of an organization to the stakeholders. The audience of financial accounting includes board of directors, financial institutions, and the stakeholders. The financial accounting presents a specific period in the history of the organization. The information helps the audience to review the performance of the company (Needles, Powers, & Crosson, 2013).
Managerial Accounting
In contrast, managerial accounting focuses on the provision of information inside the company to ensure that the management can operate effectively. Management accounting is mainly used by managers in the making of the day to day decisions that affect operations of business. Therefore, management accounting is based on current and future trends and… Continue Reading...
suggested augmented financial sector supervision, reforms in the taxation system, improved monitoring of financial institutions such as banks, and increasing the short-term interest rates so as to aid the growth of India’s economy (IMF, 2018). It is also important to note that so as to generate economic reform and change, these international lending institutions are also aiding developing counties through the re-establishment of market economies in developed nations such as the United States. Taking this into consideration, it can be claimed that international lending institutions have a pivotal role to play in the economic, social and political growth and development of developing nations.… Continue Reading...
European banks, and Bank of Japan have introduced the negative interest rate policy where banks, as well as other financial institutions, will have to pay charges for allowing central banks to keep their money. However, there are genuine reasons for introducing this policy.
The objective of this policy paper is to investigate the reasons for introducing the negative interest rates and the risks associated with the policy.
Reasons for Introducing Negative Interest Rates
Since 2014, the ECB (European Central Bank) has become the first major bank that has moved out of the traditional marginal policy to the negative interest rate policy to address the macroeconomic challenges and achieving price… Continue Reading...
with contracts worth over $50,000
- Companies handling contracts with government bills of lading totaling over $50,000 for any 1-year period.
- Companies where the government deposits funds
- Financial institutions acting as agents for US savings bonds (HRUnlimited, 2018)
Every employer that fits within the above listed companies ought to adhere to the provisions of the Executive Order 11246, as well as Title 41 of the Code of Federal regulations 60-4. The affirmative action obligations for construction contractors are comprehensively described in the Standard Federal Equal Employment Opportunity Construction Contract Specifications. These are aimed to assure the worker that all processes within the organization are in good faith, without any form whatsoever of discrimination. Here’s a brief outline… Continue Reading...
(New rules will fail to reform ratings agencies, 2014). For instance, one analyst suggests that, “Financial institutions that created residential mortgage-backed securities (RMBS) needed strong CRA… Continue Reading...
1%. In particular, the positive impact of this monetary policy was that it boosted economic activity by stimulating the banks and financial institutions to lend and also for the increase in spending by consumers (Fahr et al., 2011; Labonte, 2016).
How long of an effect will Quantitative Easing have on the U.S. economy?
In the 2014 fiscal year, the Federal Reserve ended QE3 and that was the culmination of the Fed's bond buying program. From 2008 to 2014, the Fed purchased mortgage-backed securities and Treasury bonds worth $4.5 trillion. However, the Fed went on to draw down on its purchases progressively, until it got to the zero level. However, it is… Continue Reading...
of it encountering some fraudulent attempt or breach is greater than that of other financial institutions. In this case, it would be foolish to opine that the company is being overly cautious. Rather, it is simply preparing itself for the realities of today's financial industry.
Question 14-15
This level of management controls is necessary because of all the various threats financial entities are prone to in contemporary times. These include ransom ware (Harper), malware, any other number of fraudulent activities. Additionally, it is necessary to implement these controls physically--such as fortifying its compound and conducting its share of due diligence on visitors--so that there… Continue Reading...
assurances by the Fed and these financial institutions to lessen reserves significantly in order to prevent inflation, inflation is likely to remain in the coming years. This is primarily because there is no sound governmental policy and governmental plans like the stimulus program are likely to increase the government debt and do not increase productivity. Additionally, even with huge budget deficits, increased growth in the supply of money, and the likelihood of sustained currency devaluation, the United States will not experience deflation.
On the contrary, Krugman (2009) argued that the United States is likely to experience… Continue Reading...
anti-drug legislation prohibits legal marijuana businesses operating in states like Colorado to use national financial institutions for banking. Without access to the usual range of financing options, cannabis dispensaries and other related businesses are driven to a cash-only business which can "attract thieves and tax cheats," (Hill, 2015, p. 597). Other problems include the inability of Americans to legally transport cannabis over state lines, even between two states that both legalized the drug. Canada recently announced that it would be eliminating drug prohibition nationwide (Government of Canada, 2017). Almost all border states in the USA have legalized cannabis on some level, but it is… Continue Reading...
policy is the reserve requirements. These are the requirements for financial institutions with respect to how much of their deposits they must hold back. A bank takes in deposits, and makes its money by lending that money out again. The reserve requirement is theoretically a buffer that the bank cannot lend out, for safety reasons. The central bank seldom changes the reserve requirements, but if it does, that either frees up money for the bank to lend (spurring economic growth) or causes the bank to call in loans (cooling the economy).
Fiscal policy is entirely different from monetary policy, but… Continue Reading...
