Abstract This paper examines how all the information accountants gather about a company is used to prepare documents referred to as financial statements and how, although there is no consensus regarding which documents are financial statements and which aren't, there are several universally accepted papers of which the income statement and the balance sheet are excellent examples. It explores different examples and uses of these financial statement, such as the cash-flow statement and the statement of capital.
From the Paper "The financial operations of a company have to be kept under strict observation. Investors need to know exactly what is the position of the company, so an objective opinion is required. This is where the auditors come in. Auditing may be defined as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events of an economic entity to ascertain the degree of correspondence between assertions and established criteria and communicating the results to users". Of course that auditing is an expensive operation, but the safety it brings makes it worth the effort. Auditing is mandatory for certain companies, especially when the interests of a large number of people are at stake."
Abstract This paper explains that the four factors of production are land, labor, capital, and enterprise. The author points out that the Periodic Inventory System is a physical count inventory, usually made at the end of the accounting period, which does not maintain a detailed record of the actual inventory kept during the accounting period. The paper stresses that persons in charge of controlling the inventories in a business must follow certain steps and perform an accurate inventory control in order to avoid high costs due to overstocking matters.
Table of Contents
Introduction
Production Factors
What Is Inventory
Cost Associated with High Inventories
Inventory Systems
Periodic Inventory System
Perpetual Inventory System
Conclusion
Graph
From the Paper "Inventory is the value of a firm's current assets that are shown on the balance sheet, generally at cost. Inventory or merchandise inventory is generally applied to goods or materials available on hand that are held by a merchandising firm, either wholesale or retail. It includes raw materials, work in progress, and finished goods that are ready for sale, but has not been sold yet."
Abstract The thesis of this paper examines the present state of securities markets in Egypt in light of the country's needs for economic growth and analyzes their problems with the institutional measures currently existing. Following an introductory chapter on the importance of capital markets development for Egypt, especially with regard to the privatization policy currently adopted by the government, the thesis addresses the capital markets in Egypt under several points. It emphasizes the existing securities market and the securities stock exchange, with the available operations of the stock exchanges and the supply and demand of securities and the institutional investor interest in securities; determines the role of existing financial (non-banking) intermediaries as a source of capita for both the private and public sector that can be used to activate the capital market; discusses the role of the National Investment Bank (NIB) with its role as an intermediate chain between the various saving sources and the government commands, in addition to the rest of its roles; and analyzes the crucial role of the Capital Market Authority as the key organization and influence for capital markets development in Egypt. The paper also deals with the legal and tax framework, which serves as the background in which the capital market operates. Under this section, a study of the general laws that facilitate formations, operations, and issuance of securities by corporations is presented, as well as a study of the tax incentives and the financial accounting and auditing standards. In addition. the paper discusses the new capital market law.
From the Paper "In studying the failure of the Egyptian Stock Market to live up to expectations or, at the minimum, stabilize and expand to emerge as a coherent and viable economic entity, one can identify a number of causal factors, ranging from a general lack of awareness of the potentials of the stock market as an investment arena, to government interferences. While each of the many causal factors plays a significant role in explaining the stated failure, all pale in comparison to the politico-legal factors underlying that failure. Briefly and simply stated, the Egyptian stock market is subject to seemingly arbitrary investment laws which encourage neither stabilization nor investments. Over and above, the laws are constantly changed, or undergoing endless reform processes which communicate to potential investors that the market has yet to develop a tight and stable framework as would motivate investment."
Abstract As in any business, capital financing in the health care field, is very important. Without proper financial planning, budgeting and working capital, a company is headed for financial ruin. This paper shows that obtaining capital can be done in various ways and should be well planned and executed. If properly planned, a business has a good chance of survival. Without planning, bankruptcy could be the result.
From the Paper "St. Vincent's Catholic Medical Centers, a New York healthcare provider, announced that it would file Chapter 11 bankruptcy protection after losing its working capital loan. St. Vincent's defaulted on $30 million of its pre-petition loan committed by HFG (Healthcare Finance Group), which had agreed to provide a total of $100 million, in DIP (Debtor-in-Possession) financing. DIP financing is used in bankruptcy so that while the bankruptcy is being processed the business will have working capital for the duration. In many cases, DIP financing is considered attractive because it is done only under order of the Bankruptcy Court and allows the company to execute a Plan of Reorganization (POR)."
