RRJ#4

Reference:

Stewart, R. (2010, September 13). “Can I Claim These Expenses in My Business?”. Retrieved from Evan Carmichael Sept 13, 2010. From: http://www.evancarmichael.com/Accounting/3598/Can-I-Claim-These-Expenses-In-My-Business.html

Summary:

In this article Ray Stewart explained the relationship between spending money on business and tax. According to Stewart, there are two kinds of expenses, those that are exempt from tax and those that are not. First, the expenses exempt from tax must have a strong relationship with one’s business and be documented. For example, business building rent, employees’ salaries, business office supplies, and business internet bills are exempt from tax if one has documents for them. Second, the expenses that are not exempt from tax don’t have any relationship with one’s business, such as home rent, home internet bills, and car repair. In addition, the author discussed some special situations about expenses and how to know if these expenses are exempt from tax or not. These include deductions for those who work at home, business travel and expenses of companies which work in the media.

Reaction:

I agree with the author when he divided the relationship among the expenses and tax into two kinds. Also, I think the author is good, for he can explain his points with clear examples. Moreover, this article gave me a general idea about the solution to some cases in accounting taxation. However, I think this relationship between expenses and tax is very complex, especially in the United States, because tax includes a lot of things like goods, rents and income by different percents in the American economy.

RRJ#3

Reference:

Day, J. (2010, August 2). “Accounting Principles & Standards: Avoid Them at Your Peril”. Returned to Evan Carmichael Aug 2, 2010, from http://www.evancarmichael.com/Accounting/3600/ACCOUNTING-PRINCIPLES--STANDARDS--AVOID-THEM-AT-YOUR-PERIL.html

Summary:

In the article “Accounting Principles & Standards: Avoid Them at Your Peril” John Day explained the difference between accounting principles and accounting standards. Accounting principles are the basic suppositions, laws of operation, and imperative characteristics. These principles make the financial statements helpful to a person who makes decisions. First, the basic supposition is that users need correct information such as full disclosure principle, cost principle, and monetary unit assumption. Second, users need to know laws of operation such as matching principle and revenue recognition principle. Third, they also need imperative characteristics like relevancy principle and comparability principle. However, accounting standards are methods to solve accounting problems. These standards aren’t stable like accounting principles. For example, methods of depreciation and stock are updated every year.

Reaction:

I agree with the author as he showed the difference between accounting principles and accounting standards. Also, I think he is creative, because he can explain his points with clear examples. However, my major is accounting, so I disagree with the author when he said methods of depreciation and stock are kinds of standards, for I think these are kinds of principles. The methods of depreciation and stock follow consistency principle. In sum, this article is useful, for it gave me new terms in my majors such as principles, inventory, and depreciation.

Reference:
Patel, A. (2010, Jun 28). “Financial Reporting: Now it is easy to create your own financial report”. From http://www.evancarmichael.com/Accounting/4969/Financial-Reporting-Now-it-is-Easy-to-create-your-own-Financial-Report.html

Summary:
In the article “Financial Reporting: Now it is Easy to create your own Financial Report” Akash Patel explained why the financial reporting helps you to control your budget. There are five steps to make a good financial reporting for expenses and income every month. First, you need to use a software program to register any financial procedure. Second, you should divide financial data to different groups. Third, you record the financial data in financial reporting. In this step, you exclude tax from your income. Fourth, you record your income after tax. Fifth, you should sum up your expenses, then they are deducted from your income.

Reaction:
I agree with the author as he showed the relationship between the good financial reporting and saving the budget. Also, I think he is creative, because he can explain the steps of preparing financial reporting with clear examples. However, I disagree with him when he said the annual payment divides into twelve equal parts, for I think some months benefit from the annual payment more than other months. In addition, I think his conclusion isn’t obvious because he didn’t give an example for the unusual information.

The Main Two Sides of The Accounting

Reference:
Label, W. (2010, Jul. 11). “Exploring the Ins and Outs of Double Entry Accounting”. Evan Carmichael, from: http://www.evancarmichael.com/Accounting/5234/Exploring-the-Ins-and-Outs-of-Double-Entry-Accounting.html

Summary:
In this article, Label explained the double entry system though steps of the accounting cycle. According to Label, the double entry system has two equal sides, debit in the left side and credit in the right side. However, this cycle includes five steps in an accounting period. First, an accountant writes a financial transaction in a general journal. In this step, the accountant distributes this transaction on accounts by using the double entry system. In the Second step, the accountant sends the financial information from the general journal to the general ledgers. There is a specific general ledger for each account. Third, the accountant creates a trial balance that includes a debit and a credit side to receive the balances of accounts. In this step, the total of the debit and the credit side must be equal. In the Fourth step, the accountant does the adjusting entries. The accountant uses the double entry system to edit the balances of some accounts such as a prepaid building rent and office supplies. Fifth, the accountant figures out the net income by using the double entry system on revenues and expense accounts. In this step, he or she closes these accounts close in the owner's equity account.

