Accounting Case Study
explanatory Essay
714 words
Accounting is the language of business. Accounting records and processes financial information into an accessible format that can be understood by anybody in the business world. It is defined in business that accounting is “the recording, measurement, and interpretation of financial information.” (Ferrell, Hirt, Ferrell, 2016, p. 286). Companies uses accounting tools to evaluate organizational operations. Accountants summarize the information from a firm’s business transactions in various financial statements for a variety of stockholders. There is a lot of business failures that happen because of information that is “hidden” in the financial statements. Cash flow is the greatest concern of management. For businesses to succeed, they need …show more content…
Micron’s shares are around 97% held by institutional investors. In Micron 10-K, it states that Micron’s net sales increased from 2013-2014 (10-K, p.43). Micron did an acquisition at the end of their 2013 fiscal year. By doing this acquisition, there were able to increase their net sales. It is important to know how to read a financial statement. It is good to know where the denomination is expressed in. This financial statement is expressed in millions.It is good to know which way the years are running. The most recent fiscal year is going to be on the left side because people care more about the recent years. According to the Micron 10-K, the statement of cash flows showed positive net cash from operating activities for 2015 (10-K, p.47). This is important for the investors. In order for Micron to have 5.2 billion in cash flow, they had to spend 4 billion in equipment. They generated over 1 billion in cash flow which is beneficial to the investors. There is a new rule that was issued in 2014 and it’s on how to better recognize revenue. In the Micron 10-K, it states that Micron is“required to adopt this ASU beginning in our first quarter of 2019”( 10-K, p. 51). In page 51, it shows the rules in accounting that Micron hasn’t adopted yet. According to Mark Heil, this new rule is not going to effect Micron that much but is going “to change how software companies recognize revenue”. Revenue is the largest number of companies’ income statement. This rule is getting a lot of attention and can impact a lot of
In this essay, the author
- Defines accounting as the recording, measurement, and interpretation of financial information. companies use accounting tools to evaluate organizational operations.
- Explains that mark heil is a corporate controller for micron and has been since 2001. he received his bachelor degree in accounting and computer information systems from boise state university.
- Explains that micron's shares are around 97% held by institutional investors. the statement of cash flows shows positive net cash from operating activities for 2015.
- Defines accounting as the recording, measurement, and interpretation of financial information. companies use accounting tools to evaluate organizational operations.
- Explains that mark heil is a corporate controller for micron and has been since 2001. he received his bachelor degree in accounting and computer information systems from boise state university.
- Explains that micron's shares are around 97% held by institutional investors. the statement of cash flows shows positive net cash from operating activities for 2015.
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- Explains the purpose of the balance sheet, which is to show the financial position or value for a particular period of time.
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- Explains that success is measured based on the bottom line comparing company profitability from one year to the next in comparison to its competitors.
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- Explains that the public accounting profession renders services in order to satisfy needs of the capital marketplace. entrepreneurial capital owners depend on the profession for many business needs.
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- Explains that organizations that prepare themselves for the attraction, retention, and development of all talent pools have an immediate and ongoing competitive advantage.
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744 wordsRead More - M1 Unit 2 Written Assignmentexplanatory essayAccounting is “a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information” (Accounting, n.d.). Financial information mentioned above includes any financial transactions done by the business. There are two types of accounting. The first one is accrual accounting, which realizes transactions at the time they occur and disregards whether or not cash transaction has occurred. This method is widely used in business, because it allows transactions to be completed over time and distance. Financial statements produced by accrual accounting reflect a sophisticated trade and a much more accurate snapshot of the business’ current situation. The opposite of accrual accounting is cash accounting, in which transactions are realized only when cash payment is made or received. This is the method used in personal finance.
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- Explains that wells fargo said understanding the context, the 5 year period involved and the size of its workforce was important.
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- Analyzes the findings of a study outlined in the noted case. they discuss the restrictions placed on the accounting profession and whether these restrictions eliminate ethical concerns.
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1327 wordsRead More - Ethical And Legal Obligationsexplanatory essayAccording to Marshall, McManus and Viele (2004), accounting is “the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment” (p.3). Decision makers look at balance sheets, income statements, changes in the owner’s equity and cash flow statement as documentation of the viability of an entity. Misrepresentation of the financial statements can place doubt of profitability in any company. The need for accountability and regulation of accounting practices is important in preserving trust in the business community.
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- Explains that ethical and legal obligations apply to all members of society. financial reporting isn't exempt from ethical standards.
- Explains that accounting is the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment.
- Explains the role of the financial accounting standards board, the securities and exchange commission, and the public company accounting oversight board.
- Explains that ethical and legal obligations apply to all members of society. financial reporting isn't exempt from ethical standards.
- Explains that accounting is the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment.
- Explains the role of the financial accounting standards board, the securities and exchange commission, and the public company accounting oversight board.
- Explains that generally accepted accounting principles (gaap) require entity statements show the following in a reporting period: the balance sheet, income statement, statement of cash flow, and changes in owner’s equity.
- Explains that business ethics involves morale principles and standards in the business world. integrity in accounting means being honest and candid when communication information within financial statements; objectivity means impartiality and staying clear from conflicts of interest.
- Explains the importance of maintaining a high ethical standard and upholding the law for accounts to maintain the trust and confidence in the public spectrum.
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1148 wordsRead More - accountingcomparative essayIn conclusion, using financial statements in managerial accounting helps with the planning, controlling, and decision making process of a company. The information from the financial statements are used to analyze and establish budgets, forecast, variance reports, and ratios relating to the stability of the company. Managerial accounting data gives information driven info to these decision which can enhance decision making over the long haul. Business directors can influence this influential device to help make their business greater by seeing how managerial accounting profits regular business decision connections...
In this essay, the author
- Explains that the paper will discuss the information found in the financial statements such as balance sheet, income statement, statement of cash flows, and statements of stockholders' equity.
- Explains that planning, controlling, and decision-making should begin with setting objectives and determining how to accomplish them. controlling includes gathering feedback to guarantee that the arrangement is legitimately executed.
- Explains that the balance sheet is one of the major financial statements used by accountants and business owners.
- Explains that the paper will discuss the information found in the financial statements such as balance sheet, income statement, statement of cash flows, and statements of stockholders' equity.
- Explains that planning, controlling, and decision-making should begin with setting objectives and determining how to accomplish them. controlling includes gathering feedback to guarantee that the arrangement is legitimately executed.
- Explains that the balance sheet is one of the major financial statements used by accountants and business owners.
- Concludes that using financial statements in managerial accounting helps with the planning, controlling, and decision making process of a company.
- Explains that planning is the correspondence of an organization's objectives. budgets recognize the sources or inflows of financial stakes, and the usage of fiscal holdings.
- Explains that forecasting begins with certain assumptions dependent upon the management's experience, learning, and judgment. the method of affectability examination relegates qualities to unverifiable components variables.
- Explains that variance analysis investigates the underlying drivers of a material change in management accounting. managerial accountants are prone to discover the genuine cost or real amount of materials utilized.
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1219 wordsRead More - Accounting and Financeexplanatory essayA largely accepted language is required for a business or organization to effectively communicate its results and position to stakeholders, which is why accounting has come to be known as the "language of business". Accounting is really the means for providing financial information to others. Financial analyst then take the data the accountants have compiled in the form of reports, and make educated guesses at what their company should do next. David ballast (1996) stated, "The fact remains that accounting and finance are the primary tools for reducing business problems and opportunities to a common denominator, setting goals, measuring results, and making decisions." (p. 1)
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- Explains that accounting and finance are the primary tools for reducing business problems and opportunities to a common denominator.
- Explains that accounting concepts or principles have been developed over the years, and that the financial world generally follows and accepts them.
- Explains that the financial equation (assets = liabilities + equity) is the mechanical key to the entire financial accounting process and the basis to many of these principles.
- Explains that accounting and finance are the primary tools for reducing business problems and opportunities to a common denominator.
- Explains that accounting concepts or principles have been developed over the years, and that the financial world generally follows and accepts them.
- Explains that the financial equation (assets = liabilities + equity) is the mechanical key to the entire financial accounting process and the basis to many of these principles.
- Explains the cost principle and objectivity, which are related to transactions.
- Explains that the american heritage dictionary of the english language, fourth edition, is available at answers.com.
- Explains that accounting and finance deal with money and assets, but they are categorically different concepts. accounting has clearly defined guidelines, rules, and regulations, while auditing is a separate discipline.
- Analyzes the relationship between the balance sheet and the income statement.
- Explains the accounting period, when an entity reports its financial statements on a yearly basis. the accrual concept states that expenses or sales are listed at the point of sale or when the ownership changes hands.
- Explains the theories, assumptions and principles of financial statements, including consistency, full disclosure, materiality, and conservatism.
- Explains that accounting and finance are important terms to grasp while reading this essay. accounting involves making value judgments about the assets and liabilities a business owns, while accurately measuring how much profit or loss has been made.
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- Explains buying or renting equipment that is of value to the company. retaining or making a replacement on the machine in use.
- Explains that abc is a 2-step procedure that first allocates prices of resources to undertakings and then allocate activity charges to outputs.
