Full Disclosure Gabriella Goodfield ACC/421 December 12, 2011 Irina Petrova Full Disclosure What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years? The full disclosure principle is a much needed principle in recent years. There were scandals where comes gave false information on the financial or excluded some important information. Not every company or public understands the full disclosure principle.
There are two differences between the bank statement and the check register. Describe each of them. (2-4 sentences. 1.0 points) TIP: These are transactions that Jessie Robinson forgot to write down in the check register. Bank statement is a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.
Prior to their establishment, the United States had over 30,000 different currencies. They included anything from gold to notes issued by drug stores. There were several problems which came from this such as inequality in currencies. Another problem which went on during this time was banks often didn’t have enough money to honor a depositor’s withdrawal. Issues such as money inconsistencies and banking panics were the reason congress established the Federal Reserve Act which was signed into law by Woodrow Wilson on December 23, 1913.
They move currency and coin into and out of circulation, and collect and process millions of checks each day. They provide checking accounts for the Treasury, issue and redeem government securities, and act in other ways as fiscal agent for the U.S. government. They supervise and examine member banks for safety and soundness. The Reserve Banks also participate in the activity that is the primary responsibility of the Federal Reserve System, the setting of monetary policy. (“The Federal Reserve Board”) For all sorts of purposes, these banks have been divided into twelve different districts.
The FED monetary policy affects directly the cost and availability of money and credit; it also affects the demand and availability of labor. For example if a company is having a hard time keeping up due to the economic recession, and is getting harder for the company or individual to get credit due to changes on the policy of the FED, this will force the company to either lay off workers and if that does not help the company keep up, it might need to shut down. When a local company shuts down, not only is affecting labor but also production of a good or a service, giving space to external companies to come in or forcing the entry of a similar product form anther country. If the second one happens then we will be feeding someone else’s economy and not our own. But the FED can also help in a positive way, for example by keeping inflation at low, consumers and businesses don’t have to worry about high inflation.
There are twelve reserve banks located in major cities throughout the U.S. The banks are supervised by the Board of Governors. The function of the reserve bank system is to support the central bank whose mission is to influence the flow of money and credit in the nation's economy. Reserve Banks hold the cash reserves of depository institutions and make loans to them. They move money into and out of circulation, and collect and process checks.
Possibly the most important showdown was the debt-ceiling fight of August 2011. It “threatened the country's ability to meet its financial obligations and resulted in an unprecedented downgrade in the U.S. credit rating by Standard and Poor's. The subsequent failure of the bipartisan super-committee to reach a deal on $1.2 trillion in targeted budget savings over ten years unleashed automatic spending cuts for both defense and non-defense spending”
Many eager businessmen with a few extra dollars invested in the railroad and real estate businesses, and soon this gave way to massive over speculation. Over the next few years, 89 of the country’s 364 railroads went bankrupt, over 15,000 businesses failed, and unemployment skyrocketed to 14%. Eventually, the economy managed to get itself back on its feet, and by the 1880s the country was back to normal. The government passed a number of reformative protective tariffs which were meant to ensure that nothing like the panic would ever happen again. Unfortunately, it did.
There are numerous circumstances that experts point to as issues responsible for the economic downturn our nation is experiencing. These include the credit crisis; sky-high foreclosure rates that in many cases resulted from sub-prime lending; near double-digit unemployment figures; and personal debt that has skyrocketed out of many families’ financial control. It is important to understand the causes of our nation’s current economic crisis so that steps may be taken to overcome it and prevent another similar situation in the future. For many economists, the
Using a dynamic simultaneous equation to investigate the contemporaneous and lead/lag relations between markets over the year of 1972, 1980 and 1987, they find evidence of increasing market interdependence, particularly within the geographical region, over time. They also find an increasing influence of Japan stock exchange to compete with that of USA. Lee and Kim (1993) investigate the influence of the October 1987 crash on the co-movements among weekly returns of 12 stock markets using factor analysis over the period from August 1984 to December 1990. They show that stock markets became more interrelated after the crash and this strengthening relation continues for a longer period after the crash. Loretan and English (2000) examine the contagion effect for equities, bonds and foreign exchange following Mexican crisis in late 1994.