Finance & Accounting Essays

Earnings are recognized when earned and expenses when they are incurred. Accrued based accounting is utilized by the majority of corporations and businesses in America. The GAAP framework is designed to work under accrued based accounting. The second method that businesses can use to keep track of their economic activity is cash based accounting.

Abbot Laboratories (ABT) belongs to the health care sector and specializes in Drug Manufacturing. The company was founded in 1888. The company is located in the United States and possesses a workforce of 90,000 full-time employees. The company practices discovery, development, manufacture, and sale of health products globally.

Performance Management Student Name Instructors Name Course University Date of Submission Performance Management UGC Plc has decisions to make regarding the construction of the new system whether to carry the project in house or outsource the project to a subcontractor.

Five years before the start of the deflation that escalated in 2001 Argentina was viewed as a model to the rest of Latin America. It experienced economic growth, while inflation was reduced and controlled. However, by 2001 peso was devalued against the dollar, output decreased significantly, the government defaulted on its debt, and inflation returned (IMF 2003, p.3).

The practices of accountants and auditors must be consistent and compliant with the standards and regulations issued by governing authorities and regulators such as the Generally Accepted Accounting Principles and many others. Auditor serves the central role in the accounting system; an internal auditor can serve to ensure internal control systems.

The multinational could be doing a favor to the local people in undeveloped countries if they could be paying the local people adequate wages that could improve the living conditions of the local people. The companies could be ensuring that government gets taxes that could enable it to improve the living conditions of the common people. 

The monies that the government has borrowed from the public to finance its expenditure programs for a particular fiscal year is referred to as budget deficit and it consequently contributed to the ultimate public debt of a country. In other words, budget deficit is the difference between government’s income and its expenditure.

Accounting Information System Various activities are performed in order to achieve Top Burger desired output. Processes are the input activities that are performed on the inputs. From the case study, the following activities are performed: Feeding sales- this is the activity that involves entering of the sales transactions in the company data in order capture the amount of sales and the details by the use of the software.

The subprime crisis is believed to have had a significant role in the occurrence of the Global Financial Crisis in 2008. This type of crisis situation is a consequence of the subprime lending and not caused due to over-lending by banks. The credit status relative to the borrowers is referred to as subprime. It is not the interest rate corresponding to the loan itself.

However, Time Value of Money analysis needs to be conducted in order to find out what payment should be made for the bond now in order to get back $ 1000000 after one year. However, there are significant other factors that need to be considered while conjuring up to the present value of the bond.

A conceptual framework is a theory in accounting against which accounting problems can be tested objectively. The conceptual framework guides the boundaries of financial accounting and other events related to it. The Financial Accounting Standards Board (FASB) is in charge of developing and reviewing the frameworks.

The cycle of excessive lending practiced in East Asia, during the late 1990s, was exaggerated by implied or unambiguous agreements between lenders and debtors, along with weak administration of financial regulations and concerns among the banking sector.

Two accounting standards boards, UK’s and Germany’s opted to conduct a proactive project plan aimed at fundamentally reviewing the standards set by IAS 12 prove hard to solve through piecemeal amendment. Their agenda was to look at critical issues of accounting for corporate income in an attempt to develop a discussion paper.

Even though intellectual capital may be similar to tangible assets in its potential to generate future cash flow, it is different radically from tangible capital in various respects: intellectual assets are not rival assets. Intellectual assets can be multiplexed unlike tangible assets that can only do one thing at a time; relational capital and human capital cannot be owned and are shared with suppliers, customers and employees.

Dodd Frank: A Review and Analysis from the Perspective of Small Financial Institutions. With so many government programs originally intended to provide an answer to prior shortcomings that have been found in key structural areas of the economy, the Dodd Frank Act of 2010 had a series of profound impacts upon the way in which banks and financial institutions integrate with business.

Financial ratios are used in analyzing the performance of an entity and its trend over time. The net profit margin and gross profit margin are used in analyzing the profitability of an entity. The net profit margin and gross profit margins are used to evaluate the operating performance of a company (Pamela and Frank 2010).

The European region has experienced interrelated sovereign debt and banking crises. Bonds spread by countries such as Ireland, Greece, Spain as well as Portugal increased during the crisis. The debt crisis made headlines globally because of its destabilizing effects. Renewed challenges in global financial markets are closely associated with the debt crisis.

