...To comprehensively understand the business environment and types of businesses, it is important to understand the roles of each business organization. Two of the most common types of business organizations is the limited liability partnerships and limited liability corporations. Limited Liability Partnerships A limited liability partnership, commonly abbreviated as an LLP is a business organization made up of partners. However, a limited liability partnership has the characteristic number of partners who have limited liabilities. According to Boone and Kurtz (2011), these specific partners are not therefore liable for the financial responsibilities of the partnership. This is the feature that introduces the unique role of the limited liability partnerships as business organizations that protect the personal estates of the limited liability partners. Another role of the limited liability partnerships is to generate financial value to the partners with limited liability partners. It is the responsibility of every business to generate business value to the owners and other stakeholders. The business value involves generation of profits for the active partners and the limited liability partners (Boone & Kurtz, 2011). According to Pride et al (2011), the owners of the limited liability partnerships are not personally liable for the debts or financial obligations of the business. Therefore, the limited liability partnerships have a critical role of generating business...
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...final exam acc 599 To purchase this visit here: http://mindsblow.us/question_des/finalexamacc599/2777 Contact us at: help@mindblows.us Question 1 The first general standard of the PCAOB requires that an audit be performed by which type of person? Answer An auditor with seasoned judgment in varying degrees of supervision and review. An auditor with appropriate technical training and proficiency. An auditor with adequate knowledge of the standards of field work and reporting. An auditor satisfying the independence standards Question 2 Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? Answer Existence. Valuation. Completeness. Rights and Obligations Question 3 Which one of the following attributes is not required of an auditor? Answer Independence. Bias. Integrity. Technical competence rest of the questions are attached. To purchase this visit here: http://mindsblow.us/question_des/finalexamacc599/2777 Contact us at: help@mindblows.us Question 1 The first general standard of the PCAOB requires that an audit be performed by which type of person? Answer An auditor with seasoned judgment in varying degrees of supervision and review. An auditor with appropriate technical training and proficiency. An auditor with adequate knowledge of the standards of field work and reporting. ...
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...same is the definition. A liability is a company’s legal debts or obligations that arise during the course of business operations and is recorded on the balance sheet. Liabilities can include many things to a business, such as, loans, accounts payable, mortgages, accrued expenses, etc. All the named liability accounts are just fancy for any money or service that is owed to another party. There are two types of liabilities, current liability and long term liability. Current liability is debt payable within one year and long-term liability is debt payable over more than a year. Current liability includes payables such as wages, accounts, taxes, and accounts payable. Long term liability includes long term bonds, notes payables, and long term leases. It is important that every business knows the concept of extinguishing liabilities. To extinguish liabilities means to satisfy the obligation and or payment to the creditor. Another way to extinguish liabilities is to transfer assets. This idea of extinguishing liabilities is meant for use by the SEC. There are many different industries that consider industry guidance in the FASB, Financial Accounting Standards Board, Codification and they include agriculture, contractors, entertainment, financial services and health care entities. The agriculture industry has many different characteristics represented in accounting. Those characteristics include type of crop grown, types of animals raised and their purpose. A farm business owner faces...
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...ACCT 2015 INTERMEDIATE FNANCIAL ACCOUNTING 11 Current Liabilities, Contingencies & Provisions Required Reading: Alfredson – Chap 5, Keiso – Chaps 13, IAS 37 Learning Objectives 1. CURRENT LIABILITIES: – Define and explain types of current liabilities. – Account for the major types 2. IAS 37 PROVISIONS & CONTINGENCIES – Define Provisions and answer the following questions: • • • Why do them When to provide How much to provide – Calculate and account for Restructuring Provisions – Define Contingent Assets & Liabilities and apply relevant measurement and recognition rules – Apply IAS 37 Disclosure Requirements CURRENT LIABILITIES LIABILITY – Claims against the business arising out of a past transaction that will cause an outflow of resources e.g. loans, notes payable • Long-Term Liability - Obligations that a company does not reasonably expect to liquidate within the normal operating cycle Current Liability - Obligations that a company reasonably expects to liquidate either through the use of current assets or the creation of other current liabilities. • 1 CURRENT LIABILITIES E13-2 (Accounts and Notes Payable) The following are selected 2007 transactions of Sean Astin Corporation. Sept. 1 - Purchased inventory from Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system. Oct. 1 - Issued a $50,000, 12-month, 8% note to Encino in payment of account. Oct. 1 - Borrowed $50,000 from the Shore Bank by signing...
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...producing or supplying goods or services and not for sale in the normal course of business. They are also referred to as long lived/ long term assets and are sub-classified as following: a. Property, Plant & Equipment – These are tangible items having physical existence and can be seen and felt. b. Intangible Assets – They have no physical existence and rather represent legal rights with associated economic benefits. c. Natural Resources – These include oil, natural gas, minerals and forests. Liability is something which a company owns to people or businesses other than its owners. Liability is a present obligation arising due to some past transactions and settlement of which is expected to result in future transfer of assets (may be in the form of cash) or performance of services. Generally, liabilities can be classified into two types based on when they are due: 1.) Current Liabilities – Any liabilities or outgo of a payment which is to be made in the normal operating cycle (usually next 12 months). Also known as...
