Introduction The Texas State Board of Public Accountancy was formed with an aim of “protecting the public by ensuring that persons issued certificates as certified public accountants possess the necessary education, skills, and capabilities and that they perform completely in the profession of public accountancy” (Texas State Board of Public...
Abstract The article analyses two different sets of financial statements that can be prepared and presented by companies. The company considered here has a holding company in the U.S. and other foreign subsidiaries. The two forms of accounts are consolidated financial statements and separately prepared financial statements. The superiority of...
Introduction Waste Management is a publicly traded company that is located in Houston Texas. The company mainly provides waste management services to various clients across the North American region. The list of services that are provided by Waste Management Incorporated include collecting, transferring, recycling, and disposing refuse. The company is...
Adjustment of Errors Inventory Error Accounting errors should be adjusted as soon as they are found. An inventory error is corrected by making adjustments on the cost of sales and the inventory balance (Chapter One, 2012). The stock’s errors have an opposite effect on the cost of sales and the...
Financial statement is the presentation of financial information related to economic activities carried out by a business, person or an entity. The prominent types of financial statements are the balance sheet, income statement and statement of cash flows. The financial statement provides detailed information about the financial performance, potential, and...
Introduction In accounting simulation basically refers to creation of artificial mathematical models which may either be simple or complex (Clark & Reed, 2010).The models created are then used for review and analysis of both financing and investment decisions. There are three main important financial models or statements that indicate the...
Introduction The absorption accounting method involves the generalization of fixed costs and variable cost when calculating gross profit. Mingxinlu (2009) explains that mixed costs have a variable component, and a fixed component. The value of the fixed costs may not be known unless additional information is provided after the financial...
Accounting cycle The business operations of a firm and its financial reports can be demonstrated in financial accounting. Accounting cycle reveals the financial reports of a firm’s operations and transactions. As a result, the components of the accounting cycle include journal entries, an unadjusted trial balance, adjusting entries, the adjusted...
Introduction Earnings manipulation refers to the use of accounting practices to depict a false picture about a firm’s financial position. Earnings management refers to the manipulation that is within conventional accounting practices. Most of the time, earnings manipulation exceeds earnings management by magnitude. Managers faced with difficult financial conditions may...
Executive Summary Automated accounting system offers a number of business solutions to various organizations. Many businesses have adopted this model in efforts to keep up with changes in the telecommunications sector. The solutions offered by accounting firms vary depending on the functions required. For instance, a given company may require...
Introduction Before standards were introduced to regulate the impairment of assets in Saudi Arabia, companies were recording extra-ordinary losses. This loss was associated with the value of companies’ assets. According to Allexander and Christopher (2007, p. 23), jurisdictions to compare the statutory obligations of carrying assets to market values were...
Introduction The current globalized economy has left many companies struggling for their survival as many countries discontinue businesses in the rapidly changing market operations. Waweru, Kamasara and Anyagu (2003, p. 68) detail the reasons for these discontinuities as inadequate capital, poor management skills, and poor application of essential management practices....
Intangible assets An intangible asset can have either a determinate or indeterminate valuable life. These two categories of intangible assets are treated differently during amortization. For instance, amortization needs to be carried out on an asset that has a predetermined useful life. This is achieved by calculating a regular amount...
Setting of standards The International Accounting Standards Board is charged with the responsibility of setting accounting standards. The board comes up with and publishes the International Financial Reporting Standards (IFRS). It also develops IFRS for SMEs and approves the explanations developed by the IFRS interpretation committee. The board uses a...
Introduction It is the belief of this report that extrinsic methods of motivation within companies in the UK can lead toward the development of unethical accountancy practices. One of the current trends in business management within most corporate organizations in the UK is the implementation of extrinsic methods of motivation...
Proposal This paper will evaluate the impact of time budget pressure on the audit quality in audit assignments. Introduction There has been a lot of focus on time budget pressure and its impact on audit quality. It has been argued that high time budget pressure causes changes in auditor behaviour...
Introduction to Supply Chain The world is increasingly getting competitive, and the pressure is mounting on supply chain units of every firm. The need to ensure that products move from the manufacturing plant to the consumer is on the rise as firms increase their production within various industries. According to...
Change from straight line to double declining balance The change may indicate that the company is facing financial problems and the change may cover-up the financial position of a company. Thus, an investigator may check the financial performance of the company over time. An investigator should check the depreciation expense...
Introduction Presently, the FASB and the IASB are coming up with a project to build up an inclusive and reliable universal conceptual framework (Zhang & Andrew, 2013). The framework would offer a sound groundwork for the establishment of future accounting standards. Through this, the two bodies hope to come up...
Introduction With support from the government-issued funds for small businesses, I plan to set up an African jewelry shop in my town of residence. I chose this business primarily because there is a ready market and it costs much less to run an African jewelry shop compared to other businesses....
Introduction Bond Engineering should report its financial performance periodically. To achieve this, the company needs to keep an up to date financial records of all the transactions that take place during the entire life of the business. These transactions are recorded in various ledger accounts. At the end of a...
Introduction In today’s competitive economy, manufacturing firms need to invest in areas that generate the desired gains. To determine the success of an investment, companies can make use of the cost analysis tool (Morgan, 2010). Both small and large manufacturing firms strive to gain appropriate returns. They have to make...
The case of Pringly Division presents a management decision that managers have to face in their strategic planning roles. The decision made should be favorable to the company and to customers. Companies are in business to make profits and maximize on shareholders wealth. The senior management of any company are...
Introduction Succeeding in entrepreneurship in the contemporary times is a challenging task for many new enterprises due to the risks involved. Previous studies show that most business start-ups experience challenges leading to their closure. A study conducted by Small Business Administration [SBA] shows that 80% of new businesses started in...
Introduction Management accounting constitutes an important tool for making decisions in an organization. The current paper discuses the utilization of management accounting in the process of making decisions in any organization that operates in the hospitality industry within the hotel subsector. The company may be operating during the economic recession....
Introduction Adelphia is one of the giant companies that have declined because of fraud perpetrated by its executives. Adelphia was formed in 1952 as a family business and experienced faster growth in the earlier years of its incorporation. Reports indicate that the company had acquired more than one million customers...
Introduction The amount of money that the Big 12 of the Football Bowl Subdivision (Division 1-A conferences) generates is staggering. This amount is predicated on the figures computed by the US Department of Education under athletics financial records for the year 1 July 2009 to 30 June 2010. The staggering...
Introduction The current business market is highly complex and it is only by following effective practices of recording business information in a way that is generally agreed upon that a firm can be able to survive. Conformity in preparing financial information should be adhered to and norms followed. The following...
Executive Summary Starbucks offers a great opportunity to shareholders to increase the value of their investment. The firm has high returns on equity and assets, which is a good indication for investors. The firm experienced a disruption of its healthy trend in 2013 after it was ordered to settle a...
Introduction Pursuing different units in business and economics has led to a broad understanding of the significance of personal and professional development. Action learning, which entails learning by doing, is one of the fundamental approaches towards achieving personal and professional development. Therefore, I will ensure that the concepts learned on...
Executive Summary Leasing has become a common practice in investments since it is the easiest and best option of getting money or Assets for production. This discussion examines the appropriateness of the 2010 August Accounting for Leasing Draft that has aroused controversies across the globe. The paper explores various assertions...
Introduction According to Bonvie (7), an accounting firm experience embodies the realm of Public Accounting. This job context entails expert professionalism in financial accounting and only enlists the accredited services of a Certified Public Accountant (CPA). CPAs are qualified personnel who render financial accounting and consultancy services to businesses, individuals,...
Introduction Accounts receivable are defined as claims against customers related to goods or services sold to them on credit. However, the list of accounts receivable is extended to accommodate other miscellaneous claims such as loans to officers and employees, loan to subsidiaries, and claims against various other firms. The advances...
Introduction Production of goods and services involves the use of costs which are directly incurred in the production process and production overhead. Direct production costs are labor, hours used in the production process, machining hours, and cost of raw material among others. Factory overheads are the indirect costs incurred during...
