Accounting College Essays Samples For Students

The existence of different exchange rates allows using different approaches and methods when converting currencies. One of these methods is the current rate method, which is very actively used throughout the world. This method converts revenues and expenses into US dollars using the exchange rate so that any article of their accounting will be recognized during the period. In practice, an average exchange rate is used for this period. Revenues and expenses are converted at the exchange rates prevailing at the balance sheet data. Accounts for the movement of capital used the exchange rate of the period when the ...

Market plan is a part of the overall business, and the foundation of a well written marketing plan is the solid marketing strategy. It is a comprehensive process that outlines an organization marketing efforts and can be realized by the market mix. Majoring on accounting being a certified public accountant which will target the potential employers is preferred in this case.The first step in the personal marketing plan is to identify or determine the customers in the long run of the certified public accountant who in this care are the potential employers. This is because the potential employer who will be the customer ...

Managerial accounting as the name suggests provides information to the internal users of accounts. Internal users include executives, product managers, and sales managers to name a few. Any other user within the organization may also benefit from managerial accounting methods and use the compiled information to make informed decisions that would affect the financial performance of the company. As the information gathered is for internal users there is no compulsion that the data should abide by US GAAP rules (Heisenger & Hoyle, 2013). For example, a sports good manufacturer may add the non-production costs to the inventory as the internal users are ...

The Foreign Corrupt Practices Act (FCPA) was adopted by the US Congress in 1977 after the outgrowth of the Watergate Scandal and a series of other situations in the period. The statute was implemented to deter bribery of foreign officials in connection to business deals and activities (Deming 3). The statute uses to principles in carrying out its purpose. The first principle is the general prohibition concerning the payment of foreign officials that applies to U.S. nationals and corporations under the U.S. laws or their main place of business is within the U.S. the principle also governs corporations that enter ...

Essay

On

Question-1
Introduction
This essay consists of three parts. In the first part of this essay, the financial analysis of the Small Company Ltd. has been made by using the ratio analysis tool. Some of the most important ratios for this company have been calculated by using the financial information for the two years (i.e. 2012 & 2013). Moreover, important areas of the business are also highlighted that requires the greatest attention and the concentration of the management of this company.
Second part of the essay includes some healthy discussions on the stakeholders of the company and ...

The collapse of both Barings Bank and Enron brought some insight and worthy lesson that can be adapted in accounting in its various capacities. Their failures among other big corporations have indeed brought the need of the proper understanding accounting in its qualitative, independent and objective aspects. As it was noted in Brown’s “Making sense of the collapse of Barings Bank, Human Relations” contributions, accounting and the various practices involved in it produces various texts that include; press releases, annual reports and even security regulator documents. They give a company’s story over a specific period of time.
Taking ...

Control procedures in accounting entail steps and measures that a company’s uses to ensure that the financial reports received are valid and accurate. Organizations observe control procedures to minimize and identify the cases of accounting fraud. Furthermore, companies need control procedures in accounting to ensure that they forward accurate financial statements to tax agents. Control procedures ensure that the firm’s bookkeeping process remains transparent. The paper identifies various control methods used in accounting practice.
The first control measure in accounting entails checking organization’s reports to ensure to ascertain the validity of the entered data. Accountants perform ...

The interview with Mr. Winston was very helpful to me. I learnt a lot that could be of assistance to me. As Mr. Winston said, that people in the business field ought to be good time managers. He explains that his success in school, work and business is attributed to one important skill he learnt in school, and that is time management. Mr. Winston`s day starts at 3.00 AM and ends at 10.00 PM daily since he joined high school. Secondly, networking was the key in helping him secure for a job in Ford. He cited one point he interacted ...

Answer 1)

The role of each of the financial statement is explained hereunder:
Income Statement:
Also known as Profit and Loss Statement, income Statement, indicates the net profit or loss of the company during the year.

Balance Sheet:

Also known as the Statement of the Financial Position, Balance Sheet provides information about the financial position of an entity at a given date. Balance Sheet consist of following items:
- Assets
- Liabilities
- Equity
It works on the principle of Assets= Liabilities+ Equity

Cash Flow Statement:

Cash Flow Statement provides information about actual cash transactions in the entity held during the ...

