Business Accounting Methods Term Paper by Nicky

A look at different issues in business accounting.
# 150032 | 1,648 words | 4 sources | APA | 2012 | US
Published on Jan 22, 2012 in Accounting (Financial) , Accounting (Managerial)

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This paper examines issues in business accounting, focusing on how to choose the appropriate method for one's organization. First, the paper determines the goals of accounting methods, noting the importance of the budgetary process, resource consumption and allocating resources . Formulas are presented that show how to calculate these functions. The Sony corporation is cited for its accounting methods and how it uses them throughout its organization. The paper also discusses the challenges faced by managers to develop and evaluate internal accounting methods. Two models of accounting are presented, and the paper concludes by stating that managers would fine the earning growth model to be the most effective.

From the Paper:

"The days'-sales-in-receivables ratio measures the average number of days it takes one economic agent to recuperate its receivables from its customers; otherwise put, it measures the number of days it takes for the organizational customers to pay their debts to the entity. Changes in the days'-sales-in-receivables ratio do not necessarily generate strictly positive or strictly negative outcomes.
"Given that throughout the duration of one fiscal year, Sony Corp.'s days'-sales-in-receivables ratio increased from 36 to 43 raises the necessity to understand this growth from several perspectives. First of all, it is necessary to assess it in terms of the expected ratio (auditors generally estimate and then calculate). Secondly, it is important to analyze the year's ratio in light of the ratio adherent to the previous year. Finally, it is also imperative to assess the company's days'-sales-in-receivables ratio with the average ratio within the industry."

Sample of Sources Used:

  • Anuar, Z., Stock Valuation Model - 3 Simple Techniques to Value Stock, Enzine Articles, last accessed on August 25, 2009
  • 2009, Investopedia Website, last accessed on August 24, 2009
  • Days Sales in Receivable, ABREMA, last accessed on August 24, 2009
  • Stock Valuation Kennesaw State University, last accessed on August 25, 2009

Cite this Term Paper:

APA Format

Business Accounting Methods (2012, January 22) Retrieved March 31, 2023, from

MLA Format

"Business Accounting Methods" 22 January 2012. Web. 31 March. 2023. <>