http://www.articlesbase.com/business-articles/bookkeepers-and-accountants-choose-double-entry-bookkeeping-for-accuracy-276500.html
Summary
The media report that I am blogging about is how bookkeepers and accountants chose double entry bookkeeping for accuracy. Double entry bookkeeping goes back to the 12th century and is now the accounting standard for companies recording financial accounting records. So basically, an asset is a debit balance while a liability is a credit balance. So double entry bookkeeping has a double effect. For journal entries, both sides of a transaction may have no effect on the profit. Double entry bookkeeping shows the profit of a business by numerical terms that improves financial performance. Basically, accountants are benefited by this because every transaction has an equal and opposite entry and they can check their work mathematically that makes sure it’s correct and accurate. So the article is trying to say that Accountants and Bookkeepers would rather use double entry bookkeeping than single entry bookkeeping because double entry bookkeeping is more accurate by the means that you can check your work mathematically.
Connections
This article connects to chapter 3 because chapter 3 discuses double entry bookkeeping a lot as does this article. See, the article explains how double entry bookkeeping is used and where it would work out best. It explains how it connects with journal entries and the effect is has on the profit. So basically, Double Entry Bookkeeping is a good way for accountants to record their work because it can be easily checked by math and looking back. This article also explains that by double entry bookkeeping there will always be a double effect and in the book it shows that how in double entry bookkeeping, if you buy something, your assets will increase and decrease. This chapter also discusses the role of debits and credits in the recording of transactions and that is explained in this article by double entry bookkeeping which explains that there will always be two sides to a transactions. So basically, the two connect by means of transactions and the use of double entry bookkeeping.
Personal Reflection
I believe that double entry bookkeeping is a real great mechanism that can be used in every business. I think that it is way better then single entry bookkeeping because it is more accurate and useful for accountants and bookkeepers. I like double entry bookkeeping because there are always 2 sides to a transaction and even if you mess up, you can fix it up because it is more organized and easier to follow. I believe that all of the huge companies should use double entry bookkeeping because it would be way more useful and accurate. Instead of making mistakes through single entry bookkeeping, you should rather use double entry bookkeeping because it can also show the profit of a business by numerical terms that can improve the company’s financial performance. All in all, I think that Double Entry Bookkeeping is a real good technique because it helps you check over your work since the total debit entries must equal the total credit entries, the financial position of a business can be stated at any point of time and it helps reduce the risk of errors and helps detect any errors or fraud.
Mandeep Dhami
Financial Accounting 12
Block A
Monday, December 8, 2008
Sunday, October 19, 2008
Chapter 2 - Don't be Rushed into Buying Stocks
http://www.nytimes.com/2008/10/16/business/16views.html?_r=1&ref=yourmoney&oref=slogin
Summary
The media report I am blogging about is that you shouldn’t be rushed into buying stocks. Even though the stock levels are the same as 1999, it isn’t a good idea to buy stock because it seems like a bargain. The world stock markets are still jumping around and have gone to extreme lows. Even though the shares are cheap right now, they will get cheaper when the profits fall. So basically it means that the true opportunities in the stock market may still be in short supply and if you invest a lot of money, it might not really work out for you. So because of the tight credit everywhere, consumer spending, corporate profits and investor enthusiasm are set to squeeze for risky assets. So the article is trying to say that investing in stocks now wouldn’t be a good idea because the stocks might decrease even more and that would put the investor in a really bad position.
Connections
The connections between this article and chapter 2 are that this really affects the shareholders. Since the stocks have decreased quite badly, the shareholders that bought shares in the company have lost a lot of money too. The earnings per share have been affected and the financial statements have been affected too. Since the stock market has crashed, the shareholders earnings per share have decreased that sort of played a domino effect and ruined everything else about the company. The crash of the stock market really has connections with the Income Statement and Balance Sheet too, because this affects a lot of things about the Shareholders’ Equity. Investors and shareholders are always looking to buy, sell, or trade shares to enhance their financial position but the stock market crash really makes this a difficult thing to do. The stock market crash also connects with transactions that occur in Chapter 2 because since this crash occurred, many companies are in deep need of selling their assets to make their financial position rise and they would have to do a lot of transactions like getting loans and things in that area. So basically, the two connect because when either the stocks or company go down, the other one gets affected strongly and takes a lot of damage too.
Personal Reflection
I believe that people shouldn’t go out and invest in stock markets right now because it wouldn’t be that great of an idea. Keeping your money under the bed would be a better solution then buying stocks at this moment in my opinion. There are many inexperienced investors right now that may jump into the market in which may break them or make them. I believe that is a huge risk financially and that everyone should just conserve their money at this point of time. I think that if you’re going to invest in the market, you should leave enough money with yourself that will still make you financially fit, instead of taking a risk and maybe even having it all be blown away. To me it seems that many younger investors might actually make the jump into the market but after it’s all done, I believe they will come out with a valuable experience. So basically, I think that if you’re going in, keep enough money to keep yourself financially fit, and if you’re not, this may be a very smart decision on your behalf. So if you’re going in you can either make it or break it.
Mandeep Dhami
Financial Accounting 12
Block A
Summary
The media report I am blogging about is that you shouldn’t be rushed into buying stocks. Even though the stock levels are the same as 1999, it isn’t a good idea to buy stock because it seems like a bargain. The world stock markets are still jumping around and have gone to extreme lows. Even though the shares are cheap right now, they will get cheaper when the profits fall. So basically it means that the true opportunities in the stock market may still be in short supply and if you invest a lot of money, it might not really work out for you. So because of the tight credit everywhere, consumer spending, corporate profits and investor enthusiasm are set to squeeze for risky assets. So the article is trying to say that investing in stocks now wouldn’t be a good idea because the stocks might decrease even more and that would put the investor in a really bad position.
