...should invest or sell out. There are a few basic assumptions of what accountants in general have to pay attention to those are economic entity, time period, monetary unit and going concern. Economic entity is when the financial activities of a business can be separated from the owners. This means that the business and personal accounts are separate that there is no need to be concerned whether or not the business money is being used for personal gain or use. Time period is when the business and owners do not want to wait for reports they wants to be able to monitor the company periodically so they can see if the business is succeeding or failing. This can be done monthly or quarterly. The most common of the time periods are the quarterly and yearly reports. The monetary unit means that in general the dollar is the most effective means of reporting economic data it goes in respect for the value of a dollar. As the dollar never changes even though there is constant inflation and deflation of the monetary value of the dollar the unit stays the same. The going concern means that it’s assuming that the company will still be operating in the future and the accountants are to use certain techniques in which the accountants act accordingly whether its liquidation or growth. Accounting has a specific process that has many special terminologies such as debit, credit, and net worth. When...
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...Career Fair Mike Russell AIU Online Abstract Accurate accounting and the understanding can make or break your company or organization; not to mention possible jail time in the worse cases. The first way of ensuring accurate accounting is understanding the objectives. The second way is to understand the terminology of the accounting process and in the financial reporting aspects. The third way is to understand the ethics behind the accounting and reporting process. The forth way is to impement your role in the accounting process. Career Fair The primary objectives of accounting, basic terminology in the accounting process, the financial reporting, the ethics and the individual role each of us can play in the accounting process will be discussed in the following paragraphs. There are a multitude of things that happen at once but this will cover the basics for this career fair. Primary Objectives of Accounting There are a couple of ways businesses stay afloat by being financially stable and earning income. The process of financial information and conducting the financial record up keeping are vital to any organization, ensuring transparency of all information at the guidelines require you to prepare and produce them. The accounting cycle and the operating cycles are your intervals for reporting financial information. "This information is generally used by internal and external stakeholders to measure the organization's fiscal health" (M.U.S.E. Accounting Principles...
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...of them will all have to deal with money sometime in their life and they will need to know how to keep track of their money one way or another. That is where accounting will play a role in their lives. The students will know the primary objectives when it comes to accounting. The students will also be explained about the basic terminology of the accounting process. They will also be explained about how accounting has affected my personal life and also the ethics of my personal life. Accounting is also a process that deals with different types of math. Accounting also deals with recording, transactions, credits, interpreting and summarizing just about everything that has to do with numbers. It is very important that a person in the career field of accounting performs a flawless job in the outcomes of their work. A mistake as little as being off by one number can make a huge difference in the overall work that has been done. Accountants may need to go over the work more than once just to make sure that the numbers they have recorded or precise. That is what the students will need to know when it comes to the life of an accountant. It is also important in their everyday life if they feel as though they may need to be on a budget, trying to save or invest money or trying to be sure that they do not overspend the money they have if they are not trying to be on a budget. Accounting is the language of a business and anything that has to do with money has to do with accounting. They go...
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...Overview Overview Section 1877 of the Social Security Act (the Act) (42 U.S.C. 1395nn), also known as the physician self-referral law, or Stark Law, intends to prevent the misappropriation of or over utilization of healthcare that could result from incentivized diagnostic ordering protocols that may be a direct result of financial relationships that could influence healthcare decisions. The law is named for its author, United State Congressman Pete Stark, a Democrat from California, who authored and supported the creation of this piece of legislation. The law’s purpose is to prohibit a physician from referring a patient for designated health services (DHS) to any organization that the physician or a member of his/her immediate family has a financial relationship. Exceptions to the law exist and will be examined in later sections of this reflection. Originally the Stark Law (Stark I) only applied to referrals of Medicare Beneficiaries, but Section 1877 of the Social Security Act (the Act) (42 U.S.C. 1395nn), also known as the physician self-referral law, or Stark Law, intends to prevent the misappropriation of or over utilization of healthcare that could result from incentivized diagnostic ordering protocols that may be a direct result of financial relationships that could influence healthcare decisions. The law is named for its author, United State Congressman Pete Stark, a Democrat from California, who authored and supported the creation of this piece of legislation...
