Accounting Discussion: Technologies Provide Maintenance S
Accounting Discussionabe Technologies Provides Maintenance Service For
Accounting Discussionabe Technologies Provides Maintenance Service For
Accounting Discussion Abe Technologies provides maintenance service for computers and office equipment for companies throughout the Northeast. The sales manager is elated because she closed a $300,000, 3-year maintenance contract on December 29, 2016, two days before the company's year-end. “Now we will hit this year's net income target for sure,” she crowed. The customer is required to pay $100,000 on December 29 (the day the deal was closed). Two more payments of $100,000 each are also required on December 29, 2017 and 2018.
Discuss the effect that this event will have on the company's financial statements. References Fried, A. N. (2013). An Event Study Analysis of Statement of Financial Accounting Standards No. 158. Accounting and Finance Research, 2(2). doi:10.5430/afr.v2n2p45 Long-Term Reputation Effects in the Global Financial Industry: How the Financial Crisis Has Fundamentally Changed Reputation Dynamics. (n.d.). Reputation Management: Building and Protecting Your Company’s Profile in a Digital World. doi:10.5040/.0016 This is what I put…… To begin with, we need to understand that this is a very critical deal that when undertaken, can really bring great impacts on the general financial statements of the Company. An instance is that when the deal was closed, it may have reached the expiry date for the contract. Therefore, there must have been some goals and aims that had been set by the management that were to be achieved.
Therefore, when all this huge amount of cash is out, there is some great hindrance in operations such as the debits and credits of the organization will really raise concerns. It will also lead to poor management because maybe the money also involved the remuneration process and therefore due to the huge cut off and late payments, the remunerations could not be done effectively thereby reducing the morale of the employees’ hence poor quality of work in the various sectors within the organization. This is what the teacher told me Important post Desminique. You have mentioned that: "To begin with, we need to understand that this is a very critical deal that when undertaken, can really bring great impacts on the general financial statements of the Company." Could you please research and explain how the initial $100,000 that Abe Technologies is getting paid on December 29, 2018 is going to be treated in the accounting books?
Also, why does the sales manager believe that the company is going to hit the net income target for the year? Be specific in providing your explanation with examples. How would you respond to teacher’s comment above? ^ How would you respond to Krista This company will benefit showing the income every year as a gain of $100,000 assuming there fiscal year end December 31st. They will have to record receiving the money as a cash asset but need to record when they complete the job an expense since this is an unfilled obligation that was no completed when they received payment first time. It is very important that whoever does all the paperwork needs to make sure they log all income and expenses correctly.
The company should be elated as that job they secured brings in a nice amount of income for the business. This all comes down to preparing the statements correctly. How would you respond to Miguel? Class, A company that has contracts with others, that are to be paid over time they have to rely on the accrued accounting method. This helps to make sure that there is proper record keeping with all of the accounts.
By doing this, it helps to increase the assets and revenue. By making sure that all of the accounts are kept up, it helps with the record keeping at the end of each year as the company receive money for the contracts and the services that were completed. The statements from each contract, with effect the balance sheet, income statement, and retained earnings. Each time a contract if completed the balance sheet much be completed. This will help to complete an accurate retained earning sheet at the end of the year.
If the contract is completed in full, and on time, they could count it in the current year statement. If not, then the company would be set back $100,000 in revenue and would offset the next year by $200,000. Reference Warren, C. S. (2013). Survey of Accounting, 6th Edition. [Purdue University Global Bookshelf].
Retrieved from HRM discussion Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Respond to your Discussion topic after you have completed your reading. Topic: Advantages and Disadvantages of Hiring Insiders Did You Know? Four in ten positions are filled with insiders. In a survey of large, well-known businesses, respondents said over one-fourth of positions are filled with people who already work for the company and accept a promotion or transfer.
As companies have begun to grow again, the greater demand for talent requires more external recruiting. · Discuss how filling positions internally might impact the organization. · Explain the benefits of filling a position with an internal source. Explain the limitations. Reply to Monique Good Day All, I feel that both internal promotion, as well as hiring out each has its benefits and drawbacks. I was hired from within a company, from being a representative that helped others, to being on the front line of the management staff, as a team leader. There were benefits that came from that, like I knew the program, I understood the businesses core values and I was also good at coaching others to mimic my sales strategies.
