Finance & Accounting Essays

a/c 16,200     A/c payables 71,000     Electricity a/c 1,820     Purchases 8,000     Balance c/d(Bal. sheet) 49,730   232,750   232,750         Withdrawal Account Details Ant($) Details Ant($) Cash a/c 20,000 Balance c/d 20,000                   20,000   20,000         Motor Van Account Details Ant($) Details Ant($) Balance B/F 12,000 Acc.

Assuming an a priori adjustment in payouts in order to compensate for taxation differences between capital gains and dividends. While this represents conventional wisdom in many markets throughout the Western world, there are examples in Asian markets that deviate from this trend.

Satirical news shows, such as The Daily Show, The Stephen Colbert Show, and Real Time with Bill Maher also serve to enhance democracy by getting people interested in the news who were not interested previously, while enhancing political discourse by encouraging their guests to be civil to one another.

There are several methods to determine the viscosity of a substance, the most common one is using a viscometer (Viswanath). A viscometer is a device that is used to estimate the viscosity and other flow properties of a fluid. A range of different types of viscometers is available which differ from each other based on their measurement principle.

Risk free rate + ? (Average Market Return –Risk free rate) Where ? is the beta value of the financial asset The basic assumptions of this model pose as disadvantageous for this model to be considered as a perfect representative of required return calculation.

As a result, it felt necessary to provide some rules and advice in various areas of company management. Cadbury Report (1992) Greenbury Report (1995), Hampel Report (1998). Turnbull Report (1999) and Higgs Review (2003) were issued to address some specific corporate objectives.

Today, people can talk with each other, access information and interact regardless of where their locations are. There are few who consider this as a bane. However, the majority of people today consider this development an advantage and, often, a necessity.

Fangio Brothers Smash Repairs, which was set up in the 1950s is profitable and has a fixed source of business flowing annually. Off late the company has been witnessing some turbulence times mainly due to the increasing dominance and control exerted by the major insurance companies, as a result, it’s affecting their profitability.

Saudi Arabia is largely dependent on oil for its revenues. The presence of this very mineral is likely to attract a large amount of investment in the nation. However, in order to venture out to any particular sector, an investor normally takes into consideration the extent to which the respective stock is volatile to market fluctuations.

Along with the widely used web search engine, Google has introduced a number of other services and there are still a number of products in the pipeline yet to be introduced by Google. The company provides services like customized advertisement and web application for all sorts of tasks in so many different languages.

How many loans can the bank make? How many demand deposits can the bank create? What is the total money supply? How much of the money supply is cash? Ans: monetary base $ 24,000,000 Reserve requirement 10% Currency requirement 40% Loans (100%-10%-40%) 50% Loans the bank can make (50% of $24,000,000) $ 12,000,000 As the currency requirement of the bank is 40%, so the bank can create demand deposits upto 40% of the monetary base.

It is not always that financial metrics are applied to measure shareholders’ value. There are other non-financial measures as well as Bidgoli notes. This measure is the nonfinancial supply chain measure. A value-driven kind of supply chain is viewed by its equivalent management as a new kind of light.   

The focus will narrow down and analyze these costs in the context of the EEC journal activity. II. Part II: Cost Analysis a. Variable Costs ‘Variable costs’ is an expression referring to those cost outlays which vary with varied levels of production. In other words these costs will be seen to change in a business scenario once the business varies its production levels.

The stock exchange is a form of exchange that is intended to provide services to the stock traders and brokers who basically deal with not just stocks, but bonds and many other securities. The stock market has so many roles that it plays and the various roles are of utmost importance as a primary market and a secondary market in the development of the economy.

Expiry date and price of the exercise are highly taken into account. The year 1982 saw the initiation of exchange traded foreign exchange options. Specifically, London, Chicago and Philadelphia were the first places where currency options were traded. Futures and options basically characterized the transactions undertaken in the currency options market.

This is through diversifying and enhancing the expansion of banking and pecuniary sectors. It is the monetary and business entryway between regional, upcoming and global markets and contributes considerably to the UAE’s nation building objective. The new Amending Law does not alter the responsibility of the DIFC; rather its configuration is being enhanced to further the initial targets and clarify authority processes.

