for the services of specialists in bookkeeping and in auditing internal and external financial representations. The institutionalization of the audit profession was then merely a matter of time. Management Controls Operations and Communications Management has control over the accounting systems and internal controls of the enterprises that auditors audit. Management is not only responsible for the financial and internal control reports to investors, but also has the authority to determine the
Words: 13100 - Pages: 53
Four basic financial statements: * Balance Sheet * Income Statement * Statement of Retained Earnings * Statement of Cash Flows Players: * Investors – trading shares – get dividends * Creditors – trading bonds – get interest rate; risk is less than if you´re an investor * Managers Financial accounting – provides info for managers and people outside the firm. Managerial accounting – provides confidential info for internal decision-makers (“private” or internal accounting)
Words: 1584 - Pages: 7
outstanding financial obligations incurred prior to a change in exchange rates. Operating Exposure (Economic Exposure, Competitive Exposure, Strategic Exposure) – measures a change in the present value of a firm resulting from any change in future expected operating cash flows caused by unexpected changes in exchange rates. Accounting Exposure (Translation Exposure) – measures accounting-derived changes in owner’s equity as a result of translating foreign currency financial statements into a single
Words: 1732 - Pages: 7
Design of product or service 6. Production 7. Marketinh 8. Distribution 9. Customer service Criticial success factors (CSF) Measures of those aspects of the firms performance essential to competitive advantage and succss Financial and no financial Depend on the
Words: 2656 - Pages: 11
Issue:The basic procedure for a new issueI. Obtain approval from the board of directors.II. The firm must prepare and file a registration statement with the SEC. Registration statement : A carefully prepared set of documents, including aprospectus, which is filed with theSECprior to aninitial public offering.III. The SEC studies the registration statement during a waiting period . Duringthis time, the firm may distribute copies of a preliminary prospectus.A registration statement will
Words: 1146 - Pages: 5
accounting policy making in the United States. Accounting Research Bulletins (ARB) The CAP would issue 51 ARBs during its existence, several of which survive in today’s FASB’s Codification, and four Accounting Terminology Bulletins. e) weaknesses: The CAP decided early on that formulating a statement of broad principles would take too long and instead approached issues on a case-by-case basis. Without a framework and often without adequate research, the CAP relied on the members’ collective
Words: 1852 - Pages: 8
Chapter 9 Review Questions Financial managers emphasize the goal of maximizing the market price of stock because they have a legal and ethical obligation to make decisions consistent with the financial interests of their firm’s owners. The managers who work for the company have a responsibility to act in their best interests of the stockholders, and that means increasing the value of their investment in the company. Four basic types of financial ratios are: liquidity ratio (ex. McDonald’s current
Words: 445 - Pages: 2
offering basic health care to every American. “The Affordable Health Care for America Act is a piece of legislation that will provide stability and security for Americans who have insurance; quality affordable options for those who don’t; and bring down the cost of health care for families, businesses, and the government while strengthening the financial health of Medicare. And it is legislation that is fully paid for and will reduce our long-term federal deficit ” (Obama, 2009, Statement of President
Words: 2132 - Pages: 9
Deloitte Trueblood cases (www.deloitte.com/more/DTF/cases_subj.htm), as well as the AICPA cases (www.aicpa.org). Topical Index of Student Cases INTERMEDIATE ACCOUNTING Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail
Words: 5765 - Pages: 24
glass of water as half-full instead of describing it as half empty. While both statements are factually correct, they paint different picture and thus convey different images. Creativity in company accounting may arise under at least three different financial market conditions. The first is when a company floats its shares to attract investors to subscribe to such shares either at par or at a premium, depending on the financial market evaluation of the company’s future prospects. The second is when the
Words: 3226 - Pages: 13
