Finance & Accounting Essays

Financial statements show a position at a moment in time, as in the case of a balance sheet, or may reveal a series of activities over a given period of time, as in the case of an income statement. They are the major means through which firms present their financial situation to stockholders, creditors, and the general public. 

The study gives a very good idea about the capital and optimal capital structure and its implementations. Firms are made to create surplus; it is possible to finance the firm entirely by total equity but due to the fear of bankruptcy most firms include different types of capital to finance the Corporation. Common stocks preferred stocks, and debt is the three most often used types of debts.

The auditor is to adapt to the challenges and the fast-changing environment of the public sector. Audit must bring innovations into the management of the public sector together with the support of the already existing effective programs in combination with control and governing of all financial information and activity of the state public sector.

The capital asset pricing model (CAPM) is one of the most popular tools in finance which is used to determine a theoretically required rate of return of an asset if that asset is added to an already well-diversified portfolio, given the asset's non-diversifiable risk.

It is by now a well-accepted proposition that whenever the US economy sneezes the whole global economy catches a cold. So when US banks began to experience high default rates on the repayment of "sub-prime" mortgages, domestic banks began to reduce their lending activity or to lend at much higher interest rates.

The author states that CPI is a much better measure of consumer spending power than GDP deflator that reflects the prices of goods and services that are domestically produced but not necessarily bought by the typical consumers. In that aspect, CPI is a better gauge of the cost of living of consumers.

GM's effort to increase its market share seems like a desperate bid to plug the dike with short-term incentives related to the high cost of fuel and its focus on the company's On-Star computerized system. In the meantime, other areas such as a decrease in customer satisfaction and employee loyalty are weakening the structure.   

Social Accounting has been defined in a number of ways. Rob Gray tries to identify the scope of social accounting as “the preparation and publication of an account about an organization’s social, environmental, employee, community, customer and other stakeholders’ interactions and activities and where possible the consequences of those interactions and activities”

This paper will be conducting an analysis of the processes adopted in developing the school district budget within the California area. A common practice in developing any kind of budget is to collate and factor in the views of all groups and institutions that have a stake in the budget.

Net profit margin ratio is the ratio of Net Profit before tax to the Net Sales value. It provides a good opportunity to compare the organization’s "return on sales" with the performance of other companies in the industry. It is calculated before income tax because tax rates and tax liabilities vary from company to company.

Preserving of strategic planning and decision making and to present accountability by assisting managers to plan for the resources essential to issue a product or service is the rationale of the planning and budgeting of Swann Communication. Accordingly, the exercise of sound budgeting system is considered appropriately more prevailing.  

The author states that modern financial institutions are very complex as they increasingly offer fee-based financial services and relatively new financial instruments and this has led to the creation of a number of new risks. Essentially the riskier the bank’s business, the more capital it should hold to be able to cover future fiscal losses.

The current product range of ABC comprises severe pain medication market segment. Given its major share in the pharmaceuticals industry and considering the potential for introducing differentiated pain control products, ABC Pharmaceuticals is considering the option to venture into moderate pain control medication market segment.

The United States has been accused of employing all its efforts to gain economic, political, and diplomatic dominance over the entire world. The United States has acquired its hegemonic position among all the economically powerful countries in a shrewd and savvy manner that nobody even claims to challenge its policies and activities.

Hence, a new form of currency has been used. This is called electronic money or 'e-money'. Also called 'e-currency', it is being spent through 'e-wallets'. This has started a new paradigm of business opportunities which would benefit both customers and organizations.

It is quite essential to state that lead-tainted toys and poisonous baby's milk may be an indication of cultural deficiencies that could run-off into the Chinese space industry. The whole world can be affected when a nation places expediency and prestige in front of health and public safety in space.

However, "Burberry was founded in 1856, when Thomas Burberry constructed his first outerwear pieces for the local sportsmen of Basingstoke, England. In the century and a half since then, Burberry has come to represent the standard for quality and style in outerwear, anchored by its iconic trench coats, now legendary the world over."

