Finance & Accounting Essays

Whether you're teaming up with several sponsors to help the less fortunate or holding a press conference to announce a new product's release, press conference can go a long way in giving you a much needed cushion in this cut throat competition.

The author states that the trend got a further boost with the revolutionary changes brought about by technology. The use of plastic cards took a while in becoming popular though. It was during 1970 that credit card with a magnetic strip made an entry into the market place. Thereafter the plastic money started being a reliable alternative.

Investors lookout for companies who are paying their stockholders frequently in order to have a steady flow of income. The issuance of dividends becomes incremental to the business organization because "dividends provide certainties about the company's financial well being"  as well as "attractive for investors looking to secure current income".   

A few decades ago, Internet Banking was hyped as an exemplar of a frictionless market, a perpetual cash generator that would suck in customers and spew out an endless profit stream. It was only recently that U.K. banks could honestly claim that Internet banking is, at last, contributing to the bottom line.

Technical progress across European banking markets had a similar outcome reducing costs by around 3% per annum from 1989 until 2001.  Overall research shows that in the European Bank market, a banks size has a relative effect on the efficiency of reducing banks costs.

The International Accounting Standards Board (IASB) and the FASB acknowledge that the convergence of International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP) is the primary objective of both boards.

One may invest in: Physical assets like real estate, gold/jewelry, commodities etc. Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc. or securities market related instruments like shares, bonds, debentures etc. The first principle is safety.

Under a job order cost system, the company manufactures the product as per the exact specifications and requirements of individual customers. A “job” represents the goods manufactured at one time to fill a particular order. If the job contains more than one unit of product, unit costs are determined by dividing the total costs charged to the job by the number of units manufactured.

If I were a member of the town council or a citizen, I would want the expenses categorized as government services, sewer services and miscellaneous to be broken down and reported in detail in the financial statements, and then thoroughly audited. The opinion of an independent auditor on the proper accounting and documentation of the spending of the town’s resources would be critically valuable.

A Closed–economy is the economy that limits trade with the outside world thus relying wholly on its own resource. In a model under a closed–economy macroeconomic, some of the assets are taxed and there is an evaluation of the long run and short run implication of a change in the expected inflation.

The paper takes a quantitative approach for the explanation of various concepts in Capital Structure and Project Evaluation Techniques/Capital Budgeting Techniques. It has been well acclaimed that maximization of shareholders’ wealth and firm’s value is most the operational and popular objective of financial management.

The tax treatment of sales of securities held in connection with a trading business depends on whether a trader has previously made an election under section 475 to use the mark-to-market method of accounting. If the mark-to-market election was not made, then the gains and losses from sales of securities are treated as capital gains and losses that must be reported.

Unlike other accounting procedures which nevertheless aren't so simple either the accounting for the intangible can prove to be a gruesome activity. The most important reason as the term "intangible" might itself suggest that quantifying such an asset would literally mean rationale treatment to the asset which means it would be complete subjective of one to classify them

This equally maximizes the Return on Capital of the corporation. Thus the main concept in the study of corporate finance is to address the financial problems of all firms. The discipline here relates to addressing corporations' financial problems and their solutions can be divided into long-term and short-term decisions.

The author states that Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capitalization is 33.09 billion pounds, revenue is 47.3 billion pounds, operating income is 2.97 billion pound and net income 2.13 billion pounds.

The author states that it is essential to provide capital deficit business funds for a short-term period of a year or less. It’s also made to refer to the time for which a loan is required and the period over which its repayment is expected to take. Short-term funds are usually for business to run their day-to-day operations.

Managerial accounting produces financial information that is for internal company use and the reports are usually written for each company's individual requirements. They generally involve cost estimating, budgeting, forecasting, and resource allotment. A decision to enter a long-term contract for material would be based on the analysis and projections.

