...How are Accounting and the Bible Related? Money has three main functions in our lives: giving, saving, and spending. In a perfect world, this would also be the ideal way to prioritize where our money goes. But with revenue coming in and expenses going out all the time, especially in the fast-paced, technological world in which we live, things become significantly more complex. Fortunately for us, the Bible contains many passages concerning God’s expectations for managing our finances. Imagine trying to run a successful business and never keeping a record of any of your transactions. It would be absolute chaos. If you don’t know how much money was spent on office supplies last month, how would you know what to budget for next month? You also wouldn’t know how much revenue you’re bringing in or how much you’re paying your employees. According to Merriam-Webster, the definition of accounting is “the systematic recording and summarizing of business and financial transactions and analyzing, verifying, and reporting the results”. This seems like a fairly straightforward task: write down the money coming in and the money going out. However, there is a problem with that simplicity. It doesn’t take into account that we as humans are prone to error and that we have developed an affinity for wealth. The former can happen to anyone, regardless of character, given enough time. The later is a problem tied directly to an individual’s moral compass. We have all heard the...
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...Integration: The Bible and Accounting ACCT 212 Liberty University February 18, 2013 Abstract The following paper will show just how the Bible not only affects our spiritual life, but also our financial lives as well. For example, liabilities and investments are simply the use of money to, hopefully gain more money. Also discussed are the practice of borrowing and accumulating debt. The Bible doesn't specifically forbid these concepts, but it does give a clear warning about them. Corporations use accounting to keep an accurate record of their business much in the same way that a Christian student uses tools to keep track of their studies. Just as Christians go by the code of ethics set forth in the Bible, businesses use a code of ethics to keep their reputation such that consumers will want to utilize their products and services. There are many similarities between the Bible and accounting. This paper showcases some of these examples. Introduction to Accounting and the Bible Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information. Today, accounting is considered “the language of business” because it reports financial information to a business to help others make better decisions. Accounting information is communicated through financial statements such as income statements, statements of owner equity, balance sheets, and statements of cash...
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...academia in the field of finance and economics which stray’s away from identifying ethical and moral considerations in the practice of finance and economics (Gupta, Rakesh, & Sukumaran, 2013). Unfortunately, if you are a Christian in the business world then the possibility of compromising your faith increases from even the smallest decisions such as prayer in the workplace. Whatever the case, there are numerous opportunities to compromise faith when it comes to business ethics. Christians need to be aware of this weakness and fight becomes hard to stand firm. According to authors Gupta, Rakesh, Sukumaran, and Aswini (2013), Ethics and morality in finance, discusses the issue of ethics and morality in finance that extends to accounting in the area of marketing. Regardless if you work for yourself or someone else Christians will face the time when they have to make decisions that can affect the way their walk in Christian faith at work. Mark 7:20-22 (ESV) And he said, “What comes out of a person is what defiles him. For from within, out of the heart of man, come evil thoughts, sexual immorality, theft, murder, adultery, coveting, wickedness, deceit, sensuality, envy, slander, pride, foolishness. An evil action begins with a single thought. Allowing our minds to dwell on lust, envy, hatred, or revenge will lead to sin. Do not defile yourself by focusing...
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...Accounting scandals such as Enron, Worldcom, and Tyco have destroyed major corporations and has severely shaken our confidence in business ethics and overall morals. A verse that comes to mind when you think about how these executives in those corporations have taken advantage of their employees, creditors, suppliers and other corporations in order to make extra profits and bigger bonuses is found in the book of Proverbs. According to the word of God in the New American Standard Bible (1995), “He who oppresses the poor to make more for himself or gives to the rich, will only come to poverty” (Pr 22:16). The book of Proverbs does not leave its readers wondering as to its purpose. At the very onset we are clearly told the author’s intention. Proverbs 1:2-6 tells us that the purpose of these proverbs is to teach people wisdom and discipline and to help them understand wise sayings. Through these proverbs, people will receive instructions in discipline, good conduct, and doing what is right, just, and fair. The book of Proverbs is simply about godly wisdom, how to obtain it, and how to use it in everyday living. This wisdom assumes that there is a right way and a wrong way to live. It gives direction to our lives and keeps us in step with the fabric of life that God has created (NASB, 1995). Proverbs 22:16 shows that we will seek others to satisfy our wants. This reliance on others usually goes past getting a helping hand or charity and turns to fulfilling our...