Description of job-order costing Costing systems are a key component in organizations’ accounting processes. This arises from the fact that they provide organizations with an opportunity to control their expenditures. Cost systems enable organizations to determine their current status. This is made possible by evaluating their cost of operation. There...
Abstract Technology has changed the people do business in various ways. One of the concepts that has developed from technology and managed to change the world is cloud computing. It involves creating a database for storing and sharing information with various users who can access it from different locations simultaneously....
Executive Summary Accounting bodies have the mandate of enhancing disclosure of financial information to facilitate accountability and transparency. Members of professional bodies need not to act in a manner that suggests or implies inconsistency with their reputation with reference to ethical codes of conduct as dictated by accounting bodies. This...
The financial Statements of the company are a key element for determining the financial position of any business entity. The underlying aim of the financial statements is to share and communicate the financial information of the company to its internal and external users. The analysis of financial statements provides an...
Brief description of the industry The industry supports the growth of value-priced beer products and premium craft beers. Products in between the luxurious varieties reported a decline in sales volume. The industry sales declined by 0.2 % in 2012 from 2011 (Big Rock Brewery Inc. 8). Big Rock’s 2012 annual...
Introduction Profitability ratios measure a firm’s ability in generating profit from its operations and assets. Operating profit margin considers the percentage of sales that form earnings before interest and taxes. Operating profit margin shows that Debenhams’ efficiency is declining at a higher rate than Sainsbury’s. Return on investment shows that...
Abstract The Australian Conceptual Framework is a framework developed by Australian Accounting Standards Board (AASB), an Australian Government Agency. The development and implementation of the standards allow businesses and organisations domiciled within Australia to participate in the global trade effectively. The amendments to the Australian framework are necessary because they...
Advanced managerial accounting The term fixed costs can be defined as those expenses that are not affected by the changes in the level of production or delivery of services. For example, one can speak about the costs which are required for renting offices, administration or leasing equipment (Garrison, Noreen, &...
Accounting standards General Mills Ltd. is based in the United States and it uses the Generally Accepted Accounting Principles (GAAP) (General Mills, Inc., 2015). The standards are developed by the Financial Accounting Standards Boards. Meiji Holdings Company also uses GAAP, but the Japanese version of the standard (Meiji Holdings Co.,...
Background of the company Deere & Company was established in 1837. The founder John Deere was a discoverer and a blacksmith. The company has experienced a significant amount of growth, development, and expansion since its formation in the 1800s. Deere & Company is currently a public company that is based...
Introduction Whirlpool Corporation is a multinational company that is based in the United States. The Company’s headquarters is located in Michigan, United States. Whirlpool Corporation is a public entity that trades on the New York Stock Exchange with the ticker symbol WHR. Further, it is a component of S&P 500...
Balance Sheet The two companies, General Mills and Meiji Holdings Co., Ltd., disclose different components of stockholders’ equity. Meiji Holdings Co., Ltd’s financial statement, for instance, contains common stock – split further into authorized and issued stock, capital surplus, retained earnings, as well as treasury stock. Conversely, General Mills stockholders’...
Abstract NOL also known as net operating loss, occurs when total tax expenditure in a given taxable year exceeds taxable income gain, according to the U.S. federal income tax. A person entitled to pay tax is subjected during profitable periods without having tax relief during net operating loss results to...
Med-Link International Inc. is a public company medical institution based in the U.S.A. It was founded in 1994 operating in the industry of information technology and services. The company is committed to availing community services and applications that simplify the accessibility of patient care-related information and privacy. This goes through...
Introduction This document analyzes the impact of the cash conversion cycle on the financial performance of a firm. The purpose of the report is to provide a guideline for calculating, interpreting, and analyzing the cash conversion cycle. Most firms may prefer a shorter cash conversion cycle because it reduces the...
Introduction WorldCom Telecommunication Company was one of the largest service providers that supplied vast amounts of telecommunication services in the United States. Founded in Mississippi, as a small firm, the company had gradually grown to become one of the leading telecommunication providers serving several people and companies in the country....
Introduction Hospitals in the UK have adopted cost effective means of reducing wastage in hospital operations. These are means that monitor the performance of hospitals (performance management) and ensure efficient resource allocation. Therefore, this paper aims to analyze cost benchmarking in hospitals, how HRG is used to benchmark and the...
