Finance & Accounting Essays

Separate accounting records are kept for each separate company, but not for the consolidated entity (Copeland, 2008). To determine the consolidated amounts, the amounts for the individual affiliated companies are added together. Elimination entries are made to remove the effects of inter-company transactions.

FDR together with brain trust did not understand that the United States had purged into a depression due to the collapse of its export markets. US had to take immediate action to save its foreign customers but its potentials to do so

The business idea which will be focused upon for the purpose of setting up a multinational business corporation relates to the manufacturing and selling of alcoholic beverages, which will be branded as “Seven Star Wine”. The company, which will be named Oceana Beverages Incorporation, will be based in the United States and will operate as a multinational enterprise focusing on exporting its products to the UK market only.

Through this report, the improvement in the performance of the companies from the year 2011 will be highlighted in a detailed way. It will help to judge the profitability and market position of the companies better. The performance analysis of all these companies and recommendations will be presented in a detailed manner in this report.

In the same field, the aspect of financial capital maintenance is mostly measured in terms of constant purchasing power units or nominal monetary units. The most essential need for engaging in financial accounting is to assist in the reduction of

The company is currently considering investments in innovative business and hardware products. Through its apparent investment plans, Amazon intends to gain competing advantage over its major competitors in business including Apple

If the lead time is 2 weeks for example, then the Webster must reorder 2(96) 192 units. So after 2 weeks the new order of 500 chips is arrived. From the above calculations, Webster still reorders

This project uses cash on cash ratio, DSCR, NPV, and IRR to determine whether a project of purchasing a house is worthwhile to venture in. the use of pro forma financial statement analysis is also used to find out whether the projected cash flow from the project reflects the viability of the business or otherwise. The analysis is found to support the profitability of the business.

However, following changes in overhead costs during 2015 saw the cost or producing one foot of pipe rise to $0.40 and the selling price remaining at $0.39. At this moment, if the company is making one foot of pipe at a cost of $0.40 and sells it at $0.39, it

Susan relies on her cashier job at Wal-Mart store for a living. She solely supports the two children after her husband, Jack, deserted her. Susan gets helps from her parents who live nearby. Her

The financial analysis of Zest Spa comprises profit projection for the current year for the three alternative choices along with analysis of net cash inflow using techniques such as net present value, internal rate of return,

While in IBM these 5 employees were engaged in the AI department and were working on a project that was aimed at developing scientific data systems for its enterprise-wide application. However, IBM scrapped this project but these 5 individuals were so engrossed with the project that they left IBM and developed the package on their own.

Cash management and financial management are the key priorities of a business in the competitive modern business environment. Investment Appraisal techniques are used as essential components for making different business decisions during the business simulation processes used in a company to optimize the financial management abilities of the business.

The country’s financial service organizations are advised to develop proper mechanisms to measure customer experience accurately and to report the information to the board regularly. It is also advisable for organizations to set benchmark customer service performance and to compare them with leading players in other sectors.

The spot exchange rate of $ against each £ is seen to $1.6462. Accordingly the expected realizable value from the sales is seen to be as follows: It is expected that the value of dollars

The company Gulf Craft is engaged in the production and export of sea-based vessels such as ships and speed boards. Their fixed cost includes rent for the factory and building and salaries paid to staff members who take care of the maintenance of their buildings. Their variable cost comprises materials used for manufacturing boats.

The asset pricing model (CAPM) is a model used in the determination of return rates on assets. The asset sensitivity, diversifiable and non –diversifiable factors are looked into. Most investors, according to mean-variance analysis and asset pricing model, tend to invest in a more efficient portfolio available to them at different levels of risk.

In this case, issues regarding confidentialty would increase the inherent risk. The method used to place orders has the potential to increase the inherent risk. The customers place their orders online or through the phone. Such a process would

This research aimed at showing how a bank merger can perform or fail under various circumstances and conditions. Using secondary research and quantitative analysis, this research aimed at testing how the hypothesis that mergers incurring high leverage levels succeed under normal markets. The study results show that mergers incurring high leverage levels also incur higher financial risks.

Managed dividend policy is adopted where the dividend is of significant importance to the investor. Firms take the dividend policy based on the present stage of their life cycle. Firms with higher cash flows and limited or no projects pay more dividends than those with few cash flows and numerous projects.

The US inflation rate was a high 5.60 per cent during the same period, compared to 4.40 per cent in the UK and 4.50 per cent in Australia. High inflation rates cause the currency of a country to fall in value relative to the other countries.  The depreciation of the US dollar is expected to continue, while those of Australia and the UK may hardly change at all, all other things being equal.

The WACC changes after a particular level of capital are reached also known as Break Points. A company can stay at a particular cost level and raise an amount of capital until the breaking point is reached after which the cost of capital increases. We know that debt is cheaper than equity but too much debt makes the firm look risky.

Inventory management is one of the key functions of every manufacturing company. The basic meaning of the term inventory is a record or list of products. Inventory includes the record of all those materials that a company uses in the process of product manufacturing, as well as the record of the products that a company manufactures to sell out.

You are familiar with the annual report; however, to ensure investors satisfaction, we are listing down some most essential elements of the report along

The accounting profession requires objectivity and fairness in presenting financial information. This requires very high levels of professional ethics such as presenting factual information without concealing the truth. More detailed knowledge of the Sadhu case is helpful in handling ethical dilemma crises because it provides knowledge of the purpose.

