Recent orders
Introduction to branches of Accounting
Accounting
Name
Institution
Introduction to branches of Accounting
Accounting is an important concept that its history can be traced back centuries ago. Many businesses, based on numerous transactions made in a day requires accountability and proper records keeping for such in information in order to enhance other activities within a business enterprise such as communication. With the absence of accounting for businesses, this would act as a stabling block for the attainment of organizational objectives such as profit maximization as management of resources requires proper innovative structures for accountability.
According to Dyson (2004) the accounting branches can be segregated into three key areas; financial, cost, tax and managerial accounting (Dyson, 2004, p.12). Accounting plays a significant role in different business enterprises especially on key areas such decision-making, giving information, protection of business from various transactions involved with other business environments and explaining the business position. Financial Accounting is the art of managing business financial recording that stipulates the business position, and it progress in growth through the analysis of profits and losses. According to Babarinde (2003) financial accounting is a system that deals with explaining the situation and the state of affairs for businesses through preparation of financial statements such as the balance sheet and trade and profit loss account (Babarinde, 2003 p. 313). Financial accounting also plays a significant role in running a business enterprise as the system give the estimates of costs on products, functions, activities and the firm progress. Through financial accounting, the management in a business entity can get quality information to plan through budgeting that gives estimates on expected expenditures.
Cost accounting is the system used in controlling activities of production that would regulate expenditures for the business in order to enhance profit maximization. According to Abeygunasekera and Fonseka (2013) every business has its control system that helps in cutting cost either through the production processes such as manufacturing, recruitment, training and development and delivery of services. Through such processes, cost accounting acts a system for the management to control such expenditures incurred through transactions with different business environments as well as in the processes of availing goods and services to consumers (Abeygunasekera & Fonseka, 2013).
Managerial accounting is the process that facilitates the management with information concerning the company’s progress that enhances the management in carrying out their day to day functions. The management in every business ought to have the facts in decision-making, planning, and in the development of policies and through managerial accounting such is facilitated. According to Mbroh (2013) he argued that in managerial accounting, frequent information is made obtainable to the management such as information on funds, profit and cost that gives a bulge of the business advancement and must be factual in support of truth and fairness (Mbroh, 2013).
Recommended accounting methodology for companies
It is necessary for the management of any business to how commitment in recording business transactions as this information can be retrieved for further use when such information is required. There are for instance methods of accounting that are commonly used across bossiness in the world of today. This includes the single entry and doubles entry methods that are used interchangeably in businesses. Use of double entry techniques has proved to have various advantages for many that use it. In the double entry, two columns are created for transaction entries in both what the company receives and also spends while running the business.
By following the right procedures in preparation of journals, trial balance, and final account, the use of the double entry techniques businesses benefits in different ways that is recommendable. Through such a system, the management is also to create the accounting book through a device known as the trial balance that give more accurate inform about the business transaction.
It is also easier to ascertain on the profits and losses incurred by a business if the transaction entries are properly entered in the trial balance device.
According to Mbroh (2013) he also argued that a financial statement such as the balance sheet, the system gives accurate information concerning the position of the business enterprise (Mbroh, 2013). The management is also able to know if the firm has made any development such as profit maximization and growth. This as well regulates spaces for errors as the transaction entries in both the debit and the credit side should balance in the system. Through the double entry system, the management is also able to carry out a comparison study during a specific period such as between two consecutive years. It also becomes easier in making decisions for the business as the business position is made clear for instance in the trade and profit loss accounts.
References
Abeygunasekera, A.W.J.C and Fonseka, A. T (2013) Non-Compliance with Standard
Accounting Practices by Small and Medium Scale Enterprises in Sri Lanka.
Babarinde A. (2003) Financial Accounting, Volume 1, Lagos: JBA Associates Ltd.
Dyson J. R (2004) Accounting For Non-Accounting Students, 6th Ed. Financial Times/ Pitman
Publishing Imprint, England.
Mbroh, (2013) Accounting and Control Systems Practiced By Small and Micro Enterprise
Owners within the Cape Coast Metropolitan Area of Ghana in Asian Journal of Business
and Management Sciences Vol. 1 No. 9 [28-47]
Stock splits
According to the perspective of most trader’s stock, splits offer opportunities for high trading. They see the splits as decisive progress both in terms of goodwill and value for the shareholders and business. In corporate circles, the splits are utilized by the executives as tools for investor relation and marketing.
A stock split can therefore be described as a move by the company executives to increase their outstanding shares by giving the existing shareholders more shares. This move has direct impact on the stock prices, in that after the split the stocks value will reduce due to the existence of growth within the current outstanding shares. Therefore, even though there has been a change in the stock value and outstanding shares, the market capitalization remains the same.
Stock splits occur in companies if they have seen a substantial increase in their share prices although the price per share decrease while outstanding shares number increase, the company value and capitalization within the market remains constant. In an overview their primary role is to make the shares attainable to the small investors while concurrently giving greater marketability and liquidity.
Reverse split is another unique type of stock split. Typically companies with low share prices use this method if they would like to raise these prices to either prevent the company from delisting or increase their prices to gain more weight in the market.
Possibly long and short term effects of the splits on company’s financial statements include: there being no permanent effects since after the short term initial increase of the price value and transaction costs during the declaration they normalize and remain as they were. Long-term outcomes include steady growth of the consistent earning and cash flow due to the issuance of additional shares to the existing stakeholders once the spike period has subsided.