Introduction The preparation of financial statements is done by all public companies as a legal requirement. The information contained in the financial statements is used by the different stakeholders of the companies for varied reasons (Harrison, et al. 2011). However, for purposes of decision-making, the information contained in the financial...
Standards The website of the US SEC The acronym US SEC represents the United States Securities and Exchange Commission. The US SEC ensures stable movement of complete and precise financial materials that assists investors in making a comprehensive financial judgment. Therefore, the organization protects the investors’ interest, enhances capital creation,...
Introduction Management accounting entails preparing management account with the sole purpose of coming up with accurate timely financial statistical information that the accounting management agent requires. The prepared reports point out the available cash, unpaid debts, raw materials and underway inventory. Management account differs from one firm to another according...
Introduction In the last five decades, economic development in business organisations has taken a new turn with an accelerated growth attributed to the influence of advances in transportation infrastructure involved, especially in the technology used in transportation facilities (Cortada, 1993). In addition, advances in production machinery, methods used in production,...
About the company Whirlpool Corporation is a multinational corporation that is based in the United States. The Company’s headquarters is located in Michigan, United States. Whirlpool Corporation is a public company that trades on the New York Stock Exchange with the ticker symbol WHR. Further, it is a component of...
The accounting profession in Canada followed the same structure for several decades and no major change took place in its framework in all these years. However, the changing global economic and financial scenario fueled by intense globalization forces has convinced leaders to rethink ways the Canadian accounting profession was structured....
Introduction In 2002, the legislature passed the Sarbanes-Oxley (SOX) Act to handle corporate fraud and governance issues related to the rising violations of investor trust (Fletcher & Plette, 2008). The Act was also a response to the perceived imbalance between public and privately listed companies. To understand the impact of...
Introduction Over the past few decades, the contemporary business environment has been characterized by a rapid rate of expansion amongst business entities. The international market is one of the investment destinations that businesses are increasingly venturing in the recent times. Subsequently, the development of sufficient knowledge on international concepts such...
Introduction Enterprises should have superior cash management techniques. Moreover, companies should have excellent credit management policies to help them in managing their credit services. Firms ought to establish viable financial management policies to overcome the financial crises that arise due to inflation (Baccarin, 2009). Besides, they should monitor their accounts...
Abstract This treatise is a report to the Chief Finance Officers of Occidental Petroleum Corporation, Nike, Inc., and McKesson Corporation on the impact of several variables on the movement of stock prices of these companies. Occidental Petroleum Corporation operates in the oil and gas industry. McKesson Corporation operates in the...
About the business Ocean Commercial Holdings is based in North America. The gap in the provision of a wide range pasteurized dairy products and the passion to venture into dairy farming created the need to form a dairy company in the area hence the formation of Ocean Commercial Holding. The...
Introduction The financial ratio analysis will be carried for Intel Corporation. Intel Corporation is a public company that is based in the US. It was established in 1968. It operates in the semiconductor industry. Intel Corporation trades on NASDAQ with the ticker symbol INTC. Besides, it is a component of...
Introduction The world has been experience rapid advancements in the field of information communications and technology (ICT) (Best, 2009). As Coderre (2005) asserted, the main purpose of these advancements is to enhance the quality of life by improving the efficiency in which we conduct tasks. To further support this claim,...
Introduction Consolidations encompass the amalgamation of different small groups of companies into large ones. From an accounting theoretical paradigm, consolidation refers to the processes of aggregation of various small company units’ accounting statements. There are three main methods of consolidation accounting. These are pooling of interest, which is also known...
Introduction The Bank will consider both the financial status of Custom Snowboards and the project for which the funds are being borrowed. An analysis of these factors is presented in the subsequent slides. Four major financial ratios are considered over the past two years. The current ratio indicates the company’s...
Introduction Financial executives need to know about the potential accounting changes that have been proposed by the International Accounting Standards Board. The proposed changes towards the convergence of accounting standards have increased the importance of understanding both technical details and a broad spectrum of the implementation of what can be...
