Accounting and Auditing: Crazy computers

FASB (Financial Accounting Standards Board) plays the role of determining Generally Accepted Accounting Principles to ensure proper accounting standards are followed. According to FASB, revenue is recognized once it is earned.Commission in Crazy Computer's case is recognized immediately since Crazy Computers collects the cash on behalf of Third Party insurance and then pays it. Commission however should not be added to sales because when balancing the equation, Sales is equal to opening stock plus purchases less closing stock.This means that by adding commission to sales the equation may not balance and it will be exaggerated. The commission revenue consists of income and it is therefore used in the final statements of accounts to calculate the profit of the business.Commission received from TPI can therefore be used when coming up with profits for the year. In case Third Party Insurance agrees to re insure, revenue to be obtained from Third Party Insurance (TPI) will only be recogni zed after Third Party Insurance pays up the amount to Captive Insurance Company (CIC).Commission revenue can only be recognized immediately if Crazy Computers will automatically be deducted from the $110 that the company gives to Third Party Insurance so that it does not have to wait for TPI to pay. This would mean that Crazy Computers would have $165 at the end of the sale then give $25 to TPI.However, it may not show whether the computers on their own were able to sustain themselves without the boost from the commissions earned. When Crazy Computers introduce CIC, they will still get the commission but it will be offset when the amount received from TPI is added.Even as Crazy Computers recognizes revenue from sale of third party insurance on behalf of TPI, it should be careful when it comes to receiving the money back for re-insurance through CIC. The best method to account for the funds to be collected from the Captive Insurance is to do them separately from Crazy Computers.This is because Crazy Computers and CIC are two different kinds of businesses. FASB advices that in order to check the progress of a business it is good to gauge its profitability which is done by subtracting the expenses from sales made by the business.This will ensure that when it comes to paying claims, revenue received from Crazy Computers should not be used for CIC obligations. It will also ensure that the money collected from CIC is not to be used in the computer business unless Crazy Computers borrows from CIC.If Crazy Computers was to account for CIC revenue together with the computer revenue, calculating profits would get complicated since the revenue received is not made from sales only. In other words, treating the two businesses as separate entities will ensure the profitability of the two can be determined.Crazy Computer's idea to create a wholly owned subsidiary would be a good idea if the Third Party Insurer agrees to re-insure with them. Based on the transaction illustrat ed in the case study, currently Crazy computers pay $110 for insurance such that TPI takes responsibility for any obligations from customers.Because CC gets commission for every sale made then from the $200 received it is left with $80 after paying the sales persons $10. With the introduction of CIC and if TPI agrees to re insure with CIC, CC will get $ 85 back out of the $110 paid to TPI.This means that cash received goes up from $80 to $165. CIC would therefore be profitable. However, in case of any third party obligations CIC will be solely responsible. This is why it is extremely important for Crazy Computers to ensure that CIC's income does not mix with computer income so as to ensure each department can sustain its own expenses.Word count (635).ReferenceFASB. (2008). Financial Accounting Standards and Revenue Recognition.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   from http/www.fasb.org.

Racism in Football (soccer) Essay Example | Topics and Well Written Essays - 2500 words

