The Cash Flow Statement is one of most essential financial reports produced at end of the accounting period. It is used to complement the information in the Balance Sheet and Income Statement and gives a different picture of a business entity. Its main purpose is to show the inflows and outflows of cash. This flows are separated into three sections (Operating, Investing, Financing) to give users a more detailed breakdown of the activities that produced these results.
Wednesday, June 11, 2014
Monday, May 26, 2014
The Sarbanes Oxley Act of 2002 mandates that management of public companies will evaluate the effectiveness of its internal control system over its financial reporting. Specifically under section 404 of the Sarbanes Oxley Act, it delegates that management needs to provide statements in its annual report stating that:
1- “Management is solely responsible for the establishment and maintenance of a solid system of internal control” and
2- “Management’s assessment of the effectiveness of its internal control system”
Saturday, May 24, 2014
Schedule A – Itemized deductions is a highly complicated tax schedule. It is probably one of the most revered and challenged tax schedules developed by the Internal Revenue Service (IRS). Schedule A is a perfect example of how the tax law accommodates every personal and business financial transaction.
Tuesday, March 11, 2014
Moving through multiple worksheets can be cumbersome and time consuming. In order to be more efficient and move through related content on multiple sheets, a user can use Excel's hyperlink feature to speedup the navigation process. Hyperlinks are easy to use and setup.
Friday, March 7, 2014
It's not studying for it, and it's not taking it. While studying for the CPA exam and preparing for 4 hour or 3 hour long exam may be hard, it is not really studying for the exams that I find to be the worst aspect of the CPA exam. It is neither the actual exam itself. In fact, I firmly believe if you truly devote to your review materials and study diligently the exam itself is fair and not impossible. People don't fail the exam because they don't know the concepts. In my opinion, the concepts covered on the exam are nothing out of the ordinary. In no section of the exam did I come across a question that I felt like I had no idea what it is they are asking me. People actualyl fail the exam because physically and mentally, it is very challenging to focus on a task without much break for 4 hours straight. It is the time constraints that takes candidates out of their elements and with that they are nervous enough to misread questions, or skip over important facts. I truly believe that if instead of 4 hours each candidate were given 8 hours to take the Financial and Reporting section the passing rate would increase by about 25%. But event he time constraints, or other conditions on the day of the exam is not what I find to be the worst aspect of the CPA exam.
The worst thing about the CPA exam is actually waiting for the results! Yup, I find it to be really annoying to wait so long just to get my score. Sometimes it could take about a month before candidates get their scores and this creates the potential for major inconveniences. Say for example you took FAR on January 2nd, and a few days later began preparation for AUD. You are not going to get your result for FAR until early February which by then you are well into AUD if not completely done with. At this point you are ready and eager to take AUD, when you find that you unfortunately failed FAR by 1 point. You got 74. Now, not only you have failed an exam and are totally devastated. But you have to also come up with a plan as to how to go about your AUD exam. Are you going to ignore FAR and just continue with AUD? Or are you going to put AUD down and go back to FAR just because you want to finish FAR since you had already done it once? This is really annoying and it unfortunately happened to me. I took AUD and got a 74 and by then I was already well into REG. Given that each CPA candidate does not have much experience about the exam, most often the outcome is a panicked candidate who will most like make the wrong decision.
Let's change the circumstances, and assume that somehow NASBA could come up with a way that no matter when a candidate took the exam, the scores would be releases within 7 days. Under such circumstances then, the candidate could afford to take the exam and give him/her self a week break and then depending on what his/her score is to continue on with their journey as a CPA candiate..