Calculation of ratios The table presented below shows the calculation of ratios for Queens Limited the two years ended 30 June 2011 and 2012. Ratio 2011 2012 Return on capital employed (ROCE) Earnings before interest and tax (EBIT) / capital employed Capital employed = total assets – current liabilities 310...
Introduction Financial statements are reflects the degree of performance of a certain industry; they are also used for comparison of companies, sectors, or industries. International financial reporting standards require companies to make periodical financial statements that can be utilized by stakeholders when decisions. Ratios are used to analyse the financial...
Introduction Lockheed Martin Corporation is an international company dealing with security and aeronautics that was formed after a merger between Lockheed and Martin corporations. It is principally concerned with the development and research of technology systems for defense, security, and aerospace. In addition to this, the company also generates income...
Abstract The adoption of Information and Communications Technology has tremendously increased over the last few decades in an attempt to bring efficiency in business accounting in the United States (US). The US economy is one of the highest in the world in terms of trade and GDP. This paper researches...
Introduction The Australian Accounting Standards Board (AASB) currently amended its accounting standards for for-profit and not-for-profit organisations (Australian Accounting Standards Board, 2014). This paper summarises the amended sections of the standards and highlights the costs and benefits of the amendments. The paper summarises the effects of the amendment on different...
The International Business Machines Inc. (IBM) has grown over the years to emerge as one of the notable market leaders in manufacturing software and hardware used in computing systems. It has a global presence as a multinational corporation offering consultation services in Information Technology as well as the latest technological...
Johnsons P/L has a number of financing options which can be employed to raise the required amount. The options are as discussed hereunder: Equity Capital This refers to the contribution into the business from the owners of the business. The capital can be made up of personal savings from the...
Introduction There has been increased demand for improved detection and deterrence of financial statement fraud. This need has been highlighted in the aftermath of scandals that rocked the corporate world. The best examples are the accounting fraud that was discovered in well-respected companies like WorldCom, Fannie Mae and, Enron. Consequently,...
Introduction The accounting profession in Canada is undergoing a remarkable revolution based on a proposed framework by the leading accounting bodies, which include the Certified General Accountants, Certified Management Accountants [CMAs], and the Chartered Accountants [CAs]. The three accounting bodies have been engaged in merger talks over the past three...
Case 1 The pricing of any commodity takes into consideration several factors if indeed any gains are to be realized from that commodity. For instance, the charging of prices in food related products; several costs need to be taken into consideration. The process of production of ready-made food involves many...
Abstract This paper will analyse the relationship between stock returns and three ratio variables, which are Price earnings ratio, Dividend price ratio, and Payout ratio. In this case, stock return is the dependent variable while Price earnings ratio, Dividend price ratio, and Payout ratio are independent variables. The analysis will...
Introduction Any professional body must undergo changes in a bid to remain competitive in terms of addressing its key knowledge development concerns. In this view, Canadian accounting professionals together with certified management accountants convened discussions with the aim of examining the possibility for uniting the provincial and national accounting designations....
Implications of Using Acquisition Method The acquisition method determines the real cost of an overhead before assigning the costs to such activities. Therefore, a company allocates costs to those units that require the activity. The approach appreciates the fact that at any point, the company’s activities will occasion cost, which...
Introduction Each business needs a person that will protect company assets. This is the function of accountants. Financial statements of any firm should be prepared for the sake of various stakeholders. However currently, the financial needs of firms have greatly changed. On the same note, courts require experts in not...
Financial analysis is the “method of recognizing the financial strengths and weaknesses of a company by properly establishing relationships between the items in the balance sheet and the income statement” (Moyer, McGuigan & Kretlow, 2008). Investors who have invested their money in a firm’s shares are most concerned about the...
Introduction Local and international organizations must find the best ways of remaining competitive in today’s rapidly changing world. Organizations must change to adopt and reflect new ways and best practices in their operations, failure to which they risk becoming irrelevant and unresponsive to the needs they seek to serve. Even...
Introduction Regulation and supervision are very important for any institution to meet its obligations, both financially and otherwise. The terms regulation and supervision can be used interchangeably though there is a minor variation in their definition. Supervision has to do with monitoring and enforcement while regulation involves rule-making (EU report,...