In the year 2003 there was a 9% accounted for on the GDP (Data monitor, 2003). For the past years the supermarkets in the United Kingdom have been scrutinized keenly on how they treat their supplies, specifically the ones of their own labeling, though strategic supply development networks plays a major role in integration of the strategies of supermarkets for the last ten years.

Coca Cola which is known for its innovation and best soft drinks produced by them globally is not a company which makes mistakes often. Coke had launched its Dasani bottled water in UK which resulted in a disaster for the company. Dasani which was launched in USA in 1999 as purified bottled water and experienced a huge success and so Coke launched the same product in the UK market also expecting the same success as that in USA.

This is concerning the vivid exposure of the selfish deeds that business executives participated in, in an attempt to line their pockets with more cash and leaving those in vulnerable positions to fend for themselves without any form of security or safety net to fall back on in the event of a financial mishap. 

The market from time to time experiences fluctuations and as a result, most corporations prefer using futures to offset risk exposures. Tthe ultimate goal of a rational investor should be to minimize risk. Derivatives such as futures as we have seen from the discussion are recommendable and should be evaluated wisely before a contract is made. 

The company has more than 2,600 stores operating in the US. Limited Brands is also selling its products through more than 680 companies worldwide (Limited Brands Inc, 2013). News Corporation is one of the top television groups in the world. Its business includes the best broadcasting company in the United States called Fox Broadcasting Company.

Smart and Megginson (2008) note that today, financial markets have continued to grow, but the importance of financial intermediaries has kept decreasing, as far as their interaction with corporations is concerned. Today, most corporations do not turn to financial intermediaries, such as banks, for debt or borrowing.

Generally speaking, the government should constantly inform the public by providing accessible and dependable information to the public as well as informing the taxpayers on their rights and obligations. The governments should encourage public participation in setting the tax laws hence reducing resistance.

The huge volume of shady and illegal transactions by misusing its global networks and abusing the financial system is unforgivable. The Bank chairman’s unconditional apology to the stakeholders for the wrongs in accounting has blurred all the good work for social, economic, and environmental sustainability.

Compass Group plc has businesses in over fifty countries operating under various brands making it the world’s largest contract company offering food services. The company uses its five hundred and eight thousand employees to serve more than four billion meals every year in fifty thousand locations around the world.

Enron’s failure in 2001 and other corporate scandals that came into the limelight in 2002 and henceforth have diminished the confidence, that people had all over the world, in financial reporting, auditing, and other corporate governance practices. A scandal can be described as a widely publicized incident that accuses a company of wrongdoings, disgrace, and moral outrage.

The fixed cost of the company in the current period is $1,500,000. The Break-even point in sales dollars as calculated comes out as $5,000,000. The current scenario as above generates a profit of $1,380,000. The company’s overall break-even point in units as calculated is 29,166.67.

This case is about Michael Jenkins who works as a sales representative in a restaurant and dreams of owning a restaurant business of his own. He has saved a substantial amount and has approached his banker with certain financial figures. Michael and his banker both agreed on the fact that he has got enough capital to seriously contemplate investment and make his dreams come true.

Generally, income is recognized as revenue when a company delivers its product or rendered service and receives payment for it. Under accounting principle of ‘revenue recognition’, revenue is recognized only under specific circumstances. According to International Accounting Standard 18: Income is defined as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

While the crisis had taken shape, economists, politicians, and researchers were concerned about the causes that triggered a crisis of such a dimension. Although it was quite late and the crisis was already in full swing, researchers claim that prior signs were visible about the occurrence of the crisis. 

Accounting has been one of the oldest professions, which has existed since the inception of trade. However, its forms have changed in terms of the methods deployed for performing different tasks of accounting. Moreover, over decades there has been a constant strive to make most suitable standards and guidelines for the accounting function to adhere to in all forms of organizations.

No. of units of production required to break even in a year is given as, Contribution per unit of sale= (Sales price per unit - variable cost labour per unit - variable cost of material per unit) = 95-35-10= £50 Breakeven production in units = Fixed cost/ contribution per unit

Self-employed taxpayers have the advantage of claiming a wide range of expenses against the receipts of self-employment services. “The decision to become self-employed can also be affected by the tax system.”(David G Blanch flower and Chris Shad forth) There is also an advantage of payment of income tax by installments as against taxes being withheld by the employer under the PAYE scheme.    

