Another difference is the issuance period, where in Financial Accounting it is provided at the end of an accounting period (quarterly or annually) whereas in Managerial Accounting it is provided as per the management requirements and there is no set period for the issuance .Compliance to accounting standards too could be considered as another difference .Financial accounting information needs to be presented according to the Generally Accepted Accounting Principles(GAAP) as it is issued to external parties unlike Managerial Accounting information which does not need to be in compliance with various standards as it is for the internal use only . Also it could be stated that managerial accounting information is unique to an organization but Financial Accounting information has a standardized layout. Another difference is that, for managerial accounting the information needs to be specific and detailed to suit the management’s requirements e.g. - for each department or branch unlike financial accounting information which is general and contains less details as it is published for the whole
a. Economic Entity Assumption The economic entity principle states that the recorded activities of a business entity will be kept separate from the recorded activities of its owner(s) and any other business entities. This means that you must maintain separate accounting records and bank accounts for each entity, and not intermix with them
Merchandise inventory is an extremely important part of this company as it is intended for sale to its customers. Dollarama’s operations are based on the annual sale of the merchandise. Dollarama is a retail store whose main source of income is by the sales to the customers of their merchandise. This is why it is expected to convert into cash within one year. Dollarama’s business is adjusted according to the sales of the merchandise.
As a business owner, manager, administrator the risks are enormous because my personal credit and financial information are closely related to my business. My identity and the company one are only one, which results in everything that directly or indirectly affects the company. There is also the risk of identity theft, the business being a small business corporate identity theft can result in the inability to meet payroll, tax obligations or payable bills. There is also loss of business income, sometimes the company is unable to meet its personal and tax obligations and purchase the necessary supplies. The consequences is unpleasant and end up in the obligation to dismiss employees, make reductions and even pay commercial obligations from
This means that the limited partners have no management authority, and (unless they obligate themselves by a separate contract such as a guaranty) are not liable for the debts of the partnership. The limited partnership provides the limited partners a return on their investment (similar to a dividend), the nature and extent of which is usually defined in the partnership agreement. General Partners thus bear more economic risk than do limited partners, and in cases of financial loss, the GPs will be the ones which are personally liable.Limited partners are subject to the same alter-ego piercing theories as corporate shareholders. However, it is more difficult to pierce the limited partnership veil because limited partnerships do not have many formalities to maintain. So long as the partnership and the members do not co-mingle funds, it would be difficult to pierce the veil.
TRADE SECRETS A trade secret is the legal term for confidential business information. It can include any information that is valuable to its owner and that the latter wants to keep secret. Trade secret may include customer lists, recipes and formulas, special processes, devices, methods, techniques, business plans, research and development information, etc. In general, protection is sought to safeguard a trade secret from exploitation by those who obtain access through improper means or who breach an obligation of confidentiality. (ESA, 2013) Protecting a trade secret There is no formal registration or application procedure for trade secrets.
Sales and purchases are taken into account. A General Ledger is a chronological accounting record a business uses to keep track of financial transactions, to document sales and purchases. When an order is placed within the company for a particular item, it is given a general ledger code which represent different items available for purchase (for example 101 for paper, 102 for toner, etc.). This system allows items to be bought but also saves a record of the purchase order so that by the end of the working year, one can approximate what is required for the upcoming year. This is how an IT budget can be
Besides that, the operation every department inside the company is not uniformed. We can see that each department has its own rules and management style. Other than that, Ebbers‟s disapprove the effort of establish of a corporate Code of Conduct in WorldCom .The code of corporate governance
Aaron hired the equipment as a consumer to refurbish his office premise. He was not dealing with this nature of business. Under UCTA, the exclusion clause was void to exclude the liability for personal injury due to negligence. Minor injuries were caused to Aaron due to negligence maintenance by EFG. Hence, Aaron was not bound by the clause, and he can claim for his personal injury damage.
Although LLP Act has incorporated some provisions in tune with Partnership Act and Companies Act , but it differs in several aspects. Partnership Firm is not a legal entity like a company; it is a group of individual partners. In Partnership, Firm name is only a compendious name given to the partnership and the partners are real owners of assets and partnership firm is not a distinct legal entity. But, LLP per se is a body corporate formed and incorporated under this Act and legal entity separate from that of its partners. Any change in the partners of a LLP shall not affect its existence, rights or liabilities.
Both entries for brands and trademarks would need accounting changes. Tyson has no intangible assets that fall under software and can retain amortization it currently uses, however accounting adjustments would be needed when and if revaluation has been