Advanced Accounting

In addition, associated with the misapplication of accounting methods, the financial industry has been plagued with one disaster after another involving numerous scandals from top leading American companies. Consequently, the Sarbanes-Oxley Act was passed in 2002 compromising eleven sections that are generated to insure the responsibilities of the company’s managers and executives. This act identifies criminal penalties for particular unethical practices and currently has new policies that a corporation must follow in their financial reporting. The following examples describe some of biggest accounting methods as a result of the greed and the outrage of the ethical and financial misconduct by the senior management of public corporations.

Financial reporting practices and ethics have manifested an ocean of literature. This has mainly come from organization theorists that address accounting practices. These theorists and professionals have given fresh accountability measures. Their ideals give this industry the tools needed to survive, grow and prosper. The way an organization prepares and reports its financial information and handles its daily operations is in essence financial practices, and in the way it accomplishes this reveals their ethical standards to which they adhere to. This paper will discuss the financial practices, ethical standards, and

Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the

Employees seems to be an extraordinary cost driver for unprofitable firms. Again more information about employee cost is needed for both profitable and unprofitable firms.

|1a) |  |  |  | | | | |Colton Company Sales | |300,000 | | | | | |Mota Company Sales | |172,000 | | | | | | | |472,000 | | | | | |2008 Colton Sales |-50,000 | | | | | |

ABSTRACT: The impact of accounting information on ethical behavior has been extensively documented. Additionally, agency theory is a widely accepted behavioral perspective. Despite this, there is an absence of instructional material in the accounting education literature that ties ethical issues to an agency-theory context. The primary objective of this case is to highlight control system ethical issues using an agency-theory context. Students explore their own reactions to a prohibited but unmonitored cost allocation action. Thus, this case is positioned to fill this void in any accounting course that covers agency theory or management control systems.

Financial statements are very important for many participants in the financing reporting process. High-quality financing reporting is necessary to investors and creditors in decision-making process. Their decisions and judgments depend on accuracy of information presented in those statements. For example, investors try to predict future performance based on the company’s current earnings. They want to invest in a company that is profitable. Misleading information in financial statements can have a negative impact on their decision. Unfortunately, some managers try to manipulate financial statement in order to achieve desired outcomes.

We carefully examined and evaluated your financial statements in 2011 and identified several accounting policies and procedures inconsistent with U.S. GAAP. To better present the net income of your company, we provide the various recommendations for you to revalue your revenues and expenses in the following statements.

AACSB: Ethical & Legal understanding | Management: Ethical Responsibilities | Dierdorff & Rubin: Managing the task environment

One of the primary struggles in relation to ethics in the business realm (and in any realm of life for that matter) is the art of determining the morality of specific day-to-day issues— especially the gray areas within business finance. Some financial issues, however, are not so gray or they become more black or white to one person after he or she ponders the matter deeply, obtains wise counsel, learns from experience, etc. When finally convinced that an issue is either right or wrong, enforcing an opinion within a corporation can turn out to be an even more difficult hurdle to overcome. This hurdle is the premise of Kirk Hanson and Dave Price’s conversation in the 7:19 long video by Markkula Center for Applied Ethics at Santa Clara University entitled “Fraud in Financial Reporting - Causes and Solutions.”

One option Hans Thorborg has is to develop a new marketing strategy to incorporate the remaining inventory into new sales. For example, he can instruct Gerhard Henk the sales manage to offer the customer a new set of replacement plastic rings free after the first rings wear out. The promotion would help PWI to fortify the vendor to customer relationship commitment of quality and satisfaction while potentially increasing sales as well. The assumption would be the plastic rings are produced by the time the rings wear out. Hans would then have to deal with the total cost of two rings ($279.65 + $1107.90 = $1387.55 per hundred). In this scenario Hans would be face with a net loss of $37.55

Given the pervasive adoption of financial and regulatory compliance globally specifically in the areas of accounting, operational risk disclosures and significant organizational events, the organizational climate is becoming increasingly conducive to ethical behavior. It's not that corporations have had any type of epiphany that being more transparent with their financial reporting or managing of events is virtuous. Rather, it is the accumulated accountability, precisely defined series of personal responsibility requirements that the Sarbanes-Oxley Act of 2002 (SOX) and other comparable laws have placed in corporate officers requiring their organizations stay in compliance (Zimmermann, 2005). With corporate officers being held accountable for the accuracy, fidelity and veracity of accounting and financial management statements, the current business and regulatory environment continues to prove conducive to more ethical behavior. With the U.S. Government and other nations' governments enforcing greater levels of accounting and financial reporting compliance through fines and potentially limiting market access, senior management teams and boards of directors are highly motivated to comply and reduce potential fees, fines and public attention to financial mismanagement. One of the most visible deterrents to unethical accounting and financial reporting activity is when shareholders are compensated for

3. In analyzing the cash flows from Chemalite using both the direct and indirect methods, one can see similar patterns in the where the uses of cash is directed. The money in both methods is going towards the company itself and funds necessary to make sure it stays afloat. The main source of the cash inflow is from the sale of Chemalite. The sale from 1991 brought in a total of $754,000 and 1992 brought in a total of $1,886,250. A sales increase of about 250% is very impressive for one year is responsible for bringing in the majority of cash for Chemalite Inc. Cash outflow is a slightly different case. Cash outflow for Chemalite is mostly going back into the company itself for the sake of growth. Growth in the cash flow

The book value method records the securities exchanged for the bond at the carrying amount of the bond.

Accounting is the language of business; the operating budget is the company play book for the coming year. With the operating budget the company can forecast the overall health of the enterprise. Management is able to foresee the financial strength of the company based on the sales revenue, Cost of Goods Sold (COGS), the operation expense that then provides the budgeted income statement. Although good management is required to ensure a company’s fiscal health, the operation budget if well planned is the actual path that will ensure success.