Question 3

FASB creates rules for reporting the accounting standards for private and public sector companies. SEC, on the other hand, creates rules to protect the interests of investors, facilitate capital formation and maintain efficient market. Let’s say both the companies do not exist. In such scenario, some of the companies may try to report their earnings in a way to show more profit than actually is. Even it will be difficult for investors to compare two companies by merely looking at their financial statements as each company may use their own financial and accounting standards and variations. Without accounting standards ...

Systems integration and client server computing

With the increased dynamism in information and communication technology, organizations are forced to align their practices to the changing technologies in the market. Enterprise Resource Planning (ERP) has been adopted in many organizations and business settings over the past decade. The system enhances efficiency and effectiveness of service delivery and productivity in the organization. However, there are challenges faced by many organizations with regard to maintenance and upgrade of these systems.
The article examined a case study of an Irish company which adopted the Enterprise resource planning system. The organization was skeptical of upgrading the system after 12 years ...

The comparability of financial information can be described as the quality that makes it possible for the user to do an analysis of two or more organizations and assess similarities and variances. Comparability is the method by which users can made comparisons between two business groups/companies/organizations. On the other hand, consistency of the financial information is the quality that makes it possible for the user to make comparisons between two or more financial periods for a company. In simple words, consistency allows the users to compare the accounting period of a single company with the subsequent accounting period. Both the mentioned ...

Question 1

There is a considerable difficulty in the management that is measurable through variation in information needs from one business function to another and the movements of information from one business function to another. These are possible situations given that business information systems maintain relationships between all functional areas and processes. Taking the supply chain management as the point of reference for both cases, it possesses various functional areas (raw materials and delivery, human resource, accounts and finance and marketing and sales) from which it shares relevant information on the proceeds of the corporation. Fundamentally, the department receives various types and ...

Another person who should be in the selection team is the Chief Information Officer (CIO) of the company. This is because the CIO is responsible for all the systems that are to be installed. While in the decision making team, the CIO is the key person who will give technical advice to the team. This is a crucial contact in the team because of the software. The CIO is the best person to advice on the various technical requirements of the software. Before an information system is procured, it is important to understand what the software will play. This is ...

God created human beings to work, and He has authority over humans to perform duties to the extent they are capable. In the first book of the Bible, God creates work into the real meaning of humanity. He creates human beings in his own image, and God himself is a worker. He places Adam in the garden of Aden for the reason of working it. In different parts of the scripture, God commands humans to work to their level best. Work carries on through to the end of the Bible. Having been created in the image of God, accountants tend ...

Executive Summary

Most businesses when starting are very successful and make very large profits in a competitive business environment. After a while, these businesses end up failing within a very short time of their existence in the market. Most of the reasons are not external factors but internal factors. The most commonly cause of failure to this business that start successfully and end up failing is poor cost management. Managers in this kind of businesses only focus on the financial reports in their decision-making and strategic plans of the business. These particular managers fail to understand that financial reports are always historical data that ...

An individual’s professional success greatly depends on the kind of education and training he obtains. Hence, pursuing knowledge in a reputed institution is of great significance in one’s life. At this point in my life, as a short term plan I want to pursue MS in Accounting Degree from a great Business School. I believe that Lubin Business School will be the best place to fulfil my educational aspirations. My educational background, experience, and life ambition will prove that I am well-suited to be a candidate for the course in your institution.
I have worked at the New York County ...

Based on the documentary film Enron, it is apparent that Kenneth Lay was motivated by a genuine goodwill to prosper commercially when he merged two energy companies in Texas to form Enron. After its incorporation, Enron would later ride along the economic convenience created by deregulation of natural gas trade. Deregulation of natural gas market facilitated generation of vast revenues through sales at high prices. As the company’s revenue increased exponentially, human ingenuity infiltrated into Enron’s executive body. Consequently, executive officers and financial professionals within the firm adopted accounting principles that gave birth to what became an overt ...

