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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) For Discussion Question 1: Post your response to the following:
• When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?
• In other words, why are these accounting characteristics important?
• What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?
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4-5 Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year? (LG4-3) 4-7 Compounding with Different Interest Rates For Discussion Question 1: Post your response to the following:
• When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?
• In other words, why are these accounting characteristics important?
• What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?
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ACC 291 is a online tutorial store we provides ACC 291 Entire Course And Final Guide You can find here
For Discussion Question 1: Post your response to the following:
• When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?
• In other words, why are these accounting characteristics important?
• What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?
Fin 571 genius perfect education fin571genius.comstudent1256789
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost. 5.First City
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team. For this week's checkpoint we had to look up three job postings in the field of accounting. I'm glad that I got this opportunity because it actually opened my eyes and expanded my knowledge in the accounting field. The three job positions are listed below. The first job title
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ACC 291 is a online tutorial store we provides ACC 291 Entire Course And Final Guide You can find here.
Current assets
When it comes to a company's classified balance sheets you will find current assets sheet. Current assets is cash or cash equilivants that the company will use. What you will find on a current asset sheet is Cash and equilvants, Short term investments, Accounts receivables, and other assets.
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:June2Gordon received $55,000 cash and issued common stock to the stockholders. Current assets
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions: Compare and contrast sole proprietorships, partnerships, and corporations.
This document contains information for an ACC 290 assignment on analyzing a company's financial statements. It includes questions to answer about assets, liabilities, revenues and income from the company's balance sheet and income statement. It asks the student to summarize their analysis in a 1,050-1,400 word paper including the financial statements following APA guidelines. There are also sample exam questions and discussions on accounting concepts such as the four basic financial statements, debits and credits, and characteristics of reliable financial reporting.
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4-5 Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year? (LG4-3) 4-7 Compounding with Different Interest Rates For Discussion Question 1: Post your response to the following:
• When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?
• In other words, why are these accounting characteristics important?
• What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?
FOR MORE CLASSES VISIT
www.acc291genius.com
ACC 291 is a online tutorial store we provides ACC 291 Entire Course And Final Guide You can find here
For Discussion Question 1: Post your response to the following:
• When reviewing a financial report, why should information be reliable, relevant, consistent, and comparable?
• In other words, why are these accounting characteristics important?
• What kinds of problems could be created if a financial report is not reliable, relevant, consistent, or comparable?
Fin 571 genius perfect education fin571genius.comstudent1256789
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www.fin571genius.com
1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost. 5.First City
Fin 571 genius perfect education fin571genius.comstudet1
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team. For this week's checkpoint we had to look up three job postings in the field of accounting. I'm glad that I got this opportunity because it actually opened my eyes and expanded my knowledge in the accounting field. The three job positions are listed below. The first job title
FOR MORE CLASSES VISIT
www.acc291genius.com
ACC 291 is a online tutorial store we provides ACC 291 Entire Course And Final Guide You can find here.
Current assets
When it comes to a company's classified balance sheets you will find current assets sheet. Current assets is cash or cash equilivants that the company will use. What you will find on a current asset sheet is Cash and equilvants, Short term investments, Accounts receivables, and other assets.
ACCT 504 MART Perfect Education/acct504mart.comsarathkum12211
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:June2Gordon received $55,000 cash and issued common stock to the stockholders. Current assets
Acct 504 mart perfect education acct504mart.commiddle12
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions: Compare and contrast sole proprietorships, partnerships, and corporations.
This document contains information for an ACC 290 assignment on analyzing a company's financial statements. It includes questions to answer about assets, liabilities, revenues and income from the company's balance sheet and income statement. It asks the student to summarize their analysis in a 1,050-1,400 word paper including the financial statements following APA guidelines. There are also sample exam questions and discussions on accounting concepts such as the four basic financial statements, debits and credits, and characteristics of reliable financial reporting.
Fin 571 genius perfect education fin571genius.comstudent333345
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team Compare and contrast sole proprietorships, partnerships, and corporations.
Sole proprietorships means that a business that owned by one person. That includes and not limited to all profits and losses, debts and unlimited liability, all will come from the solely one owner and not a group or in this case a partner or co-owner etc. Partnerships are seen much differently than sole proprietorships. Partnerships is a business that owned by more that one person/s.
This document summarizes a study that examined the effects of profitability, financial leverage, dividend policy, and firm size on income smoothing practices of manufacturing companies in Indonesia from 2016-2018. The study found that profitability had a negative significant effect on income smoothing, while firm size had a positive significant effect. Financial leverage and dividend policy did not have a significant effect. Firm size weakened the effect of profitability and dividend policy on income smoothing, but did not moderate the effect of financial leverage. The study used agency theory and positive accounting theory to develop hypotheses about the relationships between the variables.
This was a school project the required me to go through a business simulation and give an assessment of the current conditions followed by suggestions for improvements.
Strategic audit report essay sample from assignmentsupport.com essay writing...https://writeessayuk.com/
The document provides an audit report for Bright House, which sells furniture, electronics, and appliances. It identifies six key areas of audit risk: 1) complex transactions, 2) cash accounts, 3) equipment accounts, 4) supplies accounts, 5) accounts receivable, and 6) accounts payable. The report explains why each area was selected, noting they involve external parties, large financial transactions, or opportunities for misstatement. It then recommends substantive audit tests for each area to address weak internal controls, such as reviewing all transactions, surveying funds usage, and using external committees to evaluate mergers.
This document discusses e-discovery issues that arise during company downsizing and business closings. It notes the increased risk of spoliation of electronically stored information (ESI) during such times of turmoil. It identifies key players who must ensure ESI preservation, such as departing employees, legal hold administrators, IT staff, human resources, and management. The document provides 20 tips for companies to help preserve ESI when downsizing, such as conducting exit interviews, disabling passwords, making copies of hard drives, and documenting preservation efforts. Proper ESI preservation is important for companies during downsizing to reduce legal risks from destruction of relevant evidence.
This document discusses a study analyzing factors that influence income smoothing actions of pharmaceutical companies listed on the Indonesia Stock Exchange from 2009-2013. The study examines how share price, ownership structure, company size, profitability, and leverage impact income smoothing. It finds that ownership structure, company size, and leverage influence income smoothing, but share price and profitability do not. The study uses logistic regression to analyze data from nine pharmaceutical companies over five years.
The document analyzes factors that influence income smoothing practices of miscellaneous industry companies listed on the Indonesia Stock Exchange from 2009-2013. It finds that company size and dividend payout ratio have a significant impact on income smoothing, while return on assets, debt-to-equity ratio, and financial leverage do not. A discriminant analysis found a significant difference in return on assets between companies that practiced income smoothing and those that did not. The study aims to further investigate factors affecting income smoothing and examines the influence of return on assets, dividend payout ratio, debt-to-equity ratio, and financial leverage on the practice.
This document discusses factors to consider when drafting a letter of engagement for legal clients. It emphasizes the importance of clearly outlining payment policies, including retainer amounts, billing schedules, credit card fees, and consequences for non-payment. The letter should also specify who is responsible for fees, payment timelines, and the use of electronic billing platforms. Defining work-in-progress and unbilled time policies can help law firms improve their realization rates and reduce write-offs. Selecting appropriate key performance indicators to measure utilization, realization, and other metrics can enhance a firm's profitability.
Choosing the right Professional Employer Organization will help your business remain in compliance, leverage the efficiencies of great technology, and facilitate access to comprehensive capabilities that will benefit your business and its employees. So what are the most basic and key things you need to know about PEO?
Organisations spend heavily on technology, people skills and consulting to understand billions of bits of data, but they still lack clear visibility and insight.....
SEC seeks input on earnings releases and quarterly reportsAzhar Qureshi
The SEC is seeking public comment on potential changes to earnings release and quarterly reporting requirements for public companies. Specifically, the SEC is considering: 1) Allowing companies to satisfy Form 10-Q requirements using information from voluntary earnings releases; 2) Reducing reporting frequency from quarterly to semiannually; and 3) Actions to address concerns that current practices unduly focus companies on short-term results. The SEC seeks input on impacts of these changes on investors and markets.
This document provides background information on accounting information and its use in management decision making. It defines accounting information as the language of business that processes financial transactions and provides financial performance data to internal and external users. It discusses how accounting information is necessary for proper decision making, profit maximization, and optimal resource utilization. The document also notes some problems with the quality and validity of accounting information provided to management and how this can negatively impact decision making and organizational performance if the information is untimely, inadequate, or unclear.
The document discusses ad hoc HR managers (aHRMs) in small businesses. aHRMs are employees who take on HR tasks in addition to their regular roles because HR duties are not formally assigned. The document states that aHRMs spend 20% of their workweek on HR tasks and lack confidence in handling HR, taking time away from their primary jobs. It recommends that while not every small business needs a dedicated HR manager, they should be aware of risks like legal and compliance issues from untrained aHRMs and consider partner options that can provide strategic HR support and guidance.
The document provides information on how to build a successful business, including the importance of writing a business plan, obtaining financing, providing good customer service, using social media for promotion, and resources available for Virginia businesses. Key points covered include how a business plan can increase chances of success by 25% by mapping out goals and strategies, the different sources of financing like personal savings, bank loans, and government programs, how customer service is important for retaining existing customers and earning referrals, and how social media is a new way for businesses to earn attention by creating valuable online content.
Business Loans: Mistake Business Owners Make in Funding Their BusinessToby Mathis
The document summarizes the key mistake business owners make when funding their business - co-mingling personal and business finances. It provides examples of better ways to fund a business, such as using a CD to secure a business loan. The document then outlines the features of a business finance system that helps users build business credit, qualify for funding programs, and access credit providers to report payments and build their business credit asset over time.
Internal controls are methods and procedures put in place by businesses to safeguard assets, ensure accurate financial reporting, and help the business achieve its objectives. They help filter activities to prevent and detect fraud and errors, encourage good management through timely performance information, and reduce risks. Having proper internal controls protects a business's resources and allows issues to be addressed when they occur.
This document provides an overview of Balmer Lawrie & Co. Ltd.'s annual budgeting process and the roles of the Finance and Vigilance departments. It discusses tips for effective budgeting from a Wall Street Journal article, including using dynamic planning rather than budgets for strategic planning. It then profiles the Finance department as the "number crunchers" who help streamline systems and provide analytical support. The Vigilance department is also introduced as actively working to promote anti-corruption. Leadership speaks articles provide further context on the diverse business portfolio, need for a robust management control system, and roles of Finance and Vigilance departments in oversight and transparency.
The federal government's interpritation of an employee versus a contractor is becoming more stringent. This article by Peter McDonald, CPA of Smith Elliott Kearns & Co., LLC explains several key questions which will help you understand the difference.
Presentation on Frequently Asked Questions about the Comptroller and Auditor General of India, Supreme Audit Institution of India for the public information
This document provides an overview of genetic toxicity testing guidelines. It discusses the history and aims of toxicity studies. Various in vitro and in vivo genetic toxicology tests are described, including tests for gene mutation, chromosomal abnormalities, and primary DNA damage. Key tests covered include the mammalian erythrocyte micronucleus test, mammalian bone marrow chromosomal aberration test, rodent dominant lethal assay, and mouse heritable translocation assay. The principles, procedures, and parameters of these tests are summarized. References on genetic toxicology guidance documents and studies are also provided.
This document provides an overview of various blotting techniques used to detect specific biomolecules, including Southern blotting, Western blotting, Northern blotting, and related methods. It describes the basic principles of blotting, which involve transferring biomolecules from a gel to a membrane for detection using probes or antibodies. Examples of applications for each technique are also outlined.
Fin 571 genius perfect education fin571genius.comstudent333345
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team Compare and contrast sole proprietorships, partnerships, and corporations.
Sole proprietorships means that a business that owned by one person. That includes and not limited to all profits and losses, debts and unlimited liability, all will come from the solely one owner and not a group or in this case a partner or co-owner etc. Partnerships are seen much differently than sole proprietorships. Partnerships is a business that owned by more that one person/s.
This document summarizes a study that examined the effects of profitability, financial leverage, dividend policy, and firm size on income smoothing practices of manufacturing companies in Indonesia from 2016-2018. The study found that profitability had a negative significant effect on income smoothing, while firm size had a positive significant effect. Financial leverage and dividend policy did not have a significant effect. Firm size weakened the effect of profitability and dividend policy on income smoothing, but did not moderate the effect of financial leverage. The study used agency theory and positive accounting theory to develop hypotheses about the relationships between the variables.
This was a school project the required me to go through a business simulation and give an assessment of the current conditions followed by suggestions for improvements.
Strategic audit report essay sample from assignmentsupport.com essay writing...https://writeessayuk.com/
The document provides an audit report for Bright House, which sells furniture, electronics, and appliances. It identifies six key areas of audit risk: 1) complex transactions, 2) cash accounts, 3) equipment accounts, 4) supplies accounts, 5) accounts receivable, and 6) accounts payable. The report explains why each area was selected, noting they involve external parties, large financial transactions, or opportunities for misstatement. It then recommends substantive audit tests for each area to address weak internal controls, such as reviewing all transactions, surveying funds usage, and using external committees to evaluate mergers.
This document discusses e-discovery issues that arise during company downsizing and business closings. It notes the increased risk of spoliation of electronically stored information (ESI) during such times of turmoil. It identifies key players who must ensure ESI preservation, such as departing employees, legal hold administrators, IT staff, human resources, and management. The document provides 20 tips for companies to help preserve ESI when downsizing, such as conducting exit interviews, disabling passwords, making copies of hard drives, and documenting preservation efforts. Proper ESI preservation is important for companies during downsizing to reduce legal risks from destruction of relevant evidence.
This document discusses a study analyzing factors that influence income smoothing actions of pharmaceutical companies listed on the Indonesia Stock Exchange from 2009-2013. The study examines how share price, ownership structure, company size, profitability, and leverage impact income smoothing. It finds that ownership structure, company size, and leverage influence income smoothing, but share price and profitability do not. The study uses logistic regression to analyze data from nine pharmaceutical companies over five years.
The document analyzes factors that influence income smoothing practices of miscellaneous industry companies listed on the Indonesia Stock Exchange from 2009-2013. It finds that company size and dividend payout ratio have a significant impact on income smoothing, while return on assets, debt-to-equity ratio, and financial leverage do not. A discriminant analysis found a significant difference in return on assets between companies that practiced income smoothing and those that did not. The study aims to further investigate factors affecting income smoothing and examines the influence of return on assets, dividend payout ratio, debt-to-equity ratio, and financial leverage on the practice.
This document discusses factors to consider when drafting a letter of engagement for legal clients. It emphasizes the importance of clearly outlining payment policies, including retainer amounts, billing schedules, credit card fees, and consequences for non-payment. The letter should also specify who is responsible for fees, payment timelines, and the use of electronic billing platforms. Defining work-in-progress and unbilled time policies can help law firms improve their realization rates and reduce write-offs. Selecting appropriate key performance indicators to measure utilization, realization, and other metrics can enhance a firm's profitability.
Choosing the right Professional Employer Organization will help your business remain in compliance, leverage the efficiencies of great technology, and facilitate access to comprehensive capabilities that will benefit your business and its employees. So what are the most basic and key things you need to know about PEO?
Organisations spend heavily on technology, people skills and consulting to understand billions of bits of data, but they still lack clear visibility and insight.....
SEC seeks input on earnings releases and quarterly reportsAzhar Qureshi
The SEC is seeking public comment on potential changes to earnings release and quarterly reporting requirements for public companies. Specifically, the SEC is considering: 1) Allowing companies to satisfy Form 10-Q requirements using information from voluntary earnings releases; 2) Reducing reporting frequency from quarterly to semiannually; and 3) Actions to address concerns that current practices unduly focus companies on short-term results. The SEC seeks input on impacts of these changes on investors and markets.
This document provides background information on accounting information and its use in management decision making. It defines accounting information as the language of business that processes financial transactions and provides financial performance data to internal and external users. It discusses how accounting information is necessary for proper decision making, profit maximization, and optimal resource utilization. The document also notes some problems with the quality and validity of accounting information provided to management and how this can negatively impact decision making and organizational performance if the information is untimely, inadequate, or unclear.
The document discusses ad hoc HR managers (aHRMs) in small businesses. aHRMs are employees who take on HR tasks in addition to their regular roles because HR duties are not formally assigned. The document states that aHRMs spend 20% of their workweek on HR tasks and lack confidence in handling HR, taking time away from their primary jobs. It recommends that while not every small business needs a dedicated HR manager, they should be aware of risks like legal and compliance issues from untrained aHRMs and consider partner options that can provide strategic HR support and guidance.
The document provides information on how to build a successful business, including the importance of writing a business plan, obtaining financing, providing good customer service, using social media for promotion, and resources available for Virginia businesses. Key points covered include how a business plan can increase chances of success by 25% by mapping out goals and strategies, the different sources of financing like personal savings, bank loans, and government programs, how customer service is important for retaining existing customers and earning referrals, and how social media is a new way for businesses to earn attention by creating valuable online content.
Business Loans: Mistake Business Owners Make in Funding Their BusinessToby Mathis
The document summarizes the key mistake business owners make when funding their business - co-mingling personal and business finances. It provides examples of better ways to fund a business, such as using a CD to secure a business loan. The document then outlines the features of a business finance system that helps users build business credit, qualify for funding programs, and access credit providers to report payments and build their business credit asset over time.
Internal controls are methods and procedures put in place by businesses to safeguard assets, ensure accurate financial reporting, and help the business achieve its objectives. They help filter activities to prevent and detect fraud and errors, encourage good management through timely performance information, and reduce risks. Having proper internal controls protects a business's resources and allows issues to be addressed when they occur.
This document provides an overview of Balmer Lawrie & Co. Ltd.'s annual budgeting process and the roles of the Finance and Vigilance departments. It discusses tips for effective budgeting from a Wall Street Journal article, including using dynamic planning rather than budgets for strategic planning. It then profiles the Finance department as the "number crunchers" who help streamline systems and provide analytical support. The Vigilance department is also introduced as actively working to promote anti-corruption. Leadership speaks articles provide further context on the diverse business portfolio, need for a robust management control system, and roles of Finance and Vigilance departments in oversight and transparency.
The federal government's interpritation of an employee versus a contractor is becoming more stringent. This article by Peter McDonald, CPA of Smith Elliott Kearns & Co., LLC explains several key questions which will help you understand the difference.
Presentation on Frequently Asked Questions about the Comptroller and Auditor General of India, Supreme Audit Institution of India for the public information
This document provides an overview of genetic toxicity testing guidelines. It discusses the history and aims of toxicity studies. Various in vitro and in vivo genetic toxicology tests are described, including tests for gene mutation, chromosomal abnormalities, and primary DNA damage. Key tests covered include the mammalian erythrocyte micronucleus test, mammalian bone marrow chromosomal aberration test, rodent dominant lethal assay, and mouse heritable translocation assay. The principles, procedures, and parameters of these tests are summarized. References on genetic toxicology guidance documents and studies are also provided.
This document provides an overview of various blotting techniques used to detect specific biomolecules, including Southern blotting, Western blotting, Northern blotting, and related methods. It describes the basic principles of blotting, which involve transferring biomolecules from a gel to a membrane for detection using probes or antibodies. Examples of applications for each technique are also outlined.
This document outlines the typical structure and format of a research project report. It includes preface pages like the title page and declaration. The body has 6 chapters - introduction, organization profile, literature review, methodology, data analysis, and findings & conclusions. Terminal pages include bibliography and appendices. Each chapter is described in detail covering their typical sections and content.
Case study - Cultural norms, Fair & Lovely, and advertisingAn Tran
International Marketing case study of Fair & Lovely.
Question 5's answer was advised to changed into the theme "Let your beauty shine".
-----------------
Disclaimer: All images are copyright to their respective owners.
Corporate governance with Satyam Case Study by ROAR GroupRakesh Amin
This document discusses corporate governance and provides definitions and concepts related to corporate governance. It defines corporate governance as the relationship between stakeholders that determines the strategic direction and performance of organizations. It also provides definitions from various sources. The document outlines the objectives, mechanisms, role of regulatory bodies, and important concepts of corporate governance such as insider trading and whistleblowing. It concludes with a case study on the Satyam computer scandal in India.
Corporate Governance In Indian PrespectiveGeorge V James
This document discusses corporate governance in India and provides an overview of key committees and reports that have shaped corporate governance practices in India. It defines corporate governance and outlines its main principles. It also discusses important players like the board of directors, shareholders, and regulators. Furthermore, it summarizes some of the major milestones in India's journey toward better corporate governance standards, including key committees like the Confederation of Indian Industries Code in 1997 and the Kumar Mangalam Birla Committee Report in 2000 that introduced Clause 49.
In this presentation, aimed at students in engineering, science and technology, I present some personal thoughts on what is expected in a technical report. Aimed particularly at students about to write their first lab report, it also contains useful information for students who need to write a dissertation or a software design document. It relects what I like to see in a report when I am marking it, but some of the principles are general I think. Within the constraints of the medium, I have also tried to present this it in much the same way that I would expect a report to be presented. Comments welcome.
This document summarizes several major corporate and financial scams that occurred in India between the 1990s and early 2000s. It describes the Satyam scam where founder Byrraju Ramalinga Raju admitted to inflating account books by Rs 8,000 crore. It also summarizes the scams involving Harshad Mehta, Ketan Parekh, C.R. Bhansali, Sohin Daya, Dinesh Dalmia, Abdul Karim Telgi, Virendra Rastogi, UTI officials, and Sanjay Agarwal, estimating total losses of thousands of crores of rupees in each case through fraudulent activities like siphoning funds, price rigging, and
This document is a project report submitted by Chandrasekhar Goud for his MBA in finance. The report studies online trading and stock broking at Sharekhan Pvt Ltd. The objectives are to analyze changes after moving from outcry to online trading, study Sharekhan's departments, understand their online trading system, and explore future developments. The methodology includes interviews with Sharekhan and collecting secondary data from materials, magazines, and books. Some limitations include brokers providing little market insight and potential queuing delays accessing markets through brokers.
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ACC 290 Finals Question 1 Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends.
Acct 504 mart perfect education acct504mart.comstudent2345
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
Balance Sheet
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ACC 290 Finals Question 1 Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. Question 2 Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? Question 3 Posting Question 4 The following is selected information from L Corporation for the fiscal year ending October 31, 2014.
Fin 571 genius perfect education fin571genius.comstudent123455
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost. 5.
Fin 370 genius perfect education fin370genius.comstudent2345
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4-5 Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year?
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
Accounting plays an important role in business operations by tracking spending, profit, loss and other financial activities. Businesses are very dependent on their accounting departments, which are responsible for monitoring cash flow, complying with tax laws, and ensuring financial reporting is accurate. Financial statements like the balance sheet, income statement, and statement of cash flows provide useful information to both internal managers and external stakeholders in making financial decisions about the business. Budgeting is an important planning tool that helps management make good decisions by planning ahead, prioritizing goals, and identifying financial issues.
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Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions: For this week's checkpoint we had to look up three job postings in the field of accounting. I'm glad that I got this opportunity because it actually opened my eyes and expanded my knowledge in the accounting field. The three job positions are listed below. The first job title was Senior Internal Auditor.
