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Accounting is the business discipline that studies how a company's financial information can be manipulated and presented, in a meaningful way, to enhance the decision-usefulness of that financial information. We typically think of accounting as incorporating three related disciplines: financial accounting, management accounting, and auditing

Financial accounting

Financial accounting looks to present financial information that is useful to external users, such as investors and creditors, who use this information to make resource allocation decisions between businesses.
 This information is subject to IFRS or US GAAP, is prepared using double-entry bookkeeping, and is presented in four required financial statements: the balance sheet, the income statement, the cash flow statement, and the statement of owner's equity

Management accounting

Management accounting deals with information that is used by internal users, such as a business's managers, who use this information to make resource allocation decisions within the firm. These include short-run production decisions and long-run capital budgeting decisions. (At, we look at capital budgeting decisions under Corporate Finance.) 

Management accounting information comes in a variety of financial reports, including budgets. This information is not subject to accounting standards, and how this information is prepared changes based on the costs of collecting financial information and the benefits that this information has for management decision-making. As a result, a variety of different management accounting techniques are used. 


Auditing typically refers to financial auditing of public companies. Financial audits are conducted by independant external auditors, who provide an opinion about a company's financial reports. These auditors must adhere to Generally Accepted Auditing Standards (GAAS) in the United States, and their opinions give investors reasonable assurance that financial reports are true, fair, and adhere to applicable accounting standards. The auditor must also include an opinion about the effectiveness of a company's internal controls.

In addition to the financial audit, there is a range of many different types of audit and assurance services. Many financial auditing firms also provide a range of these services, giving feedback about the effectiveness of a company's processes and procedures. These services may also be provided by in-house internal auditors that work within a single company. 

Categories within Accounting

Financial Accounting & Bookkeeping

Postings: 11,546

Cash gap analysis

xcel spreadsheet help a. Read the article "Tweaking the Numbers," by Theo Callahan in the June 2001 issue of the Journal of Accountancy (either the print edition, likely available at your school's library, or access the Journal of Accountancy archives at Follow the instructions in the article to create a sprea

Tax Return Homework Help

Please see attached file. I need help figuring out that personal tax return did not include the partnership income. Here is the information for the tax return -- the return is attached. I just need help figuring out how to include the partnership income. Emma Shire lives at 5258 Mountain Skies Road, College Park, MD 20


Recent news stories have clearly established that there are increasing instances of cyber-crime that are plaguing major corporations and financial institutions. These crimes have taken many forms, such as: External parties infiltrating corporate IT systems to steal customer information Unauthorized parties stealing

Payroll Taxes and Bond Interest Journal Entries

E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows: $198.40 for FICA taxes, $19.84 for federal unemployment taxes, and $133.92 for state unemployment taxes. Record accrual of payroll taxes. Instructions-- Journalize the entry to record the accrual of the payroll taxes. Payroll Tax

Fixed and Variable Costs.

Assume the following standard cost information: Standard cost per unit Direct materials 10 components at $0.41 per unit 4.10 Direct labor 25 units produced per DLH at $37.50 1.50 VOH $27 per DLH

Breakeven, special order, make or buy, margin of safety: FWC

Break even analysis: The variable income statement presented below is based on estimated sales of 2,660,000 units. Variable costing Sales 34,580,000 Variable COGS 18,088,000 Variable selling 2,660,000 Contribution margin 13,832,000 Fixed selling

Accountants Statement of Ethical Professional Practice

Explain how the Institute of Management Accountants Statement of Ethical Professional Practice is related to moral philosophy, ethics, and character. How does this Statement serve as a "moral compass" to accountants? Further, how can one integrate these ethical standards into his/her daily life? 150 word count and a reference

Management of FWC is concerned about overhead cost allocations

The management of FWC is concerned about overhead cost allocations. The Company has been using the plant-wide rate based on direct labor costs since it began operations. The CEO, J. B. Gogo, has decided to hire you as a consultant to evaluate overall overhead allocation system and prepare recommendations. He tells you that a

Predetermined overhead

1. Calculate the predetermined overhead rate for 2013 and the amount of over/under applied overhead applicable to January. Overhead is applied based on direct labor costs. Assume that the actual overhead incurred in the month is $705,000. The Fabulous Widget Company has been producing a single product, called the computer

Interim Reporting

There are two schools of thought on interim reporting. The discrete view holds the interim report as a segment in history that stands on its own. The integral view holds the interim report as a segment or integral part of the annual report. Which school of thought do you think is correct? Why?

Market Interest Rates and Bond Values

If the market interest rate is 5% when Mackerel Corp. issues its bonds, will the bonds be prices at par, at premium, or at a discount? The 6% bonds issued when the market interest rate is 5% will be priced at {a discount, a premium, par (maturity) value}. They are {attractive, unattractive} in this market, so investors will pay

The significance of financial ratios by category

What is a ratio? How do ratios help alleviate the problem of size differences among firms? What do liquidity, long-term borrowing capacity, and profitability ratios measure? Name a group of users who might be interested in each category, and the reason why.

