...Accounting Concepts, Assumptions, Principles, Elements Key Things to Know Objectives of Financial Reporting: 1. Provide useful information to investors and creditors for decision making (assume users have a “reasonable understanding” of business). 2. Provide information to access the amounts, timing, and uncertainty of cash inflows and outflows. 3. Provide information about resources (assets) and claims to resources (liabilities). Recognition: An item should be recognized in the financial statements when it meets all 4 of the following criteria: 1. Definition: meets the definition of an element 2. Measurability: measurable with sufficient reliability 3. Relevance: makes a difference in the decision 4. Reliability – representationally faithful, verifiable, neutral Accounting Underlying Assumptions - Basis for Generally Accepted Accounting Principles (GAAP) Entity Assumption - each business is its own “accounting” entity. Periodicity Assumption - divide economic activities into time periods for reporting. Going Concern Assumption - the company will remain in business and will...
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...1. Define subsidies and land grant colleges and explain their influence of the migration of settlers out West. Subsidies are grants given by a government to individuals or groups in form of tax reduction or cash. Land grant colleges were colleges established as a result of Morril Act. The act awarded federal land to states to fund the cost of building mechanical and agricultural colleges. Land grant colleges such as Iowa State University and Kansas State University, were set up to teach certain branches of learning that include mechanical arts and agriculture. 2. Two examples of where the federal government violated treaties as a result of continued settlement into the west and give the results of these conflicts During the nineteenth century the Native Americans were deprived much of their land and were forcefully removed from the west. The white authority failed to honor the treaties they had signed and made the natives vacate their own land. This resulted to relocation of a mass of people from the west. After the war the white authorities started treating the natives in a hostile manner. They claimed ownership of the Indian lands in the west by the terms of 1783 peace treaty. This resulted to relocation of the India from the west. 3. (a)Explain the use of the Dawes Severalty Act in trying to force natives to assimilate to the American culture. What were the unintended consequences? The Dawes Severalty Act provided for elimination of tribal ownership of land...
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...mangers’ views of the nature of human beings are based on a certain grouping of assumptions and that they tend to mould their behavior towards employees according to these assumptions. Under Theory X, the four assumptions held by managers are: 1. Employees inherently dislike work and whenever possible, will attempt to avoid it. 2. Since employees dislike work, they must be coerced, controlled or threatened with punishment to achieve goals. 3. Employees will avoid responsibilities and seek formal direction whenever possible. 4. Most workers place security above all other factors associated with work and will display little ambition. Under Theory Y, the four assumptions held by managers are: 1. Employees can view work as being as natural as rest or play. 2. People will exercise self-direction and self-control if they are committed to the objectives. 3. The average person can learn to accept, even seek, responsibility. 4. The ability to make innovative decisions is widely dispersed throughout the population and isn’t necessarily the sole province of those in management positions. Theory X assumes that lower-order needs dominate individuals, while Theory Y assumes that higher-order needs are the dominant ones. McGregor held to the belief that Theory Y assumptions were more valid than Theory Y assumptions. Therefore, he proposed such ideas as participative decision making, responsible and challenging jobs and good group relations as approaches that...
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...Mental Model/Mindsets Paper Student Name OI/361 April 7, 2014 Instructor Name Mental Model/Mindsets Paper Reality representations that people use to understand and identify the particular phenomenon are known as mental models. Mental models represent assumptions that are deeply ingrained and they influence how people take action and how they understand the world. Mental models are developed over time through experience, socialization and interaction with others. They are opinions, beliefs, perceptions, assumptions, values and truths. Mental models are often hidden and one is not aware of them or their effect on one’s behavior. When mental models are created they become reinforced in the mind and it becomes hard to change them (Von Stamm, 2008). Vernon and Bud have been in this company for more than twenty years, thus there mental models are deeply rooted and difficult to change. It is hard to convince both of them to change their mental models or adopt new ones. The mental models that these two coworkers have impacted greatly on how they behave in the company and the decisions they make. Vernon is afraid of the expansion and Bud is against competing with other organizations. Changing Mental Model/Mindsets In any organization, change is constant, hence the need to keep changing mental models of employees. It is hard to change mental models since they are not forces that one is aware of consciously, but subconsciously. Vernon and Bud are against the new change that has...