Abstract This page explains that non-profit organizations different from for-profit organizations in the way they manage their finances and provide their financial information to others because, rather than making a profit, they turn their money back into goods and services which help others, pay their employees and pay their operating expenses. The author points out five financial risks, which must be managed in a proactive manner by the board of directors. They are (1) the cost of lost opportunities, (2) financial crunches, (3) uncontrollable costs, (4) increased difficulty with recognizing revenues that meet forecasts and (5) the lack of a successful model for management. The paper stresses that the accounting differences between the two groups are (1) accounting for contributions, (2) capitalizing and depreciating assets, (3) functional expense classification and (4) use of both cash- and modified-cash basis accounting methods.
Table of Contents
Introduction
Literature Review
Analysis, Evaluation, and Critical Thinking
Summary, Conclusion, and Recommendations
From the Paper "Nonprofit organizations often do not spend enough time dealing with financial issues because they are so focused on the mission that they are sworn to uphold. However, without paying attention to the financial issues as well, these organizations can run into real trouble. They need to orient themselves to the workings of their organization, financially, and they need to develop a budget that works well for all people involved and is realistic. Without a realistic budget, the organization will likely not succeed, because there will be constant struggle and upset regarding whether issues such as bills are dealt with efficiently and properly to ensure that the organization keeps running."
Abstract There is no profession more profoundly impacted by the effects of ethical standards that the accounting profession. This paper examines how the effects of ethical and unethical behavior on independence and daily functioning are implicit in everything an individual in the accounting profession does. It also looks at how, due to recent scandals, there is a need for attention to ethical standards and training within the field of accounting.
Outline
Introduction
Analysis of Ethics in Accounting
Conclusions/Analysis
From the Paper "Accountants in particular face many ethical dilemmas during the course of their career, and example of which is the client who threatens to seek a new auditor unless offered 'perks.' Accountants and other professionals within the accounting field are often in a position that allows a great deal of autonomy and independence, which also opens the door for increased temptation and the potential for unethical behavior. Accountants may act unethically for a variety of reasons, though as the text suggests many do so for personal benefit only or selfish reasons, which by nature is a product of natural human tendencies. "
Abstract This paper presents a methodology for evaluating the financial health of a company and provides a model for determining and recommending corrective actions to management. Key profitability, asset management, liquidity and debt management ratios are analyzed. Financial performance is compared to industry and bench-marked to the industry leader. Free cash flow is calculated and analyzed. Improvement recommendations to management are made based on the analysis. Using the recommendations a pro forma income statement and balance sheet is prepared for the upcoming fiscal year.
From the Paper "The inventory turnover ratio shows how many times that inventory are sold during the year (Downes & Goodman, 1998, p. 294). The turnover ratio is slightly below the industry and the Leader Corporation. The company is carrying excessive inventory, which costs money that could be used elsewhere (p. 294). Management should evaluate the inventory control process. Minimizing inventory can reduce storage costs (warehousing) and protect the firm from falling prices (p. 294). These cost reductions will further enhance profitability. The inventory turnover ratio is projected to climb to over 13 % in 2004. This is primarily due to the reduction in inventory (loss). Management should manage the reduction in inventory gradually starting in 2002, this will allow some of the inventory to be sold vs. discarded as planned."
This paper is a global business plan including a budget and financial overview, a financial analysis in terms of currency risk management and financing.
Abstract This paper discusses what financial organizations and resources would be used to achieve global expansion and evaluates the financial health of the UK. The author determines potential domestic and international sources of financing for project, establishes the investment levels within assumed time-frame, estimates budget percentages and relates profits and repatriation of funds. The paper outlines a most favorable financial structure.
From the Paper "Determining the financial health of the United Kingdom, according to the "CIA World Factbook", the U. K., a leading trading power and financial center, is one of the quarter of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive highly mechanized and efficient by European standards producing about .... of food needs with only .... of the labor force."
Tags: Global business plan, budget, financial overview, global venture, financial analysis, currency risk management, financial organizations, resources, financial health of country selected, potential domestic and international sources of financing, investment lev
Abstract This paper suggests ways in which notable piano-maker, Steinway, could benefit from activity-based costing instead of traditional cost accounting methods.
From the Paper "In traditional cost accounting, all manufacturing costs are assigned to products while non-manufacturing costs, general administrative costs, sales and marketing costs etc., are grouped into overhead which are then allocated out to products based on either labor hours or machine hours. While this system is simple, it has inherent flaws, most significant of which include the inability to determine the true cost of producing and supporting a product. This inability in turn can lead to poor strategic decisions as some products that appear profitable by traditional cost accounting..."
