Financial Accounting Principles And Analysis: Mary Bender Works Essay

Question:

Discuss about the Financial Accounting Principles and Analysis for Mary Bender Works .

Answer:

1. Mary Bender could be found as the major stakeholder in the debate. Mary Bender works as the marketing manager of the Big Business Tobacco. In the company, Randall Hedges is the public relationship manager. Both, Mary Bender and Randall Hedges took part in the debate for their positions in Big Business Tobacco. In the debate, Mary Bender has concentrated on the health status of the bottom-line employees. On the other hand, Randall Hedges focused on the corporate social responsibility. In this context, it can be said that corporate social responsibility is one of the important factors that plays vital role in health warning (Valentine et al., 2015). Corporate responsibility focuses on the fulfillment of goals, objectives and aims of the company. Corporate social responsibility activities include charity works to the society and to the workers and activities for health development of the workers (Navi 2012). Now a day, the legal requirements are also to be found as the motive of the corporate social responsibility activities for companies. The health related factors are to be taken as important as the factor causes future effect on the stakeholders of a company. In this context, it can be said that the affecting factors on health is one of the most crucial factors, as the factor has long term effect.
2. For a company, the ethical issues could be found as the way of resolution of conflicts. In the internal structure of a company, the ethical practices and the theories could be monitored by the management. The ethical issues could be found as the distinguishing factor for such practices and theories. As per the debate is concerned, the effect on health of the employees and the ethical factors were discussed. Furthermore, the effect of the foods and beverages were also to be discussed in the debate. Randall Hedges, the relation manager focuses on the topic of mentioning the criteria of harmful effect on the packets of cigarettes. Medical awareness was also focused by Randall Hedges in the debate. Some forecasts and estimations were also mentioned by the relationship manager of the company as part of the debate issue. The legal aspects on such issues were also discussed in the debate. In the debate, it has been seen that corporate social responsibility has a good impact on the effect on health of the stakeholders. The effect of the profits or the bottom-line criteria was found less important in the debate. Therefore, warning on the packets of cigarettes is not to be considered as enough for minimizing the harmful effect on customers (Fifka 2013). Ethical issues are also needed to be considered in the internal structure of a company, as the ethical factors increases the productivity among the workers in the company. For resolving the conflicts within the organization, the ethical guidelines are to be obeyed by the management as well as the workers. Furthermore, the ethical issues are to be taken as important tool for resolving the conflicts and harmful effects of the food items.
3. As a public relationship manager, Randall Hedges focused on the overall health situation of employees of the company as well as the people of the society. The warning on the packets of the cigarettes is to be considered as helpful for minimizing the cigarette consumption (Leipziger 2015). With the warning on the packets, the Australian government is also required to take some steps for optimizing the cigarette consumption in the society. Furthermore, it has also been mentioned in the debate that the tobacco companies are required to redevelop the plans of corporate social development activities for taking care of the people.
2 .a. Phil and Josephine were found liable for the mistakes that have been conducted by the both. Avoiding the tax matters is to be taken as offence in Australia (Wilson-Rogers and Pinto 2015). In Australia, tax collection is to be found as an important source of revenue. For a company, tax evasion is treated as offence and penalties are charged. Tax authorities notify the assesses about the tax liabilities to minimize the tax evasion. In this context, it can be said that the tax Authority of Australia is governed by the Australian Tax Office, a government organisation (Deegan 2012). Furthermore, it can be said that the Income Tax Assessment Act 1936 is to be abided by the individuals and the companies for the tax matters in Australia.
b. Phil and Josephine, the directors of the company, are required to follow all the rules for operating a company. As per the rule, a company could be formed by having minimum two directors. The tasks of the directors include the following topics.
The directors are required to take the important decisions of a company. Decisions such as amalgamation decisions, merger decisions are to be taken by the directors of a company. The research activities are also to be analyzed by the directors on behalf of the companies.
The finance and accounting tasks are also to be conducted by the directors. All the business activities like startup capitals, investment decisions are needed to be analysed by the directors of a company. The budget of the business is to be formed by the directors for future planning. All future incomes and expenses are required to be planned and reflected in the budget of the company. Various bank accounts and salary accounts of the employees are required to be maintained by the directors of the company. Other factors like, demand forecasting and supply management are also to be done by the directors. With the operating activities, other activities like investing and financing activities are also to be watched by the directors.

The marketing and sales activities are also to be taken as the topic of concentration of the directors. The sales promotional activities are to be taken one of the important factors for consideration. In this context, it can be said that the other revenue generating activities are also to be watched by the directors with proper importance.

The customer relationship management and the post selling activities are also to be found as an issue that is needed to be executed by the directors. Furthermore, advertising and its effect is a matter of directors concern.

3.a.

Particulars

Amount

Assets

$56000

Liabilities

$38000

Profit

$18000

2.

Particulars

Amount

Asset

$56000

Liability

$38000

Drawings

$15000

Profit

$3000

3.

Particulars

Amount

Asset

$56000

Liability

$38000

Drawings

$12000

Capital

$2000

Profit

$4000

4.a.

The transactions that will increase the assets as well as the liabilities:

When a company receives cash from a party, as loan, it shall increase assets as well as liabilities, as the loan increases the liabilities for a company.

If a company purchases some materials on credit, then stock increases and the creditors are also increases (Li and Tran 2016).

b.

The transactions that decrease assets and increase another asset:

If a company purchases machinery out of its cash fund, cash decreases and the value of machinery rises (West 2015).

Purchase of assets out of cash in bank decreases the bank balance and increases the value of assets.

c.

The transactions, which cause decrease in assets and decrease in equity.

If the owners draw from the business fund, the assets decreased and the equity also decreases.

If the company pays rent (Kaplan and Atkinson 2015).

d.

The transactions for asset increment as well as increase in equity:

If the owners of a company involves personal cash in the company.

If the owner of a business contributes personal assets to the business.

e.

The transactions that Decrease liability as well as decrease in asset:

If the loans of a company is repaid by the company (Deegan 2012).

If there are some transactions, that has been paid as business expenses.

Reference List

Deegan, C., 2012. Australian financial accounting. McGraw-Hill Education Australia.

Dion, M., 2015. Is money laundering an ethical issue?. Journal of Money Laundering Control, 18(4), pp.425-437.

Fifka, M.S., 2013. Corporate Responsibility Reporting and its Determinants in Comparative Perspective–a Review of the Empirical Literature and a Meta?€ђanalysis. Business strategy and the environment, 22(1), pp.1-35.

Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.

Leipziger, D., 2015. The corporate responsibility code book. Greenleaf Publishing.

Li, E. and Tran, A., 2016, December. An empirical analysis of the tax burden of mining firms versus non?€‘mining firms in Australia. In Australian Tax Forum(Vol. 31).

Navi, S.T., 2012. Corporate social responsibility.

Valentine, S., Fleischman, G. and Godkin, L., 2015, January. Unethical Corporate Values, Bullying Experiences, Psychopathy, and Salespersons' Ethical Reasoning. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 11596). Academy of Management.

West, B., 2015. The eighth Accounting History International Conference: 19-21 August 2015, Ballarat, Australia. Accounting History, 20(4), p.539.

Wilson-Rogers, N. and Pinto, D., 2015. A mandatory information disclosure regime to strengthen Australia’s anti-avoidance income tax rules.

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