One key result of this applies to anyone who tries to meddle with documents. Such persons would be subject to a fine or imprisoned for 20 years. Similarly, this act adds substantial fines and longer prison time for corporate employees who sign-off on the correctness of their financial statements, which knowingly misstated. This act has gone ahead to impose criminal liability on the CXO executives for the failure to file certifications in accordance with the legislative period schedule. What impact does the act have on the corporate accountant, on creditors of a company, on investors in a company, and on customers of a company?
2013 Accounting INC 8/7/2013 MEMO TO LJB President: Accounting INC after a careful and in-depth analysis on Aug 5th 2013 recommends the following. Under Sarbanes-Oxley, all public traded. U.S. corporations are required to maintain an adequate system of internal controls. The president must ensure that these controls are reliable and effective. The transformation of going from a private to public requires some extensive planning and preparation.
The executives at WorldCom knowingly misstated capital spending moving funds from one account to another to hide the reasons for the expenditures, and manipulated financial reporting. Moving large amounts of money from the company’s income statement to the balance sheet with the intent to hide the true nature of the expenditures is the beginning. This fraudulent accounting activity resulted in costing investors billions of dollars. These actions clearly conflict
A. was approved by a vote of all accountants B. are rules that all accountants must follow C. is viewed as providing a constitution for setting accounting standards for financial reporting D. is legally binding on all accountants 3) In what situations will a static budget be most effective in evaluating a manager's effectiveness? A. The company has substantial fixed costs. B. The company has substantial variable costs.
Accounting Angel Martinez Acc 11/28/2011 Accounting Accounting requires collecting information and displaying it on statements so that business decisions can be made for the future of a company. The purpose of accounting is to document what the company is spending and what revenue is being collected. Accounting provides a business with correct and documented information on what is profitable and what is negative. Without accounting, businesses can not prosper or make decisions on growth or downsizing. Accounting requires that all transactions be recorded to ensure accuracy when giving financial details to board members, stock holders, and the IRS for tax purposes The income statement posts revenues and expenses.
To make their reports meaningful, a company reports the recorded data in a standardized way according to generally accepted accounting principles (GAAP). The remainder of this paper will illustrate examples of the income statement and balance sheet. In addition, this paper will discuss a few basic accounting principles along with a brief discussion of the difference in how equity is reported for an owner invested firm versus a not-for-profit entity. Construct Brandywine’s 2007 Income Statement In order to construct Brandywine’s 2007 income statement, one must first collect the data required for reporting. The income statement reports the success or profitability of a company’s operations over a specific period of time (The Income Statement, 2011).
FDR’s motive for creating the New Deal was the toll the largest stock market crash in history was having on the nation and its people. While progressivism aimed to fix the government and the New Deal aimed to fight the stock market crash, the Great Society simply aimed to eliminate poverty in the country. WE can see that the motives of each era are all difference and, while there are some comparable characteristics about the goals of the eras, they still also differ between each era. During the progressive movement, a huge effort was made to expose the corruption of the nation; this was an effort made by muckrakers, journalists who combined careful research and sensationalism to educate the public about the corruption and dishonesty about some aspects of the country. Progressive goals included changing the voting and election process, reforming how trusts and railroad regulations were handled, and standing up for the
Lobbyists could be used to get voters demands to Congress after elections, but now most lobbyists are paid by large corruptions to influence lawmakers. A great example of their influence is the recently introduced bill, called SOPA. It was aimed to make major reforms to Internet piracy. They proposed to accomplish this by censoring any site that had been accused of copyright infringement. Any site with user generated content; Facebook, Twitter, YouTube, and many more could quickly be blocked.
Boeing Case The Boeing case posed several examples of questionable decisions being made. The first instance of questionable behavior included a blatant example of conflict of interest with Darleen Druyun and Mike Sears. The next instance was when Boeing executive, Larry Satchell, was caught stealing trade secrets of a competitor and violating U.S. procurement laws. Another example of questionable ethics from the case was Boeing’s lack of transparency when they manipulated financial statements to ensure a merger would go through. Next, Boeing’s knowledge of pay discrimination was revealed.
Before the accounting elements become part of the financial statements required from companies particularly the publicly listed ones, a transaction or event should comply first with the standards’ requirement on measurement. \ The accounting elements are referring to the assets, liabilities, equity, revenue and expenses (Englard, 1995). 2.2 The accounting theory on recognition of accounting elements and IASB’s framework on recognition and measurement. The accounting theory on recognition of accounting elements requires that before assets, liabilities,