Determine the effect of several transactions on assets, liabilities, and owner’s equity. 4.27 Balance Sheet. Using accounting records prepare a balance sheet and determine the balance of the owner’s equity account. 4.28 Balance Sheet. Using accounting records prepare a balance sheet for a business and determine the balance of the cash and owner’s equity account.
They motivate their staff members and communicate the high level messages received during leadership meetings. The functional structure allows each leader to concentrate their efforts in their specific areas of expertise. They report departmental performance and other information to top level management, helping create efficient, cost effective units. In a functional organization, processes are focused, goals are more clearly established, and bottom lines are met. Finance The Aetna Finance Department is set up with a hierarchy consisting of a Vice President, Director, managers, and employees.
Managerial Accountants should calculate net income or loss in a manner that accurately reflects the closest true costs and profits as determined by the International Federation of Accountants (IFA). To effectively help Management Accountants do this, the IFA has set in place a code of conduct that should regulate the integrity, competence, confidentiality, and credibility of a corporation. Introduction To fully understand the ethical issues of Managerial Accounting, you must first assess the difference between Managerial Accounting and Financial Accounting. Financial accounting is used for to present the status of the company to external sources such as board of directors, investors, auditors, and for reporting purposes as well. The financial side of accounting is used to represent the company’s current standing based on the past profits, net income, bad debts, and current ratio of assets to liabilities.
Basically, it is used to anaylse the business as a whole and per section and to determine performance. It is also a requirement of the ATO. What are the expectations of managers and supervisors in relation to budget or financial plans? To maintain the budget and implement the financial plans into the business. This also includes educating staff about the responsibilities of maintaining costs.
Mr. President, everyone at LJB needs to understand the definition of internal control and what is required of them under the SOX law since this law requires a combined effort from top management and employees alike. Internal control “consists of all the related methods and measures adopted within an organization to safeguard its assets, enhance the accuracy and reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Kimmel, Weygandt & Kieso, 2009, pp. 327-328). In other words, effective internal control can help companies achieve established financial goals, prevent loss of resources, and prepare reliable financial statements. Under SOX, all publicly traded U.S corporations are required to maintain an adequate system of internal control by means of developing principles of control over financial reporting as well as continually verifying that these controls are working.
MULTIPLE CHOICE QUESTIONS 1. The statement of cash flows should help investors and creditors assess each of the following except the a. entity's ability to generate future income. b. entity's ability to pay dividends. c. reasons for the difference between net income and net cash provided by operating activities. d. cash investing and financing transactions during the period.
In order to evaluate the success of those decisions, managers must be able to analyze their decisions and fully understand the impact past decisions will have on the past, present, and future health of the company. The tools to analyze the business in such a manner are found in corporate finance. Thus corporate finance is important to all managers because it provides the necessary tools to evaluate decisions that satisfy every company’s two main goals. Brigham, Ehrhardt. Financial Management: Theory & Practice, 13th Edition.
Topic: Ethics in cost and managerial accounting Name: Course: Instructor’s Name: Date: ETHICS IN COST AND MANAGERIAL ACCOUNTING INTRODUCTION Ethics is a person’s moral practice and features that define his or her character. Ethical behavior is an important aspect in all professions and to accountants is no exceptional. An accountant does daily calculations and balances an organization’s transactions. They are required to have a high degree of ethical behavior and exercise a duty of care and professionalism in their work (Osmond, 2014) the cost and management accounting field will demand accountants to be people of high integrity, honesty and competence. Companies use managerial accounting internally to prepare and manage their business data.
How do managerial accountants support strategic decisions? Management accounting is a profession that involves partnering in management decisions, arranging planning to performance management systems, and providing expertise in financial reporting and control to assist in the formulation and implementation of an organization's strategy. Managerial accountants look at a variety of events that happen in and around a business while considering the needs of the business. Once completed data and estimates surface, cost accounting brings the estimates and data into knowledge that will eventually be used to guide decision-making. In managerial accounting, managers use the collected information to get better informed before any decisions are made within their organizations.
These dashboards display acute business procedures and accomplishments that activate warnings when the metrics are not being met. These metrics evaluate the core of complications by discovering significant and timely facts and figures. This process is done by observing the situations from various viewpoints and numerous levels of the facts. The dashboard structure also manages individuals, expands decision making, heightens performance, and guides the association in the right direction (Eckerson, 2011). The performance dashboards suggest numerous assistances to organizations and all workforces.