Why Does It Matter?
ECOTOUR EXPEDITIONS, INC., Jamestown, Rhode Island
You probably have never imagined the possibility of being an accountant who could have a direct impact on improving global ecosystems. Accountants who work for Ecotour Expeditions, Inc., an ecotourism company, might
Example: Purchase safari jeep with cash, $42,500.
Safari Jeep 42,500
Cash 42,500
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
College Accounting (Book Only): A Career Approach
Additional Business Textbook Solutions
Principles of Accounting Volume 1
Fundamentals of Financial Accounting
Financial Accounting: Information for Decisions
Intermediate Accounting
- Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the business funding, and what costs might the business have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making processarrow_forwardYou are required to prepare a reflection paper that incorporates your answers to the following questions: 1. Besides earning a profit, what other objectives might a business have? How can Accounting play an important role in these objectives? 2. A new manager of a retail company suggests that the company should prepare its Statement of Profit or Loss on the basis of cash receipts and cash expenditures (except for the acquisition of fixed assets, such as plant and equipment). He argues that managers, investors, creditors, and others are more interested in cash receipts and disbursements than in accrual-based accounting. Do you think he is correct? Explain. 3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher…arrow_forwardBonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance.Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed…arrow_forward
- Bonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance.Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed…arrow_forwardBonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance.Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed…arrow_forwardBonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance.Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed…arrow_forward
- Bonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing, taxation and consultancy side of a reputable professional accounting firm, is the owner of the firm. His firm provides consultancies for accounting and auditing. He has invested on the relevant items to start his business. Besides, he has also bought a car to travel to canvas for clients instead of earlier using public conveyance.Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important management accounting services. Every time he completes a certain project/assignment, he would bill his clients on an adhoc project basis. However, when the proposed…arrow_forwardTana Thorne works in a public accounting firm and hopes to eventually be a partner. The managementof Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussingthe audit fee, Allnet’s management suggests a fee range in which the amount depends on thereported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm. What are the ethical factors in this situation? Explain.arrow_forwardThe following conversation took place between Durable Construction Co.'s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson: Sarah: Kyle, I'm thinking about bringing in a new computerized accounting system to replace our manual system. I guess this means that you will need to learn how to do computerized accounting. Kyle: What does computerized accounting mean? Sarah: I'm not sure, but you'll need to prepare for this new way of doing business. Kyle: I'm not so sure we need a computerized system. I've been looking at some of the sample reports from the software vendor. It looks to me as if the computer will not add much to what we are already doing. Sarah: What do you mean? Kyle: Well, look at these reports. This Sales by Customer Report looks like our revenue journal, and the Deposit Detail Report looks like our cash receipts journal. Granted, the computer types them, so they look much neater than my special journals, but I don't see that we're gaining much from this…arrow_forward
- Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEOs advice impact the companys accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the companys current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent from the opinion of a supervisor. Note that the challenge of the assignment is to keep your integrity intact, while also keeping your job, if possible.arrow_forwardUsers of Accounting Information and Their Needs Billings Inc. would like to buy a franchise to provide a specialized service. Information about Billings is more useful to some people involved in the project than to others. Required Complete the following chart by identifying the information listed on the left with the users need to know the information. Identify the information as one of the following: Need to know Helpful to know Not necessary to knowarrow_forwardThe title of this textbook is Accounting: The basis for Business Decisions.a. How does the title relate to the description of accounting as the “language of business” and to accountingas being useful for decision making?b. Explain how the decisions you would make might differ if you were an external investor or a memberof an enterprise’s management team.c. Select a registered company working in Pakistan, pick up any of the financial statement of it from itsannual report, write it down on your answer sheet and then explain any of the GAAP principle reflectingin that financial statement. (Every student’s choice of company selection must be different than all otherstudents, there are 300+ companies list you can find on web)arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning