a major limitation in the design and…
Kristy Holtfreter, Kevin M. Beaver, Michael D. Reisig, & Travis C. Pratt. (2010). Low self-control and fraud offending. Journal of Financial Crime, 17(3), 295-307.
Eelco R. Van Wijk, & Timothy R. Holmes. (2007). Fraud in the Audit Department. The Internal Auditor, 64(2), 83-85,8.
Joseph T. Wells. (1998). An unholy trinity. The Internal Auditor, 55(2), 28-33.
Accounting There Are a Couple of Different
Accounting There are a couple of different issues with the Smith Company statements. The first question relates to the $45,500 worth of products. This would not be recorded as income, because the customer has not committed to the purchase. Revenue recognition rules hold that revenue cannot be recognized until the sale has been finalized (Investopedia, 2013). This revenue must be removed from the income statement. hile the description of the situation is unclear, it appears that this amount was removed from the revenue already, so that the $406,000 in revenue on the income statement is the correct amount. The next issue is the inventory problem. The inventory account is currently showing $25,000, which was the result of a physical count. There was no adjusting entry to the inventory for the $45,500 that was added to and subsequently removed from revenue. The question appears to be implying, when it should be…
AccountingTools.com. (2013). The matching principle. AccountingTools.com. Retrieved March 9, 2013 from http://www.accountingtools.com/matching-principle
Investopedia. (2013). Revenue recognition. Investopedia. Retrieved March 9, 2013 from http://www.investopedia.com/terms/r/revenuerecognition.asp#axzz2N52vD1oy
Accounting Internal Controls That Must
The proper authorization to complete an inventory also needs to include training on how to manage the exceptions that often occur when physical counting is taking place (Corman, 1988). The third principle to have adequate documents and records in place that can be quickly be used by the teams completing the audits. This also needs to be preceded with a training session focused on how to also manage exceptions to the paperwork as well, as each company's physical inventory processes are unique to their specific business models (andall, 1984). The fourth and fifth principles are physical controls and independent checks on performance. These two principles need to anchor all training activity and also be continually audited to ensure performance to standards set over decades are attained. Physical controls and independent checks are also indispensable to the audit and final approval of physical inventory levels, which is the first step in…
Corman, T.R. (1988). Inventory management. Hospital Materiel Management Quarterly, 10(2), 5-5.
Giannoccaro, I., & Pontrandolfo, P. (2002). Inventory management in supply chains: A reinforcement learning approach. International Journal of Production Economics, 78(2), 153-161.
Howard, K. (1984). Inventory management in practice. International Journal of Physical Distribution & Logistics Management, 14(2), 3-3.
Randall, a.M. (1984). Computerized inventory management: A return to basics. Hospital Materiel Management Quarterly, 5(3), 12-12.
Accounting Resources in Any Industry
Then again, even the sites that allow for such commentary often don't receive any. PwC IFS hasn't received any comments in the past month on any of its articles, for instance, though it does provide accurate and fairly up-to-date information. Part of the reason for this could be the fact that this blog, like many others in the accounting world, are run by large firms -- Price Waterhouse Coopers, in this case. Though this does not mean there is necessarily a bias at work in the blog, and indeed certain differing opinions are allowed, the fact that the information on such blogs is so directly under the control of a single for-profit entity means it must be regarded as at least slightly suspect. As these resources are also free, however, there is no harm in regularly browsing them. eferences Accounting and Business esearch. Accessed via EBSCO 8 October 2009. Accounting…
Accounting and Business Research. Accessed via EBSCO 8 October 2009.
Accounting Historian's Journal. Accessed via EBSCO 8 October 2009.
Accounting and the Public Interest. Accessed via EBSCO 8 October 2009.
Accounting Today. Daily print periodical. 2009 issues reviewed.
Accounting Credibility the Accountability Failures
(5) Auditors and CPAs should consider several ways that the Sarbanes-Oxley Act and SEC implementation rules as a whole impact accountants and work closely with regulators to address these effects. (6) Public accounting firms need to reconsider external auditors' participation with their client's internal audit function and control structure. This reporting on the internal controls can be very useful and add value to the integrity and quality of the financial reporting process. However, management accepts full responsibility for the design and maintenance of the adequate and effective internal control system. (7) Auditors should advise their clients and make recommendations for the appropriate disclosures of financial information. A more timely, relevant, objective, and transparent financial reporting process should improve the quality, integrity, and reliability. (8) it is necessary to use more effective and objective audit procedures and related standards to improve audit efficiency. The role of independent auditors on financial statements…
Journal of Accountancy. 199(2) p. 74-75.
Rezaee, Z. (2004) Restoring public trust in the accounting profession by developing anti- fraud education, programs, and auditing Managerial Auditing Journal. 19(1): 134-148
Walker, D.M. (2005) Reclaiming public trust in the wake of recent corporate accountability failures International Journal of Disclosure and Governance 2(3):.. 264-271-279
Accounting Financial Accounting Is an
The management accounting leads candidates into finance, risk management and even production management. hile CMA certification is not necessary to pursue a career in management accounting, it is recommended. The IMA claims that certified management accountants earn on average $25,000 more per year than non-certified peers (IMA, 2011). As with the accounting profession in general, there is increased demand for management accountants. CMAs are in demand because of their ability to contribute to the profitability of businesses, and demand for CMAs is expected to grow in coming years. Because CMA job duties are less structured than those of financial accountants or auditors, CMAs enjoy greater career flexibility. Both types of accounting positions are poised to enjoy significant growth. There is also a trend in business, particularly since Sarbanes-Oxley, of looking to accounting professionals to lead firms. More CEOs are coming from the accounting stream than ever before, which highlights the…
Bureau of Labor Statistics. (2011). Occupation outlook handbook 2010-2011: Accountants and auditors. BLS. Retrieved March 20, 2011 from http://www.bls.gov/oco/ocos001.htm
IMAnet.org, various pages. (2011). Institute of Management Accountants. Retrieved March 20, 2011 from http://www.imanet.org/ima_home.aspx
Taub, S. (2003) Now playing: CFO as CEO. CFO Magazine. Retrieved March 20, 2011 from http://www.cfo.com/article.cfm/3007934
Accounting Discontinued Operations Depreciation and
As required under Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, WB must evaluate the carrying value of PC and T. against the fair value, as determined by the market capitalization of the two companies at the official spin-off date. In this case, both PC and T. will qualify as discontinued operations because after the confirmation of the transaction neither will be a part of the business or parent company. WB maintains a March 31 end of year and the stock sale was dated May of 2000 which may cause a reporting concern. It is crucial that WB reports these events properly for the sake of accuracy. WB will be responsible to verify if any changes occur in their end of year reporting under SFAS No. 131. "The registrant, in consultation with its counsel, is responsible for determining whether a fundamental change…
SEC Regulations Committee. (June 12, 2001). Section C - Changes in Segment Reporting. Joint Meeting with SEC Staff. Retrieved on February 7, 2005, at http://preview.aicpa.org/belt/sec06_01.htm
Yungmann, George, & Taube, David. (Jul/Aug 2002). GAAP Net Income Measures Up. Retrieved on February 7, 2005, at http://www.nareit.com/portfoliomag/02julaug/accounting.shtml
Accounting Finance Repo 105 and Lehman
By re-characterizing the epo 105 dealing as a sale, Lehman detached the account from its balance sheet (Durden, 2010). Lehman frequently augmented its utilization of epo 105 transactions in the time previous to reporting interludes to decrease its openly reported net leverage and balance sheet. Lehman's intermittent reports did not reveal the money borrowing from the epo 105 transaction, even though Lehman had in reality borrowed tens of billions of dollars in these dealings, Lehman did not reveal the acknowledged responsibility to pay back the liabilities. Lehman utilized the money from the epo 105 dealings to pay off other dangers, thus dropping both the entire debts and the entire assets accounted for on its balance sheet and decreasing its power percentages. Therefore, Lehman's epo 105 dealing was made up of a two-fold procedure: performing epo 105 dealings followed by the utilization of epo 105 cash borrowings to pay down debts,…
Durden, Tyler. (2010). The "Repo 105" Scam: How Lehman Fooled Everyone (Including
Allegedly Dick Fuld) and How Other Banks Are Likely Doing This Right Now. Retreived
April 10, 2011, from Web site: http://www.zerohedge.com/article/repo-105-scam-how-lehman-fooled-everyone-including-allegedly-dick-fuld-and-how-other-banks-a