Both businesses and stakeholders utilize leverage to develop greater returns on their possessions. Two types of leverages exist that can be used by companies that are financial and operating leverage. Operating leverage coincides with the outcome of various blends of both fixed and variable costs. Mainly on the ratio of those fixed and variables a firm uses, determine the amount of operating leverage it implements.
On the other hand, financial leverage happens when a business funds its assets mainly through taking on debts. This is often done when businesses cannot raise enough capital and therefore issue their market shares to finance their needs. Firms only choose this path when it is sure that the return rates will be more than the loan interests.
The effect of using these two leverages on a firm has been foreseen to be negative in terms of investments. For example, firms that have exceedingly high operating leverages automatically often have low sales but high margin levels. This highlight a high-risk impact if a business miscalculates possible future returns. In that if projected returns are higher than the estimates, it could result in a huge gap between budgeted and actual cash flow, which directly will impact a firms future ability to operate. In addition, this lowers a company profitability and equity of returns.
A company should determine the correct amount of leverage to use or it stands to risk a default and total bankruptcy. This can be approached from the amount of debt it has within its capital structure.This will have many advantages since it will enhance its cash flow, capital and returns. However it first has to approximate its equity value, assess its risk appetite, optimize its capital framework that is ratio leverage and quantify its debt costs.
The primary explanation as to why the furniture store and grocery shop inventories value differ mainly lies in their products. In that for the grocery store, its products are perishable. Thus, its time limit is shorter as compared to the furniture store which can hold the inventory for longer before their products become useless. This explains why the groceries stock is higher since its products are used on a daily basis as compared to those of the furniture store which can stay for years on end.
Man was bred to be a soldier
According to the “Stones” by Timothy Findley, a man was bred to become a soldier and nothing less than that. The masculinity identity is an issue that is worth mentioning. The conception of masculinity is manifested in a soldier. The essence of masculinity according to Findley is seen from when in his qualities of leadership and as the protector of the family. The above roles are evidently operative roles; to be figurative and literal soldier and not that of the opposite-women. In the story Stones, one of the characters called David experiences psychological problems. He has been indoctrinated into war; violence, making his definition as masculinity skewed.
According to the author Davis needs to be soldier to be considered as a man. Findley indicates that psychological torture is worse than physical torture. The author later introduces another character called Ben. Ben’s memories indicate that his is a perfect father. On the contrary, David is a failed soldier with evident problems of femininity. Since David changes into feminine boy since lily approaches him as a mother. It is noted that the author tried to inform his audience that the role of man should not be confused to that of the women and that the man was the bread winner of the family and the society. From his analysis, it can be concluded that David is less masculine while Ben is seen as the real man with masculine to protect his people and family. Findleys defines the negative effects of masculine psychological dilemma in “Stones” via indoctrination of violence, the ideal principle of perfection, and the female in contrast. The author informs the reader that gender roles are significant in determining masculinity ideas in humans.
Findley indicates that departing to war has psychological effects to man. Men are instructed into violence. A man is psychologically disturbed when he knows he has to go to war. Similar men exist out in the streets gangs of the youths as zombies, extremely defensive of their manhood, challenging the soldiers who were dancing (Findley 207). If Ben had a chance to come to street with his greatcoat if would be assumed that he was a deserter and the societies patriotism could have come to that (208). The soldiers returned from the war filed with wounds that were very damaging… it was the women’s role to lift their morale and to deny the harshness of the wounds. The physical is not as damaging as psychological. The author shows that men feared psychological wound rather than physical wounds. The meaning of this in the cotemporary world as indicated by Findley is that men should not fear the physical experience that we get from time to time but we should fear the impacts that come with psychological contractions. It is evident from the novel that women are subjected to simple roles such as soothing their men when “wounded” indicating that their masculinity is designed for simple roles or duties.
It is clear that the author uses masculinity traits to identify characters in the novel. David is seen as feminine with weak masculine expectations while the novel as the real masculine image that can fight for the family-brave advocates Ben. The author also raises the notion of patriarch. A man is expected to take part in a battle and such a man is considered as the perfect being. However, the notion of perfection prevents an individual’s sense of perspective. Both Ben’s and David’s perspective and blurred. The masculine approach of the perfect father and soldier suggests that David was firm with his Son and Ben femininity. David was introduced to violence earlier in life this rendering his masculinity life similar to when he become a soldier. The author deduces that one’s masculine nature does not come one a mere trial it is a learned process.
The masculine identity has been portrayed to be a negative psychological issue by Findley. In regards to soldiers, the concept of masculinity has been distorted. The man’s social identity defined as a provider, leader and protector have produced negative psychological outcomes; David has been psychologically castrated on returning home from war. The psychological, however, has given a sense of false perfection. The memories Ben has of David pre-war are blurred, as it can be assumed that a soldier registering for war would have strong masculine complex.
The perfect father, or man, is a myth. The man is associated with a strong individual and not its antithesis, the feminine. David has experienced psychological castration; a ‘failed’ soldier is not considered to be a man. The man’s psychological wounds outweigh the physical wounds. As a ‘failed’ soldier, David has lapsed into a feminine boy, as Lily is motherly towards David. David has attacked Lily and Ben in an attempt to confront his masculine insecurities. Timothy Findley has explored the harmful impacts of masculine psychological castration in “Stones” through the soldier by arising the notions of indoctrination into violence, the myth of perfection and the clash of the masculine and feminine. Man was bred to be a soldier.