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...paper will be giving in details the main objectives of accounting, the basic terminology of accounting process, the job responsibilities of an accountant to individuals and businesses, the part technology play in a business and how accounting can affect my personal life; stressing accounting role in professional ethics. Accounting Principles Accounting principles, known as Generally Accepted Accounting Practices (GAAP) guidelines, which are the procedures and rules that companies must follow when reporting financial data (Cusumano, 2003). Accounting is known as the language of business, which information about an enterprise is communicated. To be successful in a business, accounting is the language that we must speak and understand. Once you can speak and comprehend accounting, you will be familiar with the financial results of a business (Editorial Board [EB], 2012, p. 4). The responsibility of an accountant is to provide an opinion or recommendation to people, businesses, regimes and other system of government on how to function more efficiently by identifying where costs can be censored or revenues increased (Hartley, 2010). Therefore, I would say to the undergraduate that the title role of an accountant is a means to an end, the end meaning the choice assisted by the accounting statistics that available. They are responsible for delivering information to stockholders that is value to use in making financial decisions. Also, the information provided should be...
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...Study Material on Derivatives, Options & Futures Content No. | Contents | Page No. | | Section 1: Derivatives | | 1.1 | Derivatives: History, Meaning and Definition | 3 | 1.2 | Classification of Derivatives | 4 | 1.3 | Features, Types and Players in Derivatives | 4 | 1.4 | Forwards: Meaning, Definition & Limitations | 6 | | Section 2: Futures | | 2.1 | Meaning | 8 | 2.2 | Terminologies | 8 | 2.3 | Payoff Profile | 10 | 2.4 | Numerical Examples | 11 | | Section 3: Options | | 3.1 | Meaning | 13 | 3.2 | Terminologies | 13 | 3.3 | Payoff Profile | 15 | 3.4 | Numerical Examples | 18 | | 1.0 Derivatives Introduction: Indian Financial Markets: Where does derivative fall? From the above chart we can see that derivatives fall under secondary market channel. 1.1 Derivatives History, Meaning and Definition History Derivatives have been a recent development in the Indian financial markets. But there have been derivatives in the commodities market. There are Cotton and Oilseed futures in Mumbai, Soya futures in Bhopal, Pepper futures in Cochin, Coffee futures in Bangalore etc. But the players in these markets are restricted to big farmers and industries, who need these as an input to protect themselves from the vagaries of agriculture sector. Globally too, the first derivatives started with the commodities, way back in 1894. Financial derivatives are a relatively late development, coming...
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...12/6/2012 Chapter 24 Options and Corporate Finance Key Concepts and Skills • Understand the options terminology • Be able to determine option payoffs and pricing bounds • Understand the five major determinants of option value • Understand employee stock options • Understand the various managerial options • Understand the differences between warrants and traditional call options • Understand convertible securities and how to determine their value 1 12/6/2012 Chapter Outline • • • • • • • Options: The Basics Fundamentals of Option Valuation Valuing a Call Option Employee Stock Options Equity as a Call Option on the Firm’s Assets Options and Capital Budgeting Options and Corporate Securities Option Terminology • • • • • • • • Call Put Strike or Exercise price Expiration date Option premium Option writer American Option European Option 2 12/6/2012 Stock Option Quotations • Look at Table 14.1 in the book • Price and volume information for calls and puts with the same strike and expiration is provided on the same line • Things to notice • Prices are higher for options with the same strike price but longer expirations • Call options with strikes less than the current price are worth more than the corresponding puts • Call options with strikes greater than the current price are worth less than the corresponding puts 22.5 Option Quotes Option/Strike Exp. IBM 130 Oct 138¼ 130 Jan 138¼ 135 Jul 138¼ 135 Aug 138¼ 140 Jul 138¼ 140 Aug --Call---Put-Vol...
