Finance & Accounting Essays

The turtle trading rules find their origin in a bet and an experiment set up by its originator, the legendary investor Richard Dennis, to show that he could churn out traders in a manner that is as efficient, as effective, and as quick as the manner in which turtles are grown in turtle farms that Dennis came across while on a trip to Singapore.

The “Repo 105” is an accounting trick commonly used by banks and other financial institutions such as investment banks, whereby they report a short-term loan as a sale, which of course is not. The cash in from the said “sale” is used to offset debts, a move that allows the company to temporarily pay down its liabilities, thus significantly reducing its leverage.

However, companies also issue common stocks that do offer any voting right. The common stock has advantages over preferred stock in that its value can increase more than the preferred stocks over a period of time. Common stock holders, however, has the least rights for claim over funds of the company in case of bankruptcy as the liquidated funds are to be distributed first to the creditors, bondholders and preferred stockholders.

It gives hope of overcoming the scourge of cancer just as the once dreaded diseases like polio and small pox and currently overcoming HIV slowly. We are encouraged to do more research because as we do more research, we edge closer to finding a cure and beating the epidemic.

The Independent Auditors Report contained in the annual report of the company in 2012 was prepared by PricewaterhouseCoopers. PricewaterhouseCoopers is the auditor of the company. Is the company on a calendar or fiscal year?  The company’s accounting cycle is based on the calendar year which means they reflect economic activity from January 1, 2012, to December 31, 2012.

In order to ensure that an individual seeks appropriate employment opportunities, a comprehensive understanding of his/her employability potential needs to be made. From a general perspective, it can be observed that job opportunities in finance and accounting are numerous through which an individual can build his/her career.

Beyond Budgeting Round Table (BBRT), an independent industry established in the UK in 1988, is a learning network of member organizations that is internationally shared with an interest of transforming the organization’s performance so as to enable superior and sustained performance. The BBRT was set up in response to the growing dissatisfaction.

The expected rate calculated in section 2(b) was 1.59438 while the actual exchange rate three months later was found to be 1.5469. Hence, there is a difference between actual and expected exchange rates in three months. The reason for this difference can be explained from the Uncovered Interest Rate Parity (UIRP) equation discussed earlier.

The research report presents a general study and evaluation of the performance of an American company called American Eagle Outfitters (Bethel 20). The performance of American Eagle Outfitters is evaluated using four different types of analysis which are distribution analysis, marketing analysis, performance analysis and subsequent projection of the results for the future.

Microfinance is a form of credit in which short-term loans, especially working capital loans are provided to entrepreneurs who have micro or small-scale businesses. These kinds of sources of credit for the small-sized industries in developing countries have been instrumental in the reduction of the level of poverty in the countries.

It is important to note that the time revenue is recognized has an effect on the financial statement of the period. According to the International Accounting Standard 18, revenue should be recognized when earned or when it becomes realisable (ACCA, Para. 9).

A budget provides the financial blueprint of how the city is to be developed. Budgeting of money at public and private entities sees into effective and efficient control of operations of the entity (Chrisinger, 2010). The public process of budgeting goes through several hierarchical processes before implementation, during implementation and follow-up processes, and evaluation after spending.

However, the fact that the underlying principle in auditing is the concept of ‘opinion’, leaves the process of auditing with much to be desired, considering that conflict of interests or biased opinions has arisen from the auditing firms concerning the truthfulness and accuracy of the transactions and financial reporting of their clients.

The overall coursework of the research incorporates a qualitative research approach through analyzing different scholarly-based articles, peer-reviewed journals, and governmental reports in order to evidently justify the impact of the financial crisis in Qatar and other GCC countries.

Marriott International Inc is a leader in the hospitality industry with about “3,400” units of operation in “68 countries and territories” across the world (About Marriott Internal par.1). Its hotels and lodging services include both company-operated as well as “franchised properties” and their revenue earnings for the fiscal year 2012 have registered a whopping “$12 billion”.

Based on this research, the family does not have enough liquidity to finance all this because it has only a balance of $ 5,800. They are almost running out of cash at the moment. The adjustments required would be to take a credit card with a higher limit of over $100,000. The credit card offer is too low for the family based on all the needs that the family requires.

