...Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also exists for people who can effectively use computers to prepare and analyze accounting reports. Technology will never substitute for qualified people with abilities to prepare, use, analyze, and interpret accounting information. 3. External users and their uses of accounting information include: (a) lenders, to measure the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their shares; (c) directors, to oversee their interests in the organization; (d) employees and labor unions, to judge the fairness of wages and assess future employment opportunities; and (e) regulators, to determine whether the organization is complying with regulations. Other users are voters, legislators, government officials, contributors to nonprofits, suppliers and customers. 4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable...
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...Accounting Business David Caskey University of Phoenix Accounting Business According to a study in 2011, accounting is one of the fastest growing industries in today’s market. Accounting jobs are expected to grow 22% between 2008 and 2018, according to the Bureau of Labor Statistics. That’s much higher than the average of all professional occupations (17%) and translates to almost 280,000 new jobs. (money.cnn.com, 2011) There will always be a need for individuals who work in accounting and because of this a well-run accounting firm has the potential to be not only lucrative but also satisfying. Staffing a firm in this field is very important and to do this there are several options, offering internships, paid or not, hiring temps, or doing interviews. Companies only want the best especially when the person or company they are hiring are dealing with finances so it is very important that the individuals hired on have an in-depth knowledge of accounting. Services and customers To reach the maximum number of customers, the business needs to be well-rounded and touch on several accounting topics including preparing, analyzing, and verifying financial documents, budget analysis, financial and investment planning, information technology consulting, auditing, tax matters, etc. (Bureau of Labor Statistics, 2011) Customers expect professional individuals and those same individuals to be knowledgeable in all things accounting. All individuals employed by the accounting firm would...
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...BTEC National Business Assignment No. 5 Business Accounting Task 1.1 Task 1.2. International accounting standards are a set of rules and/or practices in recording and registering business transactions in company’s ledgers and accounts, keeping books and preparing reports on the financial and other business results and standing to owners, public and authorities. Certainly all standards are based on a golden rule of accounting – double entry. Accounting standards are necessary so that financial statements are meaningful across a wide variety of businesses. In the past the authorities of each country endorsed their own rules and instructions on how the financial reports should be made up but in the second half of the XX-th century international business and governments recognized that the international capital markets require both transparency and unification, otherwise, the accounting rules of different companies would make comparative analysis almost impossible and the economic development and growth could be hindered when international investors were deprived of the possibility to compare cost-effectively their investments options across the trading board. Initial efforts focused on harmonization—reducing differences among the accounting principles used in major capital markets around the world. By the 1990s, the notion of harmonization was replaced by the concept of convergence—the development of a unified set of high-quality, international accounting standards that...
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...Business Plan It is my goal to open a successful women’s clothing and accessory shop in Conway, Arkansas. Conway has a population of around 60,000 people so I have no doubt that with a good location, I will have the necessary traffic to make the business successful. The name that I have chosen for my business is Fancy D’s. This name was chosen because my grandmother always called me Fancy because I loved to play with her old jewelry and high heel shoes. It is my goal to provide personal exceptional service at affordable prices for all women. This business will be a sole proprietorship because I want the success of this business to be at the hand of my hard work and dedication. I want to be the one responsible for making all the decisions for the business and if anything needs to be changed then I need to be the one responsible for making adjustments. As the business takes off, in addition to handbags, jewelry, shoes and clothing, I will expand and add a children’s line of clothing and shoes. Accounting will play an important role as the business starts up. I plan on using a balance sheet in order to group similar assets and liabilities together. The balance sheet will inform me whether I have enough assets to pay the company’s debts as they come due. I will also plan on using an income statement for the business. The income statement will inform me of my revenue and expenses and will inform me of how the company is doing. In order to make sure that all of...