Description of FCAPS model

FCAPS, an acronym for fault, configuration, accounting, performance and security is an International Organization Standardization (ISO) Telecommunications network management framework and model for network management. This is a management category in which network management tasks are defined by the ISO model. Accounting is always replaced with administration in most non-billing organisations. The term FCAPS was first introduced in the early 1980s. The main objective at this time was to define clearly five separate protocols for every functional area. Currently, this model places these working categories of the network system management into five distinct levels. These levels of management are the ...

Introduction

Accounting and finance are two different things and most of the people have been regarded them as similar things. Accounting is the name to record the day to day transaction of a company, while finance is the name of utilizing the funds of an organization at a place from where the likelihood of earning would be on a higher place. The concept of accounting and finance is totally different with each other but most of the people regarded both of them as single and identical one. Accounting is the name of to record the day to day transaction of a company, while finance ...

Q: Explain the difference between a product and period expense?

The world of accounting categorizes the costs into two categories, Product Costs and Period Costs.
Product Cost: Also referred to as Inventoriable Costs, these costs are associated with the manufacturing activity and includes, direct labor, direct materials and all the other manufacturing overheads such as factory expenses, indirect manufacturing expenses, etc.
Period Costs: These costs are not associated with the manufacturing of the product and thus, cannot be assigned to the total product costs. The primary period costs includes, selling and administration expenses, interest expenses, etc.

Q: Discuss the matching concept as it relates to accounting for revenues and inventory.

As for revenue, the matching principal concept requires that the revenues ...

Formulation of an Income Statement

In the newly formed and adjusted Income Statement, all the adjustments have been made by adding $42,500 worth of units to the ending inventory and decreasing the Cost of Goods Sold by the same amount. In this regard, the latest Income Statement is as follows:
In addition to the designing of the required income statement from the given Trial Balance, the total amount of Retained Earnings (As at December 31, 2012) is found to be $131,850.

Importance of the Matching Concept

The matching concept is one of the prime accounting practices where expenses incurred by the business are recognized in the ...

(Professor Name)
Charles’ appointment as an executor of Lord Marchmain’s will makes him responsible for administering the deceased estate. As an executor, Charles must collect all the assets of the estate, ascertain the estate’s liabilities and pay all its debts, taxes due, funeral and administration expenses out of the deceased estate. Ultimately, Charles will have to transfer any remaining estate to beneficiaries. Lord Marchamain’s estate include: the Beechyhead Castle, 100,000 loan to Charles, 400,000 contained in the Building Society Account, Art restoration business. The beneficiaries of the deceased estate are Julia, Sebastian and ...

A convenience store is located around 1 kilometer from my residence, it has large enough space for a parking as well as it can accomodate around 40 customers at a point of time. The convenience store is definitely facing competition from departmental stores which are similar to a cash and carry. Departmental stores also provide various other facilities due to which the sales and popularity of a convenience store decreases. The store provides various products consisting of food and grocery. It also provides all the products which cater to basic necessity goods. The store is well organized and the stock is properly maintained. ...

Addressing the key issues of financial reporting such as (IFRS foundation, 2011, p.A17) including the objectives of the financial reporting and qualitative characteristics which make the financial statements useful, the Conceptual Framework was initially adopted by IASB in 1989 and subsequently updated in 2010 through a joint project with FASB. As stated in the IASB’s Conceptual Framework, its primary purposes include (IFRS Foundation, 2011, p. A16) providing theoretical underpinnings to IASB in setting future standards as well as in review of existing ones and promoting harmonization of accounting standards through eliminating alternative treatments currently allowed.
The importance of ...

Abstract

This paper has three purposes. The first is to briefly explain the important relationship some key concepts have to the financial statements. The second is to provide a brief explanation of the financial statements’ format. The third purpose is to illustrate examples of accounts that exist within the asset, liability, and stockholder’s equity categories by use of a table.

Concepts Important to Financial Statements

Generally Accepted Accounting Principles (GAAP)
Maintaining the consistency and reliability of financial statements within various business industries and sectors is important to prospective investors and creditors who rely on the data presented in the financial statements. This consistency is accomplished ...

