Accounting and Finance

Full Disclosure Paper

In broad terms, “the full disclosure principle calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader” (Kieso Ph.D., CPA, Weygandt Ph.D., CPA, & Warfifeld Ph.D., 2007, p. 1282). Adoption of the principle in 1933 was a byproduct of the economic crisis triggered in 1929. According to Cox (1985), a system of full disclosure created by the full disclosure principle: Fosters market confidence, Provides financial data users with material information, Improves the quality and timeliness of information disclosed, Contributes to the continuance of orderly markets, Reduces the costs of raising capital, and Inhibits fraud in public trade.

The Regulatory Future of Municipal Financial Processes

INTRODUCTION
Recent market turmoil has wreaked havoc on not only the individual mortgagee but on the finance market as collective mortgagor – and the result has been massive write-downs, losses, and uncertainty affecting every party involved - be it downgraded insurance companies, banks with unprecedented demands on their capital due to unforeseen exposures, and trending tightening credits, and certainly municipalities and non profits holding unsalable securities, and in some cases even becoming insolvent.

Does Owning a Home in Today's Market Make Sense Financially?

Although owning a home is the typical “American Dream”, does it make sense financially? The decision should be well thought out using your head and not your heart. According to Suze Orman, a certified financial planner professional, “The decision to rent is at an all time high.” The decision should be based on personal and financial needs. Although, according to an article in Investors Business Daily, “Renting now makes sense in many markets — even for the very prosperous.” If your job requires you and your family to relocate at any given moment with no guarantees of staying in a location for a lengthy amount of time, then the answer is clear, rent. This is not the only reason it is better to rent.

Information on the Importance of a Loan Officer

In the day and age we live in a large majority of our financial transactions occur electronically. Almost everywhere that we shop today we can use a debit or credit card to purchase goods and services. Another change in the past ten to fifteen years has been the business sectors move to paying their employees with direct deposit transactions. Companies find it more efficient and cheaper to simply set up a wire transfer of funds into an employee’s account, rather than writing and mailing a check every pay period. These changes have driven more and more consumers into the electronic banking sector and for some into the banking sector for the first time. Almost every American conducts business with a bank or other similar financial company. One of the most vital positions within a bank is a loan officer.

The global financial crisis which triggered by the fall of the investment bank Lehman brother has passed more than a year. However, the crisis was such a disaster that it’s shadow is still lurking in the dark and has not been completely extinguished. The worst thing it caused is the recession happened in 2008 and 2009 which dragged the global economy into a dreadful condition. However, after the terrifying recession, there is still a point of view in the market suggests that the worst of the global financial crisis is still to come. Is it a reasonable claim of it is a totally unfounded myth? This essay attempts to critical account for this point of view, by considering the condition of the labor, consumer and house markets, in order to show that another recession which is worse than the one occur in 2008- 2009 is not likely to happen.

The five C’s of Credit are; Character, Capacity, Capital, Collateral and Conditions.

The five apply to me and my obtaining credit in the following ways:

Character is a trait. You can have a bad character and be known to be disloyal and a liar. I am honest in my dealings and very loyal. In applying for credit, having a good character has helped me obtain credit. Simply because they believe what I am saying and I have documentation to back it up. Let’s say I bounced checks all over town, they would probably hear about it and not want to grant me a loan.

Capacity is a term that illustrates capability. I am able to pay back loans, or make payments on services and goods. I have to prove I have enough income to verify this when applying for credit cards, loans or wanting to make installments on goods or services. I won’t get a loan or such items, if I don’t have the future income to make the payments on them. I just don’t apply for things or money I know I can’t repay.

Accounting Terms, Vocabulary, and Notes

Accounting - A tool that lets interested parties get the information they need from the
mountain of raw data.
A system for developing and communicating information needed for economic decision-making

Assets – Things of value
Resources
Probable future economic benefits obtained as a result of past transactions or events
Expected to benefit an entity in the future
Examples: cash, land, inventory, patents, buildings, equipment

Liabilities – Debts owed
Obligations
Probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities
Debts owed in either money or other assets or via services
Examples: wages payable, mortgage notes payable, warranties payable

Information which has been verified is considered more reliable, and therefore more valuable than unverified information. Accounting information is a basic social need. Accounting tools are developed to fill those human information needs and accounting