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...relationship to their fellow man, we all have been charged with civic and moral obligations to those in our inner most circles of friends and family, as well as to our employers. After living approximately a quarter of my life, I believe that I have discovered these duties and moral obligations. They can be found in my religion as a Christian as well as in the Boy Scout law. In attempts to find linearity between different ethical view points and my beliefs, Jane English’s theories about families, and Kant’s virtue ethics can be compared to my moral guidelines. Through the years, some friends choose to come and go as they please, where as others will stay by your side no matter what. Your family will stay with you for life; you did not ask for it, and perhaps they did not ask for you. No matter who you have by your side, it is to these people who you should have the most obligations to. To begin, looking to religion under the Ten Commandments, we see the first commandment instructing a moral obligation to our family: “Honor thy mother and thy father.” This first commandment allows for a number of different circumstances where it may be applicable. When referring to mothers and fathers, sometimes the real mother and father may not always be around due to deaths, adoptions, remarriages, etc. Therefore under this commandment the mother and father role may be extended to any primary care giver. This obligation of honor and respect should be enforced for as long as the caregivers...
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...The Total Environment of the Firm Educational factors • Literacy level – the percentage of the total population and those presently employed in the industry who can read, write and do simple calculations. • Specialized vocational and technical training and general secondary education – the type, quantity, and quality of persons obtaining such education or training and the proportion of those employed in industry with such education and training. • Higher education – the percentage of the total population and those employed in industry with post- high school education, plus the types and quality of such education. • Special management programs – the extent and quality of management development programs which are not run internally by productive enterprises, and which are aimed at improving the skills and abilities of managers and potential managers • Attitude toward education – attitude toward education and the acquisition of knowledge in terms of its presumed desirability • Education match with requirements – the extent and degree to which the types of formal education and training available in a given country fits the needs of productive enterprises on all levels of skill and achievement. Socio-cultural factors • View toward industrial managers and management – attitude toward industrial and business managers of all sorts, and the way that such managers tend to view their managerial...
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...beginning of year. Table summarizing lease payments, interest expense. Journal entries. Direct Financing Lease. (Moderate) Calculation of rental receipts, made at end of year. Table summarizing rental receipts, interest revenue. Journal entries. Direct Financing Lease. (Easy) Journal entries to record contract, first rental receipt. Direct Financing Lease / Capital Lease. (Moderate) Table summarizing lease and interest payments. Journal entries for lessor and lessee. Sales-Type Lease. (Moderate) Payments made at end of year. Calculation of selling price (fair value). Table summarizing lease receipts, interest revenue. Journal entries. Sales-Type Lease. (Moderate) Payments made at beginning of year. Calculation of selling price (fair value). Table summarizing lease receipts, interest revenue. Journal entries. Sales-Type Lease / Capital Lease. (Moderate) Computation of lease payments. Journal entries for lessor and lessee. Operating Lease / Sales-Type Lease. (Moderate) Accounted for as operating, should have been sales-type. Computation of effect on net income. Operating Lease. (Easy) Computation of income derived from lease by lessor, amount of rent expense for lessee. E21-2 15-25 E21-3 10-15 E21-4 10-15 E21-5 E21-6 5-10 10-15 E21-7 10-15 E21-8 10-15 E21-9 E21-10 10-15 10-20 E21-11 10-15 21-1 Number E21-12 Content...
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...memo To: Daphne Duquesne | | From: Sarah Smith CC: Patricia Derrick | | Date: July 25, 2014 | | Re: Accounting for Warranties Sold Separately | | | | Dear Ms. Duquesne, Thank you for reaching out to me about the accounting standards involved in the type of warranty that you hope to sell along with your newest line of products. First, I would like to provide a little background on accounting for warranties and then I will discuss the treatment of warranties, hopefully answering all of your questions. A warranty puts two obligations on the issuer; preparedness to perform and pay for agreed upon services (FASB 460-10-25-2). According to FASB 460-10-25-5 “because of the uncertainty surrounding claims that may be made under warranties, warranty obligations fall within the definition of a contingency.” This means that we accrue losses from warranty obligation that are considered “probable”. A. A lot of new literature has been published by FASB regarding the recognition of separately priced warranties. These new items will take effect between 2015 and 2018, just in time to launch our new product. I strongly suggest complying with the newest guidelines when projecting our sales figures for the new line of products. I encourage you to review FASB 606-10-55-30 through 606-10-55-35 for a full review of upcoming changes. B. This asks the question: when is a warranty considered separately priced? Do their need to be two receipts? Can their be a range of options...