Introduction This report addresses current accounting practices about leases, pensions, equity, and multiple entities and makes some recommendations on how to improve these practices. Current Accounting Practices for Leases In a lease agreement, the lessor is the party that consents to grant the lessee the right to use the asset...
Introduction Companies are required to publish the financial results of business operation on a periodic basis. This can either be monthly, quarterly, semi-annually or annually. This requirement is necessary because it provides various stakeholders of a company with information that relates to the overall performance of the company. The key...
Introduction In accounting, depreciation is a loss of value of a business asset/equipment over time. It is treated as an expense when computing profit and loss for an organization. The value of any equipment in an organization reduces over time due to continuous use. Since depreciation is equally important like...
Introduction Accounting is an important aspect of any business entity as it provides financial information which is useful in decision making. There are many users of financial information such as managers and potential investors which makes accounting a crucial tool. It is through accounting that people are able to interpret...
Relationship between Accounting and Finance Accounting and finance constitute very fundamental concepts in contemporary business organisations. The usefulness of these concepts has become prominent over time, and especially in the recent past. Today, every business organisation garnering for success in the world must pay special attention to its accounting and...
Introduction There are various basic accounting concepts defining the assumptions underlying the preparation of financial statements. The accounting process is well regulated in the United Kingdom (UK). However, these rules and regulations do not eliminate the need for judgments and estimations to be made by preparers of accounts. In most...
Absorption costing Generally, absorption costing traces both the fixed and variable costs of production. The absorption costing method estimates the closing stock at full production cost and includes a share of fixed production. In using this approach, a share of the fixed cost of production is allocated to each product....
Introduction A budget is a very important tool in management. It is described as a plan of action for a certain period, it describes the expected level of activity, and the resources needed to achieve that level of activity. Budgets can be prepared on a departmental basis or on an...
LOI wants to dispose off some of its warehouse that contains asbestos materials; he does not have sufficient information concerning the law guiding the retirement obligation of assets. Some of the LOI assets are located in states where law concerning disposal of asbestos materials is in force. While the other...
Due to the rapid growth of businesses and globalization, procedures of international accounting have largely been emphasized. The globalization of business and the internationalization of financial markets has created need for investors not only to address their own local issues but also those of their trading counter parts (Doupnik, Timothy...
Introduction Cost accounting and reporting systems are vital in the process of financial budgeting and policy making to ensure accountability. Reporting systems are crucial indecision making by an organization and could be either internal or external. Internal reporting system creates financial reports that help in decision making within the organization....
Introduction Flexible budgeting can be defined as the use of budget that has capacity to adjust to changes occurring in the quantity of activities. A flexible budget is more complicated and important than a static budget which does not exhibit changes in amounts even when there are changes in activity...
The FASB is an institute that does not work for profit, and whose main purpose is to develop the codification standard; a set of rules that govern the presentation of financial statements. In the literature, the FASB accounting standards codification is identified as the basis of the GAAP, the Generally...
Introduction Cost management is a strategic management tool that looks into the best approaches to minimize costs and maximize profits within a business. It focuses on the impact of current or proposed decisions on the future of an organisation; cost management main aim is to assist organisations to make such...
Introduction A budget can be defined as a financial plan for the future. Budgets are therefore used as planning tools, and thus they are normally prepared before the budget period commences. This is done in order to be able to compare the budgeted activities/outputs with the actual activities/outputs at the...
Accounting information aids internal and external users in making sound financial decisions. Financial accounting provides information to external users such as shareholders, financial providers, regulators, and tax authorities, thus is available to the public. Managerial accounting provides information to internal users, for planning, budgeting, and controlling; it is confidential in...
Introduction The main aim of cost management is to reduce operational costs alongside improving customers’ satisfaction; to attain this objective, management accountant’s needs to come up with programs and policies that enhance the attainment of the two agendas. When coming up with the cost management strategies, they need to follow...
According to GAAPs Codification 360: 25-3, fixed assets should be recognised as part of a company’s property when they have been acquired for use in production of goods and services. GAAP defines fixed assets as business properties that last for more than one year and used to produce goods and...