Reaction:
I agree with the author as he showed the relationship between the double entry system and the steps of the accounting cycle. Also, I think he is creative, because he can explain his points with clear examples. However, I disagree with the author when he said the basic accounting equation is assets = liabilities + owner's equity, for I think that the basic accounting equation is assets + revenues = liabilities + owner's equity + expenses.

RRJ 5

Reference:

Chinadaily.com.cn. (2010, Oct 5). China, a developing nation with growing pains. Returned on 10/5/2010 Xinhua From :
http://www.chinadaily.com.cn/business/2010-10/05/content_11378550.htm


Summary:

According to the article, an Increase in the GDP of China over the past three decades and its success in overcoming the global financial problem increased the confidence of the people and urged them to work. Furthermore, China is not a developing country but It has become a developed country. The increasing the GDP of China is a warning for some countries, especially the largest countries, although its annual per capita income cannot be compared to that of other countries. Sheng Hong, director of the Beijing-based Unirule Institute of Economics, said China, in order to continue its growth, must avoid arrogance and become more modest.


Reaction:

In my opinion, major industrial countries could not overcome the financial crises in the last five years, except China, which turned this crisis in their favor to earn the respect of everyone, especially competitors. It seems that China is moving in the right way to sweep the international market, where it has full ingredients such as workforce, and it seems it can deal with financial crises and harnessed it to their advantage, as happened in recent years. However the crisis was a real test for China and the resilience of the base on which they depend.

RRJ 4

Reference:
Chinadaily.com.cn ( 2010, August 10). MORE CONCERNS THAN CHEERS,
Returned on Sep 14,2010 From http://www.lexisnexis.com/hottopics/lnacademic/?

Summary:
According to the article, China is more powerful than before because of its increasing economy. It does not matter whether China will be at the top of the world economy in the future, the most important things are the annual rate of growth and its currency exchange rate, however the annual per person income is less than they of the United States and European countries. China cannot be compared with developed countries in 2003, but the real estate activity in recent years hastened the rise of its economy. The question is, is the real estate activity a strong foundation to lead China to the top also, what can be hindering the progress over China is the concern of the difference between urban and rural in terms of income as well as nepotism and corruption and government interference in economic activity.


Reaction:
In my opinion, China is on the verge of a boom in its economy more than it was formerly. The reason is the huge number of the population. The population is the backbone of the economy of any country. They represent 20% of the world's total. What increases the chances of China to lead the world economy is distancing itself entirely from wars and internal stability. Also opening up between China and the big industrial countries has strengthened its expertise and this made her the second largest country in the world economically.

RRJ3

Reference:

THE NEW YORK TIMES. (2010, July 12). Credit Crisis-The Essentials. Overview, Retrieved on sep 29, 2010. Form

http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/index.html?ref=economy

Summary:
According to the article, in 2008, the amplified credit problem become the biggest economic problem on Wall Street since the Great Recession. There was a loss of hundreds of billions in exploitations in Foreclosures. Since that times Congress has approved the saving plan by dividing the 700 billion dollars in October 2008. But when the disaster was avoided and the problem throughout the world, banks in Europe had lower demand and job cuts and the world started falling into recession. In 2009 the Democrats in Congress confess 787 billion dollars to motivate the economy; China also pledged to motivate the economy with 500 billion dollars, and central banks around the world helped to reduce interest rates to approximately 0%. In the summer of 2009. The economic problem had divided Europe, particularly because Germany
refused to help solve the problem of some countries bordering the Mediterranean Sea, where they suffer from the problem of major credit. Moreover, they are unable to lower the value of their currencies. Then they pledged to the International Fund to provide approximately one trillion dollars. On the other side, America was focused on the deficit problem in the States and solve the problem of unemployment, making the Republicans opposed in the Senate, where it caught fire and stubbornness led to high unemployment.

Reaction:
In my opinion, the economic problem involved and affected major economies, such as some European countries and the United States and some East Asian countries such as China and Japan. They need a long time to find solutions to end the economic problem . Some of these countries could fix the problem, because they have strong economies also the logical population helped them, compared to other countries such as China, especially European countries. But still employment is going up in most of these countries. the number of universities are is less than the required comparing to the numbers of the students; furthermore the people do not have high degree.