- The accounting policies of a reporting entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles and that, accordingly, have been adopted for preparing the financial statements (FASB, 1972). International Accounting Standards (IAS) 8 governs the disclosure of accounting policies. The standard provide guidance for IFRS compliance applying to any event , transaction or conditions on developing accounting policies for other items ...

Application Essay for Pace University: Ready for the Next Step

After two challenging and rewarding years of community college, I would appreciate the opportunity to step up, and take my education in a new direction at Pace University. This would be an exciting transition for me, one I have been working on since high school. My long term goals includes becoming a creative CPA who can help clients adapt to financial volatility and technological change. An interest in business and marketing runs in my family. I grew up around it, and learned that it can be interesting, rewarding and meaningful. I saw that business was about people.
I am interested ...

Introduction

Every Professional accountant has the responsibility of taking into account the interests of the public while also maintaining the reputation of the accounting profession. It is important that self-interest does not prevail over one’s duties as a professional accountant. Acting in the public encompasses having regard to the genuine interests of the clients, government, financial intermediaries, staffs, investors, as well as the business and financial community and all others who rely highly on the impartiality, fairness and truthfulness of the accounting profession for supporting their propriety and methodical functioning of commerce. The purpose of this essay is to illustrate ...

Careers in Accounting

The common career path for accountants is in the field of financial reporting/management or auditing. As financial managers, their roles are considered crucial in any type or size of company. They are responsible for maintaining financial records and preparing reports for internal and external use, in accordance to accepted Accounting standards. They ensure that these reports are delivered accurately, in a timely manner and suited for the use of various stakeholders, such as management /owners, regulators and investors. These records serve as basis for gauging and recommending measures for operational efficiency, adherence to conditions by creditors or for determining taxes ...

I was always fascinated by corporate culture. Even in my high school, rather than being Doctor or engineer I preferred to be a corporate manager. At that time, the concept was quite vague to me, as I always wanted to wear a suit and work in glass office. This was the whole that I understood of working in a company in my high school. As I kept growing, the concept became clearer to me and finally I decided to pursue a major in accounting in my college. Although many of my co-students chose a major in business, but I preferred accounting due the reason ...

IFRS is a set of principles of international accounting standards that regulate transactions and events reported in financial statements. Unlike GAAP, IFRS is based on principles rather than rules of accounting standards. IFRS includes all the interpretations and standards issued by the IASB and IAS, and IASC; it allows accountants to have greater flexibility and discretion than in GAAP when preparing financial reports (International Accounting Standards Committee, 2001). IFRS is crucial for accountants as it assists in development of transparent, comparable, and quality financial statements through the stipulated principles. It takes the needs of emerging markets in cases of international ...

Accounting for perpetual inventory system has various advantages and disadvantages. In terms of advantages, it allows for accurate restocking since all changes in inventory levels recording follows the real time. Ideally, this means that the recording occurs both when the inventory is purchased and sold. In so doing, it allows one to have the ability have accurate information thus able to identify inventory items that are running out of stock (Epstein, 2011).
In addition, it helps in provision of accurate interim financial statements. In most cases, the inventory under the periodic inventory system in both cost-of goods sold ...

Chris X

Dear Chris,
As we discussed in the information session, I am currently an undergraduate Bachelor Degree senior with major in Finance and Accounting. I will graduate in May 2015. After listening to your presentation, I believe that I am a strong candidate for the Consultant position at X and herewith submitting my resume for consideration.
I have strong qualitative and quantitative skills, as required and desired, for the Consultant position. I have multilanguage skills with spoken and written fluency in English, Portuguese, and Spanish. Regarding the Division, I am particularly interested in the Americas Division, but Life Sciences is also ...

The Technical Accounting Issue.

The technical accounting issue in the case is the non-compliance with the matching principle of accounting. The Matching principle states the benefits of revenue or asset should be associated to the outflows (expenses) of that revenue or asset. The principle asserts that expenses or outflows should be recognized and reported in the books of accounts when those expenses or outflows can be matched with the revenues generated by those expenses i.e. as revenues are recorded the corresponding expenses needs to be recorded as well. This matches the period expenses and revenues.
The original way i.e. adhering to the ...