- Explains how to assign costs to products by multiplying the cost driver rate by the volume of cost drivers.
- Explains buying or renting equipment that is of value to the company. retaining or making a replacement on the machine in use.
- Explains that abc is a 2-step procedure that first allocates prices of resources to undertakings and then allocate activity charges to outputs.
- Explains how to assign costs to products by multiplying the cost driver rate by the volume of cost drivers.
- Explains that there are various types of cost accounting that comprise process accounting, job-order costing, and activity-based costs.
- Explains that cost accounting advises top administration and management on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service.
- Explains that cost accounting is more than an inventory tracking system. it is useful in estimating costs and setting prices of various products.
- Explains that the cost accounting process helps in analyzing the means through which poor resource use may cause dismal performance within the organization.
- Explains that cost accounting is vital because it is used at different phases in a factory. the intention of all business firms is minimizing costs and maximizing profits.
- Explains how costs play a significant role in decision-making, stating that the three primary costing methods are process, activity-based, and job-order.
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- Explains that accounting is a career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business.
- Explains that accounting is a vital element of business. it records the business' growth and, after analyzing figures, suggests the future direction.
- Explains that if their friend has ever operated a business and you saw him placing figures in ledgers, then you see him doing bookkeeping. if you have worked at service station or supermarket and have seen books with large sheets lined in green and red lying on the manager's table or desk
- Explains that accounting is a career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business.
- Explains that accounting is a vital element of business. it records the business' growth and, after analyzing figures, suggests the future direction.
- Explains that if their friend has ever operated a business and you saw him placing figures in ledgers, then you see him doing bookkeeping. if you have worked at service station or supermarket and have seen books with large sheets lined in green and red lying on the manager's table or desk
- Explains that accounting is one of the fastest growing fields in the united states. as our country has expanded, business and industry have become more complex, so control is very important.
- Explains that public and private accountants serve different functions in business organization. they offer their services to the general public on a fee basis, similar to lawyers, doctors, and dentists.
- Explains that accountants in private and government work customarily specialize in the performance of a single type of accounting service.
- Explains that there are other general categories of accountants who are taking important parts in business organizations.
- Explains that a company needs well-organized management. managerial accountants need to learn all aspects of the company?people, products, plants, and equipments.
- Explains that a company needs someone to record its financial operating datas, measure performance, interpret results of operations, and make recommendations for actions. the controller is responsible for the company's finances, people, products, equipments and material.
- Explains that a corporation may exist many different items in managactures, and those items go hundreds of various sized and priced componenets. a cost accountant works on it.
- Explains that organizations of federal, state, or municipal government also need accountants to help their business. they may do auditing, designing and maintaining, budgeting and administrative duties requiring the use of accounting information.
- Opines that a modern business organization needs an internal accountant to see whether the company's assets are properly protected and accounted for.
- Explains that high schools, colleges, and universities need accounting professors to teach students accounting techniques. teachers serve as school secretaries, bookkeepers, statistical clerks and managers in lunchrooms.
- Explains that tax is a major financial imcome of the government, and accountants are closely related to the tax adminatration.
- Explains that accountants use tax skills to prepare people's yearly reports. in california, individual cpa practitioners report that around 21 percent of their business is tax work.
- Explains that sound business needs good record, so control accountants are needed for this. government firms and other organizations need auditors to operate the business.
- Explains that two million federal employees are working for the government, dealing with problems of population, education, transportation, national security, welfare and others. accountants, auditors, system analysts, and budget administrators maintain stability in modern governmental operations.
- Explains that the department of agriculture deals with agricultural production, chemistry, economics, engineering, marketing, conservation, price support, and production adjustment problems. accountants develop and maintain financial management systems, prepare and analyze budgetary and program lost statements, check costs of commercial food processors and producers.
- Explains that the department of commerce performs a wide range of operations, such as collecting information about domestic and foreign industries and trade, publishing technical information for the government, and handling allocations of materials necessary to military and atomic energy programs.
- Explains that the department of defense has established an ideal career program to recruit auditors and accountants.
- Explains that under the department of health, education and welfare, there are public health servide, the food and drug administration, and the office of education, social security administration.
- Explains that the post office deartmetn employs more than 560,000 people and operates over 35,000 post offices. the department also provides money-order and postal-saving services.
- Explains that the treasury department needs men and women educated and trained in accounting, auditiing, budgeting and financial management.
- Explains that the united states greneral accounting office oversees all government agencies. the comptroller general is the chief accountant of the nation.
- Opines that accounting is the door which widely open to women, since women's position has been improved in the u.s.