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...Management Accounting | 15 Management Accounting and Decision-Making Management accounting writers tend to present management accounting as a loosely connected set of decision‑making tools. Although the various textbooks on management accounting make no attempt to develop an integrated theory, there is a high degree of consistency and standardization in methodology of presentation. In this chapter, the concepts and assumptions which form the basis of management accounting will be formulated in a comprehensive management accounting decision model. The formulation of theory in terms of conceptual models is a common practice. Virtually all textbooks in business administration use some type of conceptual framework or model to integrate the fundamentals being presented. In economic theory, there are conceptual models of the firm, markets, and the economy. In management courses, there are models of organizational structure and managerial functions. In marketing, there are models of marketing decision‑making and channels of distribution. Even in financial accounting, models of financial statements are used as a framework for teaching the fundamentals of basic financial accounting. The model, A = L + C, is very effective in conveying an understanding of accounting. Management accounting texts are based on a very specific model of the business enterprise. For example, all texts assume that the business which is likely to use management accounting is a manufacturing business. Also,...
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...Critical Thinking Application Paper Critical Thinking Application Paper The purpose of this paper is to explain critical thinking and decision-making by different examples, such as models, method examples and show how it is used in everyday life. The three components of every decision are made, and they are 1. Criteria- the standards by which decision makers evaluate alternatives, 2. Alternatives- specific courses of action or options, and are considered “positions” 3. Cause and effect beliefs-cause and effects belief are cognitions linking specific alternatives to specific criteria. These are often referred to as models, theories, assumptions, beliefs, or alternative attributes. Platoon Hierarchy is needed to understand how certain decisions ca affect many areas and how critical thinking is needed and used by all involved in the military. An Army leader is any one who by virtue of assumed role or assigned responsibility inspires and influences people both inside and outside of the Chain of Command to pursue actions, focus thinking and shape decisions for the greater good of the organization. One can solve soldier complaints, concerns and questions, in a timely manner through perfecting critical thinking. This will help the leader make responses and answers tailored to the individual soldier, and it will make soldiers feel more satisfied and cared about by their chain of command. Possessing a strong ability to think critically is viewed by the company commanders...
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...Decisions In Paradise, Part II Betty A. Brown University of Phoenix Critical Thinking: Strategies In Decision Making Willetra Brittain November 9, 2011 Paradise Decision Part II The mission statement of Wilsons Leather is “to run a successful business while successfully assisting the community”. While the success of any business is important for the C.E.O and management of the business, the company should also be involved in the community events and be accountable for social responsibility. As Kava is a small island in which tourism and young high school to college students account for its population (University of Phoenix, 2011). Some changes to the company would be beneficial. For example, having a Decision-Maker thinker in the group is a good starting point. Some of the attributes of a decision maker are the thinking styles critical thinker might poses are: collective, democratic Autocratic or concessions. In addition, risk management/risk rating system (RSS) is an important attribute to have in a company, especially when the business is being based at an area where some of the business threads are diseases such as HIV/AIDS. Being able to identify the interference and assumptions (Elder & Paul, 2002) of this location is key to implement the appropiate decision-making technique. Although all of the decision-making techniques are functional and produce a significant turnaround for the business, the technique most appropriate would be the collective...
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...Board (IASB) stated that the purpose of financial statements is to provide users information about the entity’s financial position, performance and changes to its financial position and financial statements show the financial effects of historical events and do not provide non-financial information. [5] Hence, both internal and external users need both historical and forward-looking information in order to make better financial decisions. Internal users like the Management can use forward-looking information to analyse out an adequate valuation on whether to increase, hold or sell their investment. Likewise, external users like investors who want reasonable return on their investment can use forward-looking information to evaluate the sustainability of future entity performance and analysing the feasibility of investing in the company Going beyond historical financial reporting This forward-looking information is called prospective financial information. Prospective financial information relates to financial information which based on assumptions about events that may occur in the future and possible actions by an entity. Prospective financial information can be in form of a forecast or...