Goldstein, Jacob. (2011). Repo 105: Lehman's 'Accounting Gimmick' Explained. Retreived April
Accounting for Pensions
Accounting for Postretirement Health Care and Life Insurance Benefits necessitates disclosures regarding an employer's accounting. These include a delineation of the provision of benefits and the groups of employees given coverage, a delineation of the employer's prevailing accounting and financing policies for such benefits and lastly the cost of such benefits acknowledged for the period. In particular, this is effective for the financial statements prepared by organizations for the financial period ending subsequent to December 15, 1984 with respect to postretirement health care and life insurance benefits that are provided not only in the United States but also international nations. Nonetheless, for financial periods prior to June 15, 1985 that lack data and information regarding benefits provided in foreign nations, it is not mandatory to include them (FASB, 2017). Moreover, the net pension liability or net pension assets have to be included in the financial statements as an asset or…
Accounting for Partnerships Businesses Can Be Classified
Accounting for Partnerships Businesses can be classified into various forms of ownership. In this text, I concern myself with partnerships. In so doing, I will discuss partnerships and the various advantages as well as disadvantages associated with this form of business ownership. Further, I will also highlight the Financial Accounting Standards (FAS) governing accounting for this form of business ownership from creation and operation to liquidation. Partnerships' tax consequences will also be discussed. Partnerships: Advantages and Disadvantages Just like any form of business ownership, partnerships also do have several advantages and disadvantages. A partnership according to Needles, Needles and Powers (2010) is "an association of two or more persons to carry on as co-owners of a business for profit." In that regard, a partnership is formed when two or more people come together with an aim of initiating a business activity. Individuals may be motivated to start a partnership form…
Clifford, D.C., Warner, R.E. & Warner, R. (2008). Form a Partnership: The Complete Legal Guide (8th ed.). Berkeley: Nolo.
Eisen, P. (2000). Accounting (4th ed.). Hauppauge, New York: Barron's Educational Series.
Needles, B.E. & Powers, M. (2010). Financial Accounting (11th ed.). Mason, OH: Cengage Learning.
Pride, W.M., Hughes, R.J. & Kapoor, J.R. (2011). Business (11th ed.). Mason, OH: Cengage Learning.
Accounting for Decision Making Roland Anderson Is
Accounting for Decision Making Roland Anderson is the manager of the Ekland Division of Ystad Industries and has some decisions to make based on accounting data. Anderson is also being considered for the CEO position of the company which makes his dilemma even greater. He is unhappy with the profitability for the first quarter and is considering maxing out the capacity of the operation in the second quarter. It was found that Anderson actually performed fairly well based on the assumption that his actual costs were below the variable costs provided in the case using the contribution method. Doubling the production plan would be an unwise move given the fact that the sales forecast is only for twenty five thousand units. Thus if he produces fifty thousand units he would have greater inventory and it is likely that he would have to cease operations and let some workers take a…
Accounting and Audit Enforcement
Accounting and Audit Enforcement 1. The Sarbanes-Oxley Act applies to publicly-traded companies. Thus, it does not apply to non-profit entities. Nor does it apply to for-profit entities that are not publicly-traded. This is because SOX was passed specifically to address instances of accounting fraud in publicly traded companies that were undermining consumer trust in the capital markets (101.com, 2018). A publicly traded companies has a variety of different obligations under SOX that will help to reduce the opportunities and incentives for accounting fraud. Both opportunity and incentive are components of the fraud triangle – one needs to have a perceived need to commit the fraud and the circumstances with which to do so (ACFE, 2018). Non-profit organizations have no obligations under SOX. However, there is a school of thought that holds that non-profit entities can benefit from some of the recommendations and mandates that SOX contains. Fritz (2016) writes that…
Accounting II ABC Overall risk profile The ABC Company may face series of risks based on the current industry and economic issues. First, the company is operating in a competitive market environment making the company to face a fierce competition from other companies producing similar products. Thus, the ABC Company may likely to lose some of its customer to competitors if the price per product is too high. Moreover, the current recession may affect the purchasing power of customer, which may affect the company annual revenue. Moreover, inflation is likely to increase the cost of production. Another risk issue is that the company should satisfy its shareholders by declaring high dividends and failure to satisfy the shareholder may make some shareholders to disinvest their fund from the company, which may make the company to lose the public image. (Daniel, Njikizana, . & Chamboko, 2011). Current ABC cash flow using Direct…
Bragg, S.M. (2011). The Controller's Function: The Work of the Managerial Accountant, (Fourth Edition) UK. Wiley .
