Accounting Concepts Essay Example | Topics and Well Written Essays - 1500 words

Accounting Concepts - Essay Example Under the money measurement concept, these items can be recorded as a land worth $100,000, a building (containing 10 rooms and conference hall) worth $500,000, 250 chairs at $50 each, and so on The money measurement concept assumes that money is a stable unit of measurement and therefore the value of money does not change with time. Going concern concept The going concern concept implies that accounting transactions are recorded keeping the view that the business will exist for a long period of time. More precisely, a business enterprise is considered to be a going concern but not a liquidated one. As per the going concern concept, asset valuation is done at historical cost or replacement cost. The going concern concept is a fundamental principle to the preparation of financial statements (Rajasekaran 2011, p.18). In case of short term business projects like building construction, the business comes to an end once the construction of the particular building is completed. In contrast, some business entities that operate in the automobile or consumable goods industry exist for a long period and they will continue their business activities in the foreseeable future. According to this concept, business enterprises treat prepaid expenses as assets in their balance sheets even though they are not saleable practically. Dual aspect concept Dual aspect concept is one of the fundamental accounting concepts and assumes that every transaction has a two-fold aspect – giving certain benefits and receiving certain benefits. The underlying principle of the double entry system is that every debit has an equal and corresponding amount of credit (Johnston & Johnston 2006, p.54). From the accounting equation (Assets = Liabilities+Capital), it is... The object evidence concept says that all accounting activities must be objective evidence based. In other words, there should be adequate verifiable documents to support the reliability of every transaction recorded in the books of accounts. This is the very essential for auditors to verify the reliability of accounts prepared. It is to be noted that the verifiable evidences must be objective but not subjective. For instance, a business entity has to keep receipts for the building rent paid. From the above discussion, it is clear that all the ten accounting concepts explained are greatly beneficial for accountants to prepare universally comparable, understandable, reliable, and relevant set of accounts. These accounting concepts give a standard structure to books of accounts prepared globally. â€Å"The accrual concept is an accounting system which recognises revenues and expenses as they are earned or incurred, respectively, without regard to the date of receipt or payment†. In simpler words, revenue is recorded in the books of accounts on its realisation but not its actual receipt. In the same way, expenses have to be recognised when they are incurred but not when the payment is made actually. To illustrate, a business unit paid $5,000 in rent for the building and machinery a year whereas it had owed only $4,500 in rent. That means the company prepaid $500 in rent. At the end of the accounting period, the prepaid rent is recorded on the asset side of the balance sheet.

Malpractices during Elections Essay Example | Topics and Well Written Essays - 1000 words

Malpractices during Elections - Essay Example Hans Von Spakovsky argues that in order to ensure a democratic election process, the election board and authorities should ensure safety and security just before elections, during the election and after the election. He argues that this encompasses preparations made before voting that include ensuring that there is a credible voters register, ensuring that during voting process all legible people are allowed to vote peacefully and ensuring that the vote counting is conducted with a lot of integrity. Hans acknowledges that the use of IDs by voters can help in curbing election irregularities that may occur as a result election malpractices. He points out that use of IDs can to a certain extent deter people from impersonating other voters, prevent illegible people from voting and prevent people from casting their votes in more than one state or region. Hans argues that unless the use of voters IDs is launched then it will be futile trying to charge those caught in voters’ fraud. This is because of lack of sufficient proof to charge those caught committing election crimes. Hans further argues that fears by a section of the public that use of IDs would result in lower voter turnout are baseless. He justifies his sentiments by arguing that almost all American adults have IDs and those without can easily acquire them with ease. He backs up his sentiments by pointing out that during the 2008 presidential primary elections, Georgia one of the states in the USA with existing strict voter ID laws registered the highest of voters (Louis 407). Therefore Hans concludes by stating that voter identification is one logical way that can be employed in the USA to prevent election irregularities and hence ensuring a democratic election process that most Americans deserve. Contrary to arguments put forward by Hans that voter fraud is real in the USA and voters IDs can be used to curb down on these irregularities, Chandler Davidson argues that identification cards cannot elim inate fraud if at all exists. He instead argues that trying to impose the use of IDs is discriminative and would result in lower voter turnout because minority groups such as the elderly might not take part in the elections. Edward Foley, on the other hand, argues that both arguments presented by conservatives and liberals are logical and therefore should be addressed cautiously. He asserts that identification of voters can be discriminative to a certain degree and therefore may have an influence on the voter turnout and at the same time it can be used to a certain extent to address issues related with voters’ fraud. He instead proposes that a more valid and logical way that can be used to ensure democracy in elections is by employing the use of digital technology. Ha argues that voters should be allowed to present digitized photos of themselves at the voting venue. This he argues can be used to confirm the true identity of the voters. He argues that a digital photo can easil y be obtained therefore fears that use of drivers license, passports or other forms of IDs could be a burden to some people won’t arise. He further proposes that for absentee voters they could email a copy of their digitized photo alongside their ballot to help in confirming identity. This could help in eradicating fraud among the citizens who may not personally go to the polling stations (Louis 413).