You Are Working as an Accountant

In: Business and Management

Submitted By arnitaetsitty
Words 578
Pages 3
You are working as an accountant Click Link Below To Buy: http://hwaid.com/shop/you-are-working-as-an-accountant/ Organizational Analysis & Design Plan: Project Description and Scoring Guide
Use logical reasoning based on your tax research to explain why the client should choose your recommended business entity. Consider referencing appropriate tax code and regulations.
1. Defend your business entity recommendation by describing the accounting method. Consider the advantages and disadvantages of the business entity based on the following:
1. Cash basis vs. accrual
2. The cost to prep the returns
3. The tax benefits
4. The limited liability protection
5. Employee benefits
C. Interpret the tax law pertaining to the type of business recommended and justify your recommendation using details consistent with tax law, code, and regulations.

The scenario:

Prompt
You are working as an accountant at a mid-size CPA firm. One of your clients is Bob Jones. Bob’s personal information is as follows:
DOB: October 10, 1952
SSN: 444-00-4444
Marital Status: Single
Home Address: 5100 Lakeshore Drive, Pensacola, FL 32502
Bob has a very successful used car business located at 210 Ocean View Drive in Pensacola, Florida. Last year, you filed a Schedule C for Bob that had $1,200,000 in taxable income. The business will have an income growth rate of 10% per year over the next several years. Bob’s personal wealth, including investments in land, stocks, and bonds, is about $14,000,000.
Last year, he reported interest income of $20,000 and dividend income of $6,000. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000. The stocks and bonds have a tax basis of $1,200,000 and they are currently worth $5,000,000. All of the investments have been owned for more than a year. In addition to his investments, Bob paid $140,000 for his home in…...

Similar Documents

Accountants

...ACCOUNTANTS Jackson States offers many majors. If the career selection were child education or music, there is an opportunity to fulfill the career path at many colleges. Math and numbers have always been an interest, came as second nature. Today presented is the knowledge accounting explores, the professions to which it leads, and salary. In order to choose a major there has to be a connection. The accounting major prepares individuals for analysis, planning, control, and decision-making. In addition to accounting courses, students develop oral and written presentation skills, listening skills, leadership, and career preparedness. Courses required include economic and managerial perspectives on the relationships among business activity, economic outcomes, and evaluation of business performance. In-depth study in financial reporting, managerial accounting, taxation, and auditing will also be courses that are required gain knowledge in to become an accountant. Once obtaining a degree, there are many professions to choose from as an accountant. Standard accountant (General Ledger accountant), Auditor, Inventory accountant, Financial analyst, Budgeting accountant, Tax accountant, are all professions of accountants. The first one, standard accountant, verifies transactions and do the reports needed by those inside and outside the company. Auditors’ takes already prepared statements and ensure that they are legally reported. Inventory accountants are responsible......

Words: 510 - Pages: 3

Accountant

...Learning activity 3 ch 1-U1 Javier Hernández Rosado M00-14-4476 1. In what sense do maximization of sales and maximization of management welfare agree or disagree? 2. Negative economic profits is an indicator that the firm is making negative accounting profits. Explain why or why not. 3. Monopoly profit theory is an extension of frictional profit theory. Explain why or why not. Answers: 1. The maximization of management explain that managers maximize the salaries and fringe the benefits. The maximization of sales includes relationship between executive’s salaries and sales, and a weak relationship between salaries and profits. 2. It all depends on which perspective considers this issue. As an accountant, profit is the difference between total revenue and explicit cost. In the other hand, economists consider the profits equal to total revenue minus implicit and explicit cost. If this difference is positive the company has economic profit, but negative difference indicates economic loss. Zero indicates a normal profit. In the Economic Value Added a positive indicates increase in shareholders wealth. 3. Monopoly profit theory asserts that some firms are sheltered from competition by high barriers to entry. Economies of scale, high capital requirements, patents, or import protection enable some firms to build monopoly positions that allow above-normal profits for extended periods. Monopoly profits can even arise because of luck or happenstance (being in the...