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...Critical Thinking Application Paper Critical Thinking Application Paper University of Phoenix – Online Daisy Keys August 2, 2010 Instructor: Courtney Wilson Critical thinking is an important form of thinking in problem-solving and decision-making. An individual’s thought process has to be broken down from the natural thinking to begin thinking critically to determine the best non-bias solution within a situation or conflict. However, when thinking critically, one thinks about thinking while controlling emotions. In critical thinking we are looking for a reasonable and logical truth base solution toward any decision affecting us and the people around us. Critical thinking and decision-making is a process to discover the truth, and an important aspect of thinking is the process that relies on the ability to structure and coordinate ideas to make sense. However, teaching the mind to use the critical thinking process helps to understand information better. In this paper I will explain the nature of critical thinking, the irrational disposition, the role of emotions in critical thinking, and the benefits of critical thinking. The Nature of Critical Thinking The intellectual root of critical thinking is as ancient as its etymology, ultimately, traceable, to the vision and teaching practice of Socrates some 2,500 years ago who discovered by a method of exploring questions that people could not rationally justify sure claims to knowledge...
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...PROBLEM SOLVING Key Points 1 2 3 Army Decision Making The Seven Problem Solving Steps The Leader’s Role e A good leader must sometimes be stubborn. Armed with the courage of his convictions, he must often fight to defend them. When he has come to a decision after thorough analysis—and when he is sure he is right— he must stick to it even to the point of stubbornness. General of the Army Omar Bradley Tactics and Techniques Track Introduction to Problem Solving n 281 Introduction As an Army leader, you will be involved in problem solving daily. Some problems are simple and only require you to use your intuition, experience, and best judgment. At other times, however, you will face problems that are more complex. These require you to follow a systematic approach to define and analyze the problem, develop and analyze possible solutions, choose the best solution, and implement a plan of action. The amount of time and resources you apply to any given problem depends on its complexity, the amount of time available, and your experience as a leader. In this section, you will learn about the Army problem solving process— a systematic, logical approach to problem solving and decision making designed to help leaders make better decisions. As a junior officer, you may not face a decision on the scale of that facing BG John Buford on 30 June 1863. But using this systematic approach to problem solving can help you make decisions as solid as the one he made that day. Buford...
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...describe the concept of managerial decision-making. It will look specifically at the ‘Rational Decision-Making Model’, exploring the shortcomings of this approach, and will suggest possible ways a manager could overcome these issues when striving to make a rational decision that will bring benefit to an organisation. Throughout this essay, empirical research and examples from academic literature will be presented to illustrate the discussion. Decision-making is arguably the single most important process in an organisation, being a basic task at all managerial levels. (Heraclious 1994) Rational Decision Making can be defined as choices that are consistent and value maximising within specified constraints. (Bergman, Coulter, Robbins & Stagg 2008) The ‘Rational Decision-Making Model’ is a structured process for essentially making a logically sound decision. The model is made up of a series of steps, with the details often varying, but generally including; recognition of the decision requirement, diagnosis and analysis of causes, development of alternatives, selection of alternative, implementation, evaluation and feedback. (Heraclious 1994) A person making a rational decision would be logical, fully objective, and would strive to select an alternative that maximises the likelihood of achieving their goal. (Bergman, Coulter, Robbins & Stagg 2008) There are a number of issues surrounding the effectiveness of the model for rational decision-making, and there has been a considerable...