The investment style of an individual varies from another depending on various opportunities and investment constraints. Individuals generally invest a certain portion of the surplus left after all necessary expenditures are carried out. Some clients invest a part of their savings in different avenues such as banks, capital market instruments, money market instruments, mutual funds, derivatives, etc.

External users are not directly linked to the operations of a company and hence have reduced ability to obtain information. External users rely on the information presented by the company since they do not have contact with a company’s day-to-day operations (Warren, 2012). Debt holders and bondholders: The creditors of the company use financial accounts to conduct a risk analysis of a company.

Customers’ attraction would depend on recruitment and employees motivation that is implicit in how the customers’ shall be handled. This type of measurement is recorded as reputation indices or as fluctuation rates just to give a clear illustration since they are nonmonetary in value (Crowther & Capaldi, 2008).

Outsourcing is not just about the money, it’s about tapping into the vast international talent and optimizing them. Hence this paper presents my view point on the basis of strong evidences that standard financial investment criteria should not be the only basis on which the outsourcing decisions are made.

This has been disclosed in terms of the individual money and total money that is contributed towards the scheme. Nevertheless, I think it would be better for more information to be sent directly to the individuals who are covered by the scheme so that they can count the money which is being directed towards their retirement plan.

The demand for construction of new trailers has been consistently rising through the five years to 2011, although demand for repair remained consistent throughout the same period. As a result, the company decided to raise its production level, however its policies and practices remained the same.

The financial reports contain several key projects to be addressed by both IASB and FASB such that the financial disclosures require further enhancement as well as alignment with the existing standards issued by IASB and FASB. Currently, the key projects which are required to be considered further, are revenue recognition, leasing and financial instruments.

All expenses are being met successfully. However, the current situation is showing no problem with the fact that the family is currently managing payments by only paying a percentage of their total expenses. This practice is not creating a burden on their financial status in the current scenario but is expected to create problems in the long run.

How effective is budgeting to the financial planning of an organization? In the recent past, conflicting claims have arisen on the need for budgeting as a planning tool for businesses. A section of financial advisors and analysts hold that budgeting is an outdated way of planning.

The Certified Public Accountants firms have managers and audit partners who review the work of the staff auditors. Furthermore, the audits of the public companies and other engagements are checked by independent audit partners, who provide the second review of the information, before the audit opinion is finally released.

It is a common phenomenon for an organization to move towards implementing systems and a set of processes that enable it to increase overall productivity and improve the performance of the organization. In its quest for improvement, Charles Ltd implemented a new budgetary system that helped it to compare its performance after a given period of time.

The paper is an attempt to research about the effect of the economic crisis of Greece in the world economy. The economy of Greece, which was a fastest growing one from the year 2000 to 2007, faced severe downturn from the late of 2009. The economy was flooded by the foreign funds in those years. The burden of Greece surpasses €340 billion and this is expected to increase which is more than the economy of Greece.

The actual revenue growth of 2008 was also higher than the forecasted revenue for 2008. The economic downturn did not affect any area of the organization. All regions showed revenue growth during 2007 and 2008. This growth indicates that the economy had the same impact on all areas and had no effect on the revenue growth of its products.

All mixtures are pressurized at 600 MPa. 6 parts of mixture A and 7 of mixture B have been taken and processed at different temperatures in the furnace, the temperatures are 1220, 1230, 1235, 1240, 1280, and 1295o C. The report will analyze the various outcomes of the different experiments carried out under different conditions.

These statements are published in the annual reports of public corporations. The data contained in the financial statements can be utilized by financial analyst to make financial analysis such as vertical, horizontal, and ratio analysis (Besley & Brigham, 2000).

Fixed Tangible assets forms an important line item in the Balance Sheet of any company especially in the case of a manufacturing concern. As per the International Accounting Standard (IAS) 16 Property, Plant and Equipment, items pertaining to various classes of property, plant and equipment shall be classified as assts when the following two conditions are fulfilled It is probable that the future economic benefits, associated with the assets will flow to the entity and; The cost of the asset can be measured reliably [1] The important thing to consider at the time of recognition of fixed asset is the identification of the relevant cost based on which the asset should be capitalized in the bala

This paper intends to convince a client about the benefits of using an internal auditor. Functions of an Internal Auditor An internal auditor has an objective of assisting “all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed” (Ridely, 2008, p.9).

