Management accounting

The theory of accounting has been around for thousands of years. Accounting, also known as the language of business, is an information science used to collect, classify, and manipulate financial data for organizations and individuals, which has changed a lot throughout time. This field was established in 1494 by Luca Pacioli, an Italian mathematician. Throughout all these changes that have occurred since 1494, technology has become a major part in an accountant’s job. The advancement of…

Sherron Watkins blew the whistle on Enron in 2001 by sending a memo to Kenneth Lay, the founder of Enron, giving caution she knew the company was at a great risk of finding themselves in a dilemma. The dilemma would be the product of many financial accounting scandals. Enron is a company that buys and sales energy from different companies and according to Patrick Rogers, was worth $74 billion in 2001, and was developed by Kenneth Lay and Jeffrey Skilling in 1985. Enron would be a successful…

Excel Not a Reliable Software for Accounting In 1,987 working with my father at his office, it was available pencils, papers and a printing calculator for accounting and that took forever. Then computers were implemented, and Excel made accounting easy. Still Excel needs for the user to create spreadsheets required for accounting. Accounting had evolved in the last years from manual to computerized systems. The use of Excel, which is considered a manual system in business, is not reliable for…

The documentary “Enron: The Smartest Guys in the Room” deals with “one of the most America's largest corporate bankruptcy”, as it reports the documentary itself. In fact, few years before the bankrupt, Enron was the 7th largest corporation in the USA that took 16 years to go from 10 billion assets to approximately 65 billion, but in only 24 days it went bankrupt. The movie describes and analyses how the company grew and then collapsed quickly and surrounded by a gigantic scandal that can be seen…

misrepresentation of accounting information which is directed to result in profit to an individual and group of people. We can say that any illegal activities done by an individual or a group with the intention of making more money for organization when caught by the authorities or by any other means comes under Accounting Scandal. There are several accounting practice, which are developed in order to avoid fraud in accounting process such as Generally Accepted Accounting Principles(GAAP),…

Sumitomo Copper Scandal (1995) Impacts on the Sumitomo Corporation The Sumitomo Copper estimated that the copper scandal, the financial scandal, gave rise to losses of $1.8 billion in June 1995. According to the company, the case would not affect their activeness and they would swallow the entire loss in the current fiscal year, which was about nine months after it took place. In order to cover the $1.8 billion losses, they would set aside a fund from the original executive bonuses and canceled…

The trade turnover for the Newport creamery in 1918 was reported at a substantial sum of £34,765. At the Nenagh Quarter Session of the County Court in October, in efforts to recoup the endured losses a claim was lodged by the society for £20,000. The magistrate awarded £12,339 in damages, which also included interest at six percent for the duration of one and a half years on the value of the stock destroyed. Furthermore, an additional fifteen percent was awarded for the increase in the price of…

Consequences of White-Collar Crime White-collar crime is a widespread problem which have resulted in significant financial loss to victims. A few well-known white-collar crime case made headline to aware of the seriousness. They are Enron collapse in 2001, WorldCom financial fraud in 2002, Bernie Madoff Ponzi Scheme in 2008 and Leman Brothers scandal in 2008. These frauds all linked to large amount of money. According to Friedrichs (2009), the financial damage result from white-collar crime in…

Mesothelioma settlements Part 3 Mesothelioma verdicts if the plaintiff doesn’t agree to a settlement, the case will go to courtroom. In asbestos-related cases, the plaintiff will receive a verdict at the end of the trial. The compensation varies depending on whether the jury considers the defendants are legally responsible for their actions that harmed the plaintiff. In such cases, the legal responsibility would be for exposure to asbestos and the harm is often untreatable disease (mesothelioma…

In Shall We Tell the President? by Jeffery Archer Andrews is put into several situations that determine his fate. It should have been his skills to problem solve, however it was pure dumb luck that saved his life and job. As an author and a member of the British Parliament from 1969-74, Jeffrey Howard Archer’s career is reflected in his fiction and his fiction has influenced his career (“Archer” 21-2). In 1959 he trained to be an Army Officer and held a police officer position for five months…