Finance & Accounting Essays

This is a study about financial analysis of banks before and after the global financial crisis that hit the globe starting in the year 2008. More specifically, it will consider two banks namely Flagstar Bank and the Bank of America, both of which are listed on the NYSE. The two main financial statements (the Income Statement and Balance Sheet) are going to be analyzed in both cases together with some financial ratios.

Globally, due to the nature of banking industry, the activities to be performed by banking sector are so similar that it is not possible for one bank to pursue such activities which others

An administrative agency is a law-making body with limited powers delegated to it by Congress. Administrative agencies deal with specific issues that may require expertise. All existing administrative agencies are established by Article 1 Section 1 of the constitution which reads: “all legislative powers herein granted shall be vested in a Congress of the United States.”

Enron is a perfect example of this in that CEO Jeff Skilling, Kenneth Lay, and CFO Andrew Fastow were also prosecuted for chiefly hiding the firm’s financial

Improvement in product costing derived from activity-based costing comes from a collation of all kinds of activities and then isolation of costs specific to each activity that goes into the manufacturing process. This basis eliminates the need for period and product costing ambiguities that arise in traditional costing methods. 

Flood insurance covers losses directly caused by flooding. In simple terms, a flood is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding.

International Accounting Standards (ISAs) and International Financial Reporting Standards (IFRS) are those accounting standards that have been provided by the International Accounting Standard Board (IASB) for the preparation of the financial statements. The majority of the countries across the globe have accepted IAS and IFRS as their primary framework for the preparation of financial statements.

In the given paper in order to measure the level of satisfaction, the author measures the number of times the ATM machine will be used per day for a span of 30 days. This actual data will be arranged in a table for comparison with the hypothesized distribution. The observed frequency is subtracted from the expected frequency.

After the failed attempt by the pFizer company to make a deal with AstraZeneca, the company sees that it’s against the odds to have a repeat of the bid for AstraZeneca. Neil Woodford who is the fund manager sees that there is a probability of 50/50 for Pfizer to

From the cash flow statements it can be seen that in the year 2013, long-term debt worth 13 million dollars is subject to reduction. This indicates that in the year 2014, long-term debts amounting to 13 million dollars are expected to mature and be paid off. The company during the year 2013 had made a radical shift by reducing its debt capital.

Capital gains are the value increase of capital assets net of any incidental costs such as transaction costs and brokerage costs. If an asset’s value decreases, then, a capital loss is realized. In principle and under the income tax rules, capital gains are included in the tax base when they accrue. Capital gains will be taxed upon the disposal or realization of an asset.

There are numerous investment vehicles beginning from the money market to the capital market. Investors are wise enough to choose assets that promise good returns. The paper presents an analysis of the famous work Capital Asset Pricing Model (CAPM) with respect to the investors’ preference for the most efficient portfolio (Markowitz 1952).

The location and dispersion were taken into consideration in analyzing Abbotts Laboratories together with two other companies, including Unilever and S&P 500. Abbott Laboratories has a relatively higher average return and lower risk when compared to Unilever and S&P 500 which has a higher average return than it but a higher risk rate.   

Financial statement analysis is an aspect of the business finance function and entails the act of examining financial information to gain an understanding of the current and future financial health of an entity. By understanding the financial data, the management can make critical business decisions (Inc., 2015).

Stock options plan is one of the widely used forms of compensation in the United States. Stock options plan significantly affects a company and its shareholders. The issuance of shares to compensate the company’s employees increases the number of total shares outstanding, hence diluting the worth of every single shared owned by shareholders.

The original budget for 35000 units was $ 1365250 while the flexed budget for 33250 units, which was the actual production, was 1296987.5. The actual cost for 33250 units is shown as $ 1322750. Therefore there is a variance of $ 25762.5 from the flexed budget and the actual cost. Thus the actual cost taken for 33250 units was $ 25762.5 greater than the actual cost incurred for manufacturing 33250 units.

This is demonstrated when production practice puts a lot of consideration in balancing expenditure of resources and at the same time the creation of higher value for customers to enjoy by optimizing production flow and processes, increasing efficiency, using empirical methods, and lastly decreasing waste to decrease unneeded expenses.

Tax havens contribute to growth development in small potential countries. More so, in small states, the land is considered very expensive. The low density in population that the country can accommodate will attract the household with high incomes. The high-income affected households, in most cases, will enjoy low-income taxes.

This paper is a report on the purchase and payment and the receipt and sales functions. The purchase and sales functions of this business happens to have some weaknesses which can be remedied by the implementation of the recommendations that have been tabulated. The purchase and the sales function of a business are important to a business.

The balance sheet is among the financial statements used by organizations to provide financial results, information, and conclusions. The balance sheet is a financial statement that states the financial position of an organization in terms of assets, liabilities, and equity at a particular time (Finkler, 2010).

In an attempt to determine the capital structure of a firm, Bradley, Jarrell, and Kim noted that the industry to which the firm belongs has a huge impact on some debt rations. This observation has been supported by Geltner and Miller who concluded that big companies with strong financial bases are more highly geared than non-property-related firms.

It is a section of “Dodd- Frank Wall Street Reform and Consumer Protection Act”. Volcker Rule was publicly endorsed by US president on 21 January 2010 on the backdrop of great American financial crisis which rocked the American financial sector from 2007-2010. It is a regulation maintained by the US Federal Reserve.

They are the accounts or activities found on the income statement, by adding all the money gotten from the customers minus the monthly expenses. The investing activities are those amounts generated by a company’s

The loan guarantee would be issued to cover the debt obligations in case the foreign buyer defaults. The cost of default would be passed through to the buyer. Such medium and long-term loan guarantees have continuously

I am an undergraduate student at the New Mexico State University, majoring in Accounting. Due to my hardworking nature, I have achieved good grades throughout my academics, including University and high school. As mentioned in my enclosed resume, apart from my academic qualifications, I also possess considerable experience in the field of Accounting.

