Accounting Essays

* Cash flow is more “direct” as “profit” is highly dependent on accounting conventions and concepts/principles * Cash flow reporting satisfies the needs of all users better since cash flow is more direct with its messages. Some of the interested user parties are: * Creditors -repayment of debts, overdue accounts …

As a student of commerce, we are supposed to know that what are the various methods through which we can plan our tax liability as an individual, firm or company. This assignment gives the overview of different ways of tax planning according to the circumstances prevailing at that context. FINDING …

This case titled “The North Face” examines the accounting schemes used by North Face executives to enhance the company’s revenues and profits. These schemes primarily involved violations of the revenue recognition rule for certain barter and consignment transactions arranged by the company’s chief financial officer and vice-president of sales. Deloitte …

On August 10th 1999, Disney awarded the sole mandate to Chase Manhattan Bank for the Hong Kong Disneyland financing of HK $3.3 Billion. We believe this decision was beneficial for both parties. For Chase, the rewards included underwriting fee, interest payments, being a part of a big loan-financing project in …

In this mini case Mike Stephan is dealing with a very difficult situation because he is new to the accounting firm and wants to impress the superior accountants on his engagement team. While auditing for EarthWear, he makes a little mistake by spending too many hours looking at the wrong …

By law, accountants may be responsible for customers that hire them in various legal theories, including contract, fraud and negligence. Accountant malpractice happened when he or she violates the duty of reasonable care, knowledge, skills and judgment that he or she is due to a client or to the laws …

The Income Tax Act was passed in 1961 and has been amended every year through the Finance Acts. A lot of things have changed since then. No doubt, many things have been implemented by modifying the IT Act from time to time. Thus, the IT Act today is very difficult …

For Polar Sports, Inc. one potential big change could be the switch from seasonal production to level monthly, as is brought up by Mr. Johnson, vice president of operations. This will lead to several differences in forecasting compared with when the company still adopts seasonal production. The forecast will through …

The accounting process starts with analyzing transactions and events. Not all transactions and events are entered into the accounting system. Only those that pertain to the business entity are included in the process. The transactions identified are then analyzed to determine the accounts affected and the amounts to be recorded. …

1a). How is the $300,000 treated for purposes of federal income tax? The $300,000 that John Smith received would be treated as income. According to the IRS, income is classified as “earned income includes all the taxable income and wages you get from working,” such as: •wages, salaries, tips, and …