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...Thinking? Critical thinking begins with assumptions. We must first be aware of these assumption so that we can make genuine assessments. Critical thinking is how a person assesses the reasons for or against a decision being made. Assumptions are neither good nor bad until fully assessed. It is important to remain unbiased during a critical thinking exercise. This can be difficult due to the influence of our emotions on our decisions. Our emotions make up who we are which can sometimes cause barriers when making a critical decision. The trick is to not ignore or deny our emotions but learn how to manage and handle them. In order to manage our emotions we may need to argue with ourselves or others whether or not something is true or not. A good argument will also lead to one or more conclusions in determining what the final decision should be. The ultimate objective in thinking critically is to come to conclusions that are correct and to make decisions that are wise. (Moore & Parker, 2012). Critical thinking is not making ill formed decisions but making decisions that have been thought through and weighed to come up with the best conclusion. It usually isn’t our first thought that comes to mind. Only after we go through the critical analysis can we correctly assess the true situation and determine the proper course of action. Once we have resolved the proper course of action we will be much more comfortable with our decisions and we will have greater confidence in the results...
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...The objective of this individual assignment is to understand the relationship between accounting assumption, principles and how does they assist in financial reporting. It is also to understand what types of accounting theory that relevant with the accounting principles. Going concern assumption is one of accounting assumptions which is about financial activities of a business are assumed to be in operation for long period of time. This assumption is allows a business to operate in long term view. This assumption is very critical where there is no short term end of point. (Simple studies, 2010). Full disclosure principle is one of accounting principles that constitute with going concern assumption. The principle is about all past, present and future information that may have made an impact on the financial performance of the company needs to be fully disclosed. Even though the historical performance of company is readily available, but the numbers does not always provide the entire picture of company. Full disclosure of information is need because it is reflect the economic condition of company. This principle is also important in order to assist decision maker to make decision. (Simple studies, 2010). In this condition where full disclosure principle is coherent with going concern assumption can be relate with accounting rule FRS136, which is about impairment of assets. This standard is to ensure the values of assets are disclosed in the balance sheet, where the carrying...
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...Case Study Name and Page #: Abilene Paradox Information, Page 115 Student Name: Tony Colon | |Leading Ideas: Revisiting the Abilene Paradox: | | |Is Management of Agreement Still an Issue? | by Kathryn J. Deiss, ARL Office of Leadership and Management Services Program Manager In 1974, Professor Jerry Harvey of George Washington University developed a parable from a real-life experience to describe the issues surrounding how individuals reach agreement, or, more specifically, believe they have reached agreement. Twenty-five years later the lessons and insights his parable generates are still valid and provocative for organizations and the individuals who work together in those organizations. The Parable of the Abilene Paradox1 Four adults are sitting on a porch in 104-degree heat in the small town of Coleman, Texas, some 53 miles from Abilene. They are engaging in as little motion as possible, drinking lemonade, watching the fan spin lazily, and occasionally playing the odd game of dominoes. The characters are a married couple and the wife’s parents. At some point, the wife’s father suggests they drive to Abilene to eat at a cafeteria there. The son-in-law thinks this is a crazy idea but doesn’t see any need to upset the apple cart, so he goes along with it, as do the two women. They get in their unair-conditioned Buick and drive through a...
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...climate that cared more about production rather than safety and environmental protective efforts, it was easier for drilling companies to make a great deal of flawed decisions in their business practices. If efforts to change the industry culture and implement better standards of operations do not come into play, the likelihood of such a similar event could happen again. As we look in to BP’s earlier years and identify their decision making pattern that were established while adapting to endless changes in their external environments, we will be able to better assess what the organizational culture was like at BP. Looking at the industry as a whole, we can assess how the actions of political parties and regulatory agencies influenced and shaped the culture for many firms operating in that industry. BP was always trying to cut costs wherever possible, worked hard to meet demands, and continuously exploring deeper water drilling opportunities. This type of behavior allowed BP to be an industry leader. With new environmental issues arising, new leaders, were influenced to adopt a greater sense of value in regard to work safety and environmental protection. BP’s CEO Tony Hayward, along with former BP leaders, had begun to put a little more value in to these safety and environmental issues, yet in times of critical decision making, it was easy to see that the company valued production and profit goal over safety. Hayward did not use...
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