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...Accounting is the most basic framework of business. People use accounting in their daily lives when they study financial statements to make investment decisions, assess interest rather to pay off their house mortgage and calculate rates for car payments. God himself recognize accounting, for he said in his Holy Bible that everyone would be accountable before him when this world comes to an end.(Matthew 12:36) The practice of accounting can be traced back to ancient times, with "accounting books" of various forms discovered as early as 3500 B. C. From the time of 3500 B. C., accounting has progressed slowly through the development of the modern double-entry system published by Luca Paciolo in the fifteenth century until the advent of the computer. In 1581 the first college of accountants was organized with power to regulate entry into the field. Along with the development of modern accounting, a stereotypical image of the accountant was developed, because of its task being routine and purity mathematical in function. The accountant is view as a dull person that is chain to his desk all day. A survey of college students proved that accounting is treated with mental formulaic concepts, thus it has a stereotype image. Accounting may be defined as an information system that provides reports to various individuals or groups about economic activities of an organization or other entity. Accounting is information sciences used to collect, classify, and manipulate financial data for...
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...Due to the rapid development and revolution that technology has brought upon the world, the system of accounting has established a foothold in society as a means of processing the influx of new information brought about by these advances. Accounting is the system by which society is able to interpret information about an organization or business’s activities in a concise manner (Wild, Shaw, & Chiapetta, 2013). Within this system exists cash flows, which just like the name implies, involves the examinations of company investments/expenditure, and how balance is achieved (much like the ebb and flow of the oceans’ tide). The importance of understanding cash flow can even be construed form the Holy Bible. In the Romans 8:18 it is stated, “I consider that our present sufferings are not worth comparing with the glory that will be revealed to us.” In context with the scriptures, this passage informs the reader in the simplest terms that “pain will only last an instant”, and what lies beyond that is a well-deserved reward to offset the punishment (McGinn, 2004). If an individual (or company) is reckless with their investments, they may find themselves in a financially unsavory situation. However, this scenario is temporary, and will pay off in the end, just as the passage describes. References John, W. J., Ken, S. W., & Chiappetta, B. (2013). Fundamental Accounting Principles: Volume 2 (21st ed.). Boston: McGraw-Hill Education. McGinn, Sheila E. "All creation groans...
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...Running head: ENRON CORPORATION Enron Corporation (former NYSE ticker symbol ENE) Rosetta Foster Strayer University Business Law I – LEG 100 Dr. Dorothy A. Sliben October 25, 2010 Enron Corporation (former NYSE ticker symbol ENE) The ensuing scandal involving the Enron Corporation, Arthur Andersen, the Bush Administration, the ninety-six banks, et al., clearly shows the abuse of power, when corporations, etc. ultimately thinks and/or feel that it is above the law. The effects are still being felt even after the bankruptcy proceedings, collapse/fall and trials of one of the biggest and major corporate scandals in American history and time. 1. Describe how Enron could have been structured differently to avoid such activities. Enron having been obviously formulated as a business corporation (a legal entity that is separate and distinct from its owners), a privilege provided by the state legislature to corporations by virtue of its Articles of Incorporation, corporate by-laws and state and/or federal charter, under its guise and appearance as an artificial company. As stated by Shaw, W. (2010), “Corporations are legal entities, with legal rights and responsibilities similar but not identical to those enjoyed by individuals. Business corporations are; limited liability companies―that is their owners or stock-holders are liable for corporate debts only up to the extent of their investments.” (Enron failed to implement and enforce the structural guidelines associated...