Tags: traditional cost accounting, activity-based costing
Abstract This paper addresses what forensic accountants look for in ferreting out who is committing managerial fraud and how. It discusses how auditing relies on tests of controls, risk analysis and sampling to make an honest assessment.
From the Paper "As much as CPA's hate to admit it, auditing is an art not a science. It simply is not cost effective to verify every assertion in a set of financial statements with certainty. Instead, auditing relies on tests of controls, risk analysis and sampling to give the reasonable assurance that a set of financial statements are fairly presented in accordance with the applicable accounting standards. When that reasonable assurance is found to be misplaced, forensic accountants are called in. The definition of forensic accounting according..."
Tags: forensic accounting methods, definition, constrast with financial accounting, auditing
Abstract This paper discusses the Enron case and what it says about how certain accounting standards were violated. The paper notes how the case involved unethical accounting practices which inflated earnings and spent other people's money, because while the accounting profession is governed by a set of rules to assure ethical conduct, many of these rules were ignored or broken outright by Enron and its accountants.
From the Paper "The Enron scandal involved a company that inflated its earnings and so fooled investors, but the scandal also saw executives making a profit while the pensions of employees were dissipated until they were worthless. Examples of unethical behavior in this scandal are many. The issue was made all the more important because of other, similar lapses around the same time as several large companies went bankrupt and left investors stranded. At the heart of these scandals stood unethical accounting practices which inflated earnings and spent other people's money. The accounting profession is governed by a set of rules to assure ethical conduct. Many of these rules were ignored or broken outright by Enron and its accountants. The Enron scandal broke in 2001 when the company made a routine announcement about of $0.43 recurring third-quarter earnings per share."
Abstract This paper discusses the Sarbanes-Oxley Act, the reason for its passage, the meaning of the law, and the possible consequences it may have on investor confidence. The paper notes that it was signed on July 30, 2002 in order to increase public confidence in the nation's capital markets after a number of accounting scandals such as Enron and Global Crossing, and the effectiveness of law being dependant on it's application.
From the Paper "The Sarbanes-Oxley Act was signed on July 30, 2002 in order to increase public confidence in the nation's capital markets and "imposes new duties and significant penalties for non compliance on public companies and their executives, directors, auditors, attorneys and securities analysts" (Conference of State Bank Supervisors para. 1). What the full implications of this legislation may be known only after various actions by the Securities and Exchange Commission and the newly created Public Company Accounting Oversight Board: "Most of the provisions of this new law only apply to public companies that file a form 10-K with the Securities and Exchange Commission their auditors and securities analysts" (Conference of State Bank Supervisors para. 1). "
Abstract This paper discusses credit derivatives in modern banking. The paper gives a brief outline of credit derivatives, and further discusses the concept of how they function within the global market. The paper examines occurrences within banking in relation to credit derivatives and how these events have affected the worldwide opinion regarding the limitations of these transactions. The paper draws conclusions from the research provided, and offers opinions for the future of credit derivatives in banking.
From the Paper "When the economy is stable and interest rates are low, banks traditionally struggle for profits because there is not a significant need for loans from consumers or big business. In these moments of financial peace, banks needed methods that would ensure they could survive independently on the downfall of the economy in order to remain solvent. Credit derivatives were born of such concern, allowing bankers, and others, the ability to reduce their risk by selling risk to other parties. Risk was still maintained by lending institutions, but the prospect of intense profit margins was the deciding factor for most banks to begin to participate in credit derivatives. The research will demonstrate that bank use of credit derivatives has been a recorded success, and that credit derivatives continue to grow across the globe as a boom to the banking industry. However, limitations do exist connected with credit derivatives."
Abstract This paper is on an accounting case for a company called Octavan which is changing its accounting system and other aspects of accounting to improve its revenue picture; the company is about to shift to the double declining balance method. The paper discusses how the use of this method will give the company a boost in the first year or so, but at some point will reach the same level as the straight-line method, at which time the company will have to change again to the straight-line method.
From the Paper "In the Octavan case, the company is about to shift to the double declining balance method. The use of this method will give the company a boost in the first year or so, but at some point it will reach the same level as the straight-line method, at which time the company will have to change again to the straight-line method (Double declining balance depreciation method, 2005, paras. 1-3). This change along with the reduction in accumulate depreciation should save the company money in the first few years and so is a clear benefit with little apparent downside. The move might alter the financial picture of the company as far as investors are concerned, but the company already has secured its loan and can use the added funds in the early period to pay for that loan and to help increase revenues."