Financial audits reasons behind failures & some suggestionsKumar Indra Mohan
Auditing involves the independent examination of an entity's financial information to express an opinion on whether its financial statements are fairly presented. A financial audit provides an opinion on whether the financial statements comply with accounting standards. Auditors gather evidence to determine if the statements contain material errors or misstatements. Auditing helps detect and prevent fraud, assess taxes, maintain proper accounts, compare performance year-over-year, and increase an organization's credibility and goodwill. However, auditing has limitations such as not all transactions can be verified and it cannot ensure future profitability or management efficiency.
Fin 571 genius perfect education fin571genius.comstudent01234
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1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan
F4.1 I think if a senior manager delayed a planned maintenance ju.docxmydrynan
F4.1 I think if a senior manager delayed a planned maintenance just to make profits look better I consider that unethical. I think about this the way the military is, they do maintenance all the time. This is to make sure the equipment continues to work the way it needs to. If it doesn't work then people can get hurt or can delay in business production. I can see how this example is questionable just because it isn't as if they completely cancelled the maintenance but just pushed it. I just don't think it would be worth the risk considering how much can go wrong by doing that. Another questionable situation would be not promoting someone because they didn't have the money when in fact they did but didn't want to fork it over. These situations really depend on the details if they are truly unethical or not. If someone was already doing the additional work the promotion would require then I would consider that unethical.
F4.2 It may have an appearance of being somewhat dishonest, but delaying the expense to a later reporting period to provide a higher EPS for stockholders is likely very common. If the expense is accounted for in the next period (when it is incurred), there is no dishonesty displayed. This reminds me of forward contracts, which are also common and expected.
Many years ago, I worked for a defense contractor (one of several at the time). Highly lucrative Government contracts would be bid on by several companies. I remember that the price of the bid would change several times before the ‘best and final’ submission. Each of the defense contractors knew what the others were bidding. I once questioned how the price could change so drastically, and was informed that all of the companies ‘update’ their financial requirements. In the end, these projects always came in significantly over cost (and the Government paid it anyway). I am a strong supporter of our military and national defense, but I have to wonder how things would have changed if the defense companies were held to their bids.
F4.3 The accounting manager is focused on the collection and presentation of financial data. This information would be presented in the financial reporting documents including Income Statement, Profit/Loss, Balance Sheet, etc. The reports are used to support decisions; the accounting manager may be one of the individuals included in the strategic discussions.
The CFO is responsible for both the accounting and finance functions, and plays a key role in making business decisions. The information contained in the financial reports helps to drive business decisions. Multiple roles should be involved in a successful strategic plan; each member of the team comes to the table with unique experience and knowledge. Further, multiple decision makers provides a system of checks and balances.
F4.4 If a firm’s senior manager is delaying a planned maintenance to make profits look better, then I believe that is very unethical. Although, it is unethical I also bel ...
The document discusses auditing and provides details about its scope, objectives, types, and advantages. It defines auditing as examining an organization's financial records to determine if they are accurate. The main objectives of an audit are to analyze the internal system, check transaction validity, and finalize asset/liability values. Audits can be financial, tax, compliance, or operational. Advantages include operational improvements, reassuring ownership, gathering profit/loss information, settling insurance claims, producing accurate reports, and maximizing profit levels.
Corporate Failures - Causes and Remedies.pptxssuser07cba1
The Economic cost of business failure is relatively large, Government, providers of capital, as well as management and employees are severely affected. More critical are the reporting accountants who are likely to face potential litigation if their report failed to provide an early warning signal.
Apart from profit making objective, all corporate business concerns share one fundamental objective which is to remain as going concern.
As businesses strive hard to perpetuate, one of the most significant threats irrespective of their size and nature of operation is illiquidity and insolvency. Extant evidence shows that in past decades business failures have occurred in higher rates than at any time.
The disastrous and social effects of corporate failure makes it imperative for shareholders, creditors, government, etc. to continually monitor the operations of a corporate entity in order to avoid possible failure. The main focus of this presentation is to consider the causes and remedies of corporate failure.
This document discusses various topics related to accounting as a profession. It begins by defining accounting and describing the wide variety of roles that accountants perform beyond just preparing financial statements, such as analyzing costs and efficiencies, participating in mergers and acquisitions, developing information systems, and managing taxes and benefits. It then outlines some career paths one can take in accounting, such as auditing, budget analysis, and financial accounting. It also notes the expected job growth and outlook for the field.
Accounting principles are the basic rules and assumptions that form the framework for constructing financial statements. They provide structure and guidelines for accounting practices. The Financial Accounting Standards Board (FASB) establishes Generally Accepted Accounting Principles (GAAP) in the U.S. by issuing new standards and revising old ones. While compliance with accounting principles is partially voluntary, the Securities and Exchange Commission (SEC) regulates public companies and the IRS provides oversight of financial statements used for tax filings. Overall, a mix of voluntary cooperation and regulatory forces work to ensure consistency and integrity in financial reporting.
Financial and Managerial AccountingDifferences between financial.docxericn8
This document discusses the differences between financial accounting and managerial accounting. Financial accounting focuses on maintaining an organization's financial transactions and records for external reporting purposes. It provides financial statements to outsiders. Managerial accounting focuses on identifying, evaluating, interpreting, and communicating internal information to managers within an organization to help them make decisions and ensure goals are achieved. While financial accounting requires adherence to accounting principles and standards, managerial accounting is more flexible as the information is for internal use.
Week 5ACC 290 Week 5 DQ1(What is the Control Environment).docx.docxmelbruce90096
Week 5/ACC 290 Week 5 DQ1(What is the Control Environment).docx
Week 5 DQ1
What is the control environment? How does the control environment affect a company’s internal controls? What are the negative and positive elements of a control environment? What are two examples of strong and weak internal controls in organizations where you have worked or have first-hand knowledge?
The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase efficiency of operations, and compliance with laws and regulations. The negative elements of a control environment are that strict adherence must be applied continuously. Sometimes employees become overworked and underpaid and this is cause for concern because their level of carelessness goes up. Other times people might become slack in their duties over time. Some of the positive elements of a control environment are that responsibility does not lie on one person but many. Each part of a process requires several people to handle it therefore offering little opportunity to do wrong. Other positives are the process of that accountability is established and understood by each individual. An example of a weak internal control I witnessed was in a friend’s tanning bed business. The friend worked during the day and outlined how she expected her teenage employee’s to behave through policies and procedures. To my friends face the employees were the picture of a model employee but when she left in the evenings to go home and let them finish out the night the trouble would begin. The employees were letting all their friends tan for free, selling them tanning products and pocketing the cash. My friend finally put up a camera and goodness was she shocked at what was happening after she left for the evening. A strong control system that I have knowledge of is the system where I presently work. Our everyday policy is outlined in who does what – no procedure is ever fully completed by just one person. For example, my student employees run the registers, I prepare the deposit, another person drops off the deposit, and the final person reconciles the transactions. If I were to do another procedure then I would not be allowed to do the one I am doing now. It is just simply separation of duties so that one person does not hold all of the control or responsibility.
References
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for businessdecision making (6th ed.). Hoboken, NJ: John Wiley & Sons.
Week 5/ACC 290 Week 5 DQ2 (Key Internal Controls ).docx
Week 5 DQ2
How wo.
The document provides an overview of a mentorship program on financial review. It discusses key steps in conducting a financial review, including analyzing financial statements, calculating financial ratios, and identifying trends over time. The objective is for participants to gain practical insights on evaluating business performance, operations, managers, and capital investments using information from financial statements. This will allow them to forecast conditions and make informed decisions. The mentorship method involves interactive discussions with practical examples and reviews.
Earnings management involves using accounting techniques to alter financial results within GAAP, while fraud intentionally misleads through financial statements in violation of law. While the two can be similar in distorting financial reports, earnings management does not necessarily constitute fraud if performed within the boundaries of accepted accounting standards. However, abusive earnings management could lead firms into committing accounting fraud.
Case Study Of Rajendra K Goel &Amp; CompanyNicole Fields
- Kudler Fine Foods has implemented an industry-specific accounting information system which helps ensure accurate financial reporting.
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- Implementing CAATTs would benefit both Kud
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After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
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Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Acct 504 mart perfect education acct504mart.com
1. ACCT 504 Case Study 1 (Gordon Construction)
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Case Study 1 (Part A)Analyze the impact of business transactions on
accounts; record (journalize and post) transactions in the books;
construct and use a trial balance) For Discussion Question 1: Post
your response to the following:
When reviewing a financial report, why should information be
reliable, relevant, consistent, and comparable?
In other words, why are these accounting characteristics
important?
What kinds of problems could be created if a financial report is
not reliable, relevant, consistent, or comparable?
It is extremely vital that the company has accurate financial
reporting. This information determines whether or not to invest in
your company's stock. This information will help them decide if it is
profitable to invest or not to invest in your company based what is in
your financial history. The information must be relevant because it
will help the company, investors and lenders make decisions. It helps
answer questions like, "how stable is your company", or "what future
does this company have". The information should be reliable. In other
words the information that is reported must be able to be verified,
backed up with truthful information. Comparable occurs when
different companies use the same accounting principles. This makes it
much easier to compare results between company's. Consistency
happens when the company uses the same accounting method every
year. When the financial statements are reported each year, it paints
a financial picture of where the company is headed now and in the
2. future.
What kinds of problems will occur if the information does not include
these things?
Falsified or manipulated statements doesn't only effect the company
but it also to name a few effects the lenders, creditors, investor's, etc.
This will result in the company not having a faithful representation.
Another response
The main objective of generating financial information is providing
useful information that can be used in decision-making... only if this
information is relevant, reliable, comparable, and consistent, can it
be useful for decision makers. (Kieso, 2003).
Relevance gives a basis for making decisions that will impact the
future of a business, and it confirms and corrects expectations from
the past. If the information makes a difference in making decisions, it
is relevant.
Reliability means that the information can be depended on and it can
be proven to be free of error, and the information is factual. The
information cannot favor one set of users over another. CPAs audit
financial statements to ensure reliability.
Comparability is also an important characteristic of financial
reporting... this happens when different businesses use similar
accounting principles, making it much easier for one to compare
companies, and the method used in a business must be disclosed to
the users of the information to enable the users to convert the
information as accurately as possible.
Consistency simply means that the business uses the same
accounting principles on a yearly basis... consistently. This helps
3. decision makers analyze a company's trends. A company can change
the methods used if they can justify the change, showing that the
new method is more useful for analysis. If the method is changed, it
must be disclosed in the notes that go with the statements to show
users a lack of consistency.
These characteristics are very important to a business... decisions
cannot be made based on incorrect information, and everyone
involved in a business venture of any kind, whether they be
management, owners, or investors and creditors, as well as
consumers, etc. must be able to rely on the financial information
provided in order to make any type of decision. Without this
information, it is difficult to imagine any business succeeding, even
for a short time.
Examples of problems that could occur without reliable, relevant,
consistent, or comparable information includes not being able to get
loans or investments; management could make decisions that cause
irreparable damage to entire operations, consumers could easily lose
faith and cut their ties... the possibilities are endless for companies
that lack these qualities in their financial reporting.
DQ2
For Discussion Question 2: Post your response to the following:
How does information from financial reports influence business
decisions?
Why is it important for business managers to understand the
information found on financial reports?
4. How does information from financial reports influence business
decisions?
Once the information from the financial reports have been posted
then a team will review the company's financial history to see what
decision were profitable or not. The decisions that were made
previous to the financial reports being posted will show which way
the company needs to go to continue to remain #1.
Why is it important for business managers to understand the
information found on financial reports?
IT is extremely important for he business managers to understand the
information found on the financial reports. The business managers
are going to be the people that are going to make decisions for the
company. They need to know how to interpret the financial reports
and come up with different strategies that will continue to make the
company money.
