Accounting Essays

The Four Basic Financial Statements In the field of accounting, the basis of all decisions comes from the calculating and reporting of financial statements. Without these statements, a company may lack in organization skills which could lead to huge errors being made. These huge errors could cost a company millions of dollars. Knowing that, it […]

The consolidated balance sheets of General Mills, Inc. and subsidiaries as of May 28th 2006 and May 29 2005, and the related consolidated statements of earnings, stockholder’s equity and comprehensive income, and the cash flows for each of the fiscal years in the three – year period ended May 28, 2006 and the report dated […]

How did the corporate culture of Enron contribute to its Bankruptcy? Once a sound company listed in fortune 500, Enron, lead to downfall because of deceptive accounting system incorporated within the organization. Enron’s dubicious finance finally collapsed in Dec 2, 2001 as it filed Bankruptcy in New York Bankruptcy court. The corporate culture of Enron […]

According to AASB 117, the structure of an operating lease is a form of off-balance sheet accounting, meaning that lease obligations are not reported as liabilities on the balance sheet. However, critics argue that lease parties often structure leases to avoid capital lease accounting and use operating leases as a source of off-balance-sheet financing. This […]

This report will evaluate the adequacy of accounting ratios as a means of monitoring the state of the business in selected organisation, using example. The selected organisation is going to Tesco plc, and it will be evaluating their profitability ratios and Liquidity ratios. A financial ratio (or accounting ratio) is a relative magnitude of two […]

What assumptions did Mr. Fischer make when he prepared the forecasts? Were these assumptions reasonable? Mr.Fischer made assumptions for both the income statement and the balance sheet. Income statement. We calculate the percentage of variation from one month to another in terms of sales and gross profit. When Mr.Fischer prepared the forecast of his income […]

Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings? First, after Al Dunlap was hired, Dunlap wanted to surround himself with loyal executives, such as Mr. Kersh, and fired the existing senior managers. This strategy […]

Shakespeare Inc. is a privately held book printing and publishing company with a December 31 year-end. There are five accounting issues that management must consider during the course of proper financial statement presentation. This memo will break down the accounting issues and provide guidance per section. 1. Should the information pertaining to actual claims incurred […]

Established in 1975, Noel Gifts International Ltd is a Singapore-based company with two divisions – Gifts and Properties. The Gifts division oversees the online sale of gift hampers and floral arrangements in Singapore and Southeast Asia, as well as the franchise programme. Subsidiaries under this division include Humming Flowers & Gifts Pte Ltd, Noel Hampers […]

The Malaysian Institute of Accountants (MIA) suggests that the public sector should switch from cash accounting to accrual accounting to maximize its benefits. Malaysia aims to fully adopt accrual accounting by 2016. Cash accounting documents financial transactions in an organization’s statements based on their immediate cash impact during a particular period, including money received and […]

Voluntary liquidation refers to the voluntary process of winding up and dissolving a company. When a company decides to voluntarily liquidate, it begins by passing a resolution and typically ceases business operations at that time (unless it has already done so). If the company is financially stable and its members have declared solvency according to […]

Statement of Financial Problem Butler Lumber Company, a growing profitable business has exhausted its credit limit and the key issues facing it are: Need for additional funds to continue the growth Need to consolidate debt Need to improve cash flexibility. In this case study I will be discussing following problem: Why has Butler Lumber been […]

What columnar sheet of paper is used to summarize information needed to prepare the financial statements of the business? General Journals. Trial Balance General Ledgerd. Worksheet Posting is the process of transferring information from what? Ledger to the financial statements. Ledger to the trial balance Journal to the ledgerd. Journal to the trial balance What […]

erspective P Insights for America’s Business Leaders Building A Fortress Balance Sheet: Protect Your Bank’s Financial Health While Positioning It For Growth Executive Summary: – The Vauban Model – Current Market Overview – Stress Testing and the Fortress Balance Sheet – Capital-Raising Strategies “Ultimately, market participants themselves must address the fundamental sources of financial strains […]

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure […]

Summary The Hair Emporium is a salon owned and managed by Rolando and Rosa. After years of success, and much research, they have decided to expand their business through franchising. As the hair care industry earns approximately $16 million dollars annually in the US; Rolando and Rosa are sure they will be successful as they […]

PRC GAAP, which stands for generally accepted accounting principles of the People’s Republic of China, consists of accounting principles that are derived from various sources. These sources mainly consist of laws and regulations issued by the Ministry of Finance (MOF) and disclosures made by listed companies that are regulated by the China Securities Regulatory Commission […]

Question 1 If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid which will appear as a financing outflow in the statement of cash flows. Answer Selected Answer: Correct Answer: $12,000. Question 2 If ‘other expenses’ in the profit and loss report […]

Loss Account Ratio Limitations of Ratios Ratio analysis is an important tool for bankers and lenders to assess various factors such as liquidity position, profitability, solvency, financial stability, quality of management, and the safety and security of loans and advances. Ratios can be expressed as percentages or proportions, indicating the relationship between net profit and […]

Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Vision We view business as a means to the material and social wellbeing of the investors, employees and the society at large, […]

Quantitative analyses of financial statements (Income Statement, Balance Sheet and Sources of Capital), extensive ratio tables (Accounting, Asset Utilization, Employee Efficiency, Fixed Charges Coverage, Leverage Analysis, Liquidity Analysis, Per-share Data and Profitability Analysis) and proprietary Wright Quality Rating analyses tables. The Wright Quality Rating, a measure of corporate risk, examines the liquidity of the stock, […]

To gain a better understanding of the modern corporation and its related ideas such as limited liability and disclosure, it is valuable to examine the history of private enterprise, which dates back thousands of years. Examining the corporations that emerged in the 17th century can serve as a pertinent foundation for this comprehension. It is […]