This research is the best example of comparative analysis of USA - Canada social security system. The purpose of this research is to investigate the following: U.S. social security system; Canadian social security system; comparison of the systems; contrast of the systems; evaluation of current U.S. system against Canada and recommendations.

There have been several trends and changes in corporate governance in the UK since the Cadbury Report was released in 1992. This has been influenced by many reports including the Hampel Report, and the Greenbury report which sought to create a combined code for the directing and control of businesses in the UK.

As a result of a four day trial in 1993, a person named Bobby Lee Holmes was convicted of the crime and sentenced to punishment. The main evidence to the case was the appearance of Holmes’s palm print, fibers from clothing s and DNA samples on the spot of crime.

The research tells that the motto ‘buy low – sell high’ is a standard in the industry but the opposite often becomes the rallying cry as investors panic in a crisis and sell low while seeing stocks on the upswing, buy high.  This is a broad introduction, but to understand behavioral finance one has to understand human psychological responses and emotions that are involved in decisions. 

Banks and financial institutions have played a significant role in integrating the different economies of the world. A brief analysis of the global economic scenario can highlight the fact that the banking industry has always been that sector that has either strengthen or uplifted the economic outlook of a particular region or has caused turmoil.

Book explains how businesses use strategic management accounting to deal with external and internal changes. This book gives a detailed account of the concept of strategic management as a new trend being applied in management accounting to adapt to changes, market positioning, and competition between different firms.

Worst, the punishments that were meted before were not commensurate to the crime that was done hence those unlawful acts continued. Second, I learned that the best way to discourage such malpractice, especially in the accounting profession and those in the financial sector is to penalized criminal behaviors that far exceed the benefits that was derived from those wrongful acts.

The effort is aimed to orchestrate the financial systems of International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Practices (GAAP). In this paper, the writer intends to analyze and evaluate this joint effort. Research Question Explain what is meant by a ‘conceptual framework’ for financial accounting, discuss the reasons why such a framework might be useful and the reasons why the IASB and FASB believe it is necessary to develop a joint framework.

Larry Williams is a well-known day trader and has written a number of books on investment techniques. Late Sir John Templeton, who died in 2008, was an American-British philanthropist, stock investor and a businessman. He was known as a mutual fund pioneer.

Contents Introduction 2 International Economy 2 Reporting Standards 3 Differences 3 Case Study 4 Inventories 4 Revenue Recognition 5 Introduction The international economic scenario has changed over the past few years. The reason for this change is the advancement of technology and especially information technology.

the best-line-of fit does not pass through the origin making the assumption not to hold for sales and assets analyzed. This is because there is no close association between the dependent and independent variables in the study. From the above situations, both cases have a close range on R-square but the first is preferred most.

A method such as mean-variance analysis helps predict and reduce the amount of risk. Holding a mix of assets, otherwise known as portfolio diversification, is a key concept upon which successful investments in the business world gain greater practicability. The practical applications of portfolio theory abound in different segments of a business.

This simply indicates uniformity in the prices of a fixed number of goods and services and exchange rates of two countries. The roots of this theory lie in the law of one price, which says that homogenous goods should have identical prices universally not including any carrying or shipping costs under the prevalence of perfect competition.

We will have assets of varied types in our company. The assets will either be purchased through cash or through leasing (Harris and Hazzard, 1997). This means that our assets will be exposed to varying amounts of risk.  Among them will be a credit risk. There are assets that will not be fully paid for but will still be under operations in the business. 

A form of the public and private partnership involves the cooperative arrangement between the government and the various companies to assist in increasing the funds needed in the defense budget. Companies and the voters have understood that the current budget for the defense department is too high to be sponsored by private and public partnerships.

The company Gryon is considering an operational expansion and has decided to buy one of the two freehold lands available. Taking this strategic move into account, the company is conducting an investment appraisal in order to evaluate which of the two options is more financially feasible. The company’s cost of capital is 12%.

Alternatively, the new plant and machinery could be pledged and the overdraft converted into a term loan. These proposals will result in a reduction in interest outgo considerably in the future. The sale of machines and leases back could be considered as a last option if the bankers are not willing to cooperate with the company in converting overdraft to a term loan.