Community involvement will be limited to consumption, and probably, enjoyment of new green infrastructure. How the residents who will be driven outside the skirts of the city will benefit from the green infrastructure will still be indicated. Community cooperation among marginalized members cannot be doubted in inner cities including Liverpool.

When the link is established between the two connections, connection A sends a message named a ‘challenge’ to the connection ‘B’. Connection ‘B’ replies to the request by calculating a value with ‘one-way hash’ utility. It is important for both connections that the hash value connection should be the required one; otherwise, the connection will be terminated.

Christie’s battle for a 1.5 per cent tax imposed on teachers, cops and firefighters shows he understands this and his adherence to his mother’s advice as told by the governor himself, “Christopher, you’re going to have choices in your life between being loved and being respected. And you should choose respected.

The act was designed mainly on account of several giant corporate firms losing billions of investor’s money by cooking up fake financial transactions. The Sarbanes Oxley Act has a greater impact on the IT department because, the storage of data, its monitoring is all concerned with the IT department.

Although it costs firms initially, it saves firms from surprises and protects investors who may also be employees as stakeholders. More specifically IAS 19 deals with employee benefits and IAS 39 deals with financial instruments.

The nominal interest rate is the interest rate that does not take inflation into account hence giving an unrealistic number. The real interest rate is the rate that has been inflation adjusted. It removes the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender. Real interest rates can be positive as well as negative.

In the early stages the business community talked about achieving harmonization among accounting standards. The goal of harmonization was to reduce differences among accounting principles used in major capital markets around the globe (Fasb, 2011). Back in 1973 the International Accounting Standards Committee was created.

Indeed, as the cliche goes, “Life is but a matter of choice.” Different people from different backgrounds confront different sets of options. For students, options regarding where to study, what course to take up are just few examples. For graduates, they are confronted with a river of options on which career paths to take, where to work, and to whom they would work for.

goals along with level of acceptable risk and potential return (Bodie, Kane, Marcus, 2002). There are a number of decisions and subsequent steps that a potential investor must follow in order to successfully build a well diversified investment portfolio, one that suits an individual’s short term investment goals and their realistic long-term financial and retirement objectives.

The abundance of a given resource is a deciding factor in determining which technologies merit funding. The question is which resource will carry us the farthest, making it the most worthy of investment? Let us consider the merits of the various resources, starting with coal, which falls under the category of fossil fuels.

Capital budgeting techniques are applied in the determination of projects. There are two major types of capital budgeting techniques. The first types are the non-discounted methods where there is no determination of the present values of the future expected cash flows. Examples here include the payback period and the accounting rate of return.

The company has continued to grow over the past years as its lights have never ceased to shine bright due to there positive interaction with their customers and employees. The positive relation with their customers is due to the company’s ability to offer quality services at a fair cost.

The best “urban chic” business venture that is for both community spirited business and Olympic Games favorite is establishment of a fitness club which may be called Rollin Fitness Center. Unlike item selling shops in the region, fitness clubs are very few and they cannot meet the rising demand of clients in the region.

Why do Firms Voluntarily Disclose Information? Since modern corporate governance principles give first priority to shareholder values, today firms tend to disclose their financial as well as other information in annual report. An annual report exhibits current state of affairs of a company and it is prepared to serve the interest of shareholders and stakeholders including banks, employees, and general public better way.

We see that this kind of management can diversify the company’s sales, production facilities, and the needed material required for the production and inputs purpose. Matters dealing with finance are also diversified to raise more money needed in more than a single capital market and various and numerous different currencies.

The European Union pecuniary deal toll refers to a pitch that was the work of the European merger. The scheme recommended the imposing of a fiscal operation duty (FTT) on all the 27 affiliate regions of the body, with full achievement targeted to be in position by the end of the year 2014 (Smith, 2012:67). 

The financial instruments traded in the financial markets reflect current information available in the market. It also reflects people and expert opinion, assessed uncertainty and any other new information that is available in the market in order to be an efficient (Leigh, Wolfers, &Zitzewitz, 2003, p.1).

Cambridge Mphil will be able to help me achieve all my goals through its unique mentoring program that allows students to concentrate on working with real estate and finance immersion programs that will open up an opportunity to gain a practical understanding of the relationship between the real estate and finance markets.

