Accounting Principles

Accounting Principles

Accounting PrinciplesIf everyone involved in the process of accounting followed their own system, or no system at all, there’s be no way to truly tell whether a company was profitable or not. Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just this one topic. Unless a company states otherwise, anyone reading a financial statement can make the assumption that company has used GAAP.

If GAAP are not the principles used for preparing financial statements, then a business needs to make clear which other form of accounting they’re used and are bound to avoid using titles in its financial statements that could mislead the person examining it.

GAAP are the gold standard for preparing financial statement. Not disclosing that it has used principles other than GAAP makes a company legally liable for any misleading or misunderstood data. These principles have been fine-tuned over decades and have effectively governed accounting methods and the financial reporting systems of businesses. Different principles have been established for different types of business entities, such for-profit and not-for-profit companies, governments and other enterprises.

GAAP are not cut and dried, however. They’re guidelines and as such are often open to interpretation. Estimates have to be made at times, and they require good faith efforts towards accuracy. You’ve surely heard the phrase “creative accounting” and this is when a company pushes the envelope a little (or a lot) to make their business look more profitable than it might actually be. This is also called massaging the numbers. This can get out of control and quickly turn into accounting fraud, which is also called cooking the books. The results of these practices can be devastating and ruin hundreds and thousands of lives, as in the cases of Enron, Rite Aid and others.

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Helping your consumers to gain more profits

Helping your consumers to gain more profits

Consumers are individuals or households that consume goods and services generated within the economy. Since this includes just about everyone, the term is a political term as much as an economic term when it is used in everyday speech.

Typically when business people and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy not buy decision.

However there is a trend in marketing to individualize the concept. Instead of generating broad demographic profile and psychographic profiles of market segments, marketers are engaging in personalized marketing, permission marketing, and mass customization.

A consumer is assumed to have a budget which can be spent on a range of goods and services available on the market. Under the assumption of rationality, the budget allocation is chosen according to the preference of the consumer, i.e. to maximize his or her utility function.

In ‘time series’ models of consumer behavior, the consumer may also invest a proportion of their budget in order to gain a greater budget in future periods. This investment choice may include either fixed rate interest or risk-bearing securities.

In the context of mental health, consumer is also a term applied to describe a person living with mental illness. Literally, it is not really what is states. They are the people seeking for help in their own profile of their mentality. You can let them gain their life back on track and achieve your goal at the same time.

Problems may also arise when dealing with your possible prospects.

Many patients are frustrated because, despite their best intentions, they seem unable to adhere to an exercise or “diet” program. Actually, there are several proven strategies that can be used to help us be successful in our efforts to improve an aspect of our lifestyle.

First, make a plan and make sure it fits their lifestyle. For example, if you’re planning on beginning an exercise program, think ahead about how you’re going to carve out the time in their already busy life. In this respect, anything you can do to make the exercise program a regular, daily part of your routine will be helpful.

It’s often a good idea to ask those around you to help you in your endeavors. Anything you can do to help assure the support of your family, friends and co-workers will increase the odds of success.

Remember that most of the changes you make, whether changing what you prefer to eat, or changing your schedule to include exercise, will affect those around you. One of the best examples of this is the difficulty that smokers have trying to quit when those around them are smoking.

If you strictly adhere to a “proven” program that has succeeded for others, however, and fail to produce the results you want, you may become discouraged or filled with self-doubt. There are many reasons to explain why self-help techniques fail, and many steps to take to feel good about yourself regardless of the result. Like every other field, the “experts” in self-help disagree on just about everything.

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Helping your consumers to gain more profits

Always remember this: no matter how smart or “successful” someone is, how much “proof” you’re given, how much you trust or respect someone, or how logical something seems, it’s just an opinion, just what worked for someone else, just a possible pathway to success.

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