Homework chapter 1 Essay

1) You can call the module several times instead of writing it out each time.

 Financial Accounting is concerned with the past, while Managerial Accounting is concerned with the future.

Based off of the information provided, Company X is in clear violation of the ADEA. Employee B is over 40 and therefore in a protected job class. Unless they have reason to justify their decision, employee B

6. Forman, Inc. owns machinery with a cost of $250,000. Its estimated useful life is 10 years and a $30,000 salvage value.

 2. For your second relationship, identify the independent and dependent variables and describe the attributes of each.

Sophia Durban maintains a household in which she, her son (Ryan), and her widowed mother-in-law (Isabella) live. Since 2012, she also has provided more than half of their support. Sophia’s husband, Karl, left for parts unknown in April 2012 and excepts for one postcard, has not been heard form since. In the postcard (no return address included) that Sophia received in March 2013. Karl announced that he planned to claim both Ryan and Isabella as dependents on his own tax return.

A budget is a plan which predicts how much a company makes in revenues and how much it is going to pay in expenses and so predicts a profit or loss. A budget is can be prepared whenever a company wants two and for however long a period of time it wants to prepare it for. Companies and people would budget in order to avoid overspending and even if this does happen as it will predict how much money will be needed then the person/ business can arrange for it by getting an overdraft facility or

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

According to Will S, Ray H, & Eric E.N. (2009), management accounting is a branch of accounting that is concerned with providing information to managers who direct and control the firm’s operations. Management directing function seeks to effectively use both the human and raw material wealth of a firm to achieve organizational set objectives on routine basis. Controlling function is the art of tele-guarding the activities of the organization to consistently fall in line with set objectives. Management accounting achieves this function through effective budgeting.

The primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do not control or run the businesses’ operations. An example of external members would be customers and shareholders of the business. On the other hand, managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to increase efficiency and effectiveness within their company. According to accounting4management.com, financial accounting and managerial accounting have several differences, but they both depend on the same data.

3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for meeting the organisations objectives.

In conclusion, every major company in the world uses budgeting and there is a good reason for that. It is an important component of financial success. Budgeting makes easier to achieve financial goals. It keeps track of all expenses and help to avoid crisis. It also helps companies to control their growth and provide them with realistic idea where business is going.

There was a note lying at the foot of her bed, she picked it up. "Sorry I was late." Xion read, she placed the note on top of her bookshelf and left her room. 'There's always next time, don't worry.'

This is because of the different emphasis: management accounting information is used within an organization, typically for decision-making.

Budgeting is the main goal for profit planning. All businesses should prepare budgets; all large business does (Mowen and Heitger, 370). Budgets are financial plans for the future and are the key component of planning (Mowen and Heitger, 370). Planning and control correspond to each other in an important and dynamic way. Planning is looking ahead to see what actions must occur to realize specific goals. In addition to planning, control is looking backward to determine what happened and compare it with previous planned outcomes. Before a company set a budget, they must create a strategic plan. A strategic plan identifies a future business activity that usually covers in at least five years. There are advantages of budgeting which, are provides information that is used to improve decision making, provides standard performing evaluation, improves communication and organization.