Another response
The information from financial reports influences business decisions
because it shows where the company stands. The managers use the
information from the financial report compared to the current year
from the previous year, whether the company growths or losses. It is
very important for business managers to understand the information
found on financial reports because the information from the financial
reports enables business managers to see how to improve and keep
the business afloat. It also gives business managers an insight what
came in and went out and the total operating cost of the company as
well as cutting cost in a certain areas. The information from the
5. financial reports helps the manager manages the business
accurately.
--------------------------------------------
ACCT 504 Case Study 2 (Williams Oil)
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Case study (Learning Objectives 2, 4: Explain the components of
internal control; evaluate internal controls) Each of the following
situations reveals an internal control weakness: Situation a. In
evaluating the internal control over inventory for the Williams Oil
Services Company,
Internal Cash Control
By
Kamilah Crooms
Accounting 220
Jess Stern
Internal Cash Control
The accounting department receives from sales invoices once a
month. Most of the information is missing on the invoices.
The accounting department relies on each department within the
company and all the information has to be submitted completely and
6. in a timely matter. In this scenario most of the information that has
been turned in has information that is missing on the invoices. I
would say that the internal controls that are not being followed are
Documentation procedures. Company documentation is very
important and must be turned in complete. These documents show
proof of delivery or proof of services to the customer. Any incomplete
documents can be very costly and can cause a delay in the company
being paid for any services rendered. For example, one of the
requirements in a transportation department is to make sure that the
drivers verify the load and sign for the load prior to leaving the yard,
these documents says that the load left in good condition. Well, it so
happened that we allowed a driver to leave without signing the
paperwork. This caused a delay in accounting because we had to get
signatures from the driver and the customer which took a month
later to complete.
Rob, Sue, and Bob use the same cash register at the donut shop.
Rob, Sue, and Bob all use one register has often turned into not the
best decision ideally for the company. It can increase the risk for the
drawer being short and it will be hard for the company to find out
which employee or employees had shorted the register. The internal
controls that are not being followed are Establishment of
responsibility. Happens when the company assigns one person to be
in control of a specific job or have authority to make decisions (pg
161 Internal Control and Cash). When the company signs one person
to be responsible over the register it will allow the company to hold
that one person responsible for any shortages.
7. Sam does the ordering of materials at the beginning of every
month and pays the bill.
In this case Sam is ordering materials and paying all the bills. This
process is actually known as related activities (pg 162 Internal
Control and Cash). This occurs when one person is doing two different
responsibilities just like Sam. The internal Control that is not being
applied is Segregation of Duties. It is better for the two to be a
separate responsibility because it will minimize the billing errors.
Bank reconciliations are done by the person who is responsible for
all cash responsibilities.
The problem with this scenario is that the same person is responsible
for all cash responsibilities, why is this person doing the only one that
does this job? Having one person take on such a major responsibility
increases the chances of embezzlement and thief. The internal control
that is not being applied is rotating employees’ duties and requiring
employees to take vacations. One person should not be completely in
control of one job, the company should encourage vacations or
switching positions to prevent incorrect handling of the company’s
valuable information.
New checks came in and are left on the shelf with other supplies.
8. This is a tough scenario because there are all sorts of internal
controls that are not being used in this case. I would say in my
opinion that the first internal control that comes to my mind that is
not being applied is bonding of employees who handle cash.
Every employee that works near or with expensive equipment should
be held reliable or responsible for the company’s assets. Bonding of
employees who handle cash protects the company by insuring that
the employee is or isn’t a risky applicant (background checks) or
reassuring that the employee that they will be prosecuted to the
fullest extinct if they are found guilty of thief. For example, I had
worked at Mc Donald’s and
there were my shift managers and one employee that were caught
with stealing money from the company. This situation had happen
very differently. The armor truck dropped off a deposit that belonged
to another company (armors mistake) but they signed it. Those
employees thought that nothing was going to be traced back to them
but the little did they know, all evidence traced back to them. They
each received jail time, and felony records.
Everyone has access to the computer system and the last audit was
seven years ago by the former accountant
This scenario has two things that are going on at the same time. I
will first start off with the computer system and how everyone has
access to the computer. The internal control that is not being applied
is Physical, Mechanical, and Electronic Controls. This allows the
company to control assets through physical or electronic based
systems or programs. It is extremely important for a company to
invest in computer or informational protection for the company and
9. for their employees. Today’s technology age most companies are
investing in a computerized program. This will help protect from
internal errors and external protection. For example, all companies
invest in a virus protection this will ensure that the company’s
information is protected and not in the wrong hands.
Invest idle cash
Invest idle cash occurs when any excess funds or cash needs to be
invested. The money should be highly invest and risk free. For
example, a major company should make investments with their
assets into profitably investments and risk free.
Plan the timing of major expenditures
This is when a company sets aside money for major cash needs. We
live in a world that things happen daily. A good company would set
aside emergency funds. For example, during a terrible thunderstorm,
the winds practically ripped off the roofing shingles off a commercial
business. The company will be able to use the money for emergency.
Delay payment of liabilities
Delay payment of liabilities is when a company pays bills not too soon
and not late. This allows the company to have money available for
bills that that really need to be paid allowing excess funds to be free
for other uses.
Keep inventory levels low
10. This occurs when the company keeps the inventory low so that it will
bring in more profits. For example, if the managers at a fast-food
over plan and fix too many hamburgers and the customers don’t buy
it, then the food will go bad and the company will lose profit.
Increase the speed of collection on receivables
This occurs when money is owed to the company, the company
cannot claim these until the funds have been received. Some
companies offer incentives to encourage customers to pay early or on
time. For example, my job encourages their customers by letting
them know that there will be a price increase on or after a certain
date and this really works because the customers want to pay at a
lower price.
References:
http:yourdictionary.com /accounting_statements.org Retrieved
2/13/2010
Thomas, Y. 2005-08-27 “Accounting 101 pg. 52 Statements
--------------------------------------------
ACCT 504 Case Study 3 (Wang Appliance Store)
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Construct and use a cash budget) Nathan Farmer, chief financial
officer of Wang Appliance Store, is responsible for the company?s
budgeting process. Farmer?s staff is preparing the Wang cash budget
for 2014. Axia College Material
Appendix B
Cash Management Matrix
Directions: Using the matrix, list how each of the principles of
internal control works, and give an example for each. Next, list how
each of the principles of cash management works, and give an
example for each.
Principles of Internal
Control
How it Works Example
Establishment of
responsibility
Happens when the
company assigns
one person to be in
control of a specific
job or have
authority to make
decisions.
My job, Our Sales
department is the
only one that can
waive a restocking
fee. It allows the
Sales team to be in
control of the
customers returns
12. Segregation of duties This is when the
company has more
than one person to
control a task or job
A church- You have
people who count
the offering and
then you have
someone who
writes down and
logs in what was
received
Documentation
procedures
Evidence or proof of
all company
transactions
My job we deliver
ship shingles to our
customers, and we
make the driver sign
prior to leaving and
we make the
customer sign a
“Proof Of Delivery”
form
Physical, mechanical,
and electronic
controls
Allows the company
to control assets
through physical or
electronic based
systems or
programs.
Our job has a
system called Cisco
and this tracks the
employees breaks
and lunches. Also,
monitors how long
the CSR have been
ready or working.
Physical control
would be the
security guard, they
require
identification prior
to entry.
13. Independent internal
verification
Any information that
can be reviewed ,
compare, and
reconciliation by a
employee
My job has a way of
tracking our
inventory and when
someone says that
they were shorted
on their order we
can go back and
track the inventory
and compare the
numbers in the
system and a
physical count to
determine if the
numbers were
incorrect
Other controls Bonding of
employees,
company protects
against abuse of
assets.
Our company fired a
girl just recently
because she had
used the company
card business card
for personal us that
was not work
related.
Principles of Cash
Management
How it Works Example
Invest idle cash Occurs when any
excess funds or cash
needs to be
invested,
My father’s
company makes
wise investments
and it turns around
in his favor
14. Plan the timing of
major expenditures
A company wants to
make sure that
there is money set
aside for major cash
needs
During the recession
profits dropped
lower than expected
so some companies
pulled from these
funds
Delay payment of
liabilities
When a company
pays the bills at an
appropriate time
not late and not too
soon.
Ok, when times are
tough at home and
bills are due I
organize the bills by
which bills needs to
be paid the soonest,
because if I pay the
bills too early I will
cut off my excess
funds that could be
used for something
else
Keep inventory levels
low
Happens when a
company keeps the
inventory low so
that it will continue
to bring profit
See’s Chocolate
factory has to make
sure that they are
not over producing
or making too much
or else the sit and
the company will
lose money
Increase the speed of
collection on
receivables
Money that is owe
to the company by
other people or
customers is money
that can not be
When a customer
places a order for a
product and has not
paid yet, the
company can not
15. counted towards
the companies funds
count the money as
their’s until it is
received.
--------------------------------------------
ACCT 504 Course Project Analysis of Nike, Inc. and Under
Armour, Inc.
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Course Project: A Financial Statement Analysis A Comparative
Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the
financial statements for Nike, Inc. for the fiscal year ending Income
statement is a financial statement that shows how much money is
coming from product sales and services prior to any expenses being
taken out. Both internal and external users such as managers and
investors are able to access this. For example, if a investor wanted to
see if the company made money or lost money they would use this
financial statement report.
Balance sheet shows what condition the company is currently in.
whereas the other financial statements only came monthly or
annually. For example, what if the management planning team
wanted to see the company's current assets, ownership equity and
liabilities? All they have to do is run the balance sheet report.
CVP income statement or Cost Volume statement reports or monitors
the effects of the changes in cost and volume when it comes to the
company profits. For example, I work at a manufacturing plant for
16. roofing shingles. The CVP analyst studies the cost which includes but
not limited too, manufacturing, material, labor cost. This financial
statement report would help the management team budget the cost
of manufacturing goods.
Statement of cash flow tracks the movement of cash coming in or out
of the business. This financial statement will show if the company
made cash or not, or if the net income increased or decreased. For
example, the owner or the management department will use this to
determine if the company has earned enough money to be able to for
any expenses.
Retained earnings statements is a percentage that is kept by the
company to be reinvested or to be used to pay debts. For example, if
a company was looking to expand their business by purchasing top of
the line equipment they can use this statement to see how much
money the company has put away.
References:
http://www.investopedia.com/terms/r/retainedearnings.asphttp://finan
cial- Retrieved 2/18/2010
statements.suite101.com/article.cfm/financial_statements_the_p_l.
Retrieved 2/18/2010
--------------------------------------------
ACCT 504 Course Project Oracle and Microsoft Corporation
(Devry)
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Course Project
Financial Statement Analysis Project -- A Comparative Analysis of
Oracle Corporation and Microsoft Corporation
Here is the link for the financial statements for Oracle Corporation
Discussion Question 1: Post your response to the following:
How would you describe the difference between financial and
managerial accounting? What are the distinguishing features of
managerial accounting?
There are many differences between financial and managerial
accounting. The financial accounting statements are available to
external users such as employees, stockholders, creditors, investors,
etc. This is available to them so that they can monitor the company's
performances quarterly or annually. Managerial accounting provides
financial information for managers and other internal people or
department. Managerial accounting is confidential so it is only
observed by internal users such as management, owner, and will
provided to external users such as the public. Management uses this
for budgeting purposes or to monitor profit loss/gain within the
company. Managerial accounting can be available to them as often as
needed. Managerial accounting statements is a great way for
management to make decisions based on what has been reported.
Another response
The differences between managerial accounting and financial
accounting are distinct. Managerial accounting reports are for those
in managerial and decision making positions. The managers use the
financial report to answer questions, which would advance the
company and its employees. The manager would want to know if
certain investments should be made and should the company advance
an employee's salary. The manager needs the report to decide if a
factory is built or if a certain stock is brought. The financial
accountant has the job of showing the external users such as creditors
18. and stockholders a picture of the company's stability.
The manager's purpose is to manage by making stable plans, delegate
duties, motivate the workers, and control the atmosphere.