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...Cody McKee Dr. Coleman BU 210 October 16, 2015 Ethics and Accounting One of largest problems facing the accounting profession today is the loss of respect that faces accountants in light of recent accounting scandals. In order to regain lost respect in the accounting profession an accountant must have integrity and ethics that are above and beyond the normal. This fact is true whether the accountant works for a business entity or for a government entity. In either situation the accountant is responsible for remaining steadfast, not only in professional behavior, but in personal behavior as well. In recent years, accountants have come under fire by the general public for unethical decisions, a reputation that, although only a few individual accountants were guilty, the entire profession was found guilty of, in the court of public opinion. Romans 12:2 God says, “Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.”(Romans 12:2, ESV) This verse helps remind me every day to do everything as the Lord says. When he calls on you to step forward do so with pride and confidence. Now, the accounting profession must be far more diligent in governing themselves, and in assuring those dependent upon their decisions, that they are above reproach. This is especially true of those accountants responsible for government funds, which can be scrutinized by the...
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...BUSINESS & WORLDVIEW Kahlib J. Fischer, PhD © 2011 We understand that not all of our students are practicing Christians and who therefore may be uncomfortable providing a Biblical perspective in their assignments. On the other hand, most of our students are in fact practicing Christians, who may not have a fully developed Biblical worldview when it comes to understanding business concepts. We therefore hope that this document will achieve two goals: 1) Help students better understand the relevance and indeed the preeminence of Scripture and Jesus Christ as Lord and Savior in the realm of business; and 2) Provide useful and understandable points of application for leadership and business behavior, including the primary and secondary functions of business. INTRODUCTION There are certain intellectual and philosophical criteria that can be used to test any worldview, and we want our students to understand how and why the Christian worldview uniquely meets those criterion and therefore passes the worldview “test” in the following ways: • A worldview is the intellectual, emotional, and perhaps even spiritual framework by which we apprehend reality and assign meaning to life. Everyone has a worldview; it may not be very developed, but nevertheless, everyone is approaching life based upon one. We believe that a worldview based upon Biblical truth is the most logically sound and meaningful approach to understanding and living life. CHRISTIANITY AND THE WORLDVIEW TEST • ...
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...following paper, it is discussed how accounting is a strong part of a company. Through research, this paper states the many parts of accounting such as the four basic financial statements and the purpose of accounting. Business is restricted to processes and reports to make decision making with accurate information through the accounting practices of bookkeepers. Through analysis, the following paper, describes a small glimpse of the accounting process and how they relate to each other. Purpose of Accounting The purpose of business accounting is to identify and record activities that will impact the organization or company financially. These activities can include sales, purchases, the interest earned from investments, and acquisition of other capital. Activities like these can be categorized in terms and posted as an accounting record. The accounting cycles typically is recorded in ledgers and journals and is part of the process. Systems and processes are developed by accountants to analyze different transactions. Each transaction that involves the sale of goods and services needs to be recorded in a general ledger which needs to be evaluated and analyze. As they are posted to their specific account, bookkeepers use this function of accounting to help maintain each transaction as debits and credits. Bookkeepers are responsible for specific types of financial activities which are typically used to analyze the value of accrual method of accounting, providing reports for different...
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...will counsel you with my eye upon you.” (Psalms 32:8, Amplified Bible). The Bible has a profound effect on people. To the believer, it is the word of God and is used as a blueprint as to how we should live our lives. Although the bible is full of teachings, sometimes we forget to lean on it and instead lean on our own understanding. After reviewing the decision Ramona is facing in regards to signing a contract with Next Step, it can be determined that God is displaying all of the signs of what she should decide. However, the message can become an unclear when $80,000 is the starting salary. Looking at this from a Christian’s perspective, Ramona should not sign the contract with Next Step because of the lack of ethics, honesty, and integrity from the CEO and company affiliates. Every organization or company has a purpose, a reason why, that is typically described in the mission statement. The mission statement helps to create the corporate culture, or organizational culture. “Corporate culture is a powerful way for an organization to define itself, create high morale, uniformity among its employees, brand recognition among its customers and set itself apart from its competitors” (Sadri, 2014). In order to create a corporate culture, it must first start with the leadership. “So he shepherded them according to the integrity of his heart, and guided them with his skillful hands” (Psalms 78:72, Amplified Bible). Leadership is a relationship between people. In order to ethically...
