Accounting

Accurate financial statements are very important for outside business interests. The users of financial statements, such as customers, suppliers, creditors, need accurate financial statements for better decision making activities.   In addition to this, tax collection agencies, community residents and stock market agents need accurate financial statements for deciding on their next move. There are many users of financial statements, namely, customers, suppliers, creditors, tax collection agencies...

As per the lease agreement with Goliath Co. signed on December 15, 2004, the Big Bear Company in compliance with the definition of rental provided in section 13 of the Financial Accounting Standards Board (FSAB) hereby recognized that this type of lease fall under the category of minimum lease payments. Less payment under this category depend on existing factors on which payments are made and are measurable at the time of inception (Statement of Financial Accounting Standards No. 29, p. 4). Given...

In terms of audit and assurance, going concern assumption is a management assertion where an entity is perceived as continuing its routine business operations in the foreseeable future (which is an accounting period usually 12 months). ISA 570 is the auditing standard issued by the International Auditing and Assurance Standards Board (IAASB) which explains the requirements necessary for verification of the going concern assumption. ISA 570 states that  When preparing and performing audit procedures...

Discuss the corporate culture at WorldCom and how it contributed to the accounting fraud. WorldCom started expanding a lot because of which the different people in the organization became very distant. People did not know others in the organization because of which the communication became very weak. Each department had formed its own culture and they were following it. The culture was very bureaucratic and all the communication was top to down. The lower level of management was given the authority...

Key term 1 Job-order costing system This is a costing system where an organization is producing different components to assemble a particular product. It is also applicable where the organization produces different products each period. The system is used where the products being manufactured are big enough such that the costs of each component can be estimated. This method is mostly applicable where the customers make orders of a particular quantity of products. It is also applied where the company...

The AICPA its Mission, Roles, and Current Activities The American Institute of Certified Public Accountants (AICPA) is a national organization whose main objective is to enrich accountancy as a profession. With certified public accountants constituting its regular membership, AICPA serves as the guiding arm of the professionals in the accounting profession. Starting with a handful of members, the institute has now grown to more than 300,000 members in its different membership categories (Bradford,...

There are many problems of globalization one of them being the interaction between the different systems of taxation with the economies of the world. Economic Co-operation institute and development organization has started various projects which takes into account the partnership of international tax to give a forum aimed at the exchange of information and deliberate on policies of tax among the member states as well as the no-members. A member like the United States is involved in the projects...

DESCRIPTION OF THE COMPANY AND INDUSTRY Starnet is medium sized company and is engaged in the production and sale of various electrical appliances that are for industrial and domestic use. The average life of the appliances sold by Starnet is six years. As per the norms of the industry all the products sold by the companies are to be covered under warranty for a specific time period. SITUATION ANALYSIS The company provides a warranty period of one year on all of its products. The terms and conditions...

This report aims to help the editor of a professional journal to assure him or her the articles that are written and printed in the journal are up to the mark of the technical writing criteria. The article under review is Retain Clients and Help Them Recover by Larry Bildstein, a CPA, which was published in February 2010 in the Journal of Accountancy. The main aim of this article is to help the editor know the weaknesses and strengths of the articles written for the journal. The article under review...

In a persons lifetime, it is in his pursuit of knowledge that he is given the opportunity to define the meaning and essentiality of his existence.  It allows him to be the individual who he aspires to be one who has the capabilities to adapt to the changing environs of the society, while at the same time being a positive contributor for the betterment of his community, be it locally or in a much wider scope.  This precept has always been my credo in my academic years, that it has taught...

Some companies might have some contentions on the current Generally Accepted Accounting Principles (GAAP) that affects their financial revenue recognition. The main purpose of this document is to present the significant effects of the current GAAP practices and to explain some points that might be an acceptable way of recognizing revenue to be effected on Financial Statements. BODY The Discussion paper gives some instances where a company might have different views on revenue recognition (depending...