Words: 262 - Pages: 2

Accountant

...more involved in consulting, so it requires high ethical standards to built trust between clients and companies. The Sarbanes-Oxley Act of 2002 was a key milestone in ensuring the appropriate recording of financial information takes place. As a result of numerous scandals, SOX has made the penalties for fraudulent activity more severe, working to the benefit of accounting professionals since there can be dishonest influence placed upon them from the companies or corporations they work for. Even if society does not believe in the honesty in any business, I think that ethics and ethical behavior are very high priorities for companies today and this is proven by the increasing number of companies currently applying ethical codes of conducts. A firm’s unethical behavior could also contribute to the organization’s productivity level being lower over time. Because of all these aspects I believe that the current business and regulatory environment is more conducive to ethical behavior. The transparency which is an essential part of models of corporate governance depends crucially on the satisfactory performance of accountants and auditors. Enron Corp. was an energy company born from a mildly innovative 1985 deal that combined two boring businesses: an Omaha-based natural-gas-pipeline company named InterNorth and a similar Texas company called Houston Natural Gas. Instead of just delivering gas to customers at a modest profit, Enron decided to use newly deregulated......

Words: 1268 - Pages: 6

Ethical Accountant

...Ethical Accountant? About eleven years ago, Enron, one of the world’s largest energy companies with 21,000 employees (Enron Corporation, 2012), collapsed. The whole nation was shocked as the investigation went on. “Ten years ago this week, the accounting firm Arthur Andersen sealed its fate when a few partners in its Houston office decided to shred documents related to the collapse of one of its clients, Enron” (Agnes, 2011). Found out that Enron scandal had close relationship with the fraud of the accounting firm Arthur Anderson, “another problem whose effects are becoming apparent today — moral hazard in the audit industry” (Agnes, 2011). Business and society take into serious consideration about ethics and integrity standard among today’s accounting firms and their accountants. Meanwhile, how to become an ethical accountant is drawing widespread concern. The first thing to figure out is why ethics are so important to every single accountant. To start with, accountant is actually a third party job working with clients and their private information. This information includes personal bank account number, social security number, and other information about their personal properties. Who would give all these sensitive data are to someone they don’t trust? Citizens will suffer if people who want to harm them get their private information. What’s worse, organization may face unfair competition due to the leak of company core data. Clients would like to trust the accountant......

Words: 2314 - Pages: 10

Accountant

...applied and further enhanced. I’m interested in playing an active role in organization advancement opportunities, and I’m always doing my best to support, provide and give my work and my firm the best that I have and develop my, qualitative and personal skills to the fullest. I’m enthusiastic about exploring the prospect of contributing to your firm and would appreciate the opportunity to speak with you concerning present and / or future position. _________________________________________________________________________ Personal Data: - Date of birth: March., 5, 1987 Nationality: Egyptian Social status: Single Military status: Exempted Current job: Accountant. Education: Bachelor degree with major Accounting from the faculty of commerce with accumulated grade over the four years of study high good 2003 – 2007 from Ain Shams University. Studying Master Of Business Administration from Arab academy for banking and financial sciences –financial management from 2013 to present –Section English 1 2009 – Present Accountant at professional- line in the field of ironic & interior designs Job description: • Prepare profit and loss statements and monthly closing and cost accounting reports. • Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions. • Establish, maintain, and coordinate the implementation of accounting and......

Words: 483 - Pages: 2

You Are the Manager of an Accounting Department and Would Like to Hire Another Managerial Accountant to Focus on Internal Accounting. the Ceo Is Not Convinced That a Managing Accountant Position Is Needed.