Racism in Football (soccer) - Essay Example Basically race and football presents itself in several forms. Since the early years of the last century, many fans have used their football matches to express their racial chauvinism though it has been discovered that these were just a minority of the population but causing great trouble. It's very critical how the minority groups could become very dangerous to coaches, players, and fans. Basically the problem could be worse than implied because many respondents perceive not to give bad impressions. This research will study the extent of racial discrimination in football especially at international and professional levels, and the strategies to alleviate this problem. Racism is a big concern in the world of football all over. In essence, racism is not simply aimed at undermining or intimidating football players because of the colour of their skin (Russell 1997). In recent times, coaches, officials and even fans have fallen victims of racial discrimination particularly based on their nationality, ethnic origin and religion. Some people are targeted because they are associated by their opponents rather than the colour of skin and ethnicity (Back & Solomos 1998). There have also been cases where people have been individualized and insulted by their own fans, the most notable incidence was that of John Barnes. Racism is a major problem especially in the European nations and a very critical factor in the cases of hooliganism in football. The real degree to which racism is practiced is virtually difficult to measure since there is no detailed information as evidence or important data and statistical analyses are non existent (Russell 1997). Nonetheless, the activities of disorders in football are particularly on the international level are often referred to as racists or they are perceived to be perpetrated by a groups of racists and currently even some clubs are being considered as being inherently supporters of racism. Types of Racism Racism in football takes a variety of forms and some of them are not clearly seen as discriminatory. However chanting against a team, player, coach, football official or fans has been a common form of racist activity. This was very common especially in the English football in the period around 1970s and 1980s. A crowd of some fans usually made some funny noises at players; in England, fans made monkey noises to intimidate black football players on the field. Some other cases included even more personalized abuse and insults (Back & Solomos 1998). A outstanding case is that of Deptford fire where thirteen black players in their youthful ages were burnt by a mod to death, while chanting insulting songs- ' niggers burning better than petroleum' could be heard even as far as Milwall. There have been anti-Semitic songs targeting for instance the Tottenham Hotspurs fans. Other songs are patriotic and connected to country's national anthems. Due to the increasing number of cases of racist chanting during football matches, a law was enacted in 1991 termed as the football offences act which made these chants during soccer matches an illegal activity but this law is still inadequately effective in its definition of chanting; chanting is defined as 'utterances of any words made repeatedly or making of some sounds in unison with one or a

Americans Start to Curb Their Thirst for Gasoline Article

Americans Start to Curb Their Thirst for Gasoline - Article Example Some consumers can also maintain the consumption subject to believe that the prices will stabilize in a short while. Some consumers can resort to other energy sources like wind energy and geothermal energy sources. The automobile industry is engaging in technologically innovative ways of providing an alternative to gasoline consumption. The industry is producing hybrid class of vehicle, which can survive on rechargeable battery energy. The demand for gasoline has not decreased by a great margin given that there is a shift in the demand for gasoline. According to Campoy motor vehicles are considerably cheap and fuel efficient thus people could not stop buying cheap vehicle because of increase in gasoline prices (27). Most of the working class people drive to work .In this regard, they could not avoid work altogether due to gasoline price hike. The demand increase for vehicles during this period of gasoline increase culminated in a considerable increase in the demand for gasoline. This is because gasoline and motor vehicle are complementary goods, which have a positive price correlation. This is the reason for the shift in the demand for gasoline. This explains how the Americans have managed to solve the hike in prices of

Reflection Assignment Example | Topics and Well Written Essays - 500 words - 5

Reflection - Assignment Example The UAE establishes new economic and political partnerships with other world countries creating a new appealing image of the country. This new role brings challenges to people in the UAE; they face the need to learn more about other people to understand them and make their communication effective. People cannot exist separately from their culture. The definition of culture is complex because it is derived from the context. Generally, culture is often related to separate dimensions of human life like legal sphere or personal communication. When 2 or more cultures exist in one community, they experience conflict caused by fundamental differences in their world views. If people do not have any knowledge about other culture, they can easily aggravate this conflict. On the other hand, cultural awareness let different people find a common ground. One more challenge is represented by language differences; people who do not know local language are automatically treated worse than locals. Despite these negative effects, cultural diversity changes the UAE to the better. People have more opportunities to communicate with foreigners and get some practical tips about cross-cultural communication. People who travel to the UAE and come to work there are obliged to learn more about local culture and people. People become more understanding and attentive to each other. I have seen many web resources which are related to explaining the UAE culture and eti1uette to foreigners. Moreover, people become less superstitious about the UAE and Islam when they learn about them in detail. When my grandfather was young, the country was totally different. It is even difficult to compare my world with his recollections. Old traditions still exist in the UAE society but they become more liberal under the influence of other cultures. Now he cannot be flexible enough to understand all the changes which happen every

The history and development of television Essay

The history and development of television - Essay Example The word television was coined by a Russian scientist Constantin Perskyi in a paper he presented at the International Electricity Congress at the International World Fair in Paris on August 25, 1900. Even before that, Paul Gottlieb Nipkow, a German student, had patented the first television in 1884. It was a electromechanical device based on the photoconductivity of the element Selenium and Nipkow’s spinning disk with a series of holes of equal diameter drilled into it at equal distances. In the camera unit, as the disk spun in front of the object, each hole produced a scan line which was captured by a light detecting device behind it. The scan line was transmitted by radio wave to the reproducer or receiving unit. This basic television and other refinements that came after it were however restricted to transmission of still images and silhouettes. It was only on October 2, 1925 that the Scottish scientist John Logie Baird, who took the lead in development of the electromechan ical television, achieved live transmission of moving half-tone images in his laboratory. Baird’s endeavour took the electromechanical television through a continuous phase of technical development ranging from the first transatlantic transmission between London and New York by his company in 1928, the first transmission between shore to ship, demonstratin of the first electromechanical colour, infrared and stereoscopic television to the first live transmission, of the Epson Derby in 1931 and demonstration of the ultra short-wave television in 1932.

Leadership and Self Deception Essay Example | Topics and Well Written Essays - 750 words

Leadership and Self Deception - Essay Example According to Warner (2002), individuals who are in a state of self deception normally live and work as if they are trapped inside a box. Consequently, they remain in the same position and experience minimal or no change. According to Warner (2002), there is a solution to self deception and most individuals in leadership positions can always work towards solving it. People find the knowledge of self deception very liberating since it increases happiness and satisfaction, enlivens the desire for team work, increases accountability, sharpens vision, reduces feelings of conflict and magnifies the capacity to achieve results. Self deception therefore appears to enclose many good attributes in an individual. It is therefore important that individuals are enlightened on it for purposes of liberation. According to Arbingel Institute (2002), self betrayal on the other hand occurs as a result of being insincere on what you know is the right thing to do. In most cases, people tend to rationalize and justify their actions when they don't want to do what is considered as right so as to protect their egos. This results to transference of one's blame unto others as well as considering them as hindering objects. Self betrayal is very common among individuals in the society and results to interpersonal problems either at home or school. In reference to chapter one-Bud, it a... Consequently, they focus on giving their best in order to benefit the company and their fellow workers. The tricky thing that comes in is that their motivation is normally flawed; deceiving others into subtle ways and making them think that they are the right ones for the right reason. Self justification then becomes such an ingrained habit that it becomes hard to break free of it. The box The authors of the book have created a hypothetical situation whereby Tom Callum, a recently hired senior executive is settling into his new duties at Zagrum Company. It comes as a surprise to him when he realizes that part of his orientation involves identification of the box. The box has been used as a metaphor implying an enclosure and captivity. It also resembles apparel and people carry it wherever they go irrespective of the circumstance. In most instances, people create boundaries which normally limit their potential and eventually end up as failures. Confusion as a result of other's opinion Tom's conversation with the fellow workers as he sought to know what the meeting between him and Bud was all about portrays a clear picture of self betrayal among the workers since they were all insincere and did not give the right answer. Instead their explanations ended up confusing Tom. The confusion came about due to numerous opinions from different people. Their self betrayal resulted into self deception. Self deception in reference to one's performance On his way, to meet Bud, Tom reviewed his performance in Zagrum and he was quite sure that he was on the right track since he always arrived early for work and left very late in the evening. He did all that so as to outshine his fellow coworkers and compete for the

The Influence of Essentialst Attitudes Portrayed in the Modern Day Sitcom on the Views and Beliefs of Modern Society Essay Example for Free