Daniel, B.M. Njikizana, C.T. & Chamboko, R. (2011). Interpretation and Application of International Financial Reporting Standards.UK. Wiley.
Accounting Function for a Chosen
"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods." ased on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group. There are 24 consolidated statements, as follows: Discounted Operations; Asset Impairment; Investment in Nonconsolidated Affiliates; Marketable Securities; Variable Interest Entities; Finance Receivables and Securitization; Inventories; Equipment on Operating Leases; Income Taxes; Property - Net; Goodwill and Intangible Assets; Other Assets; Accrued Expenses, Other Liabilities and Deferred Income Taxes; Long-Term Debt and Loans Payable; Pensions and Other Postretirement enefits; Commitments and Contingent Matters, Stockholders' Equity; Earnings per Share Attributable to Common Stocks; Derivative Financial Instruments and Risk Management; Fair Value of…
1. 2007 General Motors Annual Report. Page 9. On the Internet at http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/download/gm07ar_full.pdf.Last retrieved on February 15, 2009
2. General Motors Mission Statement, 2009, on the internet at http://www.samples-help.org.uk/mission-statements/general-motors-mission-statement.html . Ast retrieved on February 16, 2009
3. Supplier Diversity, Website of General Motors, 2009, on the internet at http://www.gm.com/corporate/dealers/diversity/index.jsplast retrieved on February 16, 2009
4. Management's Discussion and Analysis, Website of General Motors, 2009, on the internet at http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/content/financials/mda/mda_10.htmllast retrieved on February 16, 2009
Accounting Ratios the Financial Statements
An unaware analyst may think the second company to be better but in reality its low encouraging level is due to the fact that it is unable to secure additional funding. The companies may possess different capital structures and to attempt comparison of performance when one is all equity financed and another is a geared company may not suffice for a good analysis. The chosen application of government incentives to several companies may also twist the inter-company evaluation. There may be the possibility of providing a company with the tax holiday while the other within the same line of business not, and evaluation of such two enterprises may be misleading. (Session 15: Limitation of atio Analysis) As a matter of principle, the accounting strategies are required to be applied persistently. Changes are required to be emphasized and the influence of variations from an original policy revealed. This is applicable when…
Accounting and decision making - Ratio analysis. Retrieved from http://www.learn.co.uk/cima-mc/lesson4/page4.htm Accessed on 22 April, 2005
Basic Financial Statement Analysis: Objective 3: Explain the limitations of ratio analysis. Retrieved from http://www.wu-wien.ac.at/usr/h93/h9352467/Limitations%20on%20Ratio%20Analysis/limitationonra.html Accessed on 22 April, 2005
Cars, Andreas. 2002. The Dynamic Current Ratio. 3 September. Retrieved from http://www.investopedia.com/articles/02/090302.asp Accessed on 22 April, 2005
Covers Information from Accounting 200 and 201. Retrieved from http://www.everettcc.edu/emplibrary/Financial%20Ratios.pdf Accessed on 22 April, 2005
Accounting the Impact of Distance Learning in
Accounting The Impact of Distance Learning in Accounting Higher Education This paper is intended as an Introduction to a research study in to the impact of distance learning on the teaching of accounting in higher education. The context of the research will first be introduced i.e., the background to the research. The research to be undertaken will then be introduced, as will the specific questions and sub-questions to be addressed. The significance of this study will then be analyzed, and the people who are expected to benefit from this research will also be outlined. The research methodology and the practical design of this research methodology will be discussed, and the primary and secondary sources to be used will be introduced, and a list of preliminary resources will be given in the ibliography. Distance learning has grown in popularity amongst students over recent years, for many reasons, one of which has…
Anne Nicholls, Flexible study opens doors., Independent on Sunday, 01-14-1996, pp 12.