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...Task 2 Content and Analysis of Financial Reports ( P&L and B/S ) for Wansbeck Motors Inc. The most important objects of the accounting and reporting are Profit and Loss Account ( Income Statement ), Balance Sheet ( Statement of Financial Standing ) and Cash Flow Statement. The financial statements provide information about an entity's: [IAS 1.9] * assets * liabilities * equity * income and expenses, including gains and losses * contributions by and distributions to owners (in their capacity as owners) * cash flows. A complete set of financial statements includes: [IAS 1.10] 1. a statement of financial position (balance sheet) at the end of the period 2. a statement of profit or loss and other comprehensive income for the period 3. a statement of changes in equity for the period 4. a statement of cash flows for the period 5. notes, comprising a summary of significant accounting policies and other explanatory notes 6. comparative information prescribed by the standard The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses. Everything is about what ( a position ), where ( P&L, B/S, outside B/S), at which value and at what time should...
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...of the balanced scorecard method to create an individually responsive and responsible organization that exceeds our upcoming aggressive performance targets. The balanced scorecard is a tool that we believe will align individual objectives with business objectives to ensure the continued success of PepsiCo. The following information describes where we are today as an organization, what the balanced scorecard can do for our organization, and some critical success factors to address during implementation. PepsiCo in brief: PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. In the year of 1998 PepsiCo then acquired Tropicana and in the year 2001 Quaker Oats and Gatorade. The company consists of four subsections; Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. The products are available in 200 countries and even have some brand names that are more than 100 years old. PepsiCo employs 153,000 people that follow a mission, "To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners, and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” (http://www.PepsiCo.com) In 2004 PepsiCo generated $29 billion in...
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...IAS 1 — Presentation of Financial Statements Page 1 of 14 IAS 1 — Presentation of Financial Statements Quick Article Links Overview IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. IAS 1 was reissued in September 2007 and applies to annual periods beginning on or after 1 January 2009. History of IAS 1 Date March 1974 January 1975 Development Exposure Draft E1 Disclosure of Accounting Policies IAS 1 Disclosure of Accounting Policies issued Comments Operative for periods beginning on or after 1 January 1975 June 1975 Exposure Draft E5 Information to Be Disclosed in Financial Statements published October 1976 IAS 5 Information to Be Disclosed in Financial Operative for periods beginning on Statements issued or after 1 January 1975 July 1978 Exposure Draft E14 Current Assets and Current Liabilities published November 1979 IAS 13 Presentation of Current Assets and Current Operative for periods beginning on Liabilities issued or after 1 January 1981 ...
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...Harvard Business School 9-193-103 os t Rev. November 3, 1998 rP Statements of Cash Flows: Three Examples yo John Stacey, a sales engineer for Aldhus Corporation, was worried. A flight delay had caused him to miss last week’s accounting class in the evening MBA program in which he had enrolled at the suggestion of the personnel director at Aldhus, a growing manufacturer of computer peripherals. The class he had missed had been devoted to a lecture and discussion of the statement of cash flows, and he was sure the material he had missed would be covered in the weekly quiz that was part of each class session. A classmate had faxed Stacey some notes distributed by their instructor, but they were too cryptic to be understood by anyone who had missed the class. In desperation, John called Lucille Barnes, the assistant controller at Aldhus, to ask if she could take a few minutes to point him in the right direction toward understanding the statement of cash flows. She seemed delighted by the request, and they agreed to meet that afternoon. op The Meeting No tC At 2:00 P.M. John Stacey went to the office of Lucille Barnes with his notes and questions. After they had exchanged greetings, Lucille handed John three cash flow statements from the annual reports of other high-technology companies (Exhibits 1, 2, and 3). John was worried that Lucille would ask him to explain them, and that she would see how confused he still was about some aspects ...