The Influence of Essentialst Attitudes Portrayed in the Modern Day Sitcom on the Views and Beliefs of Modern Society Essay The Influence of Essentialst Attitudes Portrayed in the Modern Day Sitcom on the Views and Beliefs of Modern Society. Throughout its long history, the sitcom has been commonly understood to define the cultural norms of modern society through such comedy techniques as satire and irony. Like modern society, certain characteristics of the sitcom have evolved over time, while others have remained consistent. The evolution of the sitcom coincides with the generational shift in attitudes of society towards certain beliefs and values. So, it would seem that there must be some sort of correlation between the evolution of the sitcom and that of society, as if one is the cause of the other. * * While this can be safely said about the effect of society in shaping the structure of the sitcom, whether the modern sitcom has a significant effect on the views and beliefs of society is debatable. This essay will demonstration that, although the modern version of this genre contains essentialist themes and characters, it does not promote essentialism and therefore does not negatively influence society. From the fifties to the eighties, sitcoms have adhered to a rigid structure involving a live studio audience and certain unchanging characteristics that would define the genre. They also conveyed a very apparent moral code. In the 90’s, Seinfeld’s seemingly non-existent moral code would see it labeled by some as â€Å"apolitical or nihilisticâ€Å" (Gencarella 2005,390). However, even if these aspersions were true, it would not necessarily follow that the audience would agree with these moral values and thus accept them as normal behavior. In any case, Gencarella (2005) argues that, although the four main characters do show an extent of self-interest, their moral behavior does not reflect the teachings of the show. Issues of race, gender and politics are still addressed but are presented in a different way than they were ten to forty years ago. * The ingredients of a successful sit-com consistently involve strong, sometimes iconic characters, which often represent stereotypes. Recent sitcoms have challenged and broadened the idea of traditional stereotypes. For example, Gencarella (2005,394) argues that the four main characters of Seinfeld represent four distinct political stereotypes: the individualist, the hierarchical, the egalitarian, and the fatalist. The way these political stereotypes interact with each other and their community have no doubt contributed to the comicality and thus the success of the show. * Unlike the 2005 sit-com The Office (American version), Seinfeld does not consistently display essentialist traits in its characters. It conveys essentialist themes through satirical situations involving essentialism. This is none more evident than the following example (â€Å"The Yada Yada†), which Gencarella (2005,398) also uses to describe the egalitarian nature of Kramer: * Jerry: Those people can be so touchy. * Kramer:â€Å"Those people. † Listen to yourself. * Jerry: What? * Kramer: You think that dentists are so different from me and you? * They come to this country just like everybody else in search of a dream! * Jerry: Kramer, he’s just a dentist. * Kramer:Yeah, and you’re an anti-dentite! * Jerry: I am not an anti-dentite! * Kramer:You’re a rabid anti-dentite! Oh, it starts with a few jokes and some slurs – â€Å"Hey denty! † Next thing you know you’re saying they should have their own schools! * Jerry: They do have their own schools! Jerry Seinfeld is clearly representing an essentialist point of view towards dentists. The absurdity of the situation, however, entails that this essentialist view is not being endorsed; rather it is being exposed in a ludicrous fashion. It shows the absurdity of prejudice and racism. This draws comparisons, as Detweiler (2012,730) explains, to Randy Newman’s defense of his controversial song Short People. The song criticises short people in an essentialist manner, describing them as having small voices and little beady eyes. Randy Newman explains, â€Å"that by choosing an object of prejudice so absurd, he might expose the absurdity of all prejudice†¦Ã¢â‚¬  * In the case of The Office (American version), Michael Scott is blatantly and shockingly racist, sexist and prejudice. The perception that the audience recognizes this view as essentialist, which is the basis of its humor, reinforces the idea that the text does not endorse this kind of behavior. As Detweiler (2012,730) describes, this is further broadcast by the occasional ironic facial expressions, to camera, of Michaels Scott’s colleague, Jim Halpert. Through the clever use of irony it sets an example of how not to act. * Due to the satirical and ironic nature of the sit-com, the question of whether the inclusion of stereotypes and essentialist views warrant a critique as a conclusively essentialist text depends solely on the audience’s interpretation of the text. The writer’s intention here is irrelevant.