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...Maraya ACC 541 February 20, 2015 William Montgomery To: CEO From: Controller Date: February 20, 2015 ------------------------------------------------- Subject: Pension Plans and Eliminating Segments This memo is to provide a response to the new CEO who is requesting information regarding the following areas. The first discussion is and explanation of the required reporting on retirement plans that includes defined contribution, defined benefit, and other postretirement plans. The memo will also include what may happen when two segments are to be eliminated. Defined Contribution Plan A defined contribution plan is when an employer puts aside a certain percentage periodically to the employees benefit plan. There are two types of defined contribution plan: Defined contribution health and welfare plans— This plan is an account for the employee that calculates the amount by using the participating employee’s account instead of his or her benefits. “The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. (FASB ASC 715-70-20)” Defined contribution postretirement plan— A participant that uses this plan is provided an individual plan that is determined by the amount of services he or she has rendered. “Under a defined contribution postretirement plan, the benefits...
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...| SUMMARY OF MAJOR CHANGES TO | |DFAS-IN REGULATION 37-1, CHAPTER 8 | |“OBLIGATION MANAGEMENT” | | | |All changes are denoted by blue font | | | |Substantive revisions are denoted by a ( preceding the section, | |paragraph, table or figure that includes the revision | | | |Hyperlinks are denoted by underlined, bold, italic, blue font | |PARA |EXPLANATION OF CHANGE/REVISION...
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...Ethical and Criminal Responsibility February 24, 2016 Ethical and Criminal Responsibility Introduction When do employers have an obligation to prevent or take corrective action as the result of bad employee behavior? What type of evidence is needed to initiate an investigation of a potentially dangerous condition for other employees? To what degree are organizational employers expected to provide a safe working environment? These questions, as well as others, can only be answered by collecting and analyzing all the pertinent facts. Once completed, the employer can determine the type(s) of applicable torts associated with the complaint, degree of liability (civil or criminal) involved, and procedures required to resolve the issue to the satisfaction of all interested parties. Employer Obligations The given scenario provides insignificant details as to the extent of the employer’s knowledge of the employee’s background, work history, criminal record, or evidence of violent behavior. With that said, any employer with information that indicates a dangerous situation may occur within the organization has the ethical and moral obligation to take appropriate actions to prevent or remedy the situation. State and federal laws place certain requirements on employers, such as Americans with Disabilities Act, Age Discrimination in Employment Act, Child Labor Laws, Fair Labor Standards, National Labor Relations Act, and Occupational Safety and Health...
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...is signing a lease, financing a vehicle, or opening a bank account. The following summary will also discuss types of contracts, breach of contracts, and other contract situations. First and foremost one must understand what a contract is. A contact is an agreement between two parties that is legally enforced. A contract could either be written or oral. When it comes to the agreement of a contract one must abide to all requirements set forth in the contract. According to Melvin, S. (2011). “There are five requirements that make a contract valid. The requirements are the mutual agreements between the two parties, all parties of the contract are competent, the promise or obligation of each party must be supported by consideration given by each party to the contract, it must be for lawful purposes, and in some cases it must meet formal requirements.” Breaking a rental lease agreement by not paying rent on time and allowing pets in the rental home without it been stated in the leasing agreement is one form of breaching of contract. By one breaking these agreements the landlord of the rental property has the right to evict the renting party and terminate the contract. The landlord will also keep documents of any damages, late payments, and any other broken obligations that will cause the landlord to terminate the contract. By keeping documents of these broken obligations this will assist the landlord if the renting party decides to contest the eviction. When one is financing a...
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...which take as the fundamental, or at least a fundamental, principle of their political theory the ascription of certain rights to individuals and which deny the same status to a principle of belonging or obligation, that is a principle which states our obligation as men to belong to or sustain society, or a society of a certain type; or to obey authority or an authority of a certain type” (211). In other words the primacy of rights theories imply that the rights of a person are more important than any obligation to their society. . Taylor does not believe that the rights of an individual are more important than the rights of a member of society. The theory that the rights of an individual are more important than the rights of a member of society has been labeled as “Atomism.” Taylor uses this term “loosely to characterize the doctrines of social contract theory which arose in the seventeenth century...which try to defend in some...
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...AICPA Code of Professional Conduct ETH/376 In order to understand the AICPA Code of Conduct you must understand the AICPA itself. The AICPA is a group of CPAs all around the world that volunteers to keep up the ethical obligations of CPAs. The AICPA Code of Conduct is known as the the foundation of ethical reasoning in accounting because it lays out the “law” accountants should follow in order to keep a good moral and ethics in the accounting profession. There are many purposes for the AICPA Code of Conduct but I feel that there are three that are more important than others. One purpose that I feel to be important is to keep the integrity of the accounting profession. As accountant clients hold us to very high standards. We are suppose to be honest, loyal and trust worthy. I feel that without the AICPA Code of Conduct laying out any type of foundation of integrity then CPAs would be viewed in so many negative ways. I don’t think I can stress enough how much ethics play into many professions not just accounting and how important that the AICPA Code of Conduct is based on ethical reasoning. Another purpose that I feel to be important is to look out for the client’s best interest. By looking out for what is best for the clients then as accountants it keeps jobs open and growing because no matter what kind of business you are you need someone to do accounting but if you don’t have a company of accountants or a personal accountant looking for your best interest as an owner than...
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