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...3)Draw up a profit and loss appropria2on account for the year ended 31 March 20X8 and balance sheet extracts as that date, from the following: i. Net profits $111,100. ii. Interest to be charged in capitals: Blair $3,000; Short $2,000; Steel $1,500. iii. Interest to be charged on drawings: Blair $400; Short $300; Steel $200. iv. Salaries to be credited: Short $20,000; Steel $25,000. v.Profits to be shared: Blair 70%; Short 20%; Steel 10%. vi. Current account: balances b/d Blair $18,600; Short $9,460; Steel $8,200. vii. Capital account: balances b/d Blair $100,000; Short $50,000; Steel $25,000. viii. Drawings: Blair $39,000; Short $27,100; Steel $16,800. Profit and loss appropria2on account for the year ended 31 march 20x8 $ Net Profit Add; Interest on Drawings Blair Short Steel 400 300 200 900 112,000 Less; Appropriation Interest on Capital Blair Short Steel Salary Short Steel 20,000 25,000 (45,000) 60,500 Share of Profit Blair (60,500 x 70%) Short (60,500 x 20%) Steel (60,500 x 10%) 42,350 12,100 6...
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...Situations of Unethical practices and Behavior in Accounting Acc/291 Principles of Accounting II Joseph Kronewitter 07-01-2012 There are so many unethical situations that can take place in corporations around the world and sometimes they can happen over periods of time without being noticed. While doing research for this paper it is amazing to learn all of the lengths people will go to in order to get what they want. We all know about Enron and the things that happened there, but I also found an ethical issue concerning Wal-Mart. An ethical issue I have never even considered is one that is talked about with Wal-Mart. Apparently they have a favoritism thing that happens with the department managers and even the General Manager of the corporation. It would seem that they only choose to promote people without higher education’s and those that haven’t spent their entire life working for them. It would appear that they have a conflict of values. An ethical issue witch really shocked me to read about was one with the Coca-Cola Company. Their issue seems to fall in the labor violations area. It would seem that most of this started in Guatemala. It looks like the workers at the bottling plant should not be...
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...Venue : level 6, Wing A , Room No.01 Time : 6.00 p.m Date : 10-03-2016 , Thursday This is day of first class of comunity service. The lecturer is in class already, And our respecful lecture name Haysriq Thomeeran. By 6.30 p.m our class is start. First thing, our lecturer start to introduce by his self. Then start to introduce all my friends by thier self. The main questions he asked is name, which sem, programme,hometown and final question is a bit funny because he ask that did u got girlfriend/boyfriend . Since , all my friends answer that question by very honest. After that we discuss to about the group, that is want to seperate few groups or wanna be a one group, because in our class they got 19 students only, so we decide to be in one group . Then my lecturer start to to explain about the final project and then we have to do individual journal and self reflection and explain it more briefly. Then we rearrange the chairs and sat in cirlce. Then we start to decide the project director our project. Then ill say my friend name vicnesh. But he is very famous name by kumar. Then he say my name.Then totally they got 4 person name . After that sir told us to stand up that whose name in white board . Then ill and my four friends were stand up. Then sir start to explain how important is a leader role , he told that whoever feel that really not qulified to the position u may can seat, so all of my friends sat ready, but inside me there is a question why not ill take...
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...DQ 1. The difference between a scatter plot and a line graph is that scatter plots and line graphs have similarities in that they both use an X-Y axis. But a line graph has a line or curve to describe a formula like Y=2X+5, a Scatter plot is a collection of X-Y coordinates that have no real formula due to real life uncertainties (heinsberg), but, once plotted, can provide a clue to a single formula. On a line graph, the points are connected by a line. Hence the name “line graph”. A scatter plot can be used as an initial record of discrete data values. The range determines a number line, which is then plotted with X’s for each data value. Both kind of plots are useful but it depends on the need. In case of statistical data analysis “scatter plots” may be preferred and for plotting mathematical law or equation “line plot” will be preferred more. DQ 2. If a line has no y-intercept is a vertical line. A line that has no x-intercept is a horizontal line. A line that does not have a y intercept means that does not cross the y-axis. The only way that happens is if the line is a vertical line that is not the y-axis itself. Same idea for x intercept. Except that means the line is a horizontal line that is not the x-axis itself. For example, a graph of cost versus chicken wings eaten. Cost goes up as more chicken wings are eaten. If the same cost was plotted versus chicken wings at an all you can eat buffet, the graph would be a horizontal line. A real world example of a line with...
