...Running Head: Introduction to Accounting 1 Introduction to Accounting Jesse Vitkow ACC/280 1/18/2012 Maria Aurora Makalintal – Torio The public be damned; I am working for my stockholders William Vanderbilt The beginning of accounting can be attributed to a time period of the Renaissance. In the late 1400’s, Italy was a dominating factor when it came to commerce and mainly distribution. In order for the market to stay a float and prosper, mathematicians were called upon to see that all transactions be notarized; and this is when a man by the name of Luca Pacioli came about. In his 1494 text Summa de Arithmetica, Geometria, Proportione et Proportionalite, Pacioli described a system to ensure that financial information was recorded efficiently and accurately. It was central to the success of Italian merchants, necessary to the birth of Running Head: Introduction to Accounting 2 the Renaissance. Industrial Revolution firms required accountants to provide the information necessary to avoid bankruptcy and their role developed into a profession. (Weygandt, Jerry J., Financial Accounting 6e, (Ch.1) copyright © 2008 John Wiley & Sons, Inc .) Centuries later, the United States of America was born and still in the early stages of commerce. By the 1970s and 80s, American production management and cost accounting seemed obsolete...
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...Introduction to Managerial Accounting As the manager of an accounting department, it has been noticed that there is a need for another managerial accountant to focus on internal accounting. It is necessary to bring forth information that will prove the need for this position to the CEO. The following information will explain the objectives and characteristics of an internal accounting system. It will then touch on the importance of the information to the company and explains ethics in business especially when it comes to the managerial accountants place in the company. So what is an internal accounting system? The internal accounting system is in place to ensure managers are able to make the best decisions based off of the information given to them by their accounting systems (Shanker, S., 2012). Some objectives that an internal accounting system completes are payroll duties, tracking spending, preparing budgets and balancing those budgets. The internal accounting system must also be able to produce annual reports based off of the data gathered over the year. The information gathered in the internal accounting system is important because it helps managers plan for the future of the company, help the business run more smooth, keep information in an easily accessed location and it keeps everyone on the same page within the company. Without this information, the business couldn’t make informed decisions on future purchases. It would be impossible for a business...
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...Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...Table of contains Contains pages Executive summary Introduction……………………………………………………………………………………………….3 1. The different types of business units: a) Sole proprietorship………………………………………………………………………..4 b) Partnership……………………………………………………………………………………5 c) Private limited company………………………………………………………………..6 d) Public limited company………………………………………………………………….6 2. Difference between ,Financial accounting and Management accounting: a) Nature of report…………………………………………………………………………….6 b) Details level……………………………………………………………………………………7 c) Regulations…………………………………………………………………………………….7 d) Interval report………………………………………………………………………………..7 e) Time orientation…………………………………………………………………………….8 f) Range and information quality………………………………………………………..8 3. Sources of finances 3.1 Internal and external sources…………………………………………………………8 3.2 Short and long term finance…………………………………………………………..8 3.3 Debt and equity…………………………………………………………………………….9 4. Recommendation………………………………………………………………………………….9 Conclusion………………………………………………………………………………………………10 References………………………………………………………………………………………………11 14 November 2014 To Mr and Mrs Swanson From: Felicia masela Subject: Starting-up a new chocolate and biscuits company. Dear sir / Madam Swanson, Executive summary Starting-up a business required choices existing...
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...Introduction: Conflict occurs between people in all kinds of human relationships and in all social settings. Because of the wide range of potential differences among people, the absence of conflict usually signals the absence of meaningful interaction. Conflict by itself is neither good nor bad. However, the manner in which conflict is handled determines whether it is constructive or destructive (Deutsch & Coleman, 2000). Conflict is defined as an incompatibility of goals or values between two or more parties in a relationship, combined with attempts to control each other and antagonistic feelings toward each other (Fisher, 1990). The incompatibility or difference may exist in reality or may only be perceived by the parties involved. Nonetheless, the opposing actions and the hostile emotions are very real hallmarks of human conflict. Conflict has the potential for either a great deal of destruction or much creativity and positive social change (Kriesberg, 1998). Therefore, it is essential to understand the basic processes of conflict so that we can work to maximize productive outcomes and minimize destructive ones. This paper will briefly describe some common sources of conflict, the levels of social interaction at which conflict occurs, and the general strategies of approaching conflict that are available. There is an old Chinese curse which states, "I curse you--may I you live in an important age." Indeed, we do live in an important age, saturated with many forms and intensities...