Distinguishing features of managerial accounting are the fact no cpa
will audit the report, and there is no specific frequency of the report.
The reports are done in a need to know basis and for a specific
reason, which is for business purposes. The reports are detailed and
pertain to specific business decisions. The financial accountant need
only be concerned with the company's finances.
DQ2
Discussion Question 2: Post your response to the following:
Select a management function (planning, directing and
motivating, or controlling) and explain how that function relates to
business as a whole. Next, select a different function listed by a
classmate. Discuss with your classmate how the functions you each
selected complement each other.
The management functions that I choose was controlling.
Controlling job is to make sure that the each
department/person is keeping the company's activities or plans on
track and in order to achieve that they must work closely with
Management planning function. Controlling continually compares the
company's performance to make sure that the planned standards
are being met. In my opinion this is known as the "dirty work".
Controlling operations have to know what to look for and how to keep
track of all the company's activities. They have to take actions and
quickly correct any errors and make sure that the company goals are
being achieved in a timely matter or the time that it was planned. If
there are errors it is job of the controlling operations to take quick
action. The controlling operations not only correct errors after it
happens but they also are in charge of foreseeing any potential errors
and act quickly to get that resolved.
19. Another response
I chose Controlling as part of the management function. The
controlling function relates to business as a whole because it helps
monitoring the firm’s performance to make sure the planned goals
are being met. Managers need to pay attention to costs versus
performance of the organization. let say, if the company has a goal of
increasing sales by 10% over the next two months, the manager may
check the progress toward the goal at the end of month one. If they
are not reaching the goal the manager must decide what changes are
needed to get back on track.
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ACCT 504 Entire Course (Devry)
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ACCT 504 Week 1-7 All Discussion Questions
ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation
Cost, Volume, and Profit Formulas
By
20. Kamilah Crooms
Due February 28, 2010
Explain the components of cost-volume-profit analysis.
The components of cost volume-profit analysis consist of Level or
volume of activity, Unit Selling Price, Variable Cost per unit, total
fixed costs, and Sales mix.
What does each of the components mean?
Level or volume of activity is the activity that causes change or
behavior when it comes to the cost. Unit selling Price is the cost for
the product basically how much each unit is selling for. The Variable
Cost per unit is something that can change depending on the activity.
The total fixed cost does stay the same as activities change but differ
per unit. The Sales mix is basically what the name says. It’s a mixture
of sale items when more than one product sold the sales will remain
the consistent.
Based on the formulas you have reviewed, what happens to
contribution margin per unit when unit selling prices increase?
21. Contribution margin is the amount of revenue left over after
subtracting the variable cost. So basically Unit sales price
subtracting or minus variable cost.
Illustrate your explanation with an example from a fictitious
company of how an increase in unit selling prices might affect
contribution margin.
Kelly’s Sweetheart Flowers
The owner of Kelly’s Sweetheart Flowers is selling their bouquet of
flowers for $10 per unit. The Variable Cost per unit is $4.00. The
contribution margin will be ($10-$4) = $6. If the sells price
increases to say $15, then the contribution margin will be ($15-$6) =
$9 per unit.
When fixed costs decrease, what does this do for sales? Illustrate
your explanation with an example from a fictitious company.
Kelly’s Sweetheart Flowers
When the fixed cost decreases, the contribution margin ratio the net
income and sales will increase.
For example,
22. The flowers are $10 per unit. The variable cost per unit is $4.00.
The contribution margin will be ($10-$4) = $6. The fixed cost is $3.
We subtract Contribution margin – Fixed Cost= Net income. The
net income is $3.00.
Define contribution ratios
The contribution margin ratio is the contribution margin per unit
margin divided by the unit selling price.
What happens to contribution ratios as one of the components
changes?
Shown in the example above, if one or more of the components
changes is will cause the net income to increase or decrease.
Reference
statements.suite101.com/article.cfm/cost_volume_profits*the_p_l.
Retrieved 2/28/2010
//http:yourdictionary.com /CVP.org Retrieved 2/26/2010
23. Thomas, Y. 2005-08-27 “Accounting 101 pg. 52 Statements
--------------------------------------------
ACCT 504 Final Exam (3 different finals) (Devry)
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1. (TCO A) Which one of the following is an advantage of
corporations relative to partnerships and sole proprietorships?
(Points : 5)
7 How should mixed costs be classified in CVP analysis? What
approach is used to effect the appropriate classification?
According to our class materials all mixed cost must be classified into
their fixed and variable and variable elements. The method that can
be used to determine is called the high/low method. To determine the
variable cost the analysis takes the total cost and divide it with the
low activity level. To get the fixed cost then the company would have
to subtract the total variable with either the high or low activity level.
9. Cost volume profit CVP analysis is based entirely on unit costs. Do
you agree? Explain.
In my opinion when it comes to making financial decisions for the
company, often times more than one method is used. Cost volume
profit is also based on Volume or level activities, unit selling prices,
variable cost per unit, total fixed and sales mix.
14. You can find the break point in dollars by drawing a horizontal
line to the vertical axis. I you want to find the break even point in
units it will be a vertical line from the break even point to the
horizontal axis.
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24. ACCT 504 Midterm Exam (4 Sets, 2017)
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25. This Tutorial contains 4 Set of Midterm Exam 1. Question :
(TCOs A and E) Your friend, Ellen, has hired you to evaluate
the following internal control procedures. Explain to your friend
whether each of the numbered items below is an internal
control strength or weakness Axia College Material
Appendix C
Budgets Matrix
Directions: Using the matrix, define each of the budgets listed and briefly describe its uses.
Budget Definition Describe its uses
Sales budget Estimate of the expected sales
for the period. All of the other
budgets depend on the sales
budget. This is where all the
other budgets will start from
The sales budget shows dollars
and units. This will allow
management to see how many
units will be produced for the
period
Production budget A production of units needed to
be produced in order to meet
the projected sales
Shows management how many
units will be produced during
each budget period and what
amount is needed to fulfill
inventory demands
Direct materialsbudget Is the estimated quantity or cost
of the raw materials that is
needed in order to produce the
units required to fulfill inventory
Shows management how much
raw materials that is already on
hand and or that needs to be
ordered to meet inventory
demands.
Direct labor budget A estimate of cost and quantity
of direct labor needed in order
to meet production
Shows how many hours, how
many laborers needed to
produce the units for that budget
period. Management will decide
what will be the right amount of
laborers needed and if the
company will be able to meet
the budget
Manufacturing overhead
budget
An estimated expected amount
of manufacturing cost for the
budget period
This list all overhead cost
involving cash disbursement in a
quarter
26. Selling and administrative
expense budget
Anticipated selling and
administrative expenses in the
budget period
Shows area of budget expenses
that are not listed other than
manufacturing. Expenses such as
marketing, promotion cost etc
for the budget period
Budgeted income statement Estimate of expected
profitability of operations in a
budget period
Is a very important tool because
it shows the company estimated
profit for the budget period.
Cash budget A projection of expected cash
flows in and out of the business.
Cash budget helps management
keep a tally or total of all cash
balances.
--------------------------------------------
ACCT 504 Week 1-7 All Discussion Questions (Devry)
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Week 1DQ 1 - Financial Reporting Environment and GAAP
Week 1DQ 2 - Details of Financial Statements and Ratios
Week 2DQ 1 - Accounting EquationAccounting Cycle
Week 2DQ 2 - Accrual Accounting and Adjusting Entries
Week 3DQ 1 - Merchandising Operations and Income Statements
Discussion Question 1: Post your response to the following:
You know how important it is to create budgets for your
household. How does budgeting help management make good
business decisions?
Budgeting is a very important skill that can be applied to everyday
life and also when it comes to making good business decisions. I
really like the way our class resources says about Budgeting.
Budgeting is used as a planning tool used by management to make
good decision for the company. If a company is successful than more
than likely that means that the management team is very good at
27. managing the company finances. Budgeting helps management plan
ahead, defines what is most important, shows warning signs, reach a
company target without over or under budgeting and etc.
Another response
In a business, a budget helps a business make good decisions because
they are used by the company to plan for future events and coordinate
the events and duties in the company. They also gives objectives used
to evaluate the performance of the company on each level which can
help to make future decisions that will not hurt the company based on
the projected objectives. It can also be used to alert the company of
possible problems or negative trends in the company that need to be
addressed so that there is a clear picture of the overall health of the
company before decisions are made. The budget helps the company to
be able to make an informed decision when making one. It is there in
order to make sure that making a decision like taking on another
company will not hurt the company and is something that the
compnay can sustain based on the budget.
DQ2
Discussion Question 2: Post your response to the following:
What are some of the different types of budgets?
Describe in detail one type of budget covered in the text.
Describe what the budget is used for and what information it
provides a business.
Then, as you respond to your classmates, discuss how the
budget you described relates to the budgets they described.
28. Discuss how a business benefits from each of the budgets.
There are many different types of budgetting. For example, there
sales budget which allows management to see how many units that
need to be produced, production budget which will allows everyone to
see how many units are going to be produced in or needed to be
produced in order to meet the inventory for that budget period. One
budget that I can describe in detail is called the direct labor budget
and this budget shows how many people, hours is needed in order to
meet the required budget for that period. This will give management
an idea of how much money is needed such as paying the cost of
labor. The company benefits by each of these budgets because it will
help manage just how much money it will cost the company during
this period. Management can also see if there are different ways to
cost the company out of pocket cost down during this period.
Another response
I chose to write aboutthe Production Budget. The Production Budget
shows the cost of each unit needed to produce an item or manufacture
a product. The formula used by the Production Budget :
Budget sales units + Desired ending finished goods units - Beginning
finished goods units = Required production units.
An example would be, every Easter the bakeries in the Bronx loads up
on Hot Cross Buns. My mother and grandmother would buy these
tasty sweet breads,and eat them for breakfast. I personally would like
to eat them every week but, they are only sold during the Easter
season. Maybe, it has something to do with the glazed cross on the
top.
Every Easter Holiday, there appears these Hot Cross Buns and the
bakeries production department allows for the purchases for items
29. needed to make the buns. After Easter has gone, Hot Cross Buns are
not included in the budget.
--------------------------------------------
ACCT 504 Week 2 Homework (E2-17A, E2-18A, E3-22A,
E3-23A)
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This Tutorial contains Excel Files which can be used to solve for any
values (your Question may have different company name or values,
but that can be solved using Excel file) E2-17A Dr Anna Grayson
opened a medical practice specializing in physical therapy. What is a
Flexible budget?
A Flexible budget is a budget that change or is flexible during
different levels or activity. Unlike the static budget which is a budget
based on one activity level, the flexible budget is based off of more
than one activity level.
The steps to development a flexible budget is :
a) Identify the activity index, and the range of activity
b) Find out what the variable cost, and determine the variable cost
per unit
c) Find out what the fixed cost and determine the budgeted
amount for each unit
d) Organize the budget for selected additional activity within the
appropriate range
30. The information found on a flexible budget cannot begin with
the master budget. The flexible budget uses the same guidelines the
original budget. The budget consists of Sales, Cost of Goods Sold,
Selling Expenses, General and Administrative Expenses, Income
Taxes, and finally the Net Income.
The information on the budget is a great tool to be used for
evaluation performances. The flexible budget can be used for
monthly comparison purposes. Also during the process that
management is identifying the activity index and the range of activity
it will allow them to see the cost of direct labor hours for that budget
period.
--------------------------------------------
ACCT 504 Week 3 Case Study 1 (Melvin Plumbing
Corporation) **New**
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MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED
BELOW. There are 10 sheets in the Workbook, including this one. All
of the information that you need for the project is located in this
Workbook. Requirement #1 Capstone Discussion Question: Post your
response to the following:
Think back over what you have studied and learned in this
course. Do you have a new perception of or appreciation for the field
of accounting and how it contributes to business? Explain.