Cost decisions in daily life aim at optimal utilities and these establish the significance of opportunity cost as resource constraints may dictate expenditure on limited items. This paper discusses the concept of opportunity cost by exploring the definition of the concept and its two types, explicit and implicit opportunity cost.

Business ventures under creative content division produce and disburses animated motion and live action pictures, home video products, musical recordings among others; licensing Disney characters and

There are no purchase orders, sales processing, invoicing and such processes in this cycle. The revenue cycle is simply initiated by developing a proposal that is submitted to various donors who will either decide to sponsor the project or decline.

It will further state the possible reason for differences in these variables in each industry. In this regard, the following companies will be used; General Motors, Alliance Pharmaceutical, Inc., Apple Inc., and Walmart Inc. under the automobile manufacturer, pharmaceutical, technology, and retailer-grocery industry respectively.

In addition, the paper also investigates the potential implications of these risks for accounting firms and how they have prompted auditor sensitivity to strategic risk of fraud. According to the author, this is

A mutual fund is a kind of investment fund that is professionally managed and pools funds from several investors so as to buy securities such as bonds and stocks. In addition, a mutual fund can be viewed as a firm that pools a group of individuals together and invests their funds in various securities. In such a fund, every investor has a certain amount of shares that s/he owns; representing a fraction of the fund holding.

ss Report, 2013, Alam (2013) states that Islamic banking resources with commercial banks worldwide will grow up to US $2.5 trillion in 2014 from US $976 billion in 2011. The demand for Sharia - compliant financial products and services will continue to increase, propelled by

The cash flow statement is an indicator of the source of cash used in the daily routines of a business and its uses. The balance sheet is an indicator of the financial state of a business at a given period. It shows the current and fixed assets as well as the current and

The risk is defined as the probability of losing anything of value or uncertainty of a result. It is also described as the intended interaction with improbability or uncertainty. Values, for example, financial wealth, social status or physical health can be lost or gained when threat/risk taking place from a known activity or action.

It is important for every organization whether smaller or large to keep track of its performance and maintain a track record of healthy performance. Given the fact that businesses have now become more volatile, it is important that a proper understanding of the various performance variables as well as parameters is gained in order to make correct and timely decisions.

The asset should be recorded as $17,500 for the starting organization cost since it is the initial payment. Assuming Miguel only plans to operate for seven years, how should he account for the gaming license in the financial statements? Miguel should amortize the license over the short of the useful life or the legal life.

Nokia is a manufacturing company that produces cell phones and other electronic items. In addition to manufacturing they also operate sales, distribution and administrative departments which carry out their related functions. Carphone Warehouse is a merchandising and service organization which sells cell phones to customers.

A public company is obliged to make public its financial statements and its undertakings. Users, whose expectations and rights are violated will therefore get the opportunity to seek remedy and would get the support of the regulators. In summary, Facebook IPO impacts the users even though the majority are not concerned with the potential outcome and impacts.

The cash Budget shows the inflows and outflows of the company or project. Cash Budgets have been estimated for three investment opportunities that Hall Hill Farm has. A cash budget would allow the owner to analyze how much the company is earning and the investment and cash disbursement for the project. Cash disbursement is the outflow of cash.

The main targets are the shareholders and those who buy stocks through the company. In many cases, businesses or organizations that rely deeply on business financing are at a frighteningly high risk. Business risks are sometimes affected by fluctuations in demand for certain products in the market than others.

In the period between the 1870s and 1914 the movement of people, goods, capital, and even labor across national and international boundaries occurred unhindered. As thus, economies seemed more open, leading to rapid trade expansion between countries. This promoted cross-border investments, leading to high economic growth in the countries involved.

This leads to an overstatement of expenses and therefore to understatement of profits. There are several methods of accounting for deprecation and the reducing balance method is just one of them. This method calculates

It is where an individual seeking to buy an insurance product can get quotes from different insurance companies and choose among them. The website makes it easier for the insurance product customer to have the required

A number of researchers have taken an interest in how this particular trait can be brought about within a community or within certain individuals. However, over the past few years, the term has greatly expanded and has even moved toward the field of finance. A great deal of work has been conducted regarding altruism and its relation to finance. Eckel and Grossman have addressed the same issues. 

Ideally, the presence of audit failures and the resulting lack of confidence in the American public market led to the establishment of the Sarbanes-Oxley Act of 2002. Although implementing the regulation requirements of the Sarbanes-Oxley

Apple is one of the super brands and one of the most successful companies popular for its phones, computers and other products and services such as the sale of tunes and products such as iTunes. Apple, which is a manufacturer of computers and smartphones often, adopts strategies aimed at attracting customers to their products while at the same time offering value for money.

A Pac-man defense is considered to benefit shareholders in certain ways. First, it ensures that the assets of the company are not auctioned, an act which often leads to the reduction of shareholder’s value and the share price. However, management should prove that they are not acting in their best interest of remaining in office.

ency for exchange so when there are more imports and less trade, more dollars are needed to buy foreign currency so the local currency will depreciate while foreign currency will appreciate. Increase in government deficits meant there are more expenditures and more local money

The two sides of leadership then met on 5th January, 2014, in New York, for what was termed as ‘high level talks. The first proposal by Pfizer hit £58bn or £4661 per share, a price that was declined by AstraZeneca. On 26th April, 2014, Read requests to meet

Home Depot is mainly engaged in retail and selling a varieties of assortment for building materials, garden and lawn products, and home improvement. It is also connected with providing wide varieties of services to help the customers in its home