Time value of money is one of the most important factors in financial management analysis (Kieso et al., 1998). It is extremely important for managers

Therefore, in case the free market fails to achieve its goals, the government intervenes to provide public facilities, to avoid industry crowding, and finally protect the

To ensure financial ethics, the employees and the company have an agreement on maintaining all the financial information confidential. This enables the

The Minister of Finance owns the corporation because the Minister of Finance of Canada holds the bank’s entire capital share (Yasin, 2013). The Bank of England was founded to function as the Government banker of the English. The bank still functions as the banker for

The current ratio is calculated in order to ensure that the company has enough capital in the shape of assets to meet its liabilities and to pay of its debts within a 12 month time period (Brigham, 2009, p.87). The current ratio is identified by dividing the current assets that are under the possession of a company with the current liabilities.

This assessment aims to identify and understand whether Tom has committed an offense in the given scenario. The recommendations of the legislation are pertinent to a situation in which more than one hundred individuals are present on the land for exclusively social purposes during the occurrence of which alcohol consumption is likely to be expected.

An investment policy states the objectives and limits for a private company or government’s approach in securing investments. A company may use a number of key inputs in developing the investment policy. The initial input is the identification of responsible investment practices suitable for the company’s investment procedure and statement.

ch as Enron, Tyco and WorldCom committed frauds duping public and investors, the SEC was given more powers under a new Act called the Sarbanes-Oxley Act (SOX) of 2002. The Sarbanes-Oxley Act of 2002 was drafted by Senator Paul Sarbanes and Michael Oxley. The US Congress enacted

The author of the paper will begin with the statement that Bromwich, Michael, Macve, Richard, and Sunder (2010) seek to replace various accounting concepts in search of principles-based standards; the IASB/FASB project on the conceptual model has developed its approach on a known income definition by Hicks.

Bank business models are undergoing a change best known as a departure from the traditional, banking. Several banks no longer engage in credit substitution business and have allocated much of their intermediary function of monitoring and credit assessment to credit rating agencies.

The goal is usually the set goal. A fund manager is required to specialize in a particular investment style. There are various types of fund objectives. The company’s objective is capital appreciation, which

The determination of the situation ought to consider nature's turf in which the venture works. Likewise, the cases ought to be sensible and fitting for the choice to be made. Running different situations with diverse qualities is an essential demonstrative instrument in evaluating the anxiety set on the money-related articulations.

The R2 computed ranged from 0.99998 to 0.99996, which gave approximately 99.99% indicating that the model explained the variability around the tested means at a higher confidence fit. The model is approximately 100% or 1, which showed a perfect fit between the variables tested. The R2 showed how the variables used depended on each other.

A company’s success cannot rely on ratios alone, and as a matter of fact, ratios are just figures representing the overall corporation efficiency in different segments. Ratios have enhanced the perception people had of accounting. Nowadays people need the information to be brief but have much insight from it.

Advanced Cannabis Solutions is a company dedicated to the rental of commercial space and equipment to companies dedicated to the regulated marijuana industry. The corporate headquarters of the firm are located in Denver, Colorado. The company's executives are reasonably paid in this early stage of the development of the company.

Scholars such as De Kock hold that the dispensation of issuing notes was all over with its inception associated with the origin and expansion of central banks. However, central banks enjoy partial monopoly in some parts of the world in issuing notes. India for instance,

The interaction between native English speakers, white non-native speakers, and non-white, non-native English speakers has a wide range of effects on pupils' performance both positive and negative. According to recent studies, the number of non-native English speakers has increased tremendously in the recent past for the pupils enrolling in primary school.

This is because X is characterized by events occurring at random in a given interval (1 Kilometer) of space, and the mean number of outcome given (12). d) In the Poisson distribution, variation of the interval varies the

The top-down approach and bottom-down approach are the two renowned risk management approaches that are employed by financial institutions to measure operational risk. The top-down approach is an investment strategy that selects a range of sectors or industries and attempts to achieve an equilibrium in an investment portfolio.

This is not a good sign from an investor’s point of view. Recently the price of the stock has been going up. The price of its common stock was 333.5 pounds on April 7, 2010. By April 14, 2010, the price of the stock had increased to 348.5 pounds. Despite the short term gain in the price of the stock, I would not invest in Sainsbury’s due to its liquidity problems and underperforming profitability numbers.

In the field of accounting and auditing, the performance of functions has a great role in which auditors and accountants should expand their knowledge to adapt to these changes. Accounting information system (AIS) is the new way of preparing and analyzing financial statements in relation to technology advancement (Orwel, n.d.).

It is really quite essential to state that the rise of multinational companies has increased exposure in another currency.  Considering the volume of these foreign currency receivables and payables, most of the companies hedge their overseas exposures through currency forwards or options or futures.

The history of the accounting standards ranges from nearly 60 years as the accounting standards were just a myth for people back then. Since then, the role of standard-based accounting has become widely accepted in order to bring in line the basis and presentation of the accounting which is being conducted all over the globe.

Investors can diversify their portfolios by investing in common or preferred stocks, corporate bonds, real estate, and governmental financial instruments. Treasury bills are considered risk-free investments. The owner of the investment portfolio must monitor the values of its financial instruments on a recurrent basis to ensure that the investments maintain or increase their price.

Some people talk about the use of Debt as a source of financing as if it were evil and should be avoided at all costs. Does this make sense to you? Under what conditions does it make sense for a business to use Debt Capital (in lieu of Equity Capital)? Debt financing is not an evil decision for business organizations.