LIFA 1.1 WHAT IS ACCOUNTING? · Accounting- an information system that identifies, measures, records and communicates understandable, relevant, reliable, and comparable information about an organization’s economic activities. · Recordkeeping, or bookkeeping, is the recording of financial transactions, either manually or electronically, for the purpose of creating a reliable bank of data · Primary objective of accounting- to provide useful info for decision-making · Accounting info results from
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systematic, and creatively planned accounting fraud, known as the Enron scandal. Enron has since become a popular symbol of willful corporate fraud and corruption. The scandal also brought into questions the accounting practices and activities of many corporations throughout the United States and was a factor in the creation of the Sarbanes–Oxley Act of 2002. The scandal also affected the wider business world by causing the dissolution of the Arthur Andersen accounting firm. The Enron scandal, revealed
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Introduction and Course Philosophy: This course covers accounting theory and practice for business combinations, segment and interim reporting, foreign exchange and partnerships. Business combinations cover most forms of mergers and acquisitions, which are common among business entities. Segment reporting is how management disaggregates financial results into meaningful business performance. Foreign exchange covers the basics of currency transactions and translation including hedging, which are
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Accounting, 8th Edition Chapter 1 – Decision Making and the Role of Accounting 1. Economic Decisions Many of the decisions that we make involve the use of economic resources for consumption or investment purposes. Other factors that need to be considered when making decisions are: 1. Personal taste. 2. Social factors. 3. Environmental factors. 4. Religious and/or moral factors. 5. Government policy. Steps in the decision making process: 1. Establish goals. 2. Gather
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A lot of us want to set up a business. A business that will bring to them good profits, but to set up a successful business except from the benefits or services you will be provide, you must chose what type of business organization is the best for you. There are plenty types of organizations that you can chose, let see some of these types below. Sole trade Sole trade is a type of business that anybody can set up very easy. Sole trade organization has only one owner. This business can trade
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Basic Accounting Concepts and Business Structures University of Phoenix ACC/537 Jeffrey Collins October 2, 2011 Basic Accounting Concepts and Business Structures In the current economic condition of the country, a business must follow certain rules and regulations in regard to their Basic Accounting and structure. This would be what is called the Generally Accepted Accounting Principles (GAAP). These principles ensure that the accounting practices of a business are consistent with other
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used questionable accounting practices. To misrepresent its true financial condition, Andrew Fastow, the Enron’s CFO, takes his role involving unconsolidated partnerships and “special purpose entities”, which would later become known as the LJM partnership. Taking advantage from the SPEs’s main purpose, which provided the companies with a mechanism to raise money for various needs without having to report the debt in their balance sheets, Enron’s CFO directly ran these partnerships and designed them
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Danisha Williams ACC 537 Paper 1 October 29, 2011 Accounting is very important part of business aspect. This paper will discuss four different topics of accounting: generally accepted accounting practices, effective accounting information, the difference between accrual based accounting and cash basis accounting, and finally the different types of business structure and defining each structure. The topics above will provide accountants with the knowledge that is need in order to be successful
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An Introduction to Accounting The biggest part of a business is the role of financial accounting. It has individuals, businesses and nonprofit organizations when recording the financial transactions, preparing reports that reflects performance and current financial positions, and when making important decisions about users. There are different types of business structures, such as proprietorship and partnership. a proprietor is the sole owner and a partnership is having multiple owners. Proprietors
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Scandal…Continued • On October 16, 2001, in the first major public sign of trouble, Enron announces a huge third-quarter loss of $618 million. • On October 22, 2001, the Securities and Exchange Commission (SEC) begins an inquiry into Enron’s accounting practices. • On December 2, 2001, Enron files for bankruptcy. : Oct – Dec 2001 Regulatory Oversight of Enron SEC Auditors Arthur Anderson Audit Committee (Directors) Company Report Shareholders Enron Board of Directors
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