From the case, we know that the exchange rate at the beginning was 20ZPG per dollar; the total time from 1973 to 1995 is 22 years. Price levels in the US have moved from 70 to 140 representing 100% inflation while those in the Zeal have moved from 50 to 180 representing 260% inflation. This represents 1/36 = $0.027 per Zeal Peso.

Changes in a company’s stock price have no impact on the financial statements of that company. Remember that stocks are traded in the stock exchange which is a secondary market, meaning transactions are between investors of stocks and NOT with the company. The company does not record any entries in its books reflecting the changes in its stock price.

The largest bankruptcy in history marked the existence of fraudulent accounting procedures by Enron and Arthur Andersen in 2001. The once blue chip stock ended up to be valued for small meager amounts

In a world without taxes, the social discount rate should equal the opportunity cost. But the tax system drives a wedge between the two (Robert, 1982). For example, if individuals use a two-per cent discount rate for personal consumption, they will choose to save only if given a two-per cent return.

The book 'Landscapes of the Soul, a spirituality of place' was written by Robert Hamma. In the book, Hamma describes spirituality as "an awareness of our relationship to God, ourselves, and others".

The author states that the balance sheet accounts will substantiate or given ample evidence that the revenues reported in the income statements are valid and relevant. For, an increase in cash in the balance would indicate that a cash sales transaction occurred. However, an increase in cash could also be attributed to the collection of accounts.

The author states that the International Monetary Fund (IMF) plays a major role while rebuilding and stabilizing the monetary and pecuniary conditions of its member states. IMF achieves this objective by offering supportive loans while working out counteractive strategies. Apart from it, IMF also supports its defaulter member countries.

This paper demonstrates the result of deregulatory measures initiated by the authorities of the United States. The supporters of the deregulations believed that modern day clients preferred to do all of their business ranging from life insurance to commercial lending under one roof. And only a deregulated market could allow this to happen.

The Dividend Discount Models mainly predict the dividends, and net present value of a common stock. According to this method, the value of a dividend is the sum of all future dividends. Three types of discount models predict future dividends or value of a stock as outlined below.

It is necessary to take into consideration that the property or asset class lives should be less than the actual life of the asset so that the salvage value of such assets should be zero. Cost segregation and accelerated depreciation are essential for the effective implementation of investment decision.

The author states that in the Mundell-Fleming model, under the floating exchange regime, the central bank does not interfere in the market as the exchange rate is determined by market forces; so fiscal policy that consists of the reducing/ increasing of the taxes and government spending becomes useless.

Finance Companies in New Zealand are continuously heating up the personal lending market by allowing generous limits to the consumers. In this process, they tend to violate their own lending policies also. This research will undertake to analyze the reasons behind the violations of the lending policies by Finance companies in New Zealand.

This industry includes the commercial banks and building societies dealing with the transmission of money, loans, mortgages, pensions, insurance, trade finance, stocks and shares and a wide range of other investment and lending services amongst others. The financial services industry employs about 6 million people and accounted for 8.3% of the GDP.

The present portfolio of the charity is concentrated in equity shares in leading U.K. companies. So, it is supposed that each of them is in the top of the FTSE 100 Index, a capitalization-weighted index of the 100 most highly capitalized U.K. companies traded on the LSE. For instance, let us select the 7 largest constituents of the FTSE 100 Index.

An activity-based costing considers the fact that products consume activities and activities consume resources, which in turn consume money. Therefore it assigns costs to products based on the demand of the products for activities and thus resources, which are costly to acquire. (Blocher et al, 2005; Cooper and Kaplan, 1992).

Accounting is generally used to gather, process and report the daily business transactions of the corporation for the past year or years of operation. Furthermore, the following paragraphs prove why accounting has been successful as a primary tool in the decision-making strategies of the corporation’s  stakeholders.

Management accounting is mainly dealing with various managerial aspects mainly handled by the managers within the organization, which is essential for taking appropriate decisions. Management Accountant is responsible for the preparation of financial statements, and management accounting report for taking appropriate decisions.   

