Abstract This paper explains marginal analysis is the quantification of the time taken to serve the patient as the basis of cost, and any additional incurring dollars in this time frame are considered the marginal cost. The author stresses that, in health care organizations, there is no standardized service; therefore, quantifying health care service has become a great issue, and the marginal analysis method has become one of the keys for detecting the overall outcome of servicing each patient. The paper stresses that health care organizations run the risk of high costs and investments when they do not monitor operational costs through marginal analysis, which detects unnecessary costs associated with the patient care.
Table of Content
Introduction
Marginal Analysis
Purpose Statement
Discussion / Literature Review
Conclusion
From the Paper "On the other hand, the marginal benefit is the additional benefit or benefits that are derived from one more unit produced. Benefits therefore can be quantified by the units of utility or satisfaction level in dollar value. It can also be noted that marginal benefit or the satisfaction level gradually falls with each additional unit. This is because when there is an increase in the units that one consumes, satisfaction level decreases and hence there is a less demand for it. The level of efficiency of an organization is very much dependent on the management's ability to manage the resources to maximize production and hence to maximize the utility of the unit cost."
Abstract In recent years, the standards of the accounting profession have been a subject of great scrutiny. The boom of the 90s changed the business environment tremendously. Financial scandals and out-of-hand executives required the reshaping of the accounting industry. This paper shows that at the forefront of all this is the once-famous accounting firm of Arthur Andersen. The paper examines the history and success story of this firm and then examines the issues surrounding the charges of unethical practise.
Paper Outline
Company Background
The Rise of Arthur Andersen
Implications of the Fall of Arthur Andersen
The Fall of Arthur Andersen
After Enron, WorldCom, and the Fall of Arthur Andersen
Bibliography
From the Paper "In 1997, Andersen paid $7 million to settle fraud allegations arising from an audit of Waste Management Inc. Another whopping $24 million was paid in settlement over allegations that Andersen misrepresented the financial health of American Continental Corp. and its subsidiaries bases in Arizona. On top of that, Andersen was also under investigation by Arizona officials for repeatedly ignoring information that the Baptist Foundation of Arizona was defrauding its customers. After years of clean audits, the foundation was exposed as a multi-million dollar fraud."
Abstract This paper reviews an article on the WorldCom scandal and discusses how this article relates to 7-Eleven Inc. Also, based on the article, the paper discusses recommendations for improving accounting procedures at 7-Eleven and explains the importance of ethics in accounting.
From the Paper "An article written by William Thomas and Thomas Morris discusses the Enron and WorlCom accounting scandals. In April of 2002, internal auditors discovered a $9 billion fraud. Unlike Enron, WorlCom has improperly reported capitalized expenses (Thomas and Morris). This was the largest amount of accounting fraud in U.S. history. Former CFO Scott Sullivan, who was the ?chief architect of the fraud,? pleads innocent to the original charges. Arthur Andersen was the accounting firm that was involved in both of these accounting scandals. This indiscretion caused the stock market to plummet, and many people lost thousands of dollars. Executives profited from this accounting fraud. The revelation of accounting fraud sent shockwaves through the investment community. Thousands of people lost much of their lives? savings in these accounting scandals. The devastation of this fraud caused President Bush to take a tough stance on corporate fraud."
Abstract This paper looks at how a derivative is defined as a financial instrument, such as an option or future, that derives its value from the movement of a price, exchange rate, or interest rate associated with some other item. It provides different examples of how derivatives are used in the financial world and examines how they have been blamed for many financial scandals, such as the fall of Enron, WorldCom, and Global Crossing.
Outline
Introduction
Types of Derivatives
Examples of Derivatives
Accounting for Derivatives
Derivatives and Scandals
Conclusion
From the Paper "Derivatives are classified into two different types. There are linear derivatives; whose payoff represents a linear function, meaning with every movement, a dollar amount is directly affected. The other form of derivative is a non-linear derivative, in which the payoff changes with time and location (Sooran, 2004). When an individual purchases shares of a company, the payoff is linear, not accounting for dividends paid. If the stock purchased increases, a profit is earned. In contrast, if the stock purchased decreases, a loss is incurred. An investor can choose options to minimize their risk when investing."
Abstract This paper discusses the means by which capital is becoming globalized and argues that capital has become even more unevenly distributed between the North and the South, giving rise to the argument that the creation of global capital has had untold negative consequences for the poorer nations. The paper then attempts to prove this argument through an examination of the consequences of free trade and the activities of MNCs. Finally, the paper concludes that the removal of capital controls and the removing of much of a nation's control over capital has not just jeopardized national sovereignty, but has placed the Lesser Developed Countries (LDCs) in a position of financial instability.