A considerable deal of literature and a handful of researchers have carried numerous studies focusing on the financial analyst and their activities on the economy. Decisions are often being made by both the private and public investors based on the content of the financial analyst rating and reports- that is a summary of the analyst opinion of the firm’s future performance.

The author states that bank loans were the major source of debt financing to date. In recent times, Debt financing has added a new instrument by issuing bonds. Bonds are loans raised from the market where principal and interest in the form of coupons have to be paid periodically on agreed terms.

Accounting Theory The Twitter IPO As the news of Twitter (a social media website) being going public is revolving for some time, recently they announced that the twitter will obtain listing on New York Stock Exchange (NYSE) rather than Nasdaq.1 Most of the tech companies are listed on Nasdaq but with Twitter avoiding it sends a new wave in the news.

This suggests that FDIs are accompanied by a high degree of uncertainty and implies that the exchange rate could either encourage or discourage investments (Busse et al 2010). Comparison of Exchange Rate Systems The exchange rate systems in South Africa and Venezuela are different where South Africa has adopted a flexible exchange rate regime (MF 2013) while Venezuela’s currency is pegged to the US$ (DaCosta and Olivo 2008).

I developed a natural interest in accounting and finance. Not only did my parents' association with this profession make me interested in Accounting and Finance, but I felt inclined towards courses that involved calculations and data management myself. Accountants are an important part of any industrial structure and have an important role in economic globalization.

Scattered near the slopes of the mountain are small houses and buildings, mostly two to three-story high. In addition, large apartment complexes, inns, and hotels can also be seen around the city (Avalon City Council 2006). Avalon's total area, according to the United States Census Bureau (2000) is 8.2 km (3.2 mi).

The author states that target costing is a pricing method, defined as a cost management tool for reducing the overall cost of a product over its entire life-cycle with the help of production, research, and design. A target cost is the maximum amount of cost that can be incurred on a product and with it, the firm can still earn the required profit margin.

Given 100,000 to invest as a 35-year old is one great initial capital. Since I am middle-aged and have a family that is young and not established calls for a judicious evaluation of the alternatives available. It is critical to understand the various investment avenues available. Investing comes with a package of advantages and disadvantages.

The core spirit of the proposed dissertation is contextually aligned with two general economic manifestations namely: economic reforms and monetary policies in China on one hand and, inflation and exchange rates on the other hand. Ever since the late 1970s, China has implemented radical and phased economic reforms which have seen a massive and unprecedented reduction in poverty levels.

It has been through their unyielding generosity, and of course the many donors worldwide who have donated matching funds to the Sky Siegfried fund appeals, that critical health programs for families and children who live in extreme poverty, have been assisted with millions of dollars

The system is sufficient to ensure proper recording and processing of data to allow the preparation of financial statements. The financial process established ensures accountability and completeness since roles are clearly identifiable. These controls make it easier to prevent or detect erroneous transactions.

The P & L a/c reflects the result of the business operations for a period of time and balance sheet gives a summary of the assets and liabilities of a business undertaking on a particular date.However, these two statements fail to explain certain major transactions that take place during the year.

The project selected for the case study is “Micro-finance in Bangladesh”. It underlines the provision of funding the common people for their housing requirements. The first section identifies the aims of the project and the varied purpose of this document. The second section explores the stakeholder categories and their empowerment.

To avoid recognizing contributions as revenue before they are available for expenditure, not-for-profits should consider pledges of cash to be received in future period. The FASB concluded that by promising to make payments in the future, donors implicitly restrict the donated resources to support of future, not current, activities.

With the changing environment of business all over the world, the need for the companies to audit and update their strategies has also increased. The merger is an important strategy, which is being adopted by most of the companies in order to increase their market share and acquiring other motives.

This is particularly true for the Recent Companies Act 2006 whose effects are still to be seen two years down the lane and whether it has lived up to its promises of “enlightened” shareholder value in the matter of class rights and shareholder protection in the recent years.

