...Letters Accountants write letters of variety of people, different types of accountant writes different letters to different types of people. There are some principles of good letter writing that are introduced in this chapter such as: organization, style, tone, and format. Before we start with the letter, we need to have a clear understanding of what the letter should cover so that we won’t forget something important. The length of the letter doesn’t matter although many letters are no longer than a page. We also need to analyze the purpose of the letter before we start writing it. It’s also important to think about the reader that we are writing to, the reader’s knowledge and experience should determine how much detail we should use in our business letters. Sometimes we much explain complex accounting procedures in the words that a non-accountant can understand. Our letter is organized into an introduction, a body, and a conclusion. The introduction of the letter should address the main idea that we are trying to express and the purpose of the letter that we are writing. The body of the letter is divided into different discussions of each topic. Arrange the topics in descending order of importance from the reader’s point of view, this is really important. The conclusion may be a conventional courteous closing: thank you very much for your help. The conclusion is also a good place to tell the reader what we want him or her to do, or what we will do to follow up on the subjects...
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...QUESTION 1 A) A liability must meet all the below criteria: 1) Is a present obligation * Yes, because Sliverstrike Minds has has 4 operating mining shaft in Country X and 6 shafts in Country Y. 2) Arising from a past transaction * Yes, because Silverstrike Minds has already purchased the right to mine silver in the 2 countries. 3) Expected to result in an outflow to the entity. * Yes, because the company will dig 17 meters in Country Y in December 2015 with a 95% certainty. Conclusion: The scenario is a liability because it meets all 3 criteria. B) A liability must meet all the below criteria: 1) Is a present obligation * No, because the employee has not left or retired yet. He or she is still under payroll 2) Arising from a past transaction * Yes, because the person is still working for the company. 3) Expected to result in an outflow to the entity. * Yes, we can assume that this person will retire after 15 years since only 15% of current employees lave before 15 years. Conclusion: The scenario is not a liability because it does not meet all 3 criteria . C) A liability must meet all the below criteria: 1) Is a present obligation * Yes, because the team signed a contract with Masonry Limited for sponsorship. 2) Arising from a past transaction * Yes, because the team built a stadium in the past. 3) Expected to result in an outflow to the entity. * Yes, because even after the 8 years the team...
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...Read “The Perils of Pensions: ……” 1. Why would investors and analysts have trouble processing pension information? Investors and Analysts only gradually incorporate pension information into prices and forecasts as they observe the effects of pension plan changes on subsequent quarterly earnings. Analysts seem to ignore the constant disclosures regarding pensions each quarter and investors do not accurately assess the long run cash flow and earnings implications of off balance sheet pension disclosures. A combination of information complexity and presentation (sometimes relevant information is not found on the primary financials directly) can affect both the assimilation and weighting of pension information by analysts. 2. What makes pension expense more susceptible to earnings management? Pension expense is more susceptible to earnings management because of the complex nature of the expense and the estimates that are made as to the value of the expense to date. Furthermore, pension information is disclosed in the footnotes rather than directly in the financial statements making it more “manipulative” a number for management. 3. Name at least three items used in determining pension expense that are "estimates" by management. PBO - is based on estimated payments into a present value based on estimated retiree population, estimated salary increases, and discount rate Compensation Rate assumptions Pension Cost - using estimates of interest...
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...This congressional action was in response to many unscrupulous acts by major corporations which caused investors to lose confidence in the capital markets. The major issues were caused by three main organizations, Enron, WorldCo, and Tyco. Enron, did not accurately record their debt obligations. They also recorded gains on internal sales amongst subsidiaries effectively overstating profits. WorldCom capitalized expenses that violated the Generally Accepted Accoutnign principles skewing creating inflated profits. Tyco’s fraud included providing unapproved loans to executives and then subsequently forgiving these debts without approval from the Board of Directors. The PCAOB Prior to the the enactment of the Sarbanes –Oxley Act the accoutning profession was operating in an era of self-governance. The audit standards had been set by the AICPA. Title I of the Satrbanes-Oxley Act established the Public Company Accounting Oversight Board. The PCAOB was created to “to oversee the audit of public companies that are subject to the securities laws, and related matters, in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports for companies the securities of which are sold to, and held by and for, public investors.” After the financial scandals of the early 2000s investor confidence had been shaken in the capital markets. The uncertainty in the relatibablity of information assurance provided...
