Accounting Essays

Intermediate Accounting

Nicholas Inc. is in need of a new punch press to increase its production output. Their company policy is to have the purchasing department obtain 3 different vendor bids for any major purchases. The engineering department of Nicholas Inc. has determined that each of the three vendor’s punch presses is substantially identical and each has an estimated useful life of 20 years. Maintenance on the machine is performed at year-end. With a cost of capital of 10%, it is our…

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Activity Based Costing

Activity based costing (ABC) is a relative new way to allocate costs to specific processes and services. This system assures that the costs are accurately distributed to the products or services that generated them. ABC illustrates costs more accurately, giving management insight to the cost associated with certain business activities. ABC extends the decision-making skills of management by expanding on traditional costing (job order costing/process order costing) techniques. However, since ABC’s introduction in the 1980’s, many corporations are not using…

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Ifrs and Gaap Accounting Principles

IFRS is also referred to as International Financial Reporting Standards. They are set of standards of accounting developed by International Accounting Standards Board (IASA). They are becoming the standards in the globe to be used for preparation of financial statements for the public companies. IASB is independent body which sets accounting standards which is based in London (McLaughlin, 2009). This body consists of fifteen members who are from nine countries including United States. IASB started operating in 2001 since it…

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Arthur Andersen

In order “to offer high-quality accounting services”, Arthur Andersen (AA), a Northwestern accounting professor started a business to offer services to clients promoting “integrity and sound audit opinions over higher short-run profits”. The company’s “four cornerstones” was good service, quality audits, well-managed staff, and profits for the firm. Their strategy was to focus on quality and high standards of audits rather than profits, a very successful strategy that led to consistent growth over the years. Environmental, strategic, and organizational changes…

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Accounting System Paper

Kudler Fine Foods has done a wonderful job with its current accounting system by manually tracking data and not having a uniform system for providing information about that data. Data is the raw and unorganized version of information while information is categorized and decipherable data that correlates to the business. Kudler Fine Foods is making a transition from the less efficient and more labor intensive accounting methods to a technology based accounting system which saves money being that it is…

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Conventional Accounting Systems

Advantages of a Computerized Accounting System The Difference Between Net Income & Pretax Accounting Income The Difference Between Strategic & Traditional HR Before the advent of fast and cheap computers, accounting traditionally was processed manually with all transactions recorded in columnar papers and kept in voluminous binders. Once computers became popular and software affordable, accounting tasks moved into this medium, where concepts stayed the same but mechanics changed from papers to programs. Sponsored Link Diesel Exhaust Brakes Exhaust Brakes On…

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Career Investigation

My ideal career is in accounting. I have determined that this field is best suited for me through career assessment tests, learning styles assessments and by actually working in this field for several years. I have been interested in accounting since taking my first accounting class in high school. It was then that I found that not only was I good at bookkeeping but also enjoyed it. From my Learning Style Graph (Toft, 2006) I discovered that I equally reflect…

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Accounting Materiality Case

After the release of the SFAC No. 8, your definition of materiality has been brought into question. In the past, your rule for determining materiality was based solely on quantitative data, where an event was only material if its impact was more than a given percentage of the income statement amounts. Using a quantitative measure is effective because it keeps the process objective; however there are also times when the quantitative difference doesn’t adequately demonstrate the true effect of an…

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Financial Accounting Standards Board

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are two of the most important bodies of the Accounting/Finance field today. Though both boards work together to develop and enforce financial reporting standards for publicly held organizations, the FASB concentrates on the accounting standards in the United States while the IASB sets its focus on global standards. The rules and standards that are set for individual certified public accountants that practice in the United States are…

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Deceptive Accounting

Fraud and corruption are a menace not only in the poverty stricken countries, but also in the developed world. The worldwide menace of malpractice attempts to defeat the value to globalization. In the globalized world of investors of the 21st century with its first transatlantic stock exchange, it is necessary to continue reforms to shake off abuses of power at the level of their roots. So, Daniel Quinn Mills, a professor at the Harvard Business School, writes Wheel, Deal, and…

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Accounting Cash Flows

Question 2.2 – Accounting and Cash Flows: Why is it that the revenue and cost figures shown on a standard income statement may not be representative of the actual cash inflows and outflows that occurred during a period? Financial Statements are prepared according to accrual rule of , according to which cost and revenue are recorded as they occur and not when they are actually received or paid. This is why cash flows during the year may be different from revenue…

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Personal Trainer, Inc.

Background You are enjoying your job as a student intern at Personal Trainer. Last week, Susan asked you to help her plan the new information system project. Susan knows that you have completed several information systems courses at the local college, and that you have studied project management tools and techniques. Specifically, she wants you to get ready for the next set of systems development tasks, which will be requirements modeling for the new system. Yesterday, Susan called you into…

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Internship Report of Accounting

1. Introduction During April 12th and April 30th, I served as an intern for ZhiqinCertified Public Accountants CO., LTD. Foshan City, ZhiqinCertified Public Accountants Co., Ltd. is officially registered, a certified public accountant firm, in 1990, a period approved by Guangdong Provincial Department of Finance was established in 2000 began operating a limited company, a practicing certificate number is 44060005, assets assessment Certificate No. 440 200 756. Since its establishment, it keeps adhering to the purpose of “legal, independent, objective,…

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Survey – Payroll

A1. The most important I learned in this payroll accounting course is that there can be different methods of calculating income taxes and other taxes, but the underlying idea is to lawfully tax the earner, according to their wage-level and family structure. The different taxing figures for weekly, biweekly, monthly, semi-annually and annually salaries gives a clear picture of the differences that have been implemented by the federal board in taxing these different types of workers. Setting a standard across…

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audit Plan – Accounts Receivable and Notes Receivable Audit Procedures

1. Obtain an aged trial balance of individual customer accounts. Recalculate the total and trace to the general ledger control account. 2. Review the aging for large and unusual items. 3. Send confirmations to all accounts over $X. Select a random sample of all remaining accounts for confirmation. a.i.1.a.i.1.a. Investigate exceptions reported by customers. a.i.1.a.i.1.b. Perform alternative procedures on accounts that do not respond to positive confirmation requests. a.i.1.a.i.1.b.i. Vouch cash receipts after the confirmation date for subsequent payment. a.i.1.a.i.1.b.ii….

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