the society. In this report‚ it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer‚ 1975) says a corporation must act in congruence with norms and society value. First of all‚ Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they
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Limitations of Financial Accounting: Financial accounting is the only branch of accounting and it is not perfect. There are large numbers of limitations which open new way to use other tools of accounting. To know what are the main limitations of financial accounting. It is very necessary for accountants. Accountants are often blind to these limitations. So‚ I am covering its limitation a lot of ground. Read below and understand:- 1. Financial accounting is of historical nature Net effect
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earnings quality since net income does not representatively portray the economic performance of the business entity for the period. Income smoothing relies not on falsehoods and distortions but on the wide leeway existing in alternatively accepted accounting principles and their interpretations. It is conducted within the structure of gaap. In effect‚ it redistributes income statement credits and charges among periods. The prime objective is to moderate income variability over the years by shifting
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• Accounting is the system that measures business activities and process information into reports. • Accountant maintain‚ audit and prepare financial records for a person or a company. • Main careers in accounting - bookkeeper‚ auditor‚ financial advisor‚ taxation‚ carbon accountant and accountant etc… • Bookkeeping is recording financial recorders and summaries of financial transaction. Accounting is measuring business activities and process information into reports. • Main professional accounting
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136 Positive Accounting Theory and Science JCC Journal of CENTRUM Cathedra ™ Positive Accounting Theory and Science by M. Humayun Kabir Senior Lecturer‚ Faculty of Business Auckland University of Technology‚ Auckland‚ New Zealand Abstract This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science: Popper (1959)‚ Kuhn (1996)‚ and Lakatos (1970). PAT has been one of the most influential accounting research programs
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Financial Accounting Assignment 2 1 of 25 The credit term 2/10 n/30 means: that after 10 days 2% interest is charged. that there is a 10% discount if payment is received within 30 days. that there is a 2% discount if payment is received within 10 days. there is a 10% discount if paid immediately and 2% if paid within 30 days. 2 of 25 Family Food Stores purchased canned goods at an invoice price of $3‚000 and terms of 2/10‚ n/30. Half of the goods had been mislabeled and were returned immediately
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Though we often think of the field of accounting as a single discipline‚ there are‚ in fact‚ several specialties that are practiced. These include financial accounting‚ managerial accounting‚ tax accounting‚ cost accounting‚ international accounting and social accounting‚ among others. Of these‚ the former two classes of accounting are the most common. This paper will explore the key differences between financial and managerial accounting and discuss some of the standards of ethical conduct placed
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Short Responses for Garrison CH 8 and CH 9‚ Midterm‚ and part of AICE CH 7 Explain how wind‚ temperature‚ density‚ the Coriolis effect and the shape of the sea bed produce ocean currents and upwelling. Ocean currents are the continuous movement of ocean water driven by forces acting on the water‚ including: wind‚ waves‚ the Coriolis effect‚ temperature‚ salinity and tides. The contours of the sea bed influence the strength and direction of the current. Surface ocean currents are generally
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Dr. Sunny Sun‚ Poly U.‚ Only for use in AF2108 Financial Accounting‚ Second Semester 2010/2011. AMY LAU JUN HAN HAIER: MANAGEMENT CONTROL ON A TACTICAL LEVEL The Haier Group started out as a refrigerator manufacturer in China in 1984 with imported refrigerator production technology from the German Liberhaier company. In the following two decades‚ Haier grew to become one of the world’s leading white goods home appliance manufacturers and was constantly regarded as an aspiring‚ fast growth
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Accountants follow professional guidelines for measurement and disclosure of financial information. These are called generally accepted accounting principles (GAAP). In the United States‚ the Financial Accounting Standards Board (FASB) formulates GAAP. The International Accounting Standards Board (IASB) sets global or International Financial Reporting Standards (IFRS)‚ the two basic types of external providers of capital include investors (who exchange cash for stock) and creditors (who loan cash)
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