- Explains that accounting is everywhere. non-business organizations can stay longer without it. more and more employers prefer employees with some knowledge of bookkeeping and accounting.
- Explains that accounting is so important in our modern society. it's the main force in regulation of taxation and industrial activity.
2459 wordsRead More - Accruals Concept in Finance and Accountingexplanatory essayThe main purpose of recording the business transactions, so called financial accounting is defined clearly in the Introduction to Accounting Book by Andrew Thomas 5th Edition: “Financial Accounting is the process of designing and operating an information system for collecting, measuring and recording an enterprise’s transactions and summarizing and communicating the results of the transactions to the users.” The part I want to draw attention on the definition is ‘communicating to the users,’ thus if there is a false reflection of the business cash or profit for the business at that short-term period, external users of the financial information i.
In this essay, the author
- Explains that accruals concept is the concept that attempt to correctly match all the accounting expenses (cost) to the income (revenues), thus referred to as accrued expenses. going concern assumes that every business will continue in operation for the anticipated future.
- Explains the concept of accruals and going concern, which reflects a false picture on the actual business performance at the end of the accounting period.
- Explains that financial accounting is the process of designing and operating an information system for collecting, measuring and recording an enterprise's transactions and summarizing and communicating the results of the transactions to the users.
- Explains that accruals concept is the concept that attempt to correctly match all the accounting expenses (cost) to the income (revenues), thus referred to as accrued expenses. going concern assumes that every business will continue in operation for the anticipated future.
- Explains the concept of accruals and going concern, which reflects a false picture on the actual business performance at the end of the accounting period.
- Explains that financial accounting is the process of designing and operating an information system for collecting, measuring and recording an enterprise's transactions and summarizing and communicating the results of the transactions to the users.
- Explains the concept of "depreciation of fixed assets in the balance sheet and profit and loss account," which requires the firm to estimate the net cost of the asset and charge it to the periods expected to benefit from its use.
- Explains that the going concern affects the business activity, in terms of how the entity functions basing on its objectives. depreciation is used when preparing the books of accounts and fixed assets are shown in the balance sheet.
- Explains that in accounting, there are other concepts used in companies, such as consistency convection, entity concept, prudence, diversity and materiality.
- Explains the consistency concept, which enables the business to make a sensible comparison year after year. it helps the firm in management by making valid decisions using the information provided by the financial statement.
- Explains the concept of prudence, whereby the business is treated as a different entity from the owner for financial purpose.
- Concludes that some concepts work side-by-side in order to serve their purpose to the business.
- Introduces marriott, edwards, and mellett's introduction to accounting and financial accounting 5th edition by andrew thomas.
1306 wordsRead More - Jet Airwaysexplanatory essayAccounting is the pillar of every company to measure its growth, loss, revenue , capital, its really specify the real terms in foam of figures and sometimes in tables, in accounting there are certain rules are obtained to make more accuracy while playing with figures.
In this essay, the author
- Explains that an accounting standard is a bar or agreement to overcome accounting issues.
- Explains that jet aireways is an aviation company which deal in flights around 86 destinations locally and around the globe.
- Explains that accounting is the pillar of every company to measure its growth, loss, revenue, capital. accounting rules are obtained to make more accuracy while playing with figures.
- Explains that an accounting standard is a bar or agreement to overcome accounting issues.
- Explains that jet aireways is an aviation company which deal in flights around 86 destinations locally and around the globe.
- Explains that accounting is the pillar of every company to measure its growth, loss, revenue, capital. accounting rules are obtained to make more accuracy while playing with figures.
- Explains that jet airways was founded in 1992 by mr. naresh goyal and began international operations from chennai to colombo in march 2004.
- Explains that naresh goyal, the founder chairman of jet airways, india's premier airline, has over 4 decades of experience in the civil aviation industry.
- Explains that accounting principles are the main consideration, while rules of operations are pillar characteristicis to built accounting statements. practical and dependable accounting information must be acurate, unbiased and verifiable.
- Explains that accounting principles and standards are "rules of game" to play with the accounting "game of cards".
- Explains that jet airways operates domestic and international routes, but internation operations have been better than domestic operations.
- Explains that transparency is a weapon for compnies to get more trust and popularity among customers. transparency makes companies and brands more carefull with their manufacturing, supplies, hygenic methods.
- Defines corporate governance as the set of techniques, proesses and systems under a company is being directed. it provides mandatory information and directions to run the company to achieve their goals and missions.
- Explains that corporate governance has been recently in news in india after the fraud case at satyam by chairman raju.
- Opines that milton friedman's statement about social responsibility no longer in trend in 2014, but a fully-fledged strategy for successful business in social and economic environment.
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