To be perfectly honest with you I truly had no clue what accounting
did for a company and how important it was. I always thought that
31. accounting only dealt with payroll. In fact accounting does much
more that just payroll and monitor company supplies (coffee, paper,
pens & pencils). The accounting sets budgets for the entire company,
monitors outflow and inflow of profits, plans budgets for each
department, and much more. When I first begun this class I was
really nervous, I truly thought that I was going to have a hard time
understanding the accounting but I happy to say that I was wrong. I
understood every part of this course.
On a personal note I would like to thank you Jess. If it wasn't for your
pep talk I probably would had gave up. You are truly a
great instructor. I wish you all the best! God Bless
Another response
Accounting has taken a whole new meaning to me in my vocabulary.
Prior to this course, I just took accounting as a calculator and
crunching numbers. I now have a new respect for accounting and all
the aspects that are involved. I never once took into consideration
profit, sales, revenue, and balance sheets also being included with
accounting. There is so much more involved with accounting, and
had I not taken this course I would have never known. Accounting is
a very important part of running a business. I feel that it is imperative
to all people thinking of opening a business should take some type of
accounting class to become more aware of how to run the
accounting part of a business.
--------------------------------------------
ACCT 504 Week 3 Case Study 1 Flower Landscaping
Corporation (Devry)
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The Entire Case Study is due Sunday at MidnightMountain time at
the end of Week 3.
This Case Study is worth 100 points or 10% of your final course
grade.
Business Plan
By
Kamilah T. Crooms
33. The name of my business is called DestinyWear. DestinyWear is
a urban fashion clothing company for woman, men and youth.
DestinyWear specializes in making clothing for every occasion. My
name is Kamilah Crooms and I am the owner and CEO of
DestinyWear.My goal is to ensure that my company will be succesfull
in all areas and in each department. In order for me to make sure that
the company was going to begin in the right direction I had to
priortize what was most important in establishing my business plan.
The main priority is that I had to first choose the appropriate business
structure, a high demanding product, and most of all an outstanding
accounting team.
34. Business Structure
Upon establishing DestinyWear I had to decide which business
struture that I felt was best for me to pursue. I decided that as a
Entreprenuer the best choice for me abd the direction of the company
would be for me to be sole proprietorship. Sole proprietorship
allowed me to be the sole owner of DestinyWear. The first and most
important reason that I wanted sole proprietorship is because it is
much easier to start a business as sole proprietorships. Sole
proprietorship takes all the profit that and doesn't have to split it
between any other owners or corporations. I also want the power to
make and change decisions along the way without having to first
consult anyone else.
DestinyWear Products
DestinyWear products will range from jeans, shirts, accessories and
shoes. The company will first start off with its most profitable product
and that will be the DestinyWear designer jeans line. The jeans line
has over twenty different jeans designs
35. from straight leg, baggy, cargo, overalls, shorts and much more. The
jeans line will provide services within the United States and Canada
and will eventually service Internationalcustomers. The DestinyWear
jeans line will have its own building. In this building the bottom floor
will consist of the factory and the top floor will have the different
departments such as management, marketing and most importantly
the accounting department.
DestinyWear Accounting Department
The accounting plays a major role in establishing my company
DestinyWear. The accounting department does more than managing
and reporting the company’s financial documents it is the greatest
tool in establishing my business. The key to a powerful accounting
department here at DestinyWear is applying the principles of internal
control. These principles consist of establishment of responsibilities,
segregation of responsibilities, documentation procedures, Physical,
mechanical, and electronic controls, Independent internal verification
and other controls such as Bonding of employees. In order to ensure
that this business plan works DestinyWear has to hire nothing but the
best qualified employees.
DestinyWear Accounting Staff
DestinyWear accounting team of fine employees will all be hired
through the company. There are several requirements that have to be
met in order for myself as the owner and Human Resource
department to even consider the applicant for accounting. We looked
for characteristics, education and work history experience. The first
36. and far most important qualifying requirements are education. The
applicant has to have a Bachelor BA/BS in accounting degree a plus
if he or she has a master’s.
The second requirement is experience. The applicant must have the
minimum of five years of experience working in accounting. He or
She must have knowledge and employment experience of working with
financial statements, cash management and internal control.
Employees must be experienced in Invest idle cash, planning the
timing of major expenditures, delay payment of liabilities keeping
inventory levels low, and increasing the speed of collection on
receivables. In the category of experience we had to hire applicants
according to the position that had to be filled in accounting. For
example, if a position in accounting such as management or
supervisory needed to be filled, then we would look for years of
experience in management or supervisory positions. I personally
prefer that every employee have some type of management
experience.
Last but not least, the employees characteristics. It is a must that
every accounting staff member has and applies professionalism, great
ethic and moral skills, accuracy, and most importantly punctuality,
and reaching company deadlines. These characteristics are very
important to have at DestinyWear.
DestinyWear Accounting Management Team
The DestinyWear accounting management team will be
reporting to me and to the other head staff each week to report
updates and any new changes. The management team is responsible
to have all the different types of budgeting reports that includes Sales,
Labor, etc. Management must follow the responsibility reporting
system for each department. The managers will use the company’s
financial information to predict outcomes of the business. I require a
report from each responsibility center, cost center, profit center and
investment center to be reported each month. Management is
responsible to ensure that the company does not over or under budget
and if any changes it must be reported immediately.
37. Conclusion
DestinyWear will be a very successful team not only because of
the products that we produce but because of having a great
accounting team. With the help of accounting team I DestinyWear
products will be in every wardrobe in America.
REFERENCES
//http:yourdictionary.com /CVP.org Retrieved 3/20/2010
Thomas, Y. 2005-08-27 “Accounting 101 pg. 52 Statements.
March 19, 2010
Drucker, P. Managing in the next society 2002. retrieved march
19,2010
--------------------------------------------
ACCT 504 Week 3 Quiz
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Q -1 Other comprehensive income A. includes extraordinary gains
and losses. B. affects earnings per share. C. includes unrealized gains
and losses on available-for-sale investments
38. Costco Wholesale Corporation
If we look at the financial statements of the company we can find
that the company is financially strong. Its strength are:
1. It has enough amount of current asset to repay its current
liability. The current ratio of the company 8.18 indicates that
the company has $8.18 liquid asset to repay its $1 of current
liability.
2. The operating cost of the company is increasing because the
company is able to reduce its expenses.
3. Cash from operating activity has increased for the company.
Apart from this strength the company also has some weakness in its
financial statement:
(i) Increasing inventory indicates that the company inventory
conversion period is increasing.
(ii) The cash from investing activity shows that the company
cash outflow is more in the short term investment i.e. in non
operating activity.
(iii) The overall has for the year 2008 has declined for the
company.
Net Income:
$950,000
$1,000,000
$1,050,000
$1,100,000
$1,150,000
$1,200,000
$1,250,000
$1,300,000
2006 2007 2008
Net Income
Net Income
39. If we look at the trend in net income of the company we can find that
the company net income looks fluctuating but it has improved it net
income in 2008 as compared to 2007.
Debt ratio as a percentage of total assets:
If we look at the debt ratio as percent of total asset we can find that
the debt ratio is declining in 2008 as compared to 2007 i.e. the
company is increasing equity to finance debt.
Debt as a percentage of total equity:
54.90%
55.00%
55.10%
55.20%
55.30%
55.40%
55.50%
55.60%
55.70%
55.80%
2007 2008
Debt ratio as percent of total asset
Debt ratio as percent
of total asset
122.50%
123.00%
123.50%
124.00%
124.50%
125.00%
125.50%
126.00%
126.50%
127.00%
2007 2008
Debt as percent of total equity
Debt as percent of
total equity
40. As we can see that the debt as percent of total equity is declining in
2008 as compared to 2007 i.e. the company is increasing equity in its
capital structure.
As we can see that there is nothing negative in 2008 for the company
and this is the reason it has positive trend as compared to 2007.
Hence there is no need to correct anything for the company.
--------------------------------------------
ACCT 504 Week 4 Quiz
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Q -1 Anderson Company had the following information in 20142014.
Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . $14,000 Allowance for uncollectible account 12/31/14 (before
Week 1 DQ 1
Due Tuesday, Day 2
Go to the U.S. Securities and Exchange Commission’s Web site
at http://www.sec.gov and the Financial Accounting Standards
Board’s Web site athttp://www.fasb.org. Identify the mission and
main activities of each organization. Then, analyze the similarities
and differences between the roles of each entity. Which entity has
more influence over financial statement reporting? Explain your
answer.
According to the SEC website their mission is to protect investors,
maintain fair, orderly, and efficient markets, and facilitate capital
formation. The SEC also requires public companies to disclose
meaningful financial and other information to the public. This
41. provides a common pool of knowledge for all investors to use to
judge for themselves whether to buy, sell, or hold a particular
security. The SEC is concerned primarily with promoting the
disclosure of important market-related information, maintaining fair
dealing, and protecting against fraud.
According to the FASB website the mission of the FASB is to establish
and improve standards of financial accounting and reporting that
foster financial reporting by nongovernmental entities that provides
decision-useful information to investors and other users of financial
reports. Since 1973, the Financial Accounting Standards Board (FASB)
has been the designated organization in the private sector for
establishing standards of financial accounting that govern the
preparation of financial reports by nongovernmental entities
The major difference in the SEC and the FASB is that the SEC deals
with reporting of financial statements for all industries while the
FASB deals mainly with the private nongovernmental entities. Both
are concerned with the fairness of financial reports and work in the
interest of the public. I believe that the SEC has more influence over
financial statement reporting because they can bring civil action
against companies and individuals for violations of securities laws.
Although according to the FASB website, “the Commission’s policy
has been to rely on the private sector for this function to the extent
that the private sector demonstrates ability to fulfill the responsibility
in the public interest.
Response 2
42. Go to the U.S. Securities and Exchange Commission’s Web site
at http://www.sec.gov and the Financial Accounting Standards
Board’s Web site athttp://www.fasb.org. Identify the mission and
main activities of each organization. Then, analyze the similarities
and differences between the roles of each entity. Which entity has
more influence over financial statement reporting? Explain your
answer.
U.S. Securities and Exchange Commission (SEC)
According to the SEC’s website “The mission of the U.S. Securities
and Exchange Commission is to protect investors, maintain fair,
orderly, and efficient markets, and facilitate capital formation”(U.S.
Securities and Exchange Commission, 2010, Para. 1).
The main activities of the SEC are to interpret federal securities
laws; issue new rules and amend existing rules; oversee the
inspection of securities firms, brokers, investment advisers, and
ratings agencies; oversee private regulatory organizations in the
securities, accounting, and auditing fields; and coordinate U.S.
securities regulation with federal, state, and foreign authorities. (U.S.
Securities and Exchange Commission, 2010)
Financial Accounting Standards Board (FASB)
According to the FASB’s website “The mission of the FASB is to
establish and improve standards of financial accounting and
reporting that foster financial reporting by nongovernmental entities
that provides decision-useful information to investors and other users
of financial reports. That mission is accomplished through a
comprehensive and independent process that encourages broad
participation, objectively considers all stakeholder views, and is
subject to oversight by the Financial Accounting Foundation’s Board
of Trustees” (Financial Accounting Standards Board, n.d., Para. 3).
43. The main activities of the FASB are to identify financial reporting
issues based on requests/recommendations from stakeholders or
through other means. The FASB Chairman decides whether to add a
project to the technical agenda, after consultation with FASB
Members and others as appropriate, and subject to oversight by the
Foundation's Board of Trustees. The Board deliberates at one or more
public meetings the various reporting issues identified and analyzed
by the staff. The Board issues an Exposure Draft to solicit broad
stakeholder input. (In some projects, the Board may issue a
Discussion Paper to obtain input in the early stages of a project) The
Board holds a public roundtable meeting on the Exposure Draft, if
necessary. The staff analyzes comment letters, public roundtable
discussion, and any other information obtained through due process
activities. The Board redeliberates the proposed provisions, carefully
considering the stakeholder input received, at one or more public
meetings. The Board issues an Accounting Standards Update
describing amendments to the Accounting Standards Codification
(Financial Accounting Standards Board, n.d.).
