...The Accounting Equation Sevara Smith ACC/300 February 11, 2013 Rena Ballot The Accounting Equation The basic accounting equation is, assets are equal to liabilities plus stockholders equity. The assets in the equation are the resources owned by a company such as cash, inventory, fixed assets, and accounts receivable. The liabilities are the debits and obligations of the business, the amounts owed to creditors. The stockholders’ equity is the claim the owners have to assets. The stockholders’ equity is subdivided with two parts, common stock and retained earnings. The common stock is the money paid for shares by the stockholders. The retained earnings are the amount the company retained in net income. With the accounting equation every transaction should have a twofold or dual effect to the extent of the same amount. In other words, assets must balance with the claims to assets. For example, if an asset is increased, a decrease has to occur in another asset or an increase in a liability or stockholders ‘equity. This dual process is revealed on the balance sheet. The balance sheet gives a picture of a company’s finances at a point in time. It gives a summary of the assets, liabilities, and owner’s equity. The balance sheet represents the accounting equation for a company. It displays the assets and claims to assets at a given period of time. The claims of assets are divided into two groups they are claims of creditors (liabilities) and claims of owners...
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...not come from the hard assets, but in the intangible asset. Because reputation has an affect on a company’s goodwill, a publicly traded company’s goodwill can be affected more than a private company’s; therefore publicly traded companies have to be more careful about their decisions and ethics. One way goodwill could go down is if a company’s reputation were to be damaged. When a company’s reputation goes down it can cause their stock prices to go down; therefore, reducing their market value. When the market value of a company goes down, their goodwill goes down as well, and this is called impairment. Impairment is when the carrying amount of goodwill is greater than its implied fair value (ASC 350-20-35-2). According to the Financial Accounting Standards Board (FASB), Impairment must be tested annually anytime during the fiscal year as long as it is done the same time every year by using the two-step process and if impairment exists, the impairment losses are put in the income statement (ASC 350-20-35-28)(ASC 350-30-45-2). Before taking the two-step impairment test, you must first conduct a Qualitative Assessment; which is used “to determine whether or not it is more likely than not that the fair value of the reporting unit is less than its carrying amount” (ASC 350-20-55-25). If the result of the Qualitative Assessment is “it is more likely than not”, you would...
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...LESSON 11 ESSAY SAVANNAH WAGONER Employee compensation exemplifies one of the leading and most essential responsibilities of a business. Payroll creates liabilities for a business, and for service organizations is the main expense. That being said, payroll plays a very significant role in the maintenance of a company. The payroll cycle consists of the steps a business takes from the beginning of a payroll period to the end. The steps usually begin with the creation of a payroll system. Following that, hours, pay rate, withholding deductions both required and voluntary, as well as gross pay and take home pay. Calculating these values is very important, and must be done individually per employee. Businesses may do this manually or using a computerized accounting system to do so for them. Regardless of the method used though, the business also must have solid internal controls for the payroll category. These include two main controls, which are, controls for efficiency and controls to safeguard payroll disbursements. Having incorrect records poses one of the greatest risks that a company faces when it comes to accounting for payroll. This is because it is almost like a domino effect in that when one inaccuracy occurs, several more subsequently result. Manual entries are not necessarily considered to be efficient, because here the risk of error is greater, than the risk using a computerized system. The computerized system creates and stores records, documents, and an array...
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...Company Overview Six Flags Entertainment Corporation (Six Flags), incorporated on December 09, 1997, owns and operates regional theme, water and zoological parks. As of the December 31, 2011, of the 18 parks the Company owned or operated, 16 are located in the United States, one is located in Mexico City, Mexico and one is located in Montreal, Canada. Its diversified portfolio of North American theme parks serves an aggregate population of approximately 100 million people and 160 million people within a radius of 50 miles and 100 miles, respectively, with some of the highest per capita gross domestic product in the United States. During the year ended December 31, 2012, the Company’s parks offered approximately 800 rides, including over 120 roller coasters, making the Company the provider of thrill rides in the industry. Assets Six Flags current assets include cash and cash equivalents of $629,208 million, trade accounts receivable of $29,523 million, inventories of $22.280 million, and prepaid expenses of $37.49 million and other current assets of $44.973 million. Total current assets are $763,474 million. Other assets include, debt insurance costs, $26,043, restricted-use investment securities, $1,218 million, deposits and other assets, $4,214 million. Total other assets are $31,475. Six Flags has property, plant, and equipment gross after accumulated depreciation of $1254.629 million, goodwill of $630.248 million, intangible assets of $376.565 million. Six Flags...
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...Management Discussion & Analysis The Management’s Discussion and Analysis of Rainbow Paint Company provides the analysis of the company’s financial results for the period ended December 31, 2012. The following information should be read in conjunction with the audited financial statements and notes thereto for the period ended December 31, 2012 which are prepared in accordance with relevant standards and regulations. All amounts are expressed in dollars unless otherwise noted. The discussion includes few statements that may be deemed “forward-looking statements”. All statements in the discussion, other than statements of historical facts, are considered as the forward looking statements because we have used what we know and expect today to make a statement about the future. The company believes that the expectations shown in forward looking statements are on the basis of reasonable assumptions. The statements do not guarantee future performance and the actual results or development may differ significantly from those mentioned in forward looking statement. Forward looking statements includes the words like may, expect, plan, anticipate, budget, believe or other similar words. Factors that could lead to the difference between actual results and forward-looking statements include market prices, regulations of government regarding chemical usage, continued availability of capital, financing and general economic, market or business conditions. Investors are cautioned again that...
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...Essay 10: Earnings per Share Dividends or dividend requirements can either positively or negatively affect the computation of basic EPS. Basic EPS is calculated by subtracting preferred dividends from net income and dividing the result by the weighted-average of shares outstanding.(5) If preferred dividends are a larger amount it will result in a smaller EPS and vice versa. The treasury stock method of computing dilutive EPS assumes that the options or warrants are exercised at the beginning of the year (or the date of issue if later), and that the company uses the proceeds to purchase common stock for the treasury. If the exercise price is lower than the market price proceeds are insufficient to buy back all the shares causing the company to add the incremental shares remaining to the weighted-average number of shares outstanding to compute diluted EPS.(5) The treasury stock method must be used to compute dilutive EPS under GAAP. Convertible bonds are determined to be dilutive or anti-dilutive based on how their exercise affects EPS.(2) Dilutive convertible bonds will decrease EPS and anti-dilutive convertible bonds will increase EPS. A capital structure is complex if it includes securities that could have a dilutive effect on earnings per common share.(5) When a complex capital structure exists the company generally reports both basic and diluted EPS. Essay 2: Leases For the first transaction the leased computer should be shown in Superior Electronic’s (the lessee) financial...
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...Scholarship Programs Essay “How do you believe that a Keller Graduate School of Management degree curriculum, integrated with Becker CPA review methodology will help you to succeed and meet your career goals?” Domanique Sylvester Keller Graduate School of Management August 31, 2010 I obtained a degree in business administration from DeVry Institute of Technology in June 2002. Over the last five years, I have worked in the finance industry as a Mortgage Loan Originator for one of the largest financial companies in Georgia. My bachelor’s degree equipped me the necessary knowledge and skills to run any business entity. Combining these with my entrepreneurial skills, I was able to start my own income tax company. Keller Graduate School of Management will allow me to obtain my Master of Accounting degree and at the same time prepare me for the CPA exam. With Keller offering both Accounting degree courses and an opportunity to prepare for the CPA exams through the Becker CPA review methodology. I am confident that my enrollment at Keller Graduate will make me achieve my dream. However, I am striving to further my business knowledge and skills to become a Certified Public Accountant for a Fortune 500 company and the same time open more income tax branches. I believe that enrolling for the CPA exam at Becker will thus advance my business capability to propelling me to attain my desire of employing more people, and travel from business to business educating individuals about...
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...Unit 4- Assessment A Assume that Kelly Giard of Clean Air Lawn Care decides to launch a new retail chain to market electrical mowers. This chain, named Mow Green, requires $500,000 of start-up capital. Kelly contributes $375,000 of personal assets in return for 15,000 shares of common stock, but he must raise another $125,000 in cash. There are two alternative plans for raising the additional cash: Plan A is to sell 3,750 shares of common stock to one or more investors for $125,000 cash. Plan B is to sell 1,250 shares of cumulative preferred stock to one or more investors for $125,000 cash (this preferred stock would have a $100 par value, an annual 8% dividend rate, and be issued at par). Required: | If the new business is expected to earn $72,000 of after-tax net income in the first year, what rate of return on beginning equity will Kelly earn under each alternative plan? Which plan will provide the higher expected return? To: Kelly Giard From: Nicole Meza Kelly, if you use Plan A, you will get a 14.4% rate of return. 72,000 /500,000 = 14.4% If you used Plan B, you will get a 16.5% rate of return Net (after-tax) income- $72,000 Less preferred dividends 8%- 10,000 Balance to common stockholders- 62, 000 Return to common stockholders- (62,000/375,000) =16.5% Using Plan B, will provide you a higher expected...
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...Writing Essays 1. Getting started The worst part about writing an essay can be starting the process. Before you rush into doing a pile of reading, you need to be very clear what your essay is about and what you are actually being asked to do. Typical essay questions: a) How do organizations typically manage stress? Critically evaluate the evidence for the effectiveness of stress management. b) Critically assess the extent to which a Conceptual Framework may guide the accounting standard-setting process. c) Identify and analyse significant developments in technology impacting on IMC. Discuss how such developments might affect international marketers and notions of the audience. The important thing to do when you approach an essay is carefully unpacking the essay question. For example, in question (a) above, you are being asked to do two things. First, to describe how organizations manage stress, and then to examine the evidence regarding the effectiveness of stress management. The first part of the essay, therefore, will be fairly descriptive, and you will be looking to read books and journal articles that discuss the ways that organizations manage stress. Don’t rely too heavily on one book or one particular journal article. Try to read as widely possible and make notes as you do so (see handout on reading and note-taking). The second part of the essay is rather more difficult, and it is here that many students fall down and lose marks. The key...