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...Course Outline and Review for Finance 6310 This outline is NOT a substitute for studying class lecture notes and homeworks. It is merely a guide of the material covered and is not intended to include answers to exam questions. Exam 1: Chapters 1-7 Terminology & Concepts • See lecture slides and homework • Financial system functions and goals • Types of assets, physical, financial, … • Debt, money market, notes, bond, government debt, sovereign debt • Types of US government debt, mortgage backed securities • Equities, common, preferred, warrants • Pooled investment securities, nav, open-end, closed-end, etf, trust depositories, hedge funds • Currencies, contracts, settlement, forward contracts, futures • Financial intermediaries • Primary market, secondary market • Oder details • Market, limit, stop loss (stop sell) and stop buy orders • Bid ask spread, commission • Buying on margin and leverage, margin call • Short sale, margin, margin call • Unique, firm-specific diversifiable, nonsystematic risk • Market risk, beta, systematic, nondiversifiable risk • Modern portfolio theory • leverage • Minimum variance frontier, efficient frontier, global minimum variance portfolio, • Riskless asset, risky asset, optimal risky portfolio • Capital allocation line • Sharpe ratio Problems • See lecture slides and homework for clarification • Buying on margin ...
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...= = = = = = Research and Evaluation I - 341 Syllabus –Rev 6 Note: Please note each week’s individual assignments from this syllabus, find the corresponding chapter (s) and read them along with chapters assigned for reading in the e-text. As far as the assignments to be submitted are concerned, you are only, and only, responsible for the requirements which appear in my syllabus as presented below. |Values for the Course Assignments |Percent | |Individual | |Participation (All Weeks - 2% each) |10 | |DQ’s (All Weeks – 2% each) |10 | |Weekly Summaries (All Weeks - 1% each) |5 | |Business Research Paper (week One) |4 | |Survey (Week Two) |6 | |Assignments from the Text - – Section Exercises (Week Two) ...
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...Financial Statements: Foundational Accounting Principles and Terminology Shane R. Wagner TUI University Module 1 Case Study 29 August 2010 Abstract This paper will discuss the common fundamental accounting principles and analyze the financial statements of three major businesses. A basic understanding of the General Accepted Accounting Principles and the standards established within these practices, allow for investors to obtain an accurate snapshot of the financial health of a business. The different methods of documenting both current and future transactions, can have an impact on the information portrayed by the financial statements of an organization. In addition, the basic format of the financial statements can disclose additional considerations of the business, as will be discussed in the analysis of three major businesses within this paper. Information for the analysis portion was retrieved from the financial statements included in the assignment. Keywords: Accrual Basis Accounting; Cost Basis Accounting; Current Assets and Liabilities; Double Entry Accounting; Financial Accounting Standards Board (FASB); General Accepted Accounting Principles (GAAP); Historic Cost; Non-current Items; Security Exchange Commission (SEC); Financial Statements: Foundational Accounting Principles and Terminology Introduction The basic of understanding of an organizations financial statement requires one to be familiar with fundamental accounting principles...
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...Future Value Discounting & Present Value Multiple Cash Flows “Special” Streams of Cash Flows » Perpetuities » Annuities Interest Rates » APR versus EAR 3 Lottery Example You just won a lottery which gives you two options: (1) Receive $100 today (2) Receive $120 in one year $100 $120 0 Money Time 1 Which option should one take? 4 2 2 Lottery Example: Future Value If you take money now, you can put them in the bank at the current interest rate “r” of 5%, and have the following amount in one year: V0=$100 0 Money Time V1=$105 1 The amount in one year – future value (FV) – is calculated as FV = Principal + r × Principal = $100 + 0.05 × $100 = $105 Which option should we take now? 5 Lottery Example: Present Value Alternatively, we can compare the value at time 0: V0=$114.3 0 Money Time V1=$120 1 The amount in a given year – Present Value (PV) – is: $120 = PV+ r × PV = PV+ 0.05 × PV → PV = $114.3 Which option should we take? 6 3 3 Basic Terminology Timeline: a linear representation of the timing of potential cash flows. Two types of cash flows: 1. Inflows (i.e., money we get) are represented by positive numbers 2. Outflows (i.e., money we give) are represented by negative numbers Example: » Assume that you are lending $10,000 today and that the loan will be repaid in two annual $6,000 payments. 7 Money’s Time Units ...
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...practices are joined into the money related reporting and administration of health awareness. Reporting monetary information equitably and authentically is quintessential to this. Mindful money related arranging can anticipate capital misfortune through ventures, representatives, and clients. Financial reporting offers help in ascertaining: sums, money stream, timing, and other information crucial to organizational assets. Four Elements of Financial Management Inside financial administration there are four principal components to acknowledge: arranging, ordering, regulating, and choice making. Arranging incorporates an anything but rushed process that impacts choices in income and organizational objectives. Organizational administration should mediate between faculty and the incitement of budgetary arranging. A financial administrator is responsible for choices made throughout the arranging methodology. All informative data gathered and estimated will help in updated choices and positive results. The accumulation technique is adequate in acquiring or deals and is used by administration in recording and distinguishing the aforementioned things. The Four Financial Statements The four financial statements are the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet is what it owes, and essentially, what it is worth (in spite of the fact that the terminology utilizes reserve adjust instead...
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...premium paid. (b) At what price will you breakeven if both put and call options are sold for the same premium of $5 Breakeven stock price $50+$5 = $55 (c) Assume that the risk free rate is 3% per annum. Also assume that the standard deviation of IBM’s stock return is 30% per year. What is the Black-Scholes value of the option you have identified in part a? Step 1: find d1 and d2 d_1=(ln(50/50)+(0.03+〖0.30〗^2/2)×8/12)/(0.30×√(8/12))=0.2041 d_2=0.2041-0.30×√(8/12)=-0.0408 Step 2: find N(d1) and N(d2) Using the cumulative normal table obtain N(d1) = N(0.20) = 0.5793 and N(d2) = N(-0.04) = 0.4841 Step 3: calculate the call option value c=$50×0.5793-$50×e^(-0.03×(8/12) )×0.4841=$5.2393 (d) What is the time value of the option you have identified in part a? Because the stock price equals the strike price ($50) the total value of the option would consist of time value only, therefore the time value of this option is $5.2393 Problem 2 You anticipate that the volatility of IBM stock will increase substantially over the course of next year, but you do not have a strong view about future direction of IBM stock price. Today you decide to enter a position in two at the money European IBM options maturing in one year. Today’s IBM stock price is $30 a share. The call option premium is $2 and the put option premium is $3. (a) What options will you invest in?...
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... The media has been bias and in favour of Israel because of how they describe the conflict. Firstly, the descriptions of the same events that have occurred differ between Israel and Palestine. For example, the legal status labeled replicates different positions of the West bank and Gaza Strip. One could be called a “disputed territories and the other “Occupied territories”. Although both are considered to be part of Palestine, it is labeled in favour of how the Israelis would call it. Secondly, when addressing the Israeli occupied areas, it has many names. For example, the blockage between the Palestinians and Israelis can be a security fence or apartheid wall. At the same time, it can be known as settlements and militants. Furthermore, when sources support either one, the “better” terminology is used. Lastly, when the same actions take place, it is represented in a different light and perspective. For example, an Israeli in the battle would be considered a freedom fighter. In the same event, a Palestinian within the battle would be...
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...society is lack of trust of the confidence is too low, it will be very difficult to communicate among people. Generally, there is a certain amount of trust existing in any society; the difference is the extent of the trust and level. The second one is the vertical of longitudinal dimension. Because of the social division of labor, there is a certain class or grade difference between different people. Society needs a specific management, and the right to manage requires a particular level of structure, which means a hierarchical social order arrangement is needed. Some economists believe that China has serious trust crisis, including the commercial credit crisis, the public good faith credibility crisis, interpersonal trust crisis and value crisis. What’s more, bureaucracy and corruption exist...
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