Both the SEC and the FASB have the same goals of fairness,
accuracy, and understandability of financial accounting and
reporting. Both agenecys accomplish these goals in the best interest
of the overall public.
The differences between the SEC and the FASB is that the FASB
regulates financial reporting in the private sector of businesses (but
are subject to the rules and regulations of the SEC) and the SEC deals
with regulating the financial reporting of publicly held corporations.
I believe that the SEC has the greatest influence over financial
statements reporting because they have the final approval on all
changes of the rules and regulations. The Sec can also bring civil or
administrative enforcement actions against individuals and
companies in violation of the securities laws.
44. References
Financial Accounting Standards Board. (n.d.). Facts about FASB.
Retrieved July 15, 2010, from Financial Accounting Standards
Board:http://www.fasb.org/facts/index.shtml#mission
U.S. Securities and Exchange Commission. (2010, May 3). The
Investors Advocate: How the SEC Protects Investors, Maintains
Market Integrity, and Facilitates Capital Formation. Retrieved July 15,
2010, from U.S. Securities and Exchange
Commission: http://www.sec.gov/about/whatwedo.shtml
Week 1 DQ 2
Due Thursday, Day 4
Search the Internet or the Online Library for information about the
Sarbanes-Oxley Act. A useful guide to some of these provisions is
located at http://www.soxlaw.com. Summarize at least two provisions
of the law, and discuss your interpretation of these provisions with
your classmates. Do you think this law will make financial statements
more reliable? Also, discuss how Sarbanes-Oxley establishes
boundaries to ensure ethical practices. What does the law allow or
prohibit, and why?
45. The Sarbanes-Oxley act has many provisions to give companies
guidelines for responsible, and ethical financial reporting. One of
those provisions is listed in Section 302 of the act. The provision is
that periodic statutory financial reports be certified that signing
officers have reviewed the reports, the report does not contain any
untrue, or misleading information. The financial statements fairly
present the financial condition. The signing officers are responsible
for internal controls. A list of all deficiencies in internal controls, and
a list of fraud involving employees, and anything that could
negatively affect the internal controls.
Another provision pertains to the "management assessment of
internal controls". This provision ensures that information is
published in annual reports regarding the adequacy of internal
controls, structure and procedures.
The Sarbanes-Oxley act is designed to help companies promote
ethical accounting procedures. The act gives guidelines as to how
financial statements are reported. The act requires verification that
officers within the company have checked the information in the
reports for accuracy and true. The act also requires that the
companies have internal controls in place to ensure ethical reporting
practices. The main thing that the Sarbanes-Oxley promotes is
transparency in reporting.
Response 2
Section 802 of the Sarbanes-Oxley Law defines the penalties that may
be assessed against individuals who failed to comply with the Act. An
individual could be subject to 20 years in jail for altering, destroying,
mutilating, concealing, falsifying records, documents or tangible
objects. Guilt is define by the intent to impede a legal
46. investigation. This part of the law gets to the heart of how Arthur
Anderson reacted by destroying documents important to
Worldcom. The law further defines that any accountant who
knowingly violates their ethics by wilfully violates the requirements of
maintenance of all audit or review papers. These papers are subject
to review up to five years.
The second Section that I reviewed was the Section 302. This actually
is my favorite part of the law because it directly holds the officers and
directors accountable for the accuracy of reporting in their financial
statements. It defines that the management must review and
understand the financial statements and sign that they are true and
accurate. It also holds the management accountable for the internal
controls, requiring any deficiencies to be reported. In the past
directors of companies relied heavily on the internal officers,
management, to report the company performance without
questioning the accuracy or taking their role on oversight committees
seriously. They could hide behind a veil of trust of the key
leaders. This Section clearly puts the responsibility for the Board to
remain independent of the executives and function more effectively
on the respective oversight committees they serve. The example I
would share is what happened in WorldCom. The company leaders
shared what they wanted to with the Board, who trusted implicitly
the top leaders. Had they questioned their legal representation or
auditors, they potentially could have uncovered the fraud that was
committed by the creation of shell companies, with WorldCom
employees as stockholders.
I would love to think this law would protect the investing
community. Financial reporting has improved to some
extent. Unfortunately the scams still continue. Example would be
Barney Madoff or what happened in the financial mortgage
industry. These unethical practices were conducted after Sarbanes
47. Oxley was implemented. Madoff was able to provide false financial
information to investors. Financial industry was allowed to get to
aggressive in underwriting and product suite. Fines and penalties are
deterrents. Ethics still must be inherent in an individual and
company. Laws and requirements are a guide. There will never be
enough auditors, inspectors or oversight boards to catch all of the
fraud in the corporate community.
The law prohibits falsifying information, failing to notify of material
changes, and destruction of records.
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ACCT 504 Week 5 Case Study 2 Internal Control - LJB
Company (Devry)
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Case Study 2 - Internal Control- Due by Sunday of week 5
LJB Company, a local distributor, has asked your accounting firm to
evaluate their system of internal controls because they are planning
to go public in the future Lucent Technologies
Axia College of University of Phoenix
48. Lucent Technologies is a company based on networking for service
providers, government, and enterprises worldwide (Lucent
Technologies, n.d., Para 1). The products and services they work with
are separated into three categories; service and maintenance,
wireless mobility networking, and wire line networking. Lucent
Technologies is backed by Bell Labs, which does research and
development in networking technologies.
During the years of 2001 to 2003 this company has experienced a
decrease in demand because of other companies’ loss or capital used
toward spending. This is mainly due to a downturn in the economy. As
an investor this information is necessary to know because it explains
the decrease or increase in sections of the balance sheet. In order to
compare the growth or decline of the company’s profit, an investor
must change a balance sheet into a common-size balance sheet. First
when looking at the balance sheet an investor will see that the amount
of paid in capital has increased from the year of 2003 to 2004, the
assets have increased, but the liabilities have decreased. When
running a debt/asset ratio it is noticed that this ratio drops from 1.2 in
2003 to 1.0 in 2004. This shows the company’s risk is low when
concerning financial leverage, usually when the debt ratio is less than
one percent it is financed mainly by company equity, so this company
is close to being debt free from creditors.
After changing the balance sheet to a common-size balance sheet
there are several factors an investor will look at. The current assets
have dropped to .48 from .49 in 2004. This does not show harm to the
company because only the accounts receivable dropped while the rest
of the current assets increased. This means the company is not in as
much danger of default on money owed to it. It does have a rise in
marketable securities. The one concern in the assets is the increase of
prepaid cost of pensions and goodwill. Goodwill can be used for tax
breaks but prepaid pensions cannot benefit the company.
When looking at the liabilities section an investor will see a drop in
pension and liabilities and an increase in long term debt, both of
these could be affected because of the drop in the economy. Long term
liabilities are often increased to help a company control interest rate
49. increases so as an investor cutting back on pension liabilities cuts
back cost to the company and watching interest rate increase show
the company is concerned with its earning and investors. This would
be encouraging or an investor. The stockholders deficit shows a drop
in accumulated deficits from -1.43 to -1.22 and total deficits of -.26 to
-.08. This shows the company is working to control any money loss
and turning it to the company’s advantage. Overall it shows the
company is still earning a profit although small. With an increase of
assets and a drop in liabilities the company is showing it is working in
a low risk capital.
After reviewing this information, a creditor or investor must be able
to compare this company to the industry totals. By comparing how
this company compares to other companies similar to it, a person can
see if it is competitive and worth taking a risk. Running ratios will
also show if the company is capable of paying off any debts it has or if
it can acquire the needed cash in case of emergencies. Overall as an
investor, I would say this company would be worth investing in.
Reference
Axia College. (2007). Understanding Financial Statements. Retrieved
May 10, 2010 from Axia College, Week 2 Assignment, ACC/230.
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ACCT 504 Week 5 Course Project Draft Spreadsheet (Devry)
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ACCT 504 Week 5 Course Project Draft Spreadsheet (Devry)
Differentiating Depreciation Methods
There is one main difference between straight line depreciation and
accelerated depreciation. Straight line is decided by taking the cost of
the assets, figuring out the salvage cost when the use of the asset is
finished and how many years of use the asset has. A person then takes
the cost minus salvage and divides the remainder by the number of
years of use. This amount is the depreciation expense subtracted each
year from the cost. The accelerated depreciation does not have the
same amount of deprecation subtracted each year. It does have the
cost minus salvage value to figure out the amount to use but is then
divided out differently. A person takes the sum of the years of a
product’s useful life, such as three years is 3 + 2 + 1 = 6, then a
person would divide the depreciation amount by 3/6 the first year, 2/6
the second and finally 1/6 for the final year. So the amount of
depreciation expense is larger to smaller with accelerated and equal
amounts for straight line.
The advantages of straight line method are it is easier and faster to
figure. The advantage of accelerated method is it is more accurate
when figuring depreciation expense. The accelerated method has an
advantage and disadvantage concerning taxes. A company can use
the accelerated method to take advantage of bigger tax breaks at the
beginning of an assets life, but since this amount drops during the
lifespan if the company needs added tax breaks it will not receive
them from these assets in the future. With the straight line method the
amount of tax breaks are even through the life of the product. Most
51. companies choose this form of depreciation for reporting purpose on
taxes but will use the accelerated method to figure taxable income.
As mentioned before the advantage of straight line depreciation is it is
easier to figure and uses the same total each year for deduction of
depreciation expense but the disadvantage is that if use for taxable
income and reporting a company does not get a bigger tax break at
the beginning of the assets life when they have just put out the cost for
the item and may need a bigger tax break.
--------------------------------------------
ACCT 504 Week 5 Homework (E7-15A, E7-19A, E8-20A,
E9-23A, E9-29A)
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The units-of-production method tracks the wear and tear on the van
most closely. Requirement 3. Which method would Tasteful's prefer
to use for income tax purposes?
Preparing an Income Statement
52. Coyote, Inc. Company
Multi-Step Income Statement
200x 201x 202x
Net Sales 1,833,000$
Cost of Goods Sold 1,072,000
Gross Profit 761,000 - -
Selling and Administrative Expenses 454,000
Advertising
Depreciation and Amortization 14,000
Repairs and Maintenance
Operating Profit 293,000 - -
Other Income (Expense)
Interest Income 13,000
Interest Expense (16,000)
Earnings Before Interest and Taxes 290,000 - -
Income Taxes 116,000
Net Earnings 174,000$ -$ -$
The companies’ net income is profitable when the sales exceed the
cost of goods sold. In this, the gross profit is $761k. This is beneficial
to the company. Though we took the cost of goods away from the net
sales there are still other areas which need to take a piece of the pie.
For this company, once the SG&A and depreciation are taken out, the
company still contains a profit of $290k. But the buck does not stop
there. Once the interest income and interest expense are adjusted the
balance before earnings and taxes is $290k. After taxes are taken
out, the company is left with a net profit of $174k.
In this case I think the company has achieved success with a net profit
of $174k. If the company were unable to be profitable, the company
would eventually go out of business. We would be able to tell if the
company was not profitable by looking at each section individually.
The cost of goods sold is what stands out for me. If we pay more to
53. make the product then we are actually selling it for, there is no profit
to be made. So, I think it should all start there.
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ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ
Company (Devry)
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ACCT504 Case Study 3 on Cash Budgeting
The cash budget was covered during Week 4 when we covered TCO D
and you read Chapter Week 3 DQ 1
Due Tuesday, Day 2
Post your answer to Problem 3.5 on p. 109 (Ch. 3). How might the
information contained within the stockholder equity statement be used
for management and investor decision-making? Provide specific
examples of situations in which the stockholder equity information
might be used.
