Abstract This paper explains how a capital lease and buying an asset work. The author points out the differences between the two methods.
From the Paper " According to Warren Fees in his book "Accounting", a lease is a contract for the use of an asset for a stated or fixed period of time. The two parties to a lease are the lessor and the lessee. The lessor is the party that owns the asset. The lessee is the party to whom the right to control and used the asset are granted by the lessor. In return the lessee is obligated to make periodic payments to ..."
Tags: operating lease, capital lease, lease or buy, down payment, flexibility, options and alternatives, decision making
Abstract This paper relates the characteristics of stocks that make them difficult to value. The author points out the characteristics of bonds that allow for a more precise valuation. The paper explains the terms involved in a discussion of long-term bonds.
From the Paper "Stocks are difficult to value; to some extent their value is subjective. The value relates to the perceived strength of the company as measured by its financial condition management expertise distribution network market reputation effectiveness of its advertising campaign strength or weakness of its competitors product mix patents owned and future prospects. Most of these factors are highly subjective in nature and the way in which one investor views the combination of factors that go into determining the value of a ..."
Abstract This accounting paper analyzes and comments on the financial health of Southwest Airlines. It comments on earnings per share, its overall financial position, its capital structure and leverage, the short-term and long-term strategy of the company. The paper also presents an evaluation of the company's overall value.
From the Paper "Southwest Airlines Co. is a domestic airline that provides predominantly short, haul high frequency, point-to-point, low-fare passenger airline service in the United States. Southwest Airlines has a number of internal strengths. Southwest is the largest airline in the United States based on total passengers and total passenger miles flown. Whatever Southwest may lack in amenities for frequent business travelers, it makes up in lower fares, convenient schedules and direct or point to point travel itineraries. An article in marketing suggests that there is likely..."
Tags: accounting project, fouthwest airlines, balance sheet, income statement, levelrage, liqudity, profitability, efficiency, SEC, competitiveness, competitive advantage, stock price, earnings per share, gross sales, net income
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 article looks at the functions of the International Monetary Fund (IMF) and the World Bank. The writer discusses these functions in the context of globalization. Functions of the International Monetary Fund (IMF) and the World Bank are also discussed regarding the anti-globalization protest movement. In addition, in this paper, the writer examines reasons for the protest.
From the Paper "Until rather recently, globalization was a term that few people had ever heard, while the International Monetary Fund (IMF) and World Bank were merely among the welter of international agencies that cluttered newspaper reportage and which most newspaper readers ignored as obscure and technical, of interest only to specialists. In recent years however, globalization has become a flash-point issue in international politics. Trade negotiations and conferences of the IMF and World Bank are regularly accompanied ... "
Abstract In this article, the writer discusses real estate investing. The writer looks at ways to invest and save money in real estate. The writer examines the appeal of real estate investment for individual homeowners. In this paper, the writer also discusses real estate investing as a financial investment on a larger scale.
From the Paper "Investing in real estate has long held a strong allure for many individuals-their homes may be the only real estate investment they own, but with options such as reverse mortgages and home equity loans many individuals consider a single residence investment sufficient. Other investors are drawn to real estate because there is a tangible asset-land or buildings-that does not exist with many other types of investments. Still, other investors think of themselves as real estate moguls in the mold of Donald Trump who ..."
Abstract The aims of this paper are to identify the stages of the budgeting process and to evaluate their effectiveness. The article evaluates the level and validity of detailed assumptions used to create budget estimates. It discusses the role of the budget as an analytic tool that can be used to evaluate organizational performance. The writer explains how the budget can be used to find and eliminate inefficiencies in an organization's performance and explains the role of the budget in the business control cycle. The author analyzes internal and external control mechanisms that can be put in place to monitor and evaluate the budget and describes how the budget can be used in the performance accountability and reward process. The writer makes use of the example of a major business initiative in an organization that was approved last year as a result of the budget process, and explains how the budget was used in the approval process.
From the Paper "There are four stages in most budgeting processes. The first stage is information gathering. At this stage past performance results are collected and assessment is made of the company's strategic plans. Performance results for the previous year are gathered, the company's current objectives are defined and the market in which the company operates is evaluated. Some companies also include customer feedback in their information gathering tasks. Planning is the second stage, with determinations made about how detailed the budget will be and how it will be organized, whether by department or product or other groupings."
Abstract Financial ratios are important in determining the relationships between different values in the most important financial accounts used by a company. In many ways, they constitute the easiest way to evaluate a company from a financial and profitability point of view. Each financial ratio targets a particular area of expertise. This report deals with liquidity ratios, profitability ratios, asset efficiency ratios, solvency ratios and market tests in order to build an image of where the Estee Lauder Company is currently standing.
From the Paper "In the case of Estee Lauder, current ratio followed an ascending trend during the period from 2000 to 2002, only to fall back in 2004 to similar values as in 2000. The current ratio is thus oscillating around value segments of 1.7-2.0, with a mean of 1.8. These values show a consolidated short-term financial solvability for the company. During a five year period, oscillations have been minor in a value set around 1.8, pointing out towards the fact that Estee Lauder is not likely to have difficulties in honouring short-term debts."
Abstract The paper traces the dispersion of computers in accounting and explains that it is necessary to look at the beginnings of computers and then study the invention of spreadsheets for accounting and their impact on accounting. Finally, the paper examines the effects that computer development may possibly have on the future of accounting. The paper concludes that despite the changes in the accounting industry, this industry will never disappear.
Contents:
The History of Computers
Technology in the Accounting Industry
Accounting in the future
From the Paper "Whether we like it or not, technology now defines our world. Only once in a lifetime will a new technological innovation come about to touch every aspect of our lives. Such a device that changes the way we work, live, and play is a special one, indeed. A machine that has done all this and more now exists in nearly every business in the U.S. and one out of every two households (Hall 1985). This incredible technological innovation is the computer. The computer started out, in the 1960's, as an accounting tool and has evolved into a high-priority requirement in the 1990's. As we enter the new millennium, it has taken another quantum leap, going from a priority to a prerequisite for doing accounting."
Abstract This paper discusses the merger wave in retail and commercial banking, covering the history of banking in the United States and leads into the merger wave of the last twenty years. This paper also discusses the basis for the merger wave, criticism thereof and what may lie ahead.
Contents:
Introduction
History of Banking in the United States
The Merger Wave
The Merger Wave; Reasons and Criticism?
Conclusion
From the Paper "While banking may date back to the early days of man the concept of branch banking in the United States dates back only several hundred years. If you were to look back at the history of banking in the United States you would find a long and winding road that started out with a general consensus against the branching we see today. Fact is like any other centralized structure in the early days of our great nation, a centralized bank was frowned upon. So what happened over time?"
A study providing a review of the relevant literature to identify changes in methods of product costing, investment analysis and organizational performance evaluation.
Abstract The paper is based on work by Robert N. Anthony that identified several significant changes in management accounting in recent years, providing an overview of management accounting and how it is used today. The paper discusses the need to go beyond cost accounting to integrate organization theory, behavioral sciences and information theory in a multidisciplinary approach to facilitate managerial decision-making.
From the Paper "Clearly, managers today need timely information upon which to base informed decisions, and management accounting represents a solid framework in which this information can be gathered, analyzed, interpreted and communicated to those who are in a position to need to know. Not surprisingly, then, management accounting has become a hot topic in recent years, due in large part by the demands from governmental regulatory agencies such as the Securities and Exchange Commission and Internal Revenue Service, that require specific financial measures to be reported."
Abstract This paper relates that, in this article, Sami and Bae define the environment that a company needs to create a strong sense of responsibility and profitability for the long-term production. The author points out that this article reflects a growing concern for accounting practices to induce more environmental disclosures for modern corporations. The paper relates that, by finding all available expenses and liabilities within the infrastructure of financial management practices, there can be a greater degree of ethics and long-term profitability for accounting in the future.
From the Paper "This article presents a detailed evaluation of the environmental aspects of accounting that must taken into calculations when understanding value and expenses of corporate finances. In this manner, Bae and Sami present findings of the EPA to help business owners and accountants understand how and why environmental standards are important to expenditures and cost values. The basis for this information begins with a cases study they performed through the EPA, which presents an N-probit analysis, which confirms that companies with a high environmental set of costs are more likely to disclose their environmental issues that surround their business."
Abstract This paper explains that the Sarbanes-Oxley Act, passed in 2002, has had an effect on the public accounting industry. The author points out that the act, which was designed to increase visibility and accountability throughout the industry, was a governmental response to major accounting scandals, including Enron, WorldCom and Tyco. The paper relates that the effects of the act are spilling over into private accounting firms, implicating corporate social responsibility and affecting the financial bottom lines of corporations and accounting firms.
From the Paper "The accounting industry has, as a whole, endured quite a lot of publicity in recent years. Accounting scandals at mega-corporations likes Tyco, Enron, and WorldCom have all made the public painfully aware of the limitations of internal accounting practices and the apparent ease with which corporate executives can manipulate the industry and report false financial information. In light of that limitation, the United States government passed the Sarbanes-Oxley Act (SOX) in 2002, which was primarily intended to restore the public's trust in public accounting. However, the act has had farther-reaching implications for the industry, the policy that was made with it spilling over into private accounting firms, implicating corporate social responsibility, and affecting the financial bottom lines of corporations and accounting firms."
Abstract This paper discusses the two unique sub-functions within the accounting field: managerial accounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed. Further consideration is given to the ethical implications involved with each accounting division. Enron is mentioned as a prime example of how ethical considerations can not only undermine the financial solvency of a company but, ultimately, can cause its demise.
From the Paper "The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. Though there are many functions that overlap within these two divisions of the same profession, each classification serves a uniquely strategic function. In general, financial accounting is responsible for the historical financial records and data of a company and is largely responsible for ensuring legal and regulatory compliance. Managerial accounting is responsible for providing interpretive reports of financial accounts which managers and executives use to make operational decisions and devise corporate strategy. "
Abstract This paper discusses ethical financial reporting and what organizations are involved in monitoring and regulating financial statements of public companies. This paper reports that in the United States, these rules are called Generally Accepted Accounting Principles (GAAP). Although they are not laws, the Securities and Exchange Commission requires public companies to follow them. The Financial Accounting Standards Board is the most important organization in setting Generally Accepted Accounting Principles. Although not part of GAAP, Statements of Financial Accounting Concepts provide the basis for Statements of Financial Accountant Standards, which are the most important GAAP-establishing publications.
From the Paper "The framework for corporate financial management has changed significantly over the past few decades as more corporations move away from a checks and balances systems towards more of a juggling act. Recent ethical scandals including the Bre-X, Enron, and Worldcom debacles, has translated into increased scrutiny of corporate financial reporting. Some financial analysts argue that a company's ethical standards affects profitability, and those businesses that demonstrate unethical behaviour will suffer from decreased market share and profit potential, as well as increased government regulation. Increased competition between businesses has forced corporate finance managers to juggle more than one set of balance sheets depending on whether the reporting is going to the Internal Revenue Service (IRS) or shareholders."
