Components Of A Computer System Cpu Information Technology Essay

Components Of A Computer System Cpu Information Technology Essay The central processing unit is the serving of a computer system that carries out the instructions of a computer program. It is main part carrying out the computers roles. The central processing unit transfers out each instruction of the program in order, to perform the basic arithmetical, logical, and input/output operations of the system. The CPU has many different purposes which can be moving data from one location to another, building decisions and jumping to a new set of orders based on those decisions. The CPUs speed is a measure of MHz (megahertz) or more recently GHz (gigahertz). A chip with a megahertz rating of 900 MHz would be able to complete 900Million cycles every second. The types of CPU: AMD (Advanced Micro Devices) Intel Celeron RAM (Random Access Memory): RAM is a memory facility which provides space for your computer to read and write data to be accessed by the CPU (central processing unit). When people mention to a computers memory, they usually mean its RAM. The programs and data that we use are stored in the RAM temporarily so that the processor can access them fast. RAM is used to load and run programs or applications on a computers are operating system. Extra RAM means more applications and programs can be run simultaneously. The speed is measured in MHz, (or megahertz). The capacity of RAM is measured in bits, bytes, kilobytes, megabytes, gigabytes, terabytes and the typical capacity of RAM in a PC is 512MB to 8GB. There are other types of RAM which are; SDRAM (synchronous dram) DDR(double data ratter) Rambus Dram (RDRMM) ROM (Read Only Memory): Is a class of storage media used in computers and other electronic devices. Data stored in ROM cannot be modified, or can be modified only slowly or with difficulty, so it is mainly used to distribute firmware. The BIOS software is built into the PC, and is the first code run by a PC when powered on (boot firmware). The primary function of the BIOS is to load and start an operating system. BIOS software is stored on a non-volatile ROM chip built into the system on the mother board. The first job for the BIOS is to initialize and identify system devices such as the video display card, keyboard and mouse, hard disk, CD/DVD drive and other hardware. These are the types of ROM: Mask-Programmