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Week 1 DQ 1
Based on what you currently know about accounting, what role do you see it playing in business
operations? How dependent do you think a business is on its accounting department? Explain
why.
Accounting is an important operation to any business, no matter how big or how small. Through
accounting one gets a picture of exactly how the business is running, where the money is going
and what kind of profit is being made, if any. This process also allows a company to keep a
record of what is purchased and sold thereby being able to assess and do their taxes at the end of
the year. Accounting also keeps track on the companies spending habits when it comes to the
labor costs, utility bills, managerial costs and the over head needed to stay in business.
Depending on the size of the business, whether it is a large company or just a small mom and
pop grocery store, goes hand in hand on how dependent they are for an accounting department.
The larger companies are very dependent on their accounting department while the small
businesses probably keep the accounting in house, or done by the owner. I feel this is true
because while I did own a ‘mom and pop’ grocery store in Mexico for eight years I did all of our
accounting and relied on only myself. Now I work for a company that has expanded globally and
they rely of accounting professionals. While at our facility we have only one person doing our
accounting he reports to the corporate headquarters for advice and back up for many of our
spending needs.
Week 1 DQ 2
Why are ethics so important in the field of accounting?
Ethics are an important part of every aspect of a business. The accounng department or even just a
lone accountant for a company needs to be very ethical when it comes to handling someone else’s
money. With complete control on a company’s nances it becomes real easy to pocket the money that
was going to be used for something else. At the end of the year the accountants are responsible for
paying the taxes a company owes, without ethics these people could easily make the checks out to
themselves and never pay the taxes. This is what happened to my father about 25 years ago. He was a
contractor for a large logging ou&it and making a ton of money, while paying his employees very well
also. The accountant he had taking care of his nances decided to not pay his taxes and keep the money
himself. My father ended up losing his contractors license for tax evasion and even a(er they convicted
the accountant my father was le( with such an outstanding bill that he never tried to regain his license.
Reasons such as these make it a necessity to hold the highest ethical values in a job such as accounng.
Week 3 DQ 1
When reviewing a financial report, why should information be reliable, relevant, consistent,
and comparable? What do these terms mean and why are these accounting characteristics
important? What kinds of problems might result if a financial report is not reliable, relevant,
consistent, or comparable?

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Any financial report should be reliable, consistent and comparable no matter how big or how
small the company is. A financial report is the skeletal structure of the company and shows their
strong points as well as their weak spots. If for any reason the report was incorrect and showing
false data the managers of the company could unknowingly be leading the company to
bankruptcy. For that reason and many others the reliability of the financial statement is very
important. Anything unreliable in a company is just causing unneeded problems and should be
dealt with quickly and efficiently. Since the financial statement is made up of different sub
sections it is relevant that all sections when compared show the same numbers. The income
statement, statement of cash flow and the retained earnings statements all work together to show
a snap shot of what the company is doing and how it is doing. Without a consistent accounting
department their numbers will be all over the place and could result is the failure of the company.
Apart from a company going bankrupt they could also face severe penalties from the state and
government departments for providing false reports. Any time a report is done it needs to
conform with the local, state and federal governments requirements, if this is not done correctly
the company will be subjugated to fines, penalties and some of their members could even go to
jail for supplying fraudulent paperwork.
Week 3 DQ 2
How does information from financial reports influence business decisions? Why is it
important for business managers to understand the information found on financial reports?
The information found in a financial report of any business or company generally reflects how
they are doing. If their reports are reflecting a high yield for the past quarter than the company
can move forward and expand their business. However, if the reports show a low yield than they
will probably be forced to downsize their company until they start bringing their profits back to
the positive side. Depending on what the report says depends on how the company will move
forward, either increasing its size or decreasing or even remaining the same. The report also
allows for them to see where they are spending the most money and try to counter attack the
problem to reduce their overall cost. Since the report also contains all their earnings as well as all
their debts it is important to find high areas of cost and reduce them as much as possible. For
instance, if they are spending $35,000 a month on electricity then it might be a good idea to
initiate a plan to reduce the amount of electricity used. If the reduction could be made and they
save only 10% a month than in a years time they would have made an additional profit of
$42,000.
This is why it is important for all managers to understand the information presented on a
financial report. Since the managers are the ones who make the decisions on what to buy and
what to sell, they are the ones who need to know and understand the report. If for any reason
they fail to understand what is on the report a wrong decision could be made and the company
could go belly up.
Week 5 DQ 1

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Week 1 DQ 1 Based on what you currently know about accounting, what role do you see it playing in business operations? How dependent do you think a business is on its accounting department? Explain why. Accounting is an important operation to any business, no matter how big or how small. Through accounting one gets a picture of exactly how the business is running, where the money is going and what kind of profit is being made, if any. This process also allows a company to keep a record of what is purchased and sold thereby being able to assess and do their taxes at the end of the year. Accounting also keeps track on the companies spending habits when it comes to the labor costs, utility bills, managerial costs and the over head needed to stay in business. Depending on the size of the business, whether it is a large company or just a small mom and pop grocery store, goes hand in hand on how dependent they are for an accounting department. The larger companies are very dependent on their accounting department while the small businesses probably keep the accounting in house, or done by the owner. I feel this is true because while I did own a 'mom and pop' grocery store in Mexico for eight years I did all of our accounting and relied on only myself. Now I work for a company that has expanded globally and they rely of accounting professionals. While at our facility we have only one person doing our accounting he reports to the corporate headquarters for advice and back up for many ...
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