Income statement

Because there are a number of ways that a company could manipulate inventory numbers to misstate the final account balance, auditors must be diligent to prevent fraud or human error. A misstatement in inventory can have two effects: increase the value of the account and thus the company; and, increase cost of goods sold and thus increase revenue. One of the most important jobs for an auditor is to inspect the physical inventory itself. This tests two key assertions: existence and accuracy. The…

In the business situation with Ahi Corporation, an employee of Ahi offers the suggestion of a using a “float” to earn interest on a payment due to Internal Revenue Service. In the past this practice of a free money was once encouraged by many, to help aid business, however in recent years is has been discouraged and it is not recommended. In 2003, Congress passed Check 21 (Check Clearing for the 21st Century Act), allowing banks to use scanned checks. The float days have decrease as well as…

The chart of accounts is a highly detailed list of various account types an organization manages. A nonprofit's chart of accounts gives the organization a uniformed manner in which to track assets, liabilities, equity, revenue, and expenses ("chart of accounts definition", n.d.). The benefit of a chart of accounts is that it can be tailored to properly reflect the needs and operations of each organization. These documents are not only used by those within the organization, they also provide…

For my wild and precious life I strive to become a Certified Financial Officer (CFO) of a globally renowned music recording company known as Universal Music Group (UMG). The recorded music business discovers and develops recording artists and then markets and promotes their music across a wide array of formats and platforms. UMG is comprised of artists across many genres and they currently have over 50 music labels locally and internationally. Music has always been a passion of mine, and what…

Bad Credit Business Loans get very useful information Awful credit business loans are a scarcely utilized money related system that gives critical working money to businesses by strategy for their credit card processor. A little measure of business proprietors to family or a bank when they should have financing to pay for increases, repairs or upgrades of their stock and gear. In the event that you are a President requiring capital instantly, you may need to take a gander at this technique for…

financial report helps communicate an organization’s financial situation to the stakeholders and analysts. In class, it was discussed that there are several guidelines and standards by which organization have to follow in regards to their financial statements and operations. For example, organizations have to abide by Generally Accepted Accounting Principles (GAAP) and the Governmental Accounting…

The wonderful day to day life of an Accounting technician! This is an occupation that is needed but often overlooked due to the day to day use of Mathematics. This is an occupation that is needed in many aspects of our society and one that I recently became interested in doing. I enjoy working with mathematics, computers and money management. To achieve this goal, I need to become familiar with the job description and duties, working conditions, education and training program, job opportunities…

including goodwill, as an asset. All costs incurred to develop intangible assets that are not specifically identifiable should be recorded as expenses. Where an intangible asset has been recorded, its cost should be amortized by systematic charges to income over the estimated period of benefit of the asset. The amortization period should not exceed forty years in any case. The provisions of APB 17 apply to intangible assets recorded on the acquisition of some or all of the stock held by…

Because of this the net cash provided to them from operating activities is lower than it could be if they let their inventory shrink a little. For example, let’s say that GAP’s net income for the year is around $200,000, and they have a depreciation expense of $10,000, a decrease in accounts receivable of $3,000, an increase of inventory of $30,000, and an increase in accounts payable of $15,000. This would leave them with net cash…

Precision Machines is looking into the company’s future to determine their financial needs and, in order to do so, they are preparing a financial plan to see what they need and how they need to address future operations of the company. The financial plan they are creating is based upon the historical aspects of the company. This means that the company knows historically that their sales are 30% cash and 70% credit. They collect 50% of their credit sales the month after the sale and the other 50%…