Executive Summary

Purpose
The purpose of study of accounting information system is to relate to the changing business environment, advances in technology and the even increasing use of information systems. The need for cross functional organization is one of the most important reasons for the study of accounting information systems. There are various people related to a business and an integration among the various departments and the functions is extremely important.

Significant Findings

The study shows the importance of accounting information system. It also shows the importance as related to each department and the people who are eventually going to use the system. ...

Revision in accounting has various effects on the company and the economy. Salix Shares showed a revision in accounting which stated that the sale of drugs produced by the company was not as strong as expected by the Wall Street. Due to this announcement, the shares of the company fell by 38% bringing down the stock market. After the issue was raised, the financial officer resigned from the company. There were talks of a potential takeover of the company earlier in the year. But there were few obstacles in the deal due to which the takeover could not be finalized. The main ...

Audit means the checking of accounting. It refers to analyzing of the financial statement of count that reveals the net income to the shareholders. The financial statements show the respective revenues and the current operations to the shareholders. Audit is actually the watch dog concerned with the checking of accounts and the presentation of business divisions to verify that the aunt are prepared as according to international accounting standards. As well, the information given in the financial statements is as per the operations of the organization.
The purpose of audit is to check the accounts and the records ...

I agree with the statement that it would be more realistic to treat the retained earnings account as more than a tool for making the credits equal the debits. The retained earnings are often viewed as the residue that enables the accountant to balance. In my view, the retained earnings should be recognized as key entries in accounting. The determination of retained earnings should not be based on what is left over. The importance of retained earnings is lost to many people.
I think that it would be better to treat retained earnings as major elements in accounting. A ...

Limitations of Internal Control system

Internal control system is the process, which provides assurance to achieve objectives in the categories of reliability of financial accounting, efficiency and effectiveness of financial operations and compliance with regulatory laws. It also protects the data from unauthorized use of employees. In spite of the effective design of internal control systems there are several limitations, which include cost vs. benefit, judgment, breakdowns, management override and collusion . The cost required to setup an internal control system should not exceed its benefits. Restriction on the cost prevents the management from implementing an accurate internal control system, which leads to risks in ...

Introduction

Accountants produce accounting information on the basis of rules and regulations in force at company. Accounting information reveals all information pertaining to accounts within the accounting system including forms and manners to distribute such information. The accounting information entails multiple variables but they are not limited to sales, cost of goods sold, general, administrative and marketing expenses, profitability, costs and benefits analysis, assets, liabilities and, owner’s equity etc. The customers of accountants within the organization are owners, board of directors and, workers, whereas, customers outside the organization for them are investors, suppliers, the public, creditors, public bodies and ...

The AASB sets a Benefits costs precedent on all evaluations and expenditures. Article 7.1 of the standards requires that an organization’s accounting when dealing with exploration and evaluation must base their expenditures on the interest returns of the process of exploration. The costs must also reflect the expenses as incurred in the exploration either partially or fully capitalised on the investment. Further, the board outlines that entities must decide on the projected costs by basing the expenses on each separate area of interest without treating the whole process of exploration as a whole single unit. The board underlines the importance ...

Summary of the Elements of Financial Management

There are numerous elements of financial management and for financial management to be successful, it is important that each of the elements are taken care of and considered carefully. Financial Reporting, Accounting Records and Source Documentation, Budget Control, and Cash Management are four of the most important elements of an effective financial management system . Some literatures may use different terms only to suggest the same thing.
There are also other aspects or elements of financial management such as allowable cost calculations, compliance, and internal control of financial assets, among others. It may be practical for someone who is ...

International Financial Accounting Standard 13

International Financial Accounting Standard 13

Abstract

It is without a doubt that the fair value accounting faces numerous reproaches resulting to the never ending debate about its applicability as well as effectiveness. Although un-common, the issue of fair value accounting has been taken over by the political observers, as well as politicians themselves, business front-runners, and the professional associates. Such a move would be attributed to its significance in the current market of recent times. Because of the notion that the knowledge of the market plays a significant role in the success or failure of a company, it was imperative for each and every ...