The statement of stockholders’ equity provides the changes in the
equity accounts during the accounting period more in depth than the
balance sheet. The information found on the statement of
stockholders’ equity includes retained earnings, common and
preferred stock, and additionalpaid in capital. Management uses the
statement of stockholders’ equity to ensure they are reaching their
goal of maximizing shareholder's equity. The use of market ratios
help with the analysis of the statement of stockholders’ equity, such as
earnings per share, price-to-earnings, dividend payout, and dividend
54. yield. These ratios will help both management and investors in
analyzing the company. For example, if I were looking to invest in a
company’s stocks I would utilize all of the financial ratios, as well as
the market ratios. The earnings per share ratio is calculated before
the price to earnings ratio, P/E, because the earnings per share ratio
is used in the second. If a company pays dividends, the dividend
payout ratio will come in handy. It tells us “The percentage
of earnings paid to shareholders in dividends” (Investopedia, 2010, p.
1).
References
Investopedia. (2010). Dividend Payout Ratio. Retrieved August 3,
2010, from
Investopedia:http://www.investopedia.com/terms/d/dividendpayoutrat
io.asp
Response 2
Explain what can be found on a statement of stockholders’ equity.
The major elements of stockholders' equity include capital stock,
paid-in capital, retained earnings, treasury stock, unrealized loss on
long-term investments, and foreign currency translation gains and
losses.
How might the information contained within the stockholder equity
statement be used for management and investor decision-making?
Provide specific examples of situations in which the stockholder
equity information might be used.
55. Management may look at the stockholder’s equity statement retained
earnings section to determine if company should borrow money for
capital investments or finance it through various forms of equity. It
may also be used by the stockholder to evaluate the compensation
paid to the company officers. Investors may also look at the statement
for cumulative net unrealized gains and losses before purchasing
stock in the company. Investors are also interested in the paid in
capital because they can compare it to the additionalpaid in capital
and the difference between the two values will equal the premium
paid by investors over and above the par value of the shares.
DQ 2
Week 3 DQ 2
Due Thursday, Day 4
Provide an example from the text or the Internet that demonstrates a
situation in which a company’s net profits appeared good in the
statements, but the gross or operating profits presented a different
picture. Discuss how this might have occurred. Respond to the
following question, addressed in Problem 3.6 on p. 109 (Ch. 3): “Why
is the bottom-line figure, net income, not necessarily a good indicator
of a firm’s financial success?” Look for indicators like liquidity or
solvency to answer this discussion question.
56. An example that demonstrates the situation is Enron. Enron’s
financial statements did not show all the expenses and costs. Instead
of showing them on the income statement they made entries so the
cost and expenses would post in the balance sheet. The same was
done with the revenues. This way it would be less expenses and the
net profit appeared good. Many debts and losses were not reported in
the financial statements. From the third quarter of 2000 through the
third quarter of 2001, the directors fraudulently used reserve
accounts within Enron Wholesale to mask the extent and volatility of
its windfall trading profits, particularly its profits from
theCalifornia energy markets; avoid reporting large losses in other
areas of its business; and preserve the earnings for use in later
quarters. By early 2001, Enron Wholesale's undisclosed reserve
accounts contained over $1 billion in earnings. The head of the
company improperly used hundreds of millions of dollars of these
reserves to ensure that analysts' expectations were met. In addition,
Skilling and others improperly used the reserves to conceal hundreds
of millions of dollars in losses within Enron's EES business unit from
the investing public.This would show the creditors that Enron was
making profits and its position was solid.
The net income is not necessarily a good indicator of a firm’s
financial success because the income statement only shows the profit
or loss at a period of time and does not show the whole picture of the
company. The Balance Sheet, Statement of cash flow, Statement of
shareholders’ equity and the Income Statement all together give the
real picture of the business. Each one of them shows different aspects
of the business. These statements show where the income is actually
coming from; is it from sales or from loans the company is
borrowing? If the company is selling a building or any other asset but
that does not mean that it is selling more products and making profit.
Looking at the Income Statements the company might be making
profit but at the same time it is extremely leveraged.
57. Response 2
A company’s net income is not the whole picture, just part of it. There
are lots of things that contribute to the net income that may not be
significative to the company’s success. If the value of a dollar has a
sudden change that can affect the bottom line if the company happens
to hold the medium of exchange that can benefit by the change that
might occur. The company can falsely inflate the bottom line. A
company’s net income is coupled with liabilities, cash flow, and
selects financial ratios. Looking at it this way is a much better way of
seeing what the company’s success is like. A company can change up
many things to make it look like their income is better. These things
that can be changed are single sales events, cash infusion, or false
financial statements. Some things like debt that a company has, the
company’s cash on hand, their capital assets conditions, or even their
sales trends. To figure the success of the company, you must look at
the whole picture. One thing cannot tell you all the facts of the
company’s affairs. You cannot tell the net income of the company just
from the bottom line. Look at all the financial records.
Response 3
Provide an example from the text or the Internet that demonstrates a
situation in which a company’s net profits appeared good in the
statements, but the gross or operating profits presented a different
picture. Discuss how this might have occurred. Respond to the
following question, addressed in Problem 3.6 on p. 109 (Ch. 3): “Why
is the bottom-line figure, net income, not necessarily a good indicator
of a firm’s financial success?” Look for indicators like liquidity or
solvency to answer this discussion question.
Net income is not necessarily a good indicator of a firm’s financial
success because they have ways to manipulate it by increasing their
revenues or hiding some of their expenses. For investors trying to
decide where to invest their money, they need to look more into
assessing how the company came up with the numbers they
presented.
58. An example of this situation is when Laribee Wire Manufacturing Co.
exaggerated in recording their inventory value which allowed them in
acquiring loans from six banks totaling to about $130 million using it
as collateral. At the same time, they reported $3 million in net income
for the period, but in actuality they lost $6.5 million.
This company showed a higher net income by reporting fake
inventory in which its value was overstated and transferred over to
their income statement. When the banks assessed their financial
statements, it was enough to sway them into lending the loans they
needed.
Reference:
Investopedia. (2010). Spotting Creative Accounting On The Balance
Sheet. Retrieved
fromhttp://www.investopedia.com/search/searchresults.aspx?q=Spotti
ng+Creative+Accounting+On+The+Balance+Sheet&submit=Search
--------------------------------------------
ACCT 504 Week 6 Homework (E10-19A, E10-25A, E12-
16A, E12-20A)
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This Tutorial contains Excel Files which can be used to solve for any values
(your Question may have different company name or values, but that can
be solved using Excel file)E10-19A Army Navy Sporting Goods is
authorized to issue 10,000 shares of common stock.
59. STOCK DIVIDEND
Stock Split
University of Phoenix
Stock Dividend
In the present time, the stock dividend has become important concept.
When dividend is given in form of stock, it is called stock dividend. In this
form of dividend, the cash does not use. It is important, when the
corporation declares stock dividend, the market value of the share
decreases because the number of stock increases. The many companies
prefer stock dividend due to the tax benefit. If the individual gets stock
dividend, he does not pay any tax on stock dividend. Thus the stock
dividend reduces tax burden. On the other hand, the ownership of
investors also spurs up in the company because the number of holding
share increases. There is also disadvantage of stock dividend. The market
value of the share decreases, so the market value of holding also
decreases (Kennon, 2009).
The ABC Company is leading company in its industry. The number of
outstanding share of the company is one million.On the other hand, the
number of investors is five millions. The value of market capitalization is
$100 million.The management declares 20% stock dividend. Thus the
200000 shares will be distributed as a stock dividend. The number of
outstanding share will be increased by 200000 and the new total number
of outstanding stock will be 1.2 million.On the other hand, the new value
per share in the market will be $83.33 (100 million/1.2million). This
example is taken from below mentioned link:
Stock Split
The stock split is also an important concept. When the management
wants to increases number of shares, the management follows this
method. In this method, the face value of the share is split and number of
60. share gets increased. Due to increment in number of outstanding share,
the market value of per share also gets affected but the total market
capitalization of the company does not affect. Both stock split and stock
dividend increase number of outstanding shares but both are different
due to the accounting treatment.In the stock split, the investors do not
get any real benefit. It is also known as non-cash distribution of dividend.
The motto behind stock split is to increase trading of the shares in the
market (Baker, 2009)
For example,the face value of per share is $100 and the total
outstanding shares are 100 million.If the management of the company
announces stock split in ratio of 1:2, the total outstanding shares will be
increased by 100 million,thus the new total number of the share will be
200 million.On the other hand, the face value of the share will reduce by
50%. So the new face value of the share will be $50. Due to effect of stock
split,the holding share of the investor will also increase in the prorate
basis. If the investor has 10 shares, now he will have 20 shares. It is
important thing that the total issuedcapital will not be changed. The
illustrationof stock split has been got from following link:
Reverse Stock Split
The reverse stock split is just opposite of stock split.In this process, the
management reduces the number of outstanding shares. The company
increase face value of the share. In this method corporation decides a
ratio such as 2:1. Thus the company accumulates two shares in one share.
In this method, the total market value of company does not change. Due
to reverse stock split,the earning per share and face value of per share
rises.Thus the reverse stock split provides just opposite result from stock
split. It is important question, why company selects this method. When
the management seems that the face value of the share is less as
compared to competitors then the company goes for this method to make
its share value to equal to competitor’s share’s face value. It is also a
sound strategy to increase treading of shares. If the face value of share is
too cheap in comparison to competitors, the investors will be discouraged
for investment.For increasing the confidence of investors,the
management uses this method (Mladjenovic, 2009).
61. For example, an investor holds 100 shares of XYZ Company and the face
value per share is $50. If the management go for reverse stock split option
and declares one share for 10 shares then the holding of the individual will
reduce 9 shares for every 10 shares. Thus the new holding of the investor
will be 10 (100/10) shares but the face value per share will be $500. It is
also important that the total market capitalization will remain as same as
before reverse split.The example of the reverse split is take form below
mentioned link: http://www.sec.gov/answers/reversesplit.htm.
62. References
Baker, H. K. (2009). Dividends and Dividend Policy. John Wiley and Sons.
Kennon, J. (2009). All About Dividends. Retrieved May 31, 2010, from
http://beginnersinvest.about.com/od/dividendsdrips1/a/aa040904_2.htm
Mladjenovic, P. (2009). Stock Investing for Dummies. Dummies.
--------------------------------------------
ACCT 504 Week 7 Course Project JCP Kohls (Devry)
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ACCT 504 Week 7 Course Project JCP Kohls (Devry)
AnalyzinganIncome Statement
The net income of Kodakhasdecreaseda bit;itappearsthat the company ismore profitable.By
conductinga side byside analysisfrom2004 to 2003 the companyhas increasedincurrentassets
and decreasedintotal assets.Itappearsthatthe companywent downinproperty,plantand
equipmentnetaswell asdiscontinuedoperations.So,despite the decrease intotal assetsitlooks
like the companyhasmade a gooddecision.
The company hasalso decreaseditstotal liabilitiesbyabout4%.I believethis tobe goodbecause
the short termborrowingsandlongtermdebthas decreased.Tome,thismeansthatthe companyis
tighteningtheirbeltandpayingoff olddebt.
Total shareholders’equityhasdownalittle bitindollars,butonthe percentage levelthe company’s
percentage hasgone up.I believethisisbecause the companyissued$104k more sharesin 2004
than in2003. The companyhas the same amountof sharesoutstandingin2004 that it didin2003 as
63. well.Retainedearningsonthe stockhave gone up in2004 as well.Ibelieve thisiscontributedbythe
more sharesthat have beenissued.
I believethe profitabilityof the companyisundergoodstandings.Theyappeartobe makingthe
necessaryadjustmentsinthe companytostay withina profitable income.