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...E 1- 12 | | | | | | | | | name of the cost | variable cost | fixed cost | Product cost | period (Selling and adminiatraive) cost | opportunity cost | sunk cost | | | | direct material | direct labor | manufacturing overhead | | | | past rental income | | | | | | | x | | direct materials | x | | x | | | | | | warehouse rental | | x | | | x | x | | | equipment rental | | x | | | x | | | | worker salary | x | | | x | | | | | Depreciationof the space | | x | | | x | | | x | Advertising cost | | x | | | | x | | | Superviser's salary | | x | | | x | x | | | Electricity foroperating machines | x | | | | x | | | | Cost of shipping | x | | | | | x | | | return | | | | | | | x | | P-16A Contribution format | Sales | $ 500,000 | Variable expenses | $ 380,000 | Contribution margin | $ 120,000 | Fixed expenses | $ 90,000 | Net operation income | $ 30,000 | Cost of goods sold * variable cost Advertising expense * fixed cost Shipping expense * mixed cost * (38,000 – 34,000)/(5,000 - 4,000) = 4/1 34,000 – (4,000 * 4) = $18,000( fixed cost ) ∴ Y = 18,000 + 4X Salaries and commissions * mixed cost * (90,000 – 78,000)/(5,000 – 4,000) = 12/1 78,000 - (4000 * 12) = $30,000( fixed cost ) ∴ Y = 30,000 + 12X Insurance expense * fixed cost Depreciation expense * fixed cost ...
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...UNIVERSITY Principles of Accounting I CH-1 Part I. Evolution of Accounting Accounting is an old and time –honored discipline .History indicates that all developed societies require certain accounting records. Record keeping is an accounting sense is thought to have begun about 4000 B.C. The record keeping, control & verification problems of the ancient world had many characteristics similar to those we encounter today. For example, ancient government also kept records of receipts and disbursements and used procedures to check the honesty and reliability of employees. A study of the evolution of accounting suggests that accounting processes have developed primarily in response to business needs. Also, economic progress has affected the development of accounting processes. History shows that the higher the levels of civilization, the more elaborate the accounting methods. 1.1 Primitive Accounting People in all civilizations have maintained various types of records of business activities. The oldest known are clay tablet records of the payment of wages in Babylonia around 3,600 B.C. There are numerous evidences of record keeping and systems of accounting control in ancient Egypt and in the Greek city– states. The earliest known English records were compiled at the direction of William the conqueror in the eleventh century to ascertain the financial resources of the kingdom. Even though they used it in different activities, Primitive accounting had various shortcomings...
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...Introduction to the Theory of Accounting and Control ••••••••••••••••••••••••••••••••••••••••••••• Three ideas are central to understanding accounting and control in organizations. First, all organizations are sets of contracts among individuals or groups of indi viduals. Second, provision of shared information among the contracting parties helps design and implement these contracts. Finally, control in organizations is a sustainable balance or equilibrium among the interests of its participants. It should be distinguished from control of organizations, which suggests manipulation or exploitation of some participants by others. We start this overview by stating these ideas briefly, leaving most definitions and details for the following chapters. We conclude with a summary of ideas about micro and macro aspects of accounting and control presented in the book. Organizations as a Set of Contracts Organizations are many things to many people. Business firms, for example, are employers to those who work for them; customers to the purveyors of goods and services; suppliers to their own customers; benefactors to those who receive their charity; investments to those who save; taxpayers to the government; a threat to the livelihood of their competitors; impersonal bureaucracies to the powerless; and pillars of free enterprise to the believers. Organizations are variously seen as com plex networks of human relationships, production functions, hierarchies, even garbage cans....