Serwatka, Judy A, Improving student performance in distance learning courses., THE Journal (Technological Horizons In Education), 04-01-2002, pp 46.
Mariola, Eleni; Manley, John, Teaching finance concepts in a distance learning environment -- a personal note., Journal of Education for Business, 01-01-2002, pp 177
Accounting Information a Senior Executive in a
Accounting Information A senior executive in a Fortune 500 firm along with their colleagues on the company's management team are dependent on accurate, timely, and pertinent financial information regarding the health of the organization. Accounting information has aptly been described as "the language of business, which is used in the management, planning, control, and decision- making processes integral to achieving organizational objectives" (Marshall, D. & McManus, W. 1996). In this regard accounting information falls into distinct categories: financial and managerial accounting; yet with considerable overlap in their utilization by management. Explication of these accounting areas provides considerable insight into their utility in providing effective quantitative data for analysis. Financial and Managerial Accounting Financial accounting concerns itself with the "preparation and reporting of financial statements for an entity" (Marshall, D. & McManus, W. 1996); while managerial accounting "is concerned with providing information to managers- that is, to those who are inside…
Likewise, managerial accounting also utilizes financial data to reach conclusions as to how the company is operating and what if any corrections are necessary to enhance profitability. In this vein managerial accounting concerns itself with the analysis of costs, budgeting, performance, and capital expenditures. Managerial accounting information is highly detailed and provides a platform from which to judge the company's revenue creation and its cost controls. As examples, an executive management team might take considerable time analyzing activity based-costing; a "system identifying the activity that causes the incurrence of a cost" (Marshall, D. & McManus, W. 1996). This data could lead to a discussion on the company's operating leverage based on their orientation of fixed or variable costs. While both financial and managerial accounting provides detailed data concerning company performance, managerial accounting has a distinctive narrowness to its scope of focus.
Communication of Information
With volumes of financial information generated by a Fortune 500 firm's accounting department, the question becomes how
Accounting Equation The basic accounting equation is assets = liabilities + shareholder's equity. The equation reflects that the value of the firm lies with its assets, but that these can be acquired using two different methods of financing. The methods of financing are essentially different types of claims on the firm's resources. Liabilities are credit claims on the company's resources that arise when the company borrows from somebody (a bank or a supplier, often) in order to acquire assets. Shareholder's equity arises from the money that the shareholders invest. The value of the shareholder's equity is derived from the value of the firm, net of the amount owing to the creditors. Therefore, new profits that the firm earns but does not pay out in dividends ("retained earnings") will often form the bulk of the shareholder's equity. The accounting equation also reflects that accounting transactions need to balance when they are…
QuickMBA. (2010). Accounting equation. QuickMBA.com. Retrieved October 14, 2012 from http://www.quickmba.com/accounting/fin/equation/
Accounting Information and Insights Into
The second question is the cost per unit to produce a given product or deliver specific service. Just as the total cost of revenues for a business, this figure will also provide a business owner with insights into how their business is operating, from the supply chain through pricing and distribution of gross margin assumptions (Hall, 2010). The cost per unit to produce is also a good measure of how well the efficiency of a given company is running at. Often a business owner will evaluate these from the standpoint over the long-term, looking for trends in hwo their business is operating at an efficiency level that makes the entire company profitable. For services business, the cost per service event or services deliver (as a plumber making a house call) needs to have a minimum charge level as costs are allocated across all forecasted calls in a given month. This…
Hall, M. (2010). Accounting information and managerial work. Accounting, Organizations and Society, 35(3), 301.
Jansen, E.P. (2011). The effect of leadership style on the information receivers reaction to management accounting change. Management Accounting Research, 22(2), 105.