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...In this assignment I am going to explain the legal requirements and regulations for ensuring the health, safety and security of those employed in business. The business I have chosen is Lambeth Academy. Management of Health and Safety at Work Regulations 1999 This act ensures that all people have a legal right to be protected from work related risks. The management of health and safety work is under the senior management within Lambeth Academy. The senior management are the people that implement all of the Health and Safety policies and procedures that are in place and ensure that it is being followed. The senior management is responsible to make sure that they have all of the suitable Health and Safety equipment’s available to use within the Academy. This must be checked frequently and replaced if necessary. This would include: fire extinguishers, fire exit signs, fire alarms, a sprinkler system, the management need to make sure that they have trained their staff to a high standard so that they understand about health and safety and if needed provide any extra training when needed. Health and Safety at Work Act 1974 This act sates that if businesses employ a lot of people, the employer has to provide a health and safety policy. The purpose of the law are to protect all employees in the work environment and to ensure all chemicals and substance are stored away and used safely. In addition the policy has to remain up to date. For Lambeth Academy because they require a lot...
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...ASSIGNMENT 1 INTRODUCTION After the separation of Malaysian Airlines and Singapore Airlines, Malaysia Airline System was founded in 1972. Singapore Government and Malaysian Government decided to run their own carriers separately. Singapore airline completely separated from Malaysia Airlines on October 1, 1972. Due to the popularity of MSA brand, the Malaysian Government decided to swap one letter and name the airline as the Malaysian Airline System or MAS. The airline changed its name to Malaysia Airlines in the year 1982. Malaysia Airlines started its business with a squadron of Fokker F27 Turboprop Aircraft. The airline soon started to operate jets such as Boeing 707 and Boeing 737-200. The airline got its DC-10 jets in 1976, enabling the long international service. Airbus A300 was also included in its fleet as well as A310 for a short while. Malaysia Airline System (MAS) handled its primary centre out of Kuala Lumpur. The Airline operated to over 34 regional destinations and over 45 International cities. There were many Malaysia Airline accidents in the past years which resulted in a high financial and economical crisis as well as union breakdown. In 2009, MAS had 2 notable accidents; one of them included passenger casualties and deaths. Malaysia Airlines flight 653 was hijacked and crashed in the year 1977 at Tanjung Kupang, killing all 100 passengers as well as crew on board. Malaysia Airlines Flight 684, in the year 1983, was an Airbus A300 which fell short of the runway...
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...Proceeds from issuance of common stock. gamma a) Proceeds from issuance of debt. b) Issuance of treasury shares Uses of Cash Alpha a) Investment in depreciable assets b) Investment in capitalized software c) Other investments d) Payment of long term debts e) Purchase of treasury stock f) Payment of dividends beta a) Payment to suppliers and employees. b) Payment of interest c) Payment of Income Taxes d) Capital expenditures e) Purchase of marketable securities f) Payment of working capital line of credit g) Principal payments under capital lease obligations h) Payment of subordinated debts gamma a) Payment of A/P b) Payment of taxes c) Purchase of PPE d) Purchase of Kienzle business e) Payment of retired debts. f) Purchase of treasury shares. | 2. Was cash flow from operations1 greater than or less than net income?2 Explain in detail the major reasons for the difference between these two figures. The cash flow from operation as provided, in the case of Alpha, Beta and Gamma Co. are greater than net income. The reason for these are the noncash expenses such as Depreciation, Amortization, Working Capital Adjustment, and Reclassification of Cash flow from Operating activities to Investment activities were considered in the Net Income. 3. Was the firm able to generate enough cash from operations to pay for all of its capital expenditures No, Alpha, Beta and...
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