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...AC108 Lecture 1 Introduction to Cost and management Accounting Accounting is divided into two parts: (i) Financial Accounting (ii) Cost and Management Accounting Financial Accounting is concerned with preparing financial reports, for External users/Stakeholders . Egs of such reports are Statement of P&L and other Comprehensive income, Statement of changes in equity, SOFP, Statement of Cash Flows, etc based on transactions during a past financial period. External Users/ Stakeholders include: shareholders/owners, lenders, tax authorities, regulators and others. Anyone who has a vested interest in the business is a stakeholder: customers, suppliers, employees, and communities. Financial Accounting reports follow a common base line in order for them to be comparable to users: GAAP, and IFRS. Cost and Management Accounting Cost accounting is central to management accounting. According to Kohler it is: ‘…That branch of accounting which deals with the classification, recording, allocation, summarisation and reporting of current and prospective costs.’(Kohler). Cost accounting is concerned with setting up budgets, and determining the actual cost of operations, processes, departments or products and the analysis of variances and profitability. Managers use cost accounting in order to support their decisions whose general aim is to cut costs and improve profits. Cost and management accounting reports are for internal use of the business for taking future decisions and...
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...Brief introduction of financial accounting This essay will just briefly make an introduction to financial accounting by answering four questions. Firstly the paper will discuss the objective of financial accounting, and then will make explanation on relevant information. Also the users of financial accounting will be mentioned in the third part, then after the reason why financial market needs accounting reports, we will get to the conclusion. What is the major objective of financial accounting? “Financial accounting may be defined as 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 these transactions to users to facilitate making financial economic decisions”(Andrew Thomas, 2005) The first part of this explanation involves in collecting and recording business transactions. And it is specifically called the double entry bookkeeping. One of the objectives is to record and control as well as classifies those financial transactions, and normally, this process is done by a computer in modern society. Secondly the objective is about preparing and summarizing relevant information to financial statements income statements trail balances and many other financial statements. These statements can be significantly helpful for the information users. (Andrew Thomas 2005) According to Andrew Thomas (2005) the above two function can be further separate into...
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...Introduction According to the American Accounting Association, accounting is a process to measure, identify and communicate to show economic information by the user. ( http://tutor2u.net/business/accounts/intro_accounting.htm). Besides that accounting also can be define as the language of business because it is a system to record , analyse and summarize of financial transaction ( http://www.cliffsnotes.com/study_guide/Introduction-to-Accounting.topicArticleId-21081,articleId-21001.html). Accounting is a transaction of selling and buying . After that organise these information presenting it for decision-making. Accounting is important to record all of the business transaction easy for the owner to know whether they are financially successful and to know how much they owed and how much they owned.(Frank Wood & Alan Sangster ,2008,Business Accounting 1 eleventh edition, pg4) Summary Accounting is a process where the user identify, measure and communicate the economic information to perform decision and judgement. Bookkeeping is required in accounting to record data . There are two equation used in accounting which is accounting equation (assets equal to liabilities plus equity) and profit determination equation (profit equal to revenue minus expenses). Double entry system is used inside the book keeping. T-account is a shape use when doing double entry system. It divided into left-hand side called “debit” and right-hand side called “credit”...
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...CHAPTER 1 INTRODUCTION TO INTERNATIONAL ACCOUNTING Chapter Outline I. International accounting is an extremely broad topic. A. At a minimum it focuses on the accounting issues unique to multinational corporations, especially with respect to foreign operations. B. At the other extreme it encompasses the study of the various functional areas of accounting in all countries of the world, as well as the activities of a number of supranational organizations. C. This book provides an overview of the broadly defined area of international accounting, with a focus on the accounting issues encountered by multinational companies engaged in international trade and invested in foreign operations. II. There are several accounting issues encountered by companies involved in international trade. A. One issue is the accounting for foreign currency-denominated export sales and import purchases. An important issue is how to account for changes in the value of the foreign currency-denominated account receivable (payable) that occur as exchange rates fluctuate. B. A related issue is the accounting for derivative financial instruments, such as forward contracts and foreign currency options, used to hedge the foreign exchange risk associated with foreign currency transactions. III. There is an even greater number of accounting issues encountered by companies that have made a direct investment in a foreign operation. These issues primarily result from the fact that GAAP...
