Finance & Accounting Essays

The essay does not offer a solution but merely an argument that cannot be contested because of its obviousness and the general acceptance of such. This is made obvious in the conclusion, which merely underscored once again the challenges of taking up accounting as a course, to begin with, but that it nonetheless remains an important undertaking.

The provision of information that is useful to the decision-making process is currently recognized as the main purpose of accounting information. The Trueblood Report identified 12 objectives of accounting information such as to provide information for economic decision-making, to predict cash flows.

This paper will first provide an overview of the current state of the financial crisis followed by arguments describing how the two factors listed above have helped mold the financial situation as it is today. Next, the paper will look at some of the solutions as utilized by governing parties to help remedy the situation and finally provide an outlook for the future of the global economy.

Increasing prices of goods and services generally reduce a country’s money value. It is to safeguard the value of money and provide a framework that enables economic growth that monetary policies are formulated and implemented. The policy therefore much influences the interest rates that are applied in the country.

The ill-effects of the subprime crisis failed Too – Big – Too – Fail companies like that of Lehman Brothers and many of the leading banks (both commercial banks as well as investment banks) and insurance companies (AIG, Inc) were to be bailed out. The effects of the global meltdown resulted in prolonged financial recession in many of the major economies especially that of the western world (Zingales, 2008).

It calls for a completely different credit valuation or investment determination procedure to find out the potential dangers and rewards of project financing. In the former, loaners set a considerable level of trust in the operation of the venture itself. Consequently, they would relate themselves intimately to the viability of the venture.

The foregoing discussion provides concrete situations when the budgeting can actually help keep a company in good financial condition.  In all business sectors, budgeting has become an essential tool that is widely used during both the planning and implementation stages of the company’s operations. 

The given paper demonstrates that the cycle is taken to be complete when the actual payment is made whereby the terms of the purchase have been adhered to and the same recorded appropriately in the corresponding accounting records. It is after this that entries with respect to discounts and returns are entered. 

Basic accounting principles are the general rule which governs in the field of accounting. The generally accepted accounting principles are making up of four basic assumptions (Orwel, 2009) that include: going concern, consistency, prudence, and matching “accruals”. Going concern is one of the underlying assumptions in accounting that comes from the accountant.

The particular risk may or may not occur regularly subjected to the staff and the supervisors are clever enough to get the idea that some transaction is wrongly taken place. The banks have to be stringent if they wish to stop such mistakes because these things may harm the credibility of the banks pathetically.

Individuals are rated through credit reference agencies or bureaus while companies and countries are rated by credit rating agencies. Some of the major Credit Rating and Reference Agencies offering the services in the UK include Moody’s, Standard and Poor’s, Dun & Bradstreet, Experian, Equifax, Calcredit, Fitch Ratings among others.

The financial auditors are responsible for conducting an auditing process to assess the validity and reliability of financial activities and financial statements. Auditors’ negligence may produce very serious issues like a financial crisis. The financial crisis of 2008 became more intense than it would have been otherwise.

In the United States, the taxable income is calculated based on two primary accounting methods; cash basis method and accrual basis method. According to the Internal Revenue Code, taxable income can be calculated by the taxpayer with respect to the cash receipts and disbursements method and the accrual method.

A number of researches have been conducted to find the possible factors resulting in unethical, biased, or inappropriate decision makings and judgments by the professionals. The aim of this paper is to review two articles and conclude on the credibility of the claims and assertions made by the authors.

The emergence of foreign banks on the international scene took place on two different counts wherein the first major wave of international expansion occurred in the decade before the first World War and the second, emerged during the 1960s. Due to this growth of the international banks, there are two different issues that have emerged.

The main challenge for investors around the world is to raise capital for their business. As the amount of capital raised increases, the company issuing the bonds can satisfy a number of its needs such as the use of capital for operation and expansions, to offset the effects of challenges such as inflation, etc.

A high amount of audit failures reflect a low quality of audit while a minimized amount of audit failures refer to a high quality of audit. The occurrences of audit failures depend highly on the services rendered by the auditors that result in legal actions against the auditors supported by various legislations (Francis, 2004).

Uncertainties exist over authority and everyday jobs. The problem is that adhocracy (Dolan, pp. 33-50, 2010) does not provide an unsystematic response to social and economic strategy challenges by those who originally conceived it, whereas, the adhocratic model endures to cultivate and proliferate into different combinations of reactions.

The educational system of America must begin to provide a better understanding of financial information so students can be better prepared to deal with their finances. Two accounting reports that provide lots of information regarding the profitability and financial position of a company are the net income and the balance sheet.

Financial advisors, who always face the risk of furnishing rosy pictures of investments to their clients, need to put extensive efforts to gain and maintain customer expectations and meet customer expectations. The Financial Services Authority has recently been working on Treating Customer Fairly and their outcomes.

 Purchasing of a house or a car or something big like these always require some time to stop & think deeply what & which kind of financial option will suit according to the current situation anyone is facing. They are a real necessity & thus cannot be avoided. On the other hand, one must look into his/her budget & the actual need for that very item. 

The paper "Accounting Information Systems " is a great example of a finance and accounting essay. As the business grows and the number of new customers increases, billing and collecting from customers can prove to be a daunting task. This is so especially if it's manual. However, automating billing and collection systems can save time and improve the efficiency of the whole process.

The paper "Capstone Simulation: Finance" is a great example of a finance and accounting essay. The company performed well when a comparison is done overtime as well as with competitors in the industry. There are a number of ratios that are available that help investors decide on whether an investment is a good buy. Additionally, there are a number of ratios that allow for a general assessment of profitability, liquidity and efficiency.

The paper "International Finance and Financial Management " is a perfect example of an essay on finance and accounting. International Finance and Financial Management have allowed me to look at factors affecting macroeconomic dynamics at ina more critical and analytical level.

The paper "Did Fair Value Accounting Contribute to the Financial Crisis" is a perfect example of an essay on finance and accounting. An enormous amount of literature exists in libraries over the cause(s) of the financial crisis. The 2007-2009 financial disaster received immense media attention as the after-effects did not remain within a region.

The FHA insured loan illustrates the mortgage insurance and mortgage loan. The mortgage product is provided by a financial lender that is approved by the FHA. The FHA insured loans entail the category of federal insurance, which has enabled low-income Americans to access finance for buying a home.

The paper "Impact of the Change on Share Price" is a good example of a Finance & Accounting essay. As earlier noted, one of the critical decisions that managers in corporate firms are concerned about is how profits made in the firm should be distributed to the shareholders and at the same time reinvesting the profit in the firm.

The paper "Positive Accounting Theory " is a perfect example of a finance and accounting essay. The purpose of this essay is to present a reflection on the topics discussed in the paper “Accounting in the news”. This essay will put forward my thoughts over the discrepancy in the accounting theories and principles and the actual accounting in practice.

Research to date indicates that General Motors (GM) suffered a devastating loss in 2005, brought about by the bankruptcy of Delphi Corporation, one of its most important suppliers, along with accounting errors at GMAC, its financial arm. This is an issue that needs a further historical study to see exactly why GM was not prepared for these occurrences

The accounting field has helped society keep its finances in order for centuries. According to recent archaeologists, findings accountants have been performing their duties for at least 5,000 years. Accountants have always been an important part of our society since their jobs entail tracking the flow of money and economic activity of the community.

Kids, especially teenagers, should also realize its importance and start acting now. At this age, they can start thinking about their future rather than worry about it when the time has passed. For example, a certain teenager does not care about the financial problems that might occur when he is off age.

AstraZeneca is one of the growing firms as it has been able to perform consistently over a period of time. However, to remain successful and continue to derive value for its shareholders, it needs to focus more on its treasury management practices besides aligning its accounting policies with all its subsidiaries at the global level.

Concerns have been raised about the integrity and quality of the financial reporting as they have not been able to satisfy the major stakeholders of an organization. The international accounting profession has truly lost its way and is no longer serving the needs of different users of accounting information.

It comprises a group of people who have a claim on the wealth of the corporation, and are categorized into capital market stakeholders, product market stakeholders, and organizational stakeholders. The capital market stakeholders comprise banks, private lenders, or venture capitalists that may provide any form of financing for the company’s capital requirements.

Financial statements are simply formal records that detail specific activities of a business associated with finance, accounting, or business administration. Financial statements are simply referred to as accounts in the UK. The importance of financial statements stems from the fact that they help detail the financial health of the firm both in the long and the short term.

The days in the calendar year was taken as 250 trading days for the ease of calculating the option prices. The data was collected from 1st of January 2008 to 29th March 2010. The historical volatility was computed with an interval of 50 days. The average volatility for the complete range of data was 41.55% 

As the field of accounting evolved the people working in this profession became bigger assets whose input and contribution was more important for the managers of the organization. Financial accounting was only able to provide managers with information regarding financial events that occurred in the past.

Arriva Plc. is one of the largest transport service providers in Europe. The financial performance of the company in 2009 when compared to that of 2008 is quite commendable. The financial ratios and their analysis bear to support this. In a recovering economy, to grab a large market share, the management should consider certain aspects.

The stable monetary unit principle assumes that the currency or denomination used in the report is constant. The inflation rate associated with the accounting period is not considered in the accounting books. This principle provides comparability between the financial information of different accounting periods.

The credit rating agencies failed to assess the real creditworthiness of many financial institutions as shown by the recent experience. The reliability of the credit ratings came under doubt. Since most institutional investors and banks relied on the credit rating agencies, the most complex, innovative instrument could be sold since it received a good rating from the agency.

One such limitation is in the fact that humans are responsible for all aspects and as humans, we all can make mistakes.  A proper internal control system will catch mistakes before they are in financial statements, reports, etc. but weak internal control systems will not even detect the mistake until an auditor notices it.

The issues notable in the budget that would favour the poor households and that were to be implemented are as follows: besides the health as well as the overseas aid all departments of the government would have their budgets sliced by a quarter. The workers in the public sector would be required to make suggestions on savings.

Since there are several factors involved in trading of shares while being in the competitive market, therefore at first the trainees are given mock training sessions, in which they are provided with fake amount of money and they need to buy and sell shares on in the given time and note profit or loss.

Strong ties that encourage cooperation within insiders have a huge impact on the flow of information. Information disparity arises and outsiders are asked to stop criticism. A lot of problems shape up as a result. A very prominent example would be the SEC, NASD and NYSE when they acted against conflicts of interests in investment banking. 

The paper "Risk-Return Analysis of the Ten Stocks" is a great example of a finance and accounting essay. The portfolio is composed of ten stocks of companies from different areas of service (e.g. retail, oil industry), and the corresponding weights and the number of shares are represented in the following table.

The second part of the data analyses involved forecasting. Forecasting is an important aspect concerning making sense of the available data. The forecasting involved two forms; the use of trend-lines and the application of regression analysis. The first aspect involved the creation of different time series tables.

Budgetary control does not only imply a reduction in organizational spending, during the review or financial audit. The auditor determines the financial need for every department in the organization. This, therefore, informs the subsequent budgetary review of the annual information technology budgetary allocation per department.

The paper "Judgement in Accounting " is a great example of a finance and accounting essay. The conceptual framework includes the principles, regulations and rules that are to be followed by accounting officials while preparing and presenting financial statements. The international accounting standards board (IASB) uses the conceptual framework as a statistical tool in order to develop and revise the international financial reporting standards.

My readings and investigation about the profession of Accountancy put me in a better perspective to judge on how I could succeed as an accountant. Of course, as any professional would require, I must be technical with accounting which I believe I could be because I am good in numbers and analysis. But that is only the base requirement of the profession.

The paper "After Market Price of Facebook and Weibo IPOs" is an outstanding example of an essay on finance and accounting. The initial public offers (IPOs) are first given to the investors in the primary market. An underwriter oversees the initial transaction of the IPO to the primary market. In the case of Facebook, the underwriter was JP Morgan Bank.