Connections
The connections between this article and chapter 2 are that this really affects the shareholders. Since the stocks have decreased quite badly, the shareholders that bought shares in the company have lost a lot of money too. The earnings per share have been affected and the financial statements have been affected too. Since the stock market has crashed, the shareholders earnings per share have decreased that sort of played a domino effect and ruined everything else about the company. The crash of the stock market really has connections with the Income Statement and Balance Sheet too, because this affects a lot of things about the Shareholders’ Equity. Investors and shareholders are always looking to buy, sell, or trade shares to enhance their financial position but the stock market crash really makes this a difficult thing to do. The stock market crash also connects with transactions that occur in Chapter 2 because since this crash occurred, many companies are in deep need of selling their assets to make their financial position rise and they would have to do a lot of transactions like getting loans and things in that area. So basically, the two connect because when either the stocks or company go down, the other one gets affected strongly and takes a lot of damage too.
Personal Reflection
I believe that people shouldn’t go out and invest in stock markets right now because it wouldn’t be that great of an idea. Keeping your money under the bed would be a better solution then buying stocks at this moment in my opinion. There are many inexperienced investors right now that may jump into the market in which may break them or make them. I believe that is a huge risk financially and that everyone should just conserve their money at this point of time. I think that if you’re going to invest in the market, you should leave enough money with yourself that will still make you financially fit, instead of taking a risk and maybe even having it all be blown away. To me it seems that many younger investors might actually make the jump into the market but after it’s all done, I believe they will come out with a valuable experience. So basically, I think that if you’re going in, keep enough money to keep yourself financially fit, and if you’re not, this may be a very smart decision on your behalf. So if you’re going in you can either make it or break it.
Mandeep Dhami
Financial Accounting 12
Block A
Monday, September 22, 2008
Chapter 1 Blog
http://www.fasb.org/news/nr091108.shtml
Summary
The Media Report that I am blogging about is about the IASB and FASB Publishing an Update to the 2006 Memorandum of Understanding. This report shows the progress made since 2006 and how they set goals by 2011 of completing major joint projects. The boards had set common high quality standards that they believe would advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. There are also some jurisdictions like Canada, India, Japan, and Korea that are planning on adopting with International Financial Reporting Standards (IFRS) from 2011. So basically, this update shows a plan and projected time line for finishing the left over joint major projects in the Memorandum of Understanding.
Connections
The connections between the IASB and FASB Publishing an Update to the 2006 Memorandum of Understanding and Chapter 1 are that this allowed the GAAP’s to improve. The book shows that the FASB sets accounting standards for American Corporations and this time, the board set out high quality standards that they believe would advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. The book states that the AcSb announced in January 2006 that the Canadian Standards for publicly trading companies with international standards would be converged by 2010, but in fact, the 2008 update establishes goal of completing them by 2011. So the connections are that they both discuss the facts of Standards, GAAP’s and when they plan on completing them.
Personal Reflection
I believe that this update is excellent because it gives an estimated time of when the major joint projects in the Memorandum of Understanding would be completed. I think that this update shows a lot of upsides for people like investors or even capital markets around the world. I also think it’s great that some jurisdictions like Canada, India, Japan and Korea are planning on adopting with International Financial Reporting Standards because it allows them to complete the remaining projects. I find it awesome that the board set out high quality standards because these standards can advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. I find it really good that a lot of people can contribute from the plans on completing the major joint projects by 2011.
MANDEEP DHAMI
FAC 12
Block A
Summary
The Media Report that I am blogging about is about the IASB and FASB Publishing an Update to the 2006 Memorandum of Understanding. This report shows the progress made since 2006 and how they set goals by 2011 of completing major joint projects. The boards had set common high quality standards that they believe would advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. There are also some jurisdictions like Canada, India, Japan, and Korea that are planning on adopting with International Financial Reporting Standards (IFRS) from 2011. So basically, this update shows a plan and projected time line for finishing the left over joint major projects in the Memorandum of Understanding.
Connections
The connections between the IASB and FASB Publishing an Update to the 2006 Memorandum of Understanding and Chapter 1 are that this allowed the GAAP’s to improve. The book shows that the FASB sets accounting standards for American Corporations and this time, the board set out high quality standards that they believe would advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. The book states that the AcSb announced in January 2006 that the Canadian Standards for publicly trading companies with international standards would be converged by 2010, but in fact, the 2008 update establishes goal of completing them by 2011. So the connections are that they both discuss the facts of Standards, GAAP’s and when they plan on completing them.
Personal Reflection
I believe that this update is excellent because it gives an estimated time of when the major joint projects in the Memorandum of Understanding would be completed. I think that this update shows a lot of upsides for people like investors or even capital markets around the world. I also think it’s great that some jurisdictions like Canada, India, Japan and Korea are planning on adopting with International Financial Reporting Standards because it allows them to complete the remaining projects. I find it awesome that the board set out high quality standards because these standards can advance the quality, comparability and steadiness of financial information for investors and capital markets around the world. I find it really good that a lot of people can contribute from the plans on completing the major joint projects by 2011.
MANDEEP DHAMI
FAC 12
Block A
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