Advantages and Disadvantages of Conducting Business Offshore. Offshore company relates to the incorporation of a company overseas, and it is utilized in a way that investors are able to avoid tax laws imposed to business in their home countries. Moreover, the offshore are legal in any if they are set for the right purpose regarding the business in which they are involved.

In many companies accountants and managers are not afraid of being involved into fraudulent practices. The basic concepts "fraud" and "legitimacy" should be defined. Trochim & Donnelly develop a reliable basis for concepts considerations and development of further ideas in this research paper.

1. What happened in the 2007 financial crisis? Through asymmetric information hence adverse selection, the 2007 financial crisis was caused by the action and inaction by the government (Lounsbury 2010), which created a platform over which both banks, and bank-like institution taking excessive risks specifically in the mortgage backed security market (BBC News 2009).

Question 1 By upholding ethics in their auditing exercise, I think independent certified public accountants can maintain an independent audit engagement even if their fees are paid by the entity. By adopting the aspect of objectivity, that excludes prejudice, compromise and bias, auditors gives fair view of the company financial position.

It is a wide, complex function, usually carried out by the human resource department, and it incorporates undertakings such as training for enhanced performance, execution of employee growth programs, combined goal setting, and recurring communication. Consequently, performance management can be said to be a logical process.

Individual shareholders paid tax at a rate of a minimum 15% on qualifying corporate dividends, and about 10 to 20% lower than them federal tax rate which is at times as high as 35%. Those taxpayers who are currently paying a marginal federal tan of 10 to 15% pay no taxes for qualifying dividends as well as any long-term capital gains.

The organizations are expected under laws and regulatory rules to work in accordance with patterns, such that environment, commitment to value health, strong pledge for the safety of consumers and employees, and investment for the betterment of communities in which they are operating are visible in their efforts (Hay, et. al, 2005).

Here, borrowing is considered a financing activity and since overdrafts are borrowings for a short time, they are thus added to the cash flow statement. Moreover, they are included in the cash flow statement because their payment is based on demand from cash management and thus composes what is called cash and cash equivalent.

CAPM and Its Practical Use. CAPM refers to the capital asset pricing model, a widely adopted model within the financial field in order to determine the value of the appropriate rate of return for an asset. Generally speaking, the model has been extensively adopted by portfolio managers and by financial analysts in order to infer asset required and expected returns on a standardized basis.

One of the biggest success stories in American business history is the hamburger giant McDonald’s. The firm is a fast food restaurant that operates as a multinational corporation. The business model used by the company is franchising. The organization has been extremely successful since its inception due to the fact that it has quality food at affordable prices.

 These developments have also been felt in the banking environment. One of the developments has pertained to the adoption of mobile banking. Bank management, such as Barclay’s managers, as one of the stakeholders with the vested interest, have often insisted that mobile banking comes with various opportunities that cannot be foregone, supporting Hello Money.

The starting of cracks in IASB’s efforts to standardize accounting practice globally can be seen in its inability to get develop an acceptable accounting standard for Insurance contracts. This has been going on for some time now. In fact, the Accounting web indicates that concerns were made known by various stakeholders in 2003.

The firm should change its production schedule to produce Wendy's burgers and Burger King Burgers consecutively. The current pricing is also inefficient because it overcharges Wendy's burgers and Burger King Burgers but undercharges the other products. A comparison of costs and prices before and after the proposed change shows this.

In this regard, it is the responsibility of the relevant personnel to evaluate alternatives to determinates would generate more profits, thereby providing relatively more value to the firm and its stakeholders. There are three (3) machines that the firm is considering as an investment. They are the Alumier which it currently uses; Big EZ and Cial. 

Secondly, the entrepreneur is allowed to retain earning without sharing with debtors because the debtors do not have any share of the profit, unlike equity where they do. Moreover, there is an aspect of tax deduction to interests borrowed and hence the business has a lowered liability when paying taxes, unlike equity.

The study is based on basic theories of Financial Conservatism and Agency problems related to economic distress. The financials of the firms are extracted from the fiscal years 2005 to 2012 and statistically analyzed to establish and prove a hypothesis that the agencies practice cash conservatism and low-leverage financial policy; particularly in times of economic recession.