From the Paper "The development of global economy has always depended upon the globalization of capital. For a global economy to emerge, capital itself must become global whereby it can easily move across national boundaries, without being confronted with obstacles. In this respect, capital here means both finance capital, and capital assets, including labour. Therefore, under the umbrella of globalization, and the determination to make capital global, labour, capital assets and finance capital will move across borders. In brief, globalization, guided by the World Trade Organization (WTO) and aided by the World Bank (WB) and the International Monetary Fund (IMF), will establish a global economic system guided by the principle of free movement of capital, as facilitated by trade, foreign direct investment in the form of multinational corporations (MNCs), and the transference of chunks of national economic sovereignty to international financial institutions (IFI), such as the WB and the IMF, creating a largely uniform global economic system (Adams, 1999)."
Abstract This paper discusses each of the following terms, expands on the definition, and explains why the concept is important to financial statements. The terms include Generally Accepted Accounting Principles (GAAP), Historical Cost, Accrual Basis vs. Cash Basis Accounting, and Current Assets and Liabilities vs. Non-Current Items. The paper locates the balance sheet, income statement, and statement of cash flows for Ford, Exxon-Mobil, and Microsoft. The paper examines whether net income or cash from operating activities is more useful for each of these companies.
From the Paper "The GAAP are not rules set in stone; rather, they are guidelines, or you might call them a group of objectives and conventions "that have evolved over time to govern how financial statements are prepared and presented," according to www.allbusiness.com. Theses principles are set by the Financial Accounting Standards Board (FASB), and the Securities and Exchange Commission (SEC) also provides input and guidance regarding the amendments to acceptable accounting practices. The GAAP serves as a guiding light for every business: when an accountant from outside the company is looking into its financial data and record-keeping, the company expects that accountant to be using GAAP. "Compliance with GAAP helps maintain creditability with creditors and stockholders," AllBusiness.com explains, "because it reassures outsiders that a company's financial reports accurately portray its financial position.""
Abstract This paper explains that health care budgeting is one of the most difficult tasks that companies face because it must be modified regularly to reflect frequent and complex changes in government policies and Medicare and Medicaid rate changes. The author points out that the most dramatic affect that Medicare and Medicaid has on health care facilities is the ever changing reimbursement rates, which fluctuate every quarter and are not known to the company in advance so trying to budget for an intangible balance can be an uphill battle. The paper concludes that, until the federal and state governments are able to properly and effectively balance their own financial budgets, all health care companies must regularly take steps to be as prepared as possible for the changes that affect their company budgets.
Table of Contents
Introduction
Budgeting Process
Government Laws
Affects On Budgeting
Conclusion
From the Paper "The budget for the health care industry can be greatly affected by government laws that can change frequently. These changes can have a negative as well as a positive affect on health care. The government is focused on balancing the budget, as well as, keeping the social and financial interests of the people in mind. As the Social Security, Medicare and Medicaid programs start to lose money the government must concern itself with how to keep the programs running. Lowering payments for health care is one option the government uses to stop the loss of money to fund the program. This action can affect the health care company's budget by giving the organization less money to work with then they originally budgeted. Another way to increase the programs is to increase taxes the company has to pay in order to raise the needed funds to keep the programs afloat. This can also increase the budget for organization and force companies to use previously allocated funds into the tax budget."
Abstract This paper explores the financial condition of Target Stores by examining financial ratios. It describes financial ratio analysis as a useful technique to measure, compare and evaluate financial conditions and performance. The author provides information on Target's liquidity ratios and leverage.
From the Paper "Target Corporation is a growth company focused exclusively on general merchandise retailing. Its principal strategy is to provide exceptional value to American consumers through multiple retail formats ranging ..."
Tags: Balance Sheet, income statement, cash flow, financial analysis, ratio analysis, efficiency ratios, leverage ratios, liquidity ratios and profitability ratios, current ratio, quick ratio, times interest earned, debt to equity
Abstract This paper identifies effective internal control techniques used in conducting an audit. The author points out the relationship between ethics and internal control techniques. The paper discusses the importance of the Sarbanes-Oxley Act.
From the Paper "There are a number of objectives in conducting an audit. One of the most important involves determining whether the organization's overall internal control system and management controls are adequate effective and efficient. This is necessary to understand the reliability and adequacy of the accounting financial and reporting systems and procedures. The importance of internal control programs involves a number of interrelated factors. One is to determine the extent to which the organization's assets are safeguarded from losses theft embezzlement and misappropriation. An effective internal control procedure will help ..."
Abstract This paper contends that the Sarbanes-Oxley Act, although good in spirit, has inadvertently created burdens on small- and mid-sized companies causing a slowdown in the growth of this critical component of the U.S. economy.