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...Ethics Case 1-8 – The Auditors’ Responsibility Within accounting, the auditor has a very important responsibility. According to Spiceland, Sepe and Tomassini, auditors serve as an independent intermediary to ensure that those in management properly apply GAAP appropriately (2013). When performing an audit, there is a distinct possibility that the auditor’s ethics may be challenged. It may be that the auditor will be tempted to overlook a couple of items in favor of the company they are performing the audit for or risking their career by falsifying documents to support work they did not accomplish. According to Landes, auditors need to have enough independence to call the shots as they see them and not lose sight of their commitment to do so (2004). In order for auditors to keep their commitments and to rise above the temptations that exist in auditing, I believe it is vital for auditors to apply biblical principles to their auditing methods. Biblical Application In my own experience working in crusade ministries with the Billy Graham Evangelistic Association (BGEA), we recently completed an external, third party audit of the finances for a crusade in the Philippines. Unlike other countries, the Philippines are very lax when it comes to source documents. Even for large purchases a hand-written receipt is usually accepted. Since it is rather easy to forge a source document in the Philippines, I believe the temptation exists where an auditor can fill in the gaps where...
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...interchangeably, although the two terms represent distinctly different functions. Both groups and teams are used in many organizations to achieve organizational goals and further production. Workplace diversity is an important aspect of an organization, and helps to promote effective team dynamics. Groups and team can work together to achieve organizational success. Groups and teams are similar yet very different from each other. Within an organization groups are often referred to as departments. Examples of departmental groups can include accounting departments, graphic design departments, installation departments, and project management departments. Groups consists of several employees who interact primarily to share best practices, information, perspectives, and make decisions to help each group member perform individual tasks (Executive Evolution, 2004). Groups are focused on accomplishing a particular task or goal such as the accounting department being responsible for an organization´s accounts payable and accounts receivable functions. Group members report to a specific leader, often known as a manager or supervisor, of the department or group. The group leader assigns individual tasks to members of the group, holding each group member responsible for specific functions. Accountability within a group is not shared as in a team environment; instead each individual group member is responsible for his or her own actions and decisions. Teams are different from groups in that...
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...The Effects of Technology on the Accounting Profession Jessica Lopez November 15, 2015 University of Phoenix ACC/ 210 Edgar Coronel Every accountant understands and knows that they are the advisor of the business. That advisor has encountered various movements all through the ages. Regardless, through each one of the movements accounting advancement has always had away in making the clerk's occupation just a little less complex. As our knowledge into advancement extended so has the accountant's ability to analyze quantifiable qualities. Development types of progress have enhanced the clerk's ability to decode data capably and reasonably. He/she now can interpret and guide the business with no trouble. Accountants through all these advancements have transformed themselves into an association's most trusted business advisor. Accounting over the last several centuries has improved drastically. It all started with the abacus used by businessmen (merchants) to help keep count of inventory being bought and being sold this was a helpful took to keep track of business. (Kruglinski, 2009; “How Technology,” n.d.). In spite of the fact that we didn't call it innovation, we can retreat hundreds of years with a few endeavors to assemble calculators to help an accountant with numerical arrangements. After the first working calculator, came the development of the computer for data precision. As innovation propelled so did the pace and capability of an accountants employment. Be that...
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...BUSN 420 Business Driven Technology Final Project Submit a 2,000-word written case analysis of one of the three cases from the textbook listed below. Each case covers different areas of this course so that you can spend your time on this assignment further researching the set of topics that most interest you and/or will be most beneficial in your future career. Be sure to address all the questions for your chosen case and demonstrate five or more theories or principles learned in this course as a part of your case analysis. Your paper must be written in APA format with a proper title page and reference list that cites at least 5 scholarly sources. Please do not simply record answers to the questions, rather synthesize your responses into a cohesive case study analysis. Please upload your final project paper to Blackboard through the Assignment Manager tool. The 2,000-word count does not include charts, graphs, title page or supporting appendices. I will be using the Final Project Rubric (see end of this assignment) to grade your case analysis. Please Note: There are few right or wrong answers in the business world. There are really only efficient and inefficient, and effective and ineffective business decisions. If there were always right answers businesses would never fail. These questions were created to challenge you to apply the materials you have learned to real business situations. For this reason, when grading your answers, I will be focusing on your justification or...
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