I feel that I impacted the organization greatly, only because we had one company to service, after 75% of the center, management included, were let go due to a layoff, because the company lost a major client. They were planning to shut down the Charleston facility because of this. Being on the inside of an internal hire and seeing it from that point of view, was a great experience and it allowed me to use things that I knew as a representative, to improve the stats on the temporary team I was given, to prove myself with. The biggest benefit to the company was I was able to connect with the reps, because I knew them. With the training I created, the team improved stats by 15-25 percent.
Also, after I was done with the improvements to the training programs, they were able to use my packets to train new employees. The company also gained new clients, because of my teams efforts. The drawbacks were, I had my limits, because I had never been a supervisor at a call center before, even though they took time to train me on the day to day issues, like controlling the call volumes. However, even though my learning curve was faster I didn't have the experience to know when the volume matched the clients needs or how many representatives to send home so that the others did not get overwhelmed, when or if, the call volume picked up again, because once they were gone there was no way to call them back.
Learning the management procedures was a slight challenge, they did have self training guides that I had to go through while I was, coaching, monitoring, training, counseling, and creating new training packets for the group I had. It became overwhelming for a time, so I imagine with position changes, others would be slightly overwhelmed, if you didn't know what to expect and had a whole new set of rules to add to the ones you already thought you understood. I did pull through and got used to it, and 2 months after I was an official team leader, my team out sold all the other teams on the sales floor. I also received a commendation from Time Warner Cable for my retention rate improvements, and the new training I created.
So it was a great experience. Monique Reply toStacey Hi Class and Professor, Internal sources of recruitment include employees who are currently working within an organization. Advertising for internal candidate advancement opportunities will usually take place through job postings, company bulletin boards, internal organizational job posting applications, or other communications. Internal advancement policies can be a valuable tool for recruitment because it not only gives those working in the company the opportunity to advance their careers, it also sends the message to external candidates that there is a career path within the organization available if they choose to work there. With an organization that emphasizes career growth opportunities through promotions, or even lateral moves, they create a more desired attitude about the organization’s job potential.
Other advantages to internal recruitment include lower costs, less time, less risky, and it boosts employee engagement. Recruiting from existing talent within the company can be an advantage because these employees learn how the organization operates through their practical work experiences. This makes them more knowledgeable about the types of job expectations and the way the organization operates compared to an outside candidate. The training/learning curve will be shorter with internal candidates moving up in jobs associated with their job advancement path. It also promotes the sense of company value and encourages loyalty and longevity within their existing workforce.
The disadvantage or limitations to the internal recruiting approach is that it does not allow entry level positions to be filled. Filling positions with external candidates also bring in current ideas and innovations for the company. Too much internal recruitment can lead to building a company that is set in their ways and therefore can become more regimented in their approach. New employees can inject more creativity and a fresh perspective on workplace operations and management. To remain competitive, companies need to find a balance of recruiting through both internal and external sources.
As technology and other advancements in doing business changes at a rapid pace, recruiting internally, without the balance of external recruitment can slowly put a company behind the pace of their competition. Sometimes recruiting internally can cause internal conflict between other employees, and therefore has a negative impact on morale. The other disadvantage is the fact you are not only filling one position, but you are also having to hire a second one. This means an employer incurs the cost of training two employees instead of one. These are some advantages and disadvantages that I have been able to identify.
Stacey Halverson References Noe, Hollenback, Gehart, and Wright. (th Edition. Fundamentals of Human Resources Management, published by McGraw-Hill. Hughes, Anthony. (2016 July 4). The 10 Pros and Cons of Internal Recruitment. CoburgBanks.
Retrieved from Journal Journal: Workforce Reduction You will only post once for a grade in the Journal. Post a minimum of 250 words, but make sure it is an original post concerning the following: Based on your reading in Chapter 5 and table 5.2, discuss what options you would consider and why when planning for a reduction in the workforce. Your boss tells you the company is suffering losses in the market and if some employees are not laid off in the next 3 months, the company may not survive. What will you do and why? You can choose more than one option from the table.