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...Spreadsheet Templates to Accompany Horngren et al, Introduction to Management Accounting 14e Templates by Albert Fisher EXCEL TUTORIAL ___ This tutorial is written for you, the student, to help you complete the Excel templates that your instructor may assign as needed. These templates are partially completed to allow you to concentrate on solving the problem and not worry about the formatting or presentation of the answer. All cells that need to be completed are shaded in blue and will require you to enter one of the following: a formula, an account title, a number, or a function. These four items will be covered in a later section of this tutorial. Finally, there a few problems that have no shaded cells and you will be required to complete the entire template. BASIC SKILLS Starting Excel is similar to starting other Windows applications. The following steps are required: Launching Excel Double click the Microsoft Excel icon from your desktop icons. If Excel does not have a desktop icon, then do the following: a. Click Start to display the start menu. b. Click Program to display the programs available on your computer. c. Scroll down until you find the Excel program and double click on it. Opening a Worksheet File a. Make sure your student CD is in the disc drive. b. There are two ways to open a worksheet file. 1. The first way is to click the Open button. Buttons are shortcuts for many worksheet tasks. We will be using some of these...
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...Contents Decision Making 3 Theory of Constraints 4 IMA Guidelines for Ethical Behavior 4 Competence 4 Confidentiality 5 Integrity 5 Credibility 5 Corporate Social Responsibility 5 Manufacturing Costs: 6 Non-Manufacturing Costs 6 Product Costs vs. Period Costs 6 Prime Costs vs. Conversion Cost 7 The Activity Base (Cost Driver) 7 Fixed Cost and Variable Costs 7 Cost Classifications for Predicting Cost Behavior 7 Mixed Costs 8 The High-Low Method 9 Cost Classification for Decision Making 10 Opportunity Cost 10 Sunk Costs 10 Types of Product Casting Systems 10 Why use an allocation base? 11 Manufacturing Overhead Application 11 Decision Making Decision making involves making a selection among competing alternatives. * What should we be selling? * Who should we be serving? * How should we execute? Strategy Strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. Focal point of a company’s strategy should be its target customers. Customer Intimacy Strategy – Understand and respond to individual customer needs. Operational Excellence Strategy – Deliver products and services faster, more conveniently and at lower prices. Product Leadership Strategy - Offer higher quality products. Enterprise Risk Management A process used by a company to proactively identify and manage risk. Lean Production – Just-in-time (JIT) production Customer orders – create order...
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...Touro University International ACC403 Principles of Accounting Module 1 Case Assignment Dr. Paul Watkins Introduction, Review of Accounting Process and Financial Statements According to about.com (http://about.com), Generally Accepted Accounting Principles (GAAP) refers to a set of extensively customary bookkeeping principles, established by the Financial Accounting Standards Board (FASB) (http://www.fasb.org/), and used to regulate fiscal accounting of public corporations. The FASB was formed in 1973, replacing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants before it. The FASB is a private body whose operation is to “institute and advance values of economic accounting and reporting for the supervision and instruction of the public, the FASB circulate GAAP. GAAP is important in accounting because it is the set standard for companies to follow. In its simplest terms, current assets are what you own and liabilities are what you owe. Current assets are those assets that can readily be converted to cash. Bank accounts are of course most readily convertible, but any assets that can be converted to cash within a short time are current assets. Current liabilities are those liabilities which have to be paid off within a short time. Equity is what is left over. It is your net worth. Non-current items are broken down into two categories non current assets and non-current...
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