Abstract This paper explains that, after it was discovered that several major corporations in the U.S. had committed accounting fraud, it became the responsibility of auditors to discover evidence of accounting fraud in businesses. The paper discusses the impact of Sarbanes Oxley as well as SAS 99 on auditors and on the companies they audit.
From the Paper "Many decisions in accounting and auditing involve judgment calls. Nevertheless, there are rules that cannot and should not be broken. Over the last several years a number of major publicly traded corporations in the United States have committed accounting fraud and as a result have filed for bankruptcy protection. John Weinberg, in "Economic Quarterly", comments that these bankruptcies have resulted in the loss of hundreds of billions of dollars in stock value, wiping out the life savings of numerous investors and putting tens of thousands of..."
Abstract This document discusses the time value of money (TVM) concept which is a foundational concept in all financial disciplines. It further discusses the impact that TVM has on annuities and how they are valued through the rule of 72 which is also used to figure most other types of interest bearing accounts to determine rates of return. Finally, the paper examines the concept of opportunity cost because understanding the cost associated with not doing something in lieu of doing something else is important in determining which strategy to adopt.
From the Paper "The time value of money (TVM) is a foundational concept in finance. TVM impacts all forms of finance from business, to consumer, as well as government (Murphy, 2000). TVM is integrally related to interest and concepts related to interest. TVM is also referred to periodically as the discounted present value (DPV) and was first discussed as far back as the 12th century (Murphy, 2000). TVM relies on the concept that a preference for some sort of immediate returns on a given sum of money rather than merely receiving the same amount of money at some point in the future. TVM essentially states that a deposit of $1,000 accumulates an amount of interest resulting in an increase in a given period of time. "
Abstract This paper presents an analysis of the value of a corporation's intellectual capital. The paper discusses the impact the intellectual capital has on the success of the company and how it should be managed.
From the Paper " The industrial age is over. Welcome to the world of knowledge and knowledge transformation. More and more companies are packaging and selling knowledge and information ? and not products. What determines the solvency and the ability of a company to compete in the global economy is the value of its intellectual or knowledge capital. Knowledge has become the body of what we make, do, buy, and sell. Therefore, it is knowledge, not land, physical labor, or machines that are the capital assets required to create corporate wealth. No longer can investors and creditors review the financial statements of an organization and the "hard assets" therein to determine corporate wealth and corporate solvency. Traditional financial analysis tools taught in accounting and finance textbooks do not measure the most valuable assets of an organization. Intellectual capital is the new wealth of organizations. The most challenging and important economic task of businesses in the twentieth-first century is their ability to manage intellectual capital ? "identifying it, developing it, storing it, packaging and selling it, and sharing it" (Stewart, 1998). "
An examination of human intelligence and human competency as a corporate asset and the Financial Accounting Standards Board's (FASB) conceptual framework for financial accounting.
1,563 words (approx. 6.3 pages), 13 sources, 2000, $ 51.95
From the Paper "The Financial Accounting Standards Board (FASB) defines an asset as having three essential characteristics: (1) "probable future economic benefit", (2) "exchangeability", and (3) "the entity's right to control-ownership". The relevancy of the asset in generating corporate revenue determines if the asset is tangible or intangible and therefore dictates its place on the balance sheet. Corporations increased emergence in global economic activity and technology has compelled corporations to re-evaluate the importance of human intelligence/knowledge and its impact on revenues. This new awareness has resulted in corporations investing substantial capital in human resource activities such as training and development, retention, and recruitment. Corporate decision-makers and investors argue than human capital investments are directly related and essential to the organization's income producing ability. Therefore, these investments should be recorded as assets on the balance sheet. Corporations considering mergers or buy-outs place considerable credence and relevancy on the "soft" or "intangible" assets of an organization. Intangible assets are crucial in aiding investors or decision-makers in evaluating the profitability and performance of operations and for futuristic planning. Investors no longer rely solely on the financial statements of corporations and the absolute values therein to determine or gauge corporate wealth and corporate performance. This revolution deems current generally accepted accounting principles invalid and outdated by corporate standards."
Abstract This paper examines how interest rates in the financial community affect the consumer and the stockholder. Investment strategies are also briefly investigated, with an emphasis on how interest rates indicate the performance of stocks in a long- term investment plan. It is hoped that through providing enough information on how interest rates affect the consumer, the reader will be better equipped to make informed discussions on the subject.
From the Paper "Interest rates are essentially the rate of change in the economic community that expresses how the financial institutions are performing. They also act as incentives for the consumer, where if the interest rates are higher the customer is more likely to invest their funds. Interest rates are not stagnant, and change to reflect the current state of the market. As the consumer benefits more when he or she invests at a time where the rates are higher, the consumer is more likely to invest at that particular time."