The author states that equity financing is when the company sells some of its stock to gain capital. This can be done through an underwriter or with no middle man. Acme needs funds of $500 million for its proposed overseas production facility. The alternatives that we can choose from are debt financing or equity financing.

In July 1988, Grand Metropolitan PLC hired O'Hagan's Minneapolis law firm, Dorsey & Whitney, to represent it in a contemplated tender offer for Pillsbury. Although O'Hagan never personally worked on the deal, he started buying up Pillsbury stock and call options soon after Dorsey & Whitney began representing Grand Met.    

The author states that the tax rate affects the market value of the debt portion of the weighted average cost of capital. The interest payments made by the firm are tax-deductible. In the beginning, when there’s no debt, the weighted average cost is equal to the cost of equity.

The author states that an increase in the money supply increases the cost of loans and people spend less. This reduces the money supply in the economy. In this method, the sale and purchase by the central banks in the security market have the desired effect on the money supply in the economy.

An analysis of the plaintiff and defendant’s arguments and on Main Line’s potential $3 million “Boxing Helena” film revenue from domestic distribution, Main Line’s maximum and minimum lost profit, which is $9.7 million and $5.1 million respectively, should not be adjusted.

The author states that a print button is included in all sheets so you can preview or have a hard copy of the transaction made. A VLookup function (vertical lookup function) is used on the product table to help “automate” the entry of product type and descriptions in the other sheets, so the user may not need to re-enter this information.

The working capital and the debt to equity ratio has been on the decline which shows that that company is not doing so good on the assets front, the debt to equity ratio has declined and that is not a good sign because the value of the assets has been on the decline and liabilities have grown considerably which is not a good sign for any company

As far as inventory cycle is concerned, it requires the information that is associated with the inventory value, quantity ant timing. The information related with the quantity in hand, quantity on order, quantity on receiving department along with location and time is needed to be shared between other accounting cycles

Executive compensation Scheme (ECS) is termed as the total incentives which are given by a firm to an executive member of their staff like CEO. Good ECS can help a lot in order to reduce a different kind of agency problems and they also align the interest of the shareholders also known as the owners and also the executives or the agents.

The Sino economy has gathered further momentum. That was the reason that Chinese economy registered a real GDP growth of phenomenal 9.5 percent in 2004. China’s status of “world factory” is the result of that impressive growth show. The excellent performance of economy paved a way to massive capital inflows.

The report also shows whether the impacts have been positive or negative and what changes have the euro brought to the economic environment of the member countries of Eurozone. Finally after the analysis of the literature from economists and analysts, the conclusions regarding the impact of euro would be derived.

Financial ratios such as return on shareholders' funds can be calculated to assess the returns earned on their investments.They use information on past performance obtained from the financial statements comprising the profit and loss statement, balance sheet, and cash flow statement together with the present economic market conditions to predict the future returns.

Jane has to determine the length of the mortgage. If she plans to borrow money longer than 2 years, which means long-term financing, then it is strategic to choose the fixed rate mortgage; since fixed rates reduce the risk of fluctuations. For example, if demand for properties has gone up lately, hence mortgage rates will increase then.

The author states that he needs 30 tons of rock to cover the area. If each ton costs $60 and each tree is $84, what is the maximum number of trees you can buy with a budget for rock and trees of $2,500? He writes an inequality that illustrates the problem. The coordinate graph of the backyard shows the location of trees.

For this, it has called for opinion and debates from all corners. It is trying to take the best in every country’s accounting policy and include it in the common accounting standard that it is developing. The UK accounting standard is already principles-based, and the authorities in the UK have already implemented the IFRSs in their corporate sector. The world is now following the steps taken by these two giants in the corporate world.

Especially the management accounting systems contemplate to analytically measure and report all financial and non-financial information so that the managers can make fruitful and effective decisions to fulfill the goals of an organisation.