Problems
Accounting
The
first thing to tackle is what is Generally
Accepted Accounting Principles (GAAP), why
are the rules there and what are they? Do
they work? How do you interpret and apply
them to business?
It
would also help dramatically to do the problems.
You can understand the lingo but unless
you can apply the theory, you will sit there
looking at your exam sheet with a blank
stare.
Follow
up on all the accounting scandals. Between
Waste Management, Sunbeam and Enron, you
have enough case studies to last you a lifetime.
Incidentally, all three firms were Arthur
Andersen clients, one of the most respected
Big Five accounting firms, at least until
this "trifecta of deception" made
the news. If that were not enough, Worldcom
joined the party with its own scandal at
a time when investors were already hung
over and fed up.
Find
out why accountants lost focus and how this
impacted stakeholders. Was anything done
to be remedied or did the rules stay the
same?
It
would also help you to understand Generally
Accepted Accounting Principles (GAAP), how
it came about, when it is irrelevant and
why it is inconsistent. The sooner you develop
your critical thinking, the sooner you will
emerge ahead of the pack. Just because everyone
swears by the accrual basis does not make
it right.
Finally,
understand the intricacy and interdependence
of the various financial statements. Understand
what each financial statement reports. The
income statement shows how much the firm
earned over a specified period. The balance
sheet represents a firm's financial health
at a given time, providing a glimpse into
whether or not it is solvent. The statement
that shows changes in financial position
(or cash flow statement) is very important
as it explains why some firms hit the wall
with liquidity problems. How does each transaction
get reported, in which statement would it
get reported. Break up the income statement
between financial and operational matters
to see the full impact of any deal or initiative.
How will it impact the firm from an operational
and financial perspective? Everything above
Earnings Before Interest and Taxes impact
operations, everything below has an effect
on finances.
Problems
in Other Majors
Decision
Sciences & Quantitative Analsyis
Finance
Marketing
Management,
Human Resources And Organizational Behavior
Management
of Information Systems
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