Direct taxation is levied on the income of people. They pay directly in taxes out of the income they earn. Similarly, indirect taxation is not levied on people’s income. Instead, it is levied on the spending of people. They pay taxes each time they make a purchase. Direct taxes cannot be avoided. Anything that is earned will have to be given to the national exchequer.

British Airways Plc and Iberia had merged to form a new leading airline group named International Airlines Group (IAG). IAG is formed, and its shares were listed on London Stock Exchange, on 24 January 2011. As a result of the merger with Iberia, British airline’s revenue has increased up 17 percent (to £9,990 million).

PepsiCo has prepared its income statement based on a multi-step format such that different all the expenses are separated according to their nature and subtracted one by one from the net revenues in order to provide operating profit first, followed by income before income tax, net income and lastly income attributable to PepsiCo shareholders.

Self-management is the foundation of success and financial service management requires individuals to develop habits in line with their traits and personalities. Through the course, I have managed to overcome barriers to personal success by addressing the shortcomings of my traits. I have improved my emotional intelligence.

Requirements: Although the Conceptual Framework views the primary use of accounting numbers as decision making, we still see accounting measures used in contracts for management compensation. a) Given that, why do you think that companies use accounting numbers in management compensation contracts?

Verizon is duly considered to be one of the most renowned telecommunication business houses in the telecom industry. Although the company is regarded as a consistent performer, an increased level of business market competition and rapid development of the industrial sectors are creating threats for the company.

The banking industry, through consolidating, responds to the forces of competition in the industry contributed by increased levels of deregulation, globalization, and financial innovation. The dynamism in the current business environment is in increased costs of doing business and competition, business organizations, and financial institutions.

One of the key suppositions is that both buyers and sellers via a series of indiscernible connections help to thrust market prices towards. Secondly, when the government gets involved in the market, it impedes the market capacity to allocate goods. The market experiences a disequilibrium condition in terms of either surpluses or scarcities.

Although the organization has remained competitive in the market, its revenue in the last three years indicates that market forces are becoming stronger and are already threatening to overwhelm its operations. However, the business environment in the 21st century has become very dynamic and organizations have to engage in effective differentiation strategies to survive in the competitive business environment.

The easiest way to save tax-free is through Individual Saving Account. It enables to invest from cash to stock and shares to government bonds. Individual Saving Accounts are accessible from a range of sources such as banks, supermarkets, building societies, investment firms, national savings, financial advisors, stockbrokers, and insurers.

As is evident from the income statement, it can be seen that MTS’s revenue has increased to a certain extent from $260,034 in 2011 to $360,547 in 2012. However, considering the proportions at which the expenses increased from 2011 to 2012, the revenue stream is not enough to cover the expenses. This is evident from the net loss generated by the company in both financial years.

The strange trading activities in the world’s financial market have brought in violent swings in the performance of the stock prices, which have compelled people to scratch their head and worry for their loss. The investors are not aware of the cause behind these price fluctuations and for the firms or financial institutions to engage themselves in such activities.

The objectives of the Central bank and the proposed functions of the Central Bank in GCC have been proposed to uphold the best interest of the Gulf economy. The banking industry of the Gulf Cooperation Council is based on the six main GCC countries- Saudi Arabia, Kuwait, Bahrain, Oman, Qatar, and the United Arab Emirates.

This is because testing and documenting of paramount automated and manual final financial statements is highly sensitive. Under this section, the Act requires management to avail an “internal control report” together with annual Exchange Act report.

This study focused to the budget analysis of RDBS Corporation. RDBS Corporation creates a mixture of plastic products. The industry starts the annual budgeting method in late December, when the controlling director targets the whole pound sales and net income before taxes for the coming year.

This research study would primarily accentuate on the financial impact on London and the UK throughout the Games phase, with some focus of opportunities of economic growth subsequent to the completion of the Games. The financial and economic impact of the Olympic Games would be evident in the years to come.