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...include monitoring, assessing, and analyzing organizational risk and controls; and reviewing and confirming information and compliance with policies, procedures, and laws” (Who are internal auditors?). Although the accuracy of the financial statements relies on the accountability of management of the organization, all auditors has the responsibility to express his or her opinions of the financials of the organization. Furthermore, the auditor has a responsibility to his or her profession to comply with all standards recognized by American Institute of Certified Public Accountants (AICPA). The Secutires Exchange Commision also has a number of infuences on the disclousrue requirements of an auditor. However, the Public Company Accoutning Oversight Board has the full obligation of creating and maintain the standards of auditing required for auditors of a public company. Whereas the Auditing Standards Board, a...
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...Accounting Cycle Nelson L Romeu ACC/421 University of Phoenix March 5, 2012 Prof. Dawn Brauer Accounting Cycle The accounting cycle is a logical process used to help achieve the basic function of accounting, which is to identify, record, and correspond information. A business or organization may have its own unique way of performing its accounting cycle, but each must perform the task in one way or another. ADCON (Administration and Accounting) is a small-operated business with a very simplified description of the accounting cycle. The company began and has been operated for most of its 15 years with a couple of individuals and has expanded into a respected company. Gradually over time the accounting cycle has evolved much like business has evolved; the multiple steps have been reduced as technology has simplified the process, “today, most companies use accounting software that processes many of these steps simultaneously” (“What is the accounting cycle?” 2007, para. 3). The accounting cycle consists of: identifying, journalizing, posting, trail balance, adjusted entries, adjusted trial balance, preparing financial statements, closing, post-closing trial balance, reversing entries, and financial statements (Kieso, Weygandt, & Warfield, 2007, Chapter 3). Identifying a transaction or event is the first step in the cycle; businesses engage in various activities on a daily basis, as a result, determining when to record and activity is crucial...
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...Cost-Volume-Profit Analysis Stephanie Bowens, Janette Cruz, Noelle Lang, Velavan Nedunchezhiyan, and Judy Robertson ACC/561 Accounting November 11, 2013 Grace Kalil Managerial accounting is key part of manager's jobs. Part of it is that managers need to forecast monthly, quarterly and yearly expenses, tracking their actual expenses at the end of each cycle and determine if they stayed within their budget. Typically managers in several departments need to report their expenses to an accounting department and managerial account will be maintaining these information. Business can use this information to find out their operational cost such as labor, raw material, manufacturing, advertisement, distribution and miscellaneous and will help them to stay in with their budgets, incase if they are over the budget it will help managers to make an educative decision on where to cut the cost and tally the budget. The expenses can be classified into two parts fixed cost and other as variable cost. Managers need the skills to identify them and manage them. Cost-Volume-Profit analysis, CVP analysis, helps in understanding the relationship of these two costs, volume of product sales required to cover manufacturing or servicing cost, and net profit. CVP analysis is used in managerial accounting to use the relationships between cost, volume and profit quickly to calculate metrics that provide insight into the current and future performance...
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...Small Business Idea University of Phoenix Accounting Acc/561 Norsey Dorris June 27, 2012 The government has decided to kick start another program to release funds for small businesses across the country. This can be an exciting and overwhelming experience at once to start-up a new business, especially with the help of federal funding. To incorporate or not to incorporate, that is the question. There are many decisions to make once a business idea (hopefully a business plan has been created) is ready to launch. Whether it is a small restaurant, local liquor store, or an auto repair shop, one of the main decisions is to what type of organization or business entity to create. There are four main forms to choose from: Sole Proprietorship, Partnership, C Corporation, and S Corporation. Sole Proprietorship A sole proprietorship is one of the easiest and main ones for a small business owner. The business will be owned by one person and it is simple to set up and gives the individual control over the business (Kimmel, Weygandt, & Kieso, 2009). The sole proprietor can run the business for any duration of time and sell it when he or she sees fit. The person can also pass the business to down to his or her heirs. In addition, compared to corporations, a sole proprietor will receive favorable tax advantages. The owner will pay taxes on his or her personal income, which is more favorable than the double taxation that occurs in corporations. Paperwork,...
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...Master in Business Administration Xavier University – Ateneo de Cagayan Human Behaviour in Organization A Case Analysis on Intercontinental Philippines Corporation To: Mr. Adrian Pabayo August 13, 2011 From: Group 2 Marieanne L. Oliveros Danilo Flores, Jr. Nova Fernandez Ann Alvaran Irra Angela Y. Chiong I. Problem The highly regarded and close-knit group of experienced, “old-timers” of the Sales Accounting section of Intercorp is much dependent on the foundation of their long-built section. Possible assigned additional workload and various personnel somehow disrupt the behaviour and communication of each member of the group eventually affecting their productivity and efficiency. II. Objective To establish a sensitive and casual approach on loosening out the dependency of the section on each other. Any abrupt changes within arises uncommunicative and too formal behaviour among the members of the Sales Accounting section. It is necessary to provide effective means of how to ease-out the tightness of the group so positive and needed changes may be simply introduced. III. Areas of Consideration 1. Gabriel Herran , manager of the Sales...