Accounting and Finance Henkel AG Is a
Accounting and Finance Henkel AG is a multinational company focusing its brand and technologies in three business areas that include Beauty Care, Laundry & Home Care and Adhesive Technologies. Established in 1976, the company holds its global market positions in both the consumer and industrial products with well-known brands that include Lactate, Persil, and Schwarzkopf. Henkel's headquarter is in Dusseldorf in German and the company has over 47,000 employees globally. Typically, the company is considered among the most "internationally aligned German-based companies in the global marketplace." (Henkel 2012). Objective of this paper is to use various financial models to carry out financial analysis and valuation of financial Henkel AG. Valuation Model One of the methods to carry out the valuation of a company is to use enterprises discounted cash flow (DCF). The DCF could be carried out using WACC (weighted average cost of capital) that represents the opportunity costs that…
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Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed…
Accounting and the Public Interest: The accounting profession is not only an integral aspect of the society but it also plays a critical role in the nation and the…
Accounting In just about any part of the world, accrual accounting is preferred by government over cash accounting, for several good reasons. To understand these reasons, the first step…
Accounting Approaches: Deductive vs. Inductive Approaches Two major divisions exist regarding the classification of accounting approaches: the inductive and deductive method. "In the deductive or judgmental approach, relevant environmental…
Accounting What is Accounting Accounting is a term which is usually referred to when there is a formalized manner to hold an individual, firm or other organization to account.…
Accounting Systems There are many ways in accounting to get the job done right but two basic approaches give accountants a foundation to work upon. The purpose of this…
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and…
This is mainly because some funds are earned over time across different transactions making them to be recorded as adjustments. In some cases, earnings are not accounted or recorded…
However, they have also changed the face of the accounting profession in a way that will affect the education and conduct of accountants in the future. In the future,…
This process has been ongoing since then. One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a…
Accounting Information System: Role of Relevance and Reliability in the Conceptual Framework The development any system, whether manual or automated, requires a conceptual framework that serves as the foundation…
(Ibid.). Major Changes in the Accounting Profession The financial scandals proved to be a turning point in many ways for the accounting profession. The public outcry forced the legislatures…
Accounting GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the…
Accounting Information The revolution in information technology is touching every aspect of one's life. Whether one is making an airline reservation, tracking a shipment of merchandise, or accessing our…
Accounting Cycle for La ue Catering La ue Catering is a small catering company owned and operated by an acquaintance of mine, name Keri. La ue Catering is located…
The balance sheet presents the three elements of financial position namely, assets, liabilities and equity. The balance sheet highlights the accounting equation which provides: Assets = Liabilities + Equity.…
Accounting fraud is defined as the "intentional misstatement of financial reports, in violation of generally accepted accounting principles, with the objective of making certain people act in detriment to…
Accounting of Enron In recent months the rules regarding special purpose entitles have come under great scrutiny. Special purpose entities allow firms to raise debt while at the same…
Given this situation then, it is required that any modification in stocks be operated in the financial statements as well. As such, when an executive resigns and forfeits on…
Accounting Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted…
Accounting The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company.…
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Essays on Accounting
The importance of accounting, the role of accounting in business, the role of the accountant in corporate governance of business organizations, accounting industry, accounting methods and principles, the role of forensic accounting in preventing and overcoming financial crimes, the benefits of accounting services for business, the concept of depreciation, the correct financial reporting, the business concepts of accounting, career development for the accounting clerk , accounting internship report: finance department, the basic principles of accounting, research report on accounting career opportunities, the 7 types of accounting, a look at the ideology of cost accounting, my desire to study accounting and audit in the us, my interest in the course of accounting & finance, comparative analysis of accounting and auditing, the role of computers in financial accounting, my passion to study accounting and mathematics, the particular factors that motivate preparers of financial statements to engage in accounting fraud, and safeguards available in preventing accounting fraud, the concept of accounting fraud and the case study of worldcom, the analysis of financial performance, financial report: impairment loss, analysis of what balance sheet is, standard unqualified and qualified opinion in audit, integrated reporting narratives: for and against, chartered accountancy – my dream profession, my motivation to obtain a degree in accounting, feeling stressed about your essay.
