Accounting Issues Assignment example
Masters
Assignment
Finance & Accounting
Pages 3 (753 words)
Download 0
The quote stated by Mr. Puckett, “We’ve got a lot of retained earnings, but that’s not the same as cash, you know”, is absolutely truth. Cash and retained earnings are not the same thing…

Introduction

Retained earnings are the accumulated wealth of earnings not paid as dividends that the company obtained over the years. The cash balance of the company as of December 31, 2012 was $2,800,000. In terms of retained earnings the company had a balance of $31,400,000. Based on the asset distribution of the company it seems as if the company invested its retained earnings in the past in property, plant, and equipment. Common stocks, preferred stocks, and bonds payable are three distinct financial instruments that corporations can utilize to raise money. A common stock can be defined as an equity security that has last claim on residual assets and earnings of a corporation (Tewales, Bradley, Tewales). Common stocks are traded in the open market and its price fluctuates daily. A common stock gives its owner a participation stake in the ownership of a company. Common stocks have voting rights. At the end of the fiscal year shareholders are eligible to receive dividends if the board of directors declares them. A preferred stock is a special type of stock that has a claim on a corporation’s earnings, dividends, and assets ahead of common stock, but behind debt (Tewales, et al.). Corporations are mandated to pay dividends to preferred stock holders. If dividends are not paid they become cumulative and must be paid in the next accounting period. ...
Download paper
Not exactly what you need?

Related papers

Methodological issues in accounting research: theories, methods and issues
It was also declared that the excess capital in regard to the operational requirements of the company would be given back to its shareholders. Relevant Theory: The accounting theory that would be relevant in relation to this article would be the implementation of accounting application that the company might use so as to revive from the crisis. In other words, it can be said that the positive…
Treatment of Accounting Issues
It is strongly advised to you to take a closer look at every issue along with its relevant treatment and feel free to consult me, had you require any further assistance. Marketing and Advertising Expenses According to the International Financial Reporting Standards, the marketing and advertising expenses should be charged to Income Statements the year which these marketing and advertising expenses…
Toy Central-Accounting Issues
Performance sustainability of Toy Central Corporation in the Toy industry largely depends on risks involved with corporate governance. The company is considering the improvement of its corporate governance to ensure that the financial scandals it had experienced would never be repeated. …
Tyco International Accounting Issues
One of the most notable accounting malpractice employed by the company involved the low attrition rate, which were written off at a remarkably slow pace. The consequence of this accounting misnomer was a significant inflation of the profits as reported in the company’s financial records. A consistent pattern of this accounting practice had the effect of giving the shareholders the wrong kind of…
International accountancy standards
Policies and frameworks have been developed in efforts to accommodate the entire human race into a more domesticated environment even while in a separate geographical orientation. Such ways through which the world has become integrated is through economic unions and integrations, through these, the world trade has been compressed onto a more unified unit in matters of trade, commerce, politics and…
Contemporary issues in accounting and finance
A recent FEE (Federation of European Accountants) publication states that “an individual’s objectivity must be beyond question when conducting and reporting on a statutory audit” (FEE). This paper will critically evaluate this statement with particular reference given to some fundamental financial/accounting/auditing concepts and external studies. Objectivity of statutory auditors There are…
Emerging Accounting Issues
These issues are supposed to be in line with the FASB Accounting Standards Codification. This paper seeks to the highlight the role of EITF and its relationship with entrepreneurial entities in the US. Question #1 The EITF was designed to publicize the implementation guidance of sound accounting principles within the framework of the Accounting Standards Codification (ASC). This was meant to…