...Memo TO: JOE SMITH From: Billy Joe Date: 10/06/10 Re: Managerial Accountant Message: With us trying to obtain this new contract I feel it is now very important that we put together a 5-year plan, and in doing this I believe it is in the company’s best interest to hire another managerial accountant to focus on internal accounting. Managerial accounting is an activity that provides financial and non-financial information to an organization’s managers and other internal decision makers. This manager’s responsibilities will include formulating strategy, directing and controlling operations, and organizing resources to accomplish the company’s long-term goal. This will help us to gain more information about cost for planning and control decisions. The information gathered will also get to our managers in a more time efficient manner resulting in each division manager being able to improve on the areas they are lacking before they reach failure. This information will also help us to always offer the customer the right product at the right price in the right place at the right time resulting in continues customer satisfaction. Hiring a new managerial accountant will help us in our fight against fraud and other dilemmas by implementing a code of ethics to help employees do right from wrong and by following the IMA’s Statement of Ethical Professional Practice she/he will be able to resolve most......

Words: 280 - Pages: 2

Before You Sue the Accountants

...Before You Sue The Accountants Daniel J. Hurson Even if it looks like a strong case, be careful—there are some surprising defenses. IN THE WAKE OF the corporate accounting scandals that have dominated the business news for the last few years, as well as recurring announcements of large settlements in class action suits against major accounting firms, the prospect of a malpractice case against an accounting firm would at first glance seem attractive. Juries are presumably more predisposed to view accountants with renewed skepticism, when hardly a news cycle passes without some reference to accounting fraud, investigations, and the occasional large-scale debacles like the demise of Arthur Andersen, not to mention the high-profile criminal prosecutions that have recently gone to trial. Daniel J. Hurson, formerly Assistant Chief Litigation Counsel at the SEC, practices securities enforcement and accounting malpractice law in Washington, D.C. His website is www.hursonlaw.com. 25 26 The Practical Lawyer April 2006 Accountant malpractice litigation is a minefield of arcane judicial doctrines layered over pleading and discovery traps that can bury the best plaintiffs’ counsel. Indeed, among the players in these sagas, the accountants sometimes offer the best litigation target. The companies themselves have often tanked; the errant executives dismissed, awash in legal problems, and without insurance coverage; but the accountants (Andersen notwithstanding)...

Words: 5409 - Pages: 22

Forensic Accountants

...market for forensic accountants has increased. The increase in white collar crimes due to the economic downturn also has forensic accounting in high demand. These accountants assist in investigating financial, auditing and business related issues and require specialized training. Forensic accountants are retained by lawyers, police forces, insurance companies, banks, and the business community. Government agencies employ forensic accountants as well. Accounting positions at the FBI date back to the 1970s and around 15 percent of today’s agents qualify as special agent accountants. These agents investigate terrorists, spies, and criminals of all kinds who are involved in financial wrongdoing (FBI.gov, 2012). Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. Forensic accounting is a specialty field within the broader area of accounting. These accountants are more than just number crunchers. The realm of forensic accounting requires a certain type of person who possesses specific skills and traits. Besides the core knowledge and skills of any Certified Public Accountant (CPA), they must know how to use a variety of computer programs and communicate well. The forensic accountant must be able to collect, analyze and evaluate evidential matter. Forensic accountants must also......

Words: 1779 - Pages: 8

% Five Things You Didn't Know About Working in a Restaurant

...5 Things You Didn’t Know About Working In A Restaurant We have all dined in a restaurant in some point in time. Whether it be McDonald’s, Burger King, or Wendy’s. Hell, some of us might have had the balls to go to Hell’s Kitchen! But here’s a few facts that I’ve been through that might make you reconsider restaurants… Five things you might not know about restaurants… 1. Managing a Restaurant takes up all of your time When you decide to manage a restaurant, it’s worse than having a newborn child. You see, just like a child, it eats, breathes, shits, and cause havoc in your life. And just like a newborn child, it requires your constant attention. And like said new life in this world, you are ultimately responsible. It’s your day off? Fuck you! Somebody failed to show up for an important shift. You have a catering order to go out? You have to be there for it. You watch and plan everyday for as long as you’re in charge. Corporate makes you hire a new manager? Now you’re fucked. Not only are you responsible for making sure that they learn all the systems and procedures, you HAVE to let them fail so they can learn, only to clean up their mess. And as a training manager, you have the added cost of their labor on your books. Thank you powers that be! Let me hold some idiots’ hand and walk them through how to be a retard on my dime. Don’t get me wrong, we all need to learn and grow, but corporate doesn’t have to babysit. Speaking of babysitting… 2. The staff can be your......

Words: 1354 - Pages: 6

Accountant

...taking out its value from the financial statements of the mother company, Enron. To establish SPE’s, the leaders pledge Enron’s stock as a collateral for any possible loss that outside investors might incur. In a way, SPE’s were used as a dummy entity and not as legal and separate firm. 4. Auditor’s independence is an integral part of audit engagement. It is necessary for auditors to maintain their independence at all times. Thus, there is a great criticism surrounding the performance of audit services and other consultancy services for one client at the same time. The primary question is that, how the potential earnings or benefits they could get from other services will affect auditor’s judgment. The Code of Ethics for Professional Accountants stated that in case of conflict of interest, auditor’s must act in due diligence to protect their image of independence (2013). Thus, if the performing of two conflicting services, auditors must pursue only one of the engagements. 5. Rule-based accounting standards are lists of specific policies in accordance with the principle-based standards, which are general in nature. For example, the principle-based standards require auditor to protect independence and integrity at all times while the rule-based standards define possible ways how auditors could deal with client without prejudice with the general standards. 6. Run on the bank happened when large number of financial institutions withdrew deposits due to solvency issue......

Words: 945 - Pages: 4

Accountant

...identify the evidences to ensure that the accounting method actually fix the fraud issue. “Many scandals occurred because accountants and auditors existing professions standards. Others reveals deficiencies in the standards at that time.” CALLED TO ACCOUNT: fourteen financials fraud shaped the American accounting profession Accounting scandals are characterized by a rapid growth, with high earning smoothing, few outsider on the audit committee, and outsider director that seems to overcommitted. The economic environment of the company, or the personal circumstances of an individual, are important. Accounting frauds are more likely when a company is facing financial difficulties. Creative accounting and fraud do not occur in a vacuum. There are number of interested parties. These range from managers, Investment analysts, auditors, regulators, shareholders, merchant bankers to other users. The corporate environment of the firm and the economic climate are also important. Personal incentives: Increased salaries, bonus related pay, shares and share options, job security, personal satisfaction, Market expectations Meeting analysts’ expectations FINANCIAL SHENANIGANS: how to detect accounting gimmicks and fraud financial report. , Howard M. Schilit CALLED TO ACCOUNT: fourteen financials fraud shaped the American accounting profession Accountant Malpractice Expert Independent auditors play a vital role in our capital markets system. A third party opinion on the......

Words: 1056 - Pages: 5

You Are Working as an Accountant

...You are working as an accountant Click Link Below To Buy: http://hwaid.com/shop/you-are-working-as-an-accountant/ Organizational Analysis & Design Plan: Project Description and Scoring Guide Use logical reasoning based on your tax research to explain why the client should choose your recommended business entity. Consider referencing appropriate tax code and regulations. 1. Defend your business entity recommendation by describing the accounting method. Consider the advantages and disadvantages of the business entity based on the following: 1. Cash basis vs. accrual 2. The cost to prep the returns 3. The tax benefits 4. The limited liability protection 5. Employee benefits C. Interpret the tax law pertaining to the type of business recommended and justify your recommendation using details consistent with tax law, code, and regulations. The scenario: Prompt You are working as an accountant at a mid-size CPA firm. One of your clients is Bob Jones. Bob’s personal information is as follows: DOB: October 10, 1952 SSN: 444-00-4444 Marital Status: Single Home Address: 5100 Lakeshore Drive, Pensacola, FL 32502 Bob has a very successful used car business located at 210 Ocean View Drive in Pensacola, Florida. Last year, you filed a Schedule C for Bob that had $1,200,000 in taxable income. The business will have an income growth rate of 10% per year over the next several years. Bob’s personal wealth, including investments in land, stocks, and bonds, is about......