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...Environmental Accounting Management Practices in Japan COURSE: INTERNATIONAL MANAGERIAL ACCOUNTING(C31IM) MOHAMMED MUBEER.C HOO175198 Contents 1. Introduction: What is Environmental Management Accounting (EMA)? 3 1.1 Environmental Accounting 3 1.2 Environment-related Management Accounting 3 2. Environmental Accounting Management Practices in Japan 4 2.1 Japanese Government Initiatives on Environment Accounting 5 2.1.1 MOE Initiative 5 2.1.2 METI Initiative 6 2.2 Environmental Management Accounting Practices in Japanese Manufacturing Sites 7 3. Conclusion 8 Bibliography 10 1. Introduction: What is Environmental Management Accounting (EMA)? Organizations and the managers mainly believe that the environmental costs are not important for the business operations, however, it does not come to their mind that there are several production costs which do have vital environmental component. For example the purchase cost of raw materials or the unused portion which is emitted as waste is not considered to be environmentally related cost. By identifying as well as controlling these environmental costs, using Environmental Management Accounting (EMA) Systems, it can help environmental managers justify the cleaner production and along with this justify totally new methods of saving money as well as improving their environmental performance also at the same time (Magarinos, 2005) . Thus EMA can be defined as: “ EMA serves business managers in making capital...
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...Cost Accounting – Huvudbok med tillhörande föreläsningar Kapitel 1 Management Accounting – Förse ledning och anställda med relevant information, både finansiella och icke finansiell information för att användas som beslutsunderlag. Finansiell information – Priser, täckningsbidrag, Icke finansiell information – Kundnöjdhet, kvalité, innovation mm. Management Accoutnings tre attribut: Den innehåller både finansiell och icke finansiell information. Tittar tillbaka på historiska utfall men även framtida prognoser. Den är ämnad för att användas för beslutsunderlag och som syrningsmedel för de anställda. Den är inte lagstadgad och får därmed utformas utifrån varje enskilt företags behov vilket gör att man kan effektivisera och optimera informationen i underlaget. Ekonomistyrningens syfte är att se till att en organisation kan utveckla och implementera sin strategi. Mål, strategier och policys. Se till så att strategin passar organisationen. Implementera strategier Effektivt och produktivt utförande av individuella uppgifter Strategy formulation – Välj en strategi som bäst lämpar sig för organisationen, dess interna, externa resurser. Management Accounting – Implementera...
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...AACSB Table 10-1: Summary of Faculty Qualifications, Development Activities, and Professional Responsibilities Date Range: January 1, 2007 - August 1, 2012 Accounting: Professor | | | | | | | Five-Year Summary of Development Activities Supporting AQ or PQ Status | | Name | Highest Earned Degree & Year | Date of First Appointment to the School | Percent of Time Dedicated to the School's Mission | Acad Qual | Prof Qual | Other | Intell. Contrib. | Prof. Exper. | Consult. | Prof. Develop. | Other Prof. Activities | NormalProfessionalResponsibilities | | | | | | | | | | | | | | Som Bhattacharya | Ph D, 1994 | | 100.0 | YES | | | 12 (5) | Service: 0Work: 0 | 0 | 0 | Editor/Review: 6Other:13 | UG, GR, RES, SER and ADM | Intellectual Contributions (12) Hopwood, W., Bhattacharya, S., Premuroso, R. (2011). Tasteless Tea Company: A Comprehensive Revenue Transaction Cycle Case Study. Issues in Accounting Education, 26(1), 163-179. Cao, J., Nicolaou, A., Bhattacharya, S. (2010). A Longitudinal Study of market and Firm Level Factors Influencing ERP Systems’ Adoption and Post-Implementation System Enhancement Options. 7th Annual International Conference on Enterprise Systems, Accounting, and Logistics. Rhodos: ICESAL. Behara, R., Bhattacharya, S. (2008). DNA of a successful BPO. Journal of Service Science, 1(1), 111-118. Premuroso, R., Bhattacharya, S. (2008). Do Early Members of XBRL International Signal Superior Corporate Governance and Future...
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