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Free Finance and Accounting Essay Sample
Accounting is a systematic process of recording, reporting and evaluating of financial transactions. Business organizations have to communicate financial information to various users such as managers and shareholders through following stipulated requirements and documents. The financial statements used in accounting show the monetary value of resources that are under control of the business organization. A financial accountant oversees the accounting process by adhering to specified accounting rules. Some of the significant purpose of integrating accounting in businesses is to provide financial information for making sound economic decisions and generate financial reports. The prepared financial reports indicate the company’s performance in the external economic environment such as investors, tax authorities and creditors. With the established definition of accounting, this study proceeds to explain the six types of accounting that include petty cashbook, ledger, journal, balance sheet, income statement and the cashbook. In addition, it explains accounting records and their uses.
The petty cash book is a record in the form of a book that keeps petty cash expenditures . Many business organizations find necessary to keep relatively small amounts of money, petty cash, with their cashier for purposes of spending on telegrams, office sundries and stationary. Petty cash books have two sides, which are the debit and credit, for recording small payment records. The debit side of the petty cash book has only one money column, which records the money received by the cashier. The credit side is divided into various analysis columns for recording expenses. The expenses made by the cashier are recorded twice in the credit side of the petty cash. First, the expense is recorded in the total column then to suitable column related to the expense. The posting of total expenses to their respective ledger accounts is on monthly or fixed period basis.
Most essentially, some businesses maintain petty cash book by using the imprest system. A fixed amount of money is given to the cashier to meet the petty expenses for a month. Under this system, the petty cashier submits the petty cash statement to the chief cashier, who reimburses the exact sum of money spent during that month. The imprest system is beneficial in that it acts as a healthy tool for monitoring expenses. Examples of petty cash book include the simple and analytical petty cash books. The simple, petty cash book allocates one column to amount cash in all sides. It also has other additional columns, such as the date column. The analytical petty cash book comprises of a single amount column in the debit side and various columns in the credit side.
A ledger is an accounting book that records all accounts that relate to assets, liabilities, capital, revenues and expenses. The book is usually page numbered consecutively and might be well-bound sheets of paper. The ledger is a book of final entry, because it makes available postings of business transactions recorded in the journal and other purpose books with initial entries. Notably, it serves as a referencing system of accounting, classifies, and summarizes transactions to allow generation of financial statements. The ledger is advantageous because it provides information concerning revenues and expenses that are essential in knowing business results. In addition, the ledger records asset values separately; hence, reveals the book value of all assets. Examples of ledgers include, but not limited to the general ledger and creditors ledger. The general ledger maintains unrecorded accounts that are not in any ledger. Creditors’ ledger records all transactions of trade creditors, who are parties from that offer goods to the business on credit.
Journals are books of accounting that record all financial transactions. The maintenance of transactions in the journal uses a chronological format. This implies that all transactions recorded in source documents should also appear in the general ledger. The chronological arrangement of transactions shows the amounts, affected accounts by the transactions and the direction of accounts after the effect. Journals have four principal columns that are date, accounts, debit and credit. The reference column, though not necessary, is present in some journals. The date columns indicate the date of the transaction; the accounts column indicates the affected accounts and the debit and credit columns show the direction of the affected accounts. Examples of journals include, but are not limited to purchases and cash payment journal. The purchases journal records all transactions of items purchased on open account and it affected by almost all transactions. The cash payment journal records all payments made by the business.
Balance sheets are financial records that summarize the assets, liabilities and equity of shareholder at a given time. Balance sheets preparations take place at the end of the trading period or at any moment when it is essential. The three inclusions of balance sheets, liabilities, assets and shareholders’ equity indicate the capital of the business and what is owed. The common formula for computing business assets is shown below.
Assets = Liabilities + Shareholders’ Equity
The term balance sheet is used because the two sides, credit and debit, must be equal to show the balance. For example, when the company makes a credit purchase of an asset, the assets increase as the creditors increases. The effect of a transaction on the balance sheet is recorded twice to adhere to the principle of double entry. The values of the three compositions of the balance sheets are extracted from their respective accounts. The asset side of the balance sheet comprises of items such as cash and business property. The liability column consists of long-term debts or accounts payable.