FASB Codifications

ASC 205- Presentation of Financial Statements
ASC 25- Discontinued Operations
ASC 45- Other Presentation Matters
1) It can be classified as a reportable segment, operating segment, a reporting unit, subsidiary or an asset group. Important to note, to be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is the component of an entity which it comprises operation and cash flows.
2) Conditions for reporting discontinued component:
Important to note that if an organization that has disposed of, or classified the component of an entity as ‘held for sale’, wants to ...

Introduction

Any society around the world aspires for prosperity in terms of economic, social and wellness aspects. The quality of life largely depends largely on our ability to develop a constructive interplay among social, economic and political influences. All this however depends on the available resources within the community’s reach. Substantially, finances are the key component of these resources. It is therefore critical that all policies, laws and norms reflect the society’s constraints on the financial aspect. Accountants are thus not only liable to these laws but also answerable to the society. However, they are just but a part of ...

Introduction

Finance, accounting and operating budget have a relationship as a change in one has an effect on the others. Thus, understanding the relationship is crucial as it enhances the ability to forecast the effect when there is a change in one aspect. In that respect, this analysis uses the case of Patton Fuller Community Hospital examining the effect of two nurses’ options on the Hospital budget and performance. The first option involves increasing the nurses’ hourly wage by $1 to $31 and retaining the patient-nurse ratio of 5 to 1. The other option is reducing the patient-nurse ratio to four to one ...

Essay on

Throughput accounting
Constraints Management is more about logical thinking and finding based on throughput accounting. To start with the management, we need to look at accounting formulas to calculate exact revenues used for the business. The purpose of this accounting formula is to have clear measurements that include revenues minus expenses = net profit. Whereas, net profit/ assets deployed = return on investment. However, cash flow = cash income minus cash expenses.
Here comes “local decisions” for constraints management by considering accounting as a base. The “local decision” has consisted over money making policy. In which it include; the right mix ...

The Fraud Diamond Framework was an improvement on the earlier ‘Fraud Triangle’ used by forensic accountants to detect accounting fraud. David Wolfe and Dana Hermanson proposed the change to the Fraud Triangle by adding a fourth element of ‘capability,’ rechristening it “The Fraud Diamond.” The first element in the framework is ‘Incentive’ which arises from the greed to commit fraud. The second element of ‘Opportunity’ could be a potential weakness in the system that the precise person could exploit. The third element of ‘rationalization’ happens when a perpetrator convinces his/her own self that such deceitful behaviour is worth with the risk taken.The ...

The Sarbanes-Oxley Act of 2002 had its origins in a bill “enacted by Congress in the wake of corporate and accounting scandals that led to bankruptcies, severe stock losses, and a loss of confidence in the Stock Market”of the ordinary investor.(Legal Dictionary, Para #1). President George W. Bush signed the bill and passed Sarbanes-Oxley bill into law in July 2002. The Act names itself after Paul Sarbanes, a democrat Senator from Maryland and Michael G. Oxley who, a conservative senator from Ohio, shared primary responsibility with Sarbanes, for the bill. (Bainbridge, 3)

SOX: Disclosure of Information

Sarbanes-Oxley (referred to as SOX hereinafter) dictated a new corporate ...

Most companies rely on a strong financial reporting to help in running the operations of businesses. There exist different types of financial statements that may be used to establish the financial condition of the firm. While some companies rely on the statement of financial position (balance sheet), others rely on Income statements as a means of reporting their financial status. Furthermore, others rely on cash flow statements but almost half of the world companies reports the application of the financial statement of adjustments/changes within equity to report their financial position.
However, Coca-Cola Company reports the use of both statement of monetary/financial ...

ID Number
My primary goal in life is to find a job in the field of finance. In exploring my dream job, I made use of two sources – Google site and the Occupational Outlook Handbook which is available online. Of the two sources, the Occupational Outlook Handbook is the most convenient to use and contains varied information concerning my dream job. It contains information about salary ranges, educational requirements, the work environment, and the future of the field. Through the Occupational Outlook Handbook, I became more interested about my dream job and I also became more eager to chase ...

Accounting plays a vital role in today’s automated world. In order to improve the efficiency, there have been some major changes in the field of accounting during the past few years. McCarthy (1982) suggested a substitute approach in order to represent accounting information. Instead of concentrating on debits and credits, which neglect some essential data about economic events, he proposed to present the detail about every resource in the firm’s control, the events that bring a change in the amount of these particular resources, and the agents who are a part of these events (‘The Resources, Events, and Agents (REA) Approach’). ...

Introduction

According to the online business dictionary, financial accounting is “a field of accounting that treats money as a means of measuring economic performance instead of as a factor of production. It encompasses the entire system of monitoring and control of money as it flows in and out of an organization as assets and liabilities, and revenues and expenses. Financial accounting gathers and summarizes financial data to prepare financial reports such as balance sheet and income statement for the organization's management, investors, lenders, suppliers, tax authorities, and other stakeholders. Financial reporting is the presentation of financial data of a firm's financial position, operating performance, ...

Income Statement

Both absorption and contribution income statements provide the interested parties with the information on company’s revenues, expenses, profits and losses. According to Ross (2011), both types of income statements may seem similar from the first glance, as the first line depicts company’s revenues, while the bottom line shows company’s profits for the accounting period. However, the system of cost accounting is what distinguishes one type of income statement from another.
Brealey (2001) states that absorption costing is used during the preparation of financial statements for external purposes, such as tax reports, annual reports to shareholders ...

Introduction

Peachtree is software utilized in accounting and managed and utilized by smaller businesses all over the world. It is a user friendly and computerized program that incorporates perfect answers or solutions in a comprehensive and easy manner. This is definitely the best solution for every small business. This paper seeks to analyze and research in detail the features and benefits of using and integrating Peachtree Google Inc accounting software as compared to other accounting software’s or outsourcing. Management and organization of small businesses should emphasize on the business activities. It is vital to note that entities in the business management ...

Introduction

The choice of one’s career path is partially determined before one joins college or other institutions of higher learning. I am no exception to this, as I knew the career path that I wanted to pursue before I went to college. Imagine that you own a firm that needed attestation ad assurance services, share and debt issuings, mergers and acquisitions and initial public offerings. Which professional will you call upon? Imagine you require services like tax planning and preparation, estate planning, financial analysis, financial accounting, financial reporting, venture capital, management consulting, income tax and performance management. Which professional will ...

Discussion Questions

Introduction
Management accounting is an accounting branch that generates information to managers about both the internal and external environments of the business. It combines finance, management and accounting with the leading edge technique required to drive successful businesses. The management accounting role has changed from the traditional confines of controlling, business, motivation, planning and communication and now emphasis more on the internal and external environments within the business (threats, competition, opportunities and changing circumstances). The development of management accounting has increased momentum in the recent years due to the traditional accounting techniques failure to provide futuristic and non-financial ...

Residual Income Model

In general, the residual income model makes no assumptions relating to the future earnings and earnings growth. However, if we assume a constant growth and dividend growth, a residual income model can be derived that efficiently illustrates the fundamental drivers of the residual income. Thus, under such assumptions, a fundamental based equation for justified Price/Book Value which can be derived will be:
Po/Bo= 1+ (ROE- g)/(r-g)
Interestingly, since the justified price is equivalent to stock’s intrinsic value, we can re-arrange the above equation to find the intrinsic value of the stock. For Instance, since Po= Vo, we ...

Part A

The standard cost of a good or service is the pre-determined cost of a good or service depending on the various circumstances that surround the business. Standard costing is therefore is an accounting concept that helps to determine the standard cost of a good or service. The predetermined costs are compared to the actual costs and the difference makes the variances (Berger). The variances are analysed thoroughly to find out why they exist and also to find a way to mitigate the risks that come with it. Most companies, big or small, need the standard costing procedure due to various reasons.
Standard ...