Essay on Accounting

function of public accountants and public accounting firms is to conduct external audits of balance sheets, income statements, quarterly reports, and earnings reports. Public accountants must evaluate their clients ' financial statements based on GAAS (Generally Accepted Auditing Standards) and ensure that the statements have been prepared in accordance with GAAP (Generally Accepted Accounting Principles).The use of the word “public” in the term public accounting highlights the importance of the…

TUI UNIVERSITY Mathew Shannon SLP 1 Case Assignment ACC 403 –Principles of Accounting Dr. Craig Mayberry December 2015 Session International Financial Management The Smith Company earned the net profit of $349,150, resulting into the net profit margin of $86,850 /$436,000 = 19.91 %. Net Profit margin position clear out how much net profit is earned by the company with the given amount of sales which is the present case is 19.91%. Current Ratio is the ratio between current assets and…

The Financial Accounting Standards Board (FASB) has been the assigned organization in a private sector for establishing standards. These standards are important to be useful because it allows investors to make informed decisions. Financial information must be reliable, consistent and transparent. Transparency refers to high-quality financial statements that are clear and easy to understand. Being transparent in financial reporting allows investors, creditors and the market to properly evaluate…

1. Identify accounting rules of revenue recognition and describe the inadequacies in accounting context of using bill-and-hold to recognize revenue at Halliburton. According to the accounting principle revenue recognition, it is the function when revenue is reported and recognized when a function has occurred. Under GAAP, revenue recognition should recognize a measurable amount of revenue once a certain transaction has been fully made. That would be the case, when certain types of goods or…

a) IASB stands for International Accounting Standards Board. The IASB is a standard-setting board whose main role is to ‘develop and approves ‘International Financial Reporting Standards’ so that all financial reports and financial statements globally are detailed and can be easily read by all users. With constant regulation and development, it ensures all business’ financial records are formatted the same and easy to transfer information to and from them. To become an IASB member isn’t an easy…

financial statements prepared by a firm must be based on certain concept. Accounting concept is a guideline or regulation standards have been generally accepted and recognized in the processing and presentation of accounting data. The aim of concept is to ensure that financial reports were made honestly and fairly and to avoid distortion in the practice of accounting. Thus, the concept must be known to understand the accounting process. We want to discuss about meaning, practical instance,…

Bloomfield Article In the article “Accounting as the Language of Business”, Bloomfield compares accounting and natural languages to determine three things: the role of standard-setting in accounting, the evolution of accounting standards and practice and the reason why accounting research is so different from teaching accounting. Bloomfield writes that standard setters are necessary for accounting because these bodies are ubiquitous and binding. In addition, accounting is a non-cooperative type…

CAFR Briefing and For-profit vs Government Accounting Carrie Noderer ACC/548 September 1, 2014 Douglas Traster CAFR Briefing and For-profit vs Government Accounting There are many differences between accounting for for-profit businesses and accounting for non-profit organizations and government entities. Some of these include the different parts of the financial statements that are important for both, and how different goals require emphasis of different reports. There are quite a few…

3.2.3 Legitimacy Theory in Accounting In accounting, there are two major classes of Legitimacy Theory. The first one is on an “Institutional Level” while the other one is the “Organizational Level.” What is important is that we remember that Legitimacy Theory is all about conforming to the Social Contract of the society, or in this case, of the nation in which the organization is functioning (Tilling, 2014). Institutional Level This refers to how an organization gained acceptance from the…

Chambers is widely acknowledged as one of the leading academic contributors to the art of accounting. His development, Accounting, Evaluation and Economic Behavior propounded a comprehensive theoretical foundation for a style of accounting, Continuously Contemporary Accounting (CoCoA), that would control mistaken, avoid the unnecessary and fraud in accounting practice. CoCoA was first presented at length in Accounting, Evaluation and Economic Behavior in 1966. It is consistent with a large body…