Calculating the Rate of Depreciation

Presented below is information related to LeBron James Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $ 40,500 $ 5,500 10 B 33,600 4,800 9 C 36,000 3,600 9 D 19,000 1,500 7 E 23,500 2,500 6 Compute the rate of depreciation per year to be applie

IFRS Adoption: Nigeria

Can someone help me with this? It's regarding issues, challenges and lesson for challenges and lessons with IFRS Adoption in Nigeria. I have provided some main points I will need to discuss. 4. Implementation of the plan a. Is there compliance i. What is the level of compliance at this point? ii. What are the plans to exp

Make or Buy decision

The following information has been collected about the costs related to the systems: Selling price per unit $70 Production costs per unit Direct materials $22 Direct labor 16 Variable overhead 2 Total fixed overhead $360,000 Saguaro normally produces 25,000 of these systems per year. The managers are deciding whether

Income taxes journal entries

1- ABC. started business in January 2013, and purchased a machine for $100,000 (four-year expected useful life with no salvage value). ABC uses straight line depreciation for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2013, 30% in 2014 and 20% in 2015. Pretax accounting income for 2013 was $6

Contribution Margin and Absorption Income Statements

Prepare a contribution margin (behavioral, variable) income statement for Herrestad Company, compare net operating profit from a contribution margin income statement with net income from an absorption income statement, and explain why this difference happens. Prepare a second version assuming the selling price per unit increases

Rule-Based Ethics Standards

Should we have rules-based ethics standards? Why or why not? Should they tell you exactly what to do in specific ethical situations? Do you agree with the authors that a code of ethics should do more than establish minimum acceptable standards? Why or why not?

Explaining the Groupon Scandal

Can someone help me with doing an outline (numbered or bulleted) for the Groupon scandal? I need 5-6 topics in the order that I could discuss. I attached the requirements.

Cost and batch accounting

2. Horton and Sons produces specialty furniture. The company has received an order to create 50 custom tables for a customer. What type of costing method should they use? Inventory costing, Cost of goods sold Batch costing Job order costing Question . Omega Manufacturing bases its rate on dire

Common size balance sheet; analysis change in AR and allowance

22. The following calculations have been made for Coos Company: Growth Rate Net sales 10.5% Total accounts receivable 21.3% Allowance for doubtful accounts 2.6% Current Year Prior Year Allowance for doubtful accounts as a percentage of total accounts rec

Identifying and Analyzing Stock and Cash Dividends

Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of Kinney Company at December 31, 2011, is shown below. 5% preferred stock, $100 par value, 18,000 shares authorized; 8,000 shares issued and outstanding $ 800,000 Common stock, $5 par value, 200,000 shares authorized; 50,000 shar

Interpreting Accounts Receivable

Interpreting Accounts Receivable and Its Footnote Disclosure Following is the current asset section from the W.W. Grainger, Inc., balance sheet. As of December 31 ($ 000s) 2007 2006 2005 Cash and cash equivalents $ 113,437 $ 348,471 $ 544,894 Marketable securities at cost, which approximate market value 20,074 12,827 --

Managerial Accounting Crosson Needles

Sevilla Consulting offers environmental consulting services worldwide. The managers of branch offices are rewarded for superior performance with bonuses based on the economic value that the office adds to the company. Last year's operating results for the results for the entire company and for its three officers, expressed in mi

New customer strategy for Coca Cola

Can someone help me with a new customer strategy? It's for Coca Cola. Customer Valuation and Retention (one paragraph to describe the following sections) Needs-Determination Strategy (two paragraphs) Customer Valuation (two paragraphs) Customer Retention Policies (five policies, one per paragraph)

Computing Cost of Sales and Ending Inventory

Computing Cost of Sales and Ending Inventory Stocken Company has the following financial records for the current period. Units Unit Cost Beginning Inventory 100 $ 46 Purchases: #1 650 42 #2 550 38 #3 200 36 Ending inventory is 350 units. Compute t

Straight-line depreciation (Zeibart Company)

On January 1, Zeibart Company purchases equipment for $220,000. The equipment has an estimated useful life of 10 years and expected salvage value of $25,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $85,000. On this date, Zeibart examines

Cases about stakeholders and ethics

PRODUCT SAFETY AND ADVERTISING For years, arthritis sufferers have risked intestinal bleeding from the long-term consumption of nonsteroidal anti-inflammatory drugs (NSAIDs) such as Advil, which are used to ease chronic joint pain. Your company, Big Pharma, introduced a new type of painkiller, a COX-2 inhibitor that addresse