Words: 578 - Pages: 3

Is the Gospel Working for You

...when we are here, not thinking about what is going on at work, or about a big test that we have coming up. The more we trust God, the more our hearts are filled with love for Him and for each other. Because of our love for God, we desire to follow Him and bring our actions in alignment with His word. That’s how love works. Because we love God, we want to serve Him; we want to bless the lives of others and help the poor and the needy. Same as in our families, it’s really a circle, we serve our children because we love them, and as we serve them our love increases. This is the beautiful simplicity of jthe Gospel of Jesus Christ. The more we walk in this path of discipleship, the more we desire to learn the word of God. START WHERE YOU ARE We can become discouraged from wanting to be more than we are spiritual, respected, intelligent, rich, friendly, capable This desire is not wrong should want to grow and progress God gave us weaknesses so we can be humble and turn to Christ We don’t need to be more of anything to start to become the person God intended God takes us as we are just need a willing heart, a desire to believe, and trust in God We see ourselves through mortal eyes. Don’t think we are worthy or good enough. HF sees us for who we truly are, he sees us for who we can become. In other words he sees us as we see our own children. He sees us as his children with infinite potential, a divine......

Words: 883 - Pages: 4

Accountant

...plan Outline why you’re writing this plan, how you intend to use it, who you intend to share it with and how often you’ll update it. Business structure Who owns the business and what is the ownership structure? Business activity What does your business do? • • • Products and services What products and/or services do you offer? • • • Points of differentiation Why would a customer choose you over one of your competitors? • • • The market What industry do you operate in? • • • Who are your target customers? • • • Vision, goals and objectives What are your top three goals for the next five years? 1. 2. 3. 1. Overview 1.1 Background When and why the business started What opportunity or opportunities did you identify? If you bought an existing business, why did you choose that particular one? Current position Is your business growing or mature? Are you expanding, consolidating, or preparing to sell/hand it over? What’s changed since the business was started/purchased? How have your structure, direction, focus, products, services, and/or customers changed? Have you acquired/sold any businesses or divisions? What hurdles have you overcome? Key milestones What have been your key achievements? • • • Approach to decision making Do you have guidelines or values – implicit or explicit – that guide your decision making? How do you resolve differences of opinion?......

Words: 1920 - Pages: 8

Have You Ever Considered Working Online?

...consumer report. In our phone interview she told me her amazing story. "I actually make about $5,000-$6,000 a month working from home. It's enough to comfortably replace my old jobs' income, especially considering I only work about 15-18 hours a week from home.Working online has been a financial windfall for Alina, who struggled for months to find a decent job but kept hitting dead ends. "I lost my job shortly after the recession hit, I needed reliable income, I was not interested in the "get rich quick" scams you see all over the internet. Those are all pyramid scams or stuff where you have to sell to your friends and family. I just needed a legitimate way to earn a living for me and my family. The best part of working online is that I am always home with the kids. Thanks to the Online Career Package Kit I am giving my kids the childhood they deserve."I asked her about how she started her life-changing journey. "It was pretty easy, I filled out a short form and applied for a work-at-home kit. There is a small activation fee; it's not really free but it was under $2. I got the kit and within four weeks I was making over $3,500 a month. It's really simple, I am not a computer whiz, but I can use the internet. I don't even have to sell anything and nobody has to buy anything. Companies are constantly recruiting people for this, you should try it."The companies you work with are worth over 100 billion dollars and are the most used sites in the internet market place, like Amazon,...

Words: 739 - Pages: 3