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...Business essays you write, no matter whether it is on Finance, Management, Marketing, sustainability, E-Business, employee management or any other topic, must be good enough to get you grades as well as be an asset to your portfolio. At VivaEssays, we offer excellent business essays writing service. Backed by our team of highly professional, expert writers, we assure you of the best quality. Our writers have enough experience writing business essays for colleges and organizations. Before writing well structured, compelling and insightful business essays, it is necessary to follow certain guidelines. One of the most important aspects of writing good essays is to include relevant content and to substantiate your arguments with references. You must also use the right language, presentation and layout. The simplest way to do this is to break up business essays into stages. Before you start writing the essay, do a thorough research on the essay question. Find out what exactly does the topic question requires you to address. If you are allowed to choose your own topics, choose one that interests you. Conduct a good research on the internet and library taking care to choose authentic resources. You can take the help of interviews and surveys to get directly relevant content. Include sources such as case studies and articles from books written by noted scholars or from official journals. After making an outline plan, start writing your business essays in precise language...
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...ween Essays and Research Papers Not all writing assignments are created equal. We’re sure this is something that students around the world have discovered – the hard way. It almost seems purposefully unfair. One type of writing is difficult enough, but teachers want to throw all different writing brands, styles and formats into the mix. You’ve got APA paper, term papers, research papers, standard essays, reports, etc. Amidst all these writing assignments, two stand out as the most commonly assigned. Essays and research papers are, above all, the biggest and most common headache for students. However, understanding the crucial differences between these two assignments may help students to tackle them better in the future. What is an Essay? An essay is a simple composition with three basic parts: the introduction, the body, and the conclusion. The introduction is the first sentence of the essay, and works to introduce the topic of the piece, as well as the writer’s response. An essay could centers around a) the writer’s response to a question, b) an examination of a topic, c) a reaction to a text or d) an opinion supported be evidence. The evidence provided in an essay can center around personal experiences or unbiased factual support. The conclusion of an essay works to sum up the writer’s major points, opinion or position. In essence, an essay is a composition used to examine a topic in a brief but detailed and organized way. Most essays only span a few pages, and some only...
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...reflection essays that I wrote, I noticed numerous problems that stood out for each essay and some that repeated themselves. These problems formed various patterns that appeared throughout my writing, brought out my strongest and weakest points for each essay, and made me think about what I would have done differently if I would have had more time. As I began writing the review essay, the annotated bibliographies, and the academic argument, the one problem, or error, that became consistent was lack of detail of the citations I used in my earlier drafts. As I looked back at my essay for the academic argument, this became one of the most noticeable patterns that was consistent throughout all my...
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...market on the verge a projected severe recession any of the retailing factors that may influence Barclays competitiveness on the high street depends largely on how the Bank of England and the Treasury seek to regenerate and reinforce the flagging confidence of the stock markets which as we have seen in other financial institutes the sharp fall in market value and speculation can lead to disastrous consequences. Related Pages: * HUMAN RESOURCES ESSAY * FREE SCOTTISH POWER ESSAY * FREE BUSINESS ESSAYS: * SYSTEMS INTERVENTION STRATEGY * MULTI NATIONAL ENTERPRISES ESSAY Order NowInstant Price Business Essay Resources: * ------------------------------------------------- Free Business Essays * ------------------------------------------------- Business Resources * ------------------------------------------------- Business Operations * ------------------------------------------------- How to Write a Business Essay * ------------------------------------------------- Accounting & Finance Essays *...
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...Essay 1 Writing Experiences My Writing Experiences 101 Ebony Harris Freshman Composition 1010-004 Cherrlyn Eller 2/6/2012 My Writing Experiences 101 Writing can be an intimidating task if you are not equipped with the knowledge and techniques to write a successful well-structured paper. More importantly in order to excel at any craft it takes practice and critique to make anyone an established writer. As an economics major and accounting minor, formal papers, essays and exerts are expected of me to write. These types of papers include research working papers that illustrate results based around a thesis. Through my college career I’ve had a lot of experience writing working papers , as well as evaluation papers based off of sample working papers I’ve read and expressed my stance. In this essay I will illustrate what experiences I’ve had in the past with writing and highlight any strengths and weaknesses I’ve experienced in each area. In many of my economic courses a lot of our topics of discussion were based on theory and evidence to support a writer’s research. For instance my instructor Alexander Padilla challenged his classes to read many working papers and write what our thoughts and educated opinions concerning the publications were. A lot of times he challenged our intellect by discussing more controversial subjects which initially were not in my comfort zone but highlighted many social phenomena’s our society faces today. For instance we read an article published...
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