Examples of balance sheets include the personal and small business balance sheets. Personal balance sheets are produced by listing the values of cash in transactional and savings account; long-term assets such as real estate and common stock; current liabilities such as mortgages and loan debts that are due; and long-term liabilities such as mortgages and loans. The small business balance sheet are produced by listing assets such as the debtors and fixed assets such as buildings, machinery, land and patents.
The income statement or profit and loss account is an accounting statement that shows how the company’s income or revenue is transformed to net income. In this context, revenue refers to the actual amount of cash received from the sale of products or services. Net income is the resultant amount received from the sale of product or service after the deduction of expenses. The primary objective of preparing profit and loss statement is to indicate profit or loss made by the business. The income statement is prepared to reflect a given time interval, which is normally limited to one year.
There are two types of income statements namely single-step and multi-step income statements. In single-step income statement, revenue items are listed separately from expenses. The total revenue minus total expenses gives the net income. The multi-step income statement is complex, since it involves the incorporation of other intermediary indicators such as gross profit and operating income. Gross profit is found by subtracting stock expenses from sales revenue. Operating income is reached by subtracting operating expenses from the last item. The computation proceeds to calculate pretax income, found by subtracting and adding non-operating items. Subtracting of fiscal dues from pretax income, as a result, give net income.
Cashbook is a financial statement that records cash receipt and cash payment transactions of a business. Additionally, it serves as a book of original entry. The initial financial statement in the cashbook is normally the bank balance at the commencement of a trading period. New businesses have no bank balance indicated on their cashbook during the starting period. However, firms that use the cashbook should not record cash transactions in their journals and maintain cash or bank accounts in the ledger. Examples of cashbooks are simple and bank column cashbooks.
A simple, cashbook has the debit and credit sides for recording cash receipts and cash payments. The debit side records cash receipt transactions, whereas the credit side records outgoing cash payments. The two sides have date, particulars, and ledger folio and amount columns. Date column indicates the date of the transaction. The particulars columns record the name of the account affected by the cash transaction. The ledger folio column shows the page of the ledger book. The amount received or paid is recorded under the amounts columns.
Accounting records refer to information and proofs used in preparation, verification and or auditing of financial statements. To some extent, accounting records constitute documents that prove ownership of assets and evidence of non-monetary and monetary business transactions. Accounting records include ledgers, bank statements, invoices, vouchers, receipts, contacts and agreements, and journal. These records are either physical or electronic, in nature. Various nations have accounting bodies that are responsible for prescribing regulations concerning accounting. The rules are applicable through the whole process, from preparation to auditing of financial statement. In the United State, the IRS suggests the period, for which accounting records should be maintained.
Functions of Accounting and Accounting Records
Accounting has various roles such as recording, classifying and analysis of financial statements. The recording role of accounting is concerned with ensuring that every transaction is recorded in a chronological manner. Classification ensures that transactions or entries are grouped after being analyzed systematically. Classification of transactions is performed in the ledger. Analysis and interpretation of financial statement is the final function of accounting. The recorded and classified information is scrutinized and interpreted to be understood by shareholders and other end users.
Accounting records are significant when companies are seeking loans to expand their business. Financial institutions use the information in accounting records to assess the financial status of the company. Other financial institutions demand business plan before making decisions.
Another role of accounting records is to inform investors of their cash flow. Companies need to know the amount of cash available to pay creditors, employees and other expenses. Accounting records can reveal the solvency or insolvency of the business, which influences the business owner to make appropriate decisions.
In conclusion, the accounting is a systematic recording, reporting and evaluation of business transactions. Accounting records include petty cashbook, ledger, journal, balance sheet, income statement and the cashbook. The petty cash book is a record in the form of a book that keeps petty cash expenditures. Ledgers are accounting books that record all accounts that relate to assets, liabilities, capital, revenues and expenses. Examples of journals include, but not limited to purchases and cash payment journal. Balance sheets are financial records that summarize the assets, liabilities and equity of shareholder at a given time. Accounting has various roles such as recording, classifying and analysis of financial statements, as a decision-making tool for various users.
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