The current deceleration in housing trade, inferior house costs and the retuning of mortgage variable rates has initiated a downturn in the mortgage sector. The predicaments are principally manifested in the "sub-prime" sector and are imitated in swiftly growing delinquency, non-payment and foreclosure rates.

The paper in its first paragraph states the general importance of handling the complaint which is important in all types of market, and then few problems within the financial services of United Kingdom market are shown with a different solution. In the last section, the paper the importance of these complaints handling with statistical data is shown ending with significances of contract law.

It is important for an employee to realise that he/she should be aware of her job description along with lists of the designated authorities to whom he/she is responsible.It is significant to evaluate the capacity of your designation,which shall be verified against the standard classification of employed or self-employed,"it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor".

The company plan is not directly linked to company profits but it is linked to company profitability which enables the employees to gain indirectly from the added value. The company is adopting the Economic Value Theory (EVT ) to reward executives. In the past, this theory was used to assess business and investment strategy.

Debt factoring and debt subordination are two important mechanisms that present solutions to cash-strapped companies. While the very idea of them would have been rejected and not allowed by the financial governing bodies decades before, these two alternatives have become generally accepted globally. 

The surplus money supply will enhance the price level of the commodity. Earlier, silver and gold served as money. Now that this commodity money gave way to paper currency and deposits, these monies were treated as fiat money which allowed the national monetary institutions to exercise their power to use them without any legal constraints. 

This occurs when one company wants to acquire a competitor or a firm that will add new markets or products. Often the acquiring has neither the intention nor the capability of operating the company. The objective is to obtain its asset value by selling off the company in pieces. The impact of the takeover on the acquired company is likely to be complex.

Many developed and developing countries have been party to various political and economic conventions, organizations, protocols, and agreements, specifically designed to enhance trade and economic development among member states. Besides helping nations to settle their disputes amicably without necessarily resulting to war ,these organizations and treaties ensure that international trading and economic standards are maintained. 

As such, he approached Mr. McCoy with the proposal that he grazes his goats there for a given period and assists the resort in maintaining the environment around the rocky and hilly areas. Mr. McCoy considers this proposal as a good one because he will earn extra revenue from his goats, apart from the one generated through milk that these goats produce.

There is a basic understanding of the subject on hand, interest rates by definition are the payments made for the sacrifice of current spending power, the person who lends the money is forgoing what he could do with the money now and since money generally devalues over time there should be an incentive for people to give up their money.

Yes, Terry’s scheme does affect balance sheet of Fairwell Furniture. Under the Current Assets head, the Bank Account Balance would have reduced and on the Liabilities side of the Balance Sheet, the Profit and Loss Account balance would have reduced. Both would have reduced by the amount accounted as paid to Larry Tyler.By capitalizing a revenue item of expenditure, Wilson Blowhard is misrepresenting the facts.

Accounting is a universally approved method of maintaining records which follows some standards and principles which one has to know so that the accounts prepared are easily understandable by all. Accounting is a huge subject so to codify the accounting rules and principles is not as simple as that of in physics or mathematics.

Therefore, by granting the status of variable costs to semi variable costs, the overheads are hiked and thus profitability is reduced. Similarly, fixed costs remain fixed over a period of time, irrespective of the levels of activity.

Due to the development of the business of GM (General Motors), the economy of the country also got developed. To evaluate the financial performance of the company, it is crucial to analyze various annual reports and financial statements periodically. Moreover, it is necessary to evaluate the performance of the business organization.

It can also be expanded as: assets less liabilities = shareholders' equity (revenue less expenses). The balance sheet of a business organization becomes the clearest manifestation of how this accounting equation is applied as this financial statement shows how its resources are financed by its stakeholders.

Managers can connive with auditors and so-called monitors to structure deals in such a way that portrays their image as complying with the covenant meanwhile they are not as such. For debt holders to be very sure that their investments will be guaranteed, it is necessary that they become much more involved in the direct control of the business.

It is the free provision of complete health care from the UK government to the general public that provides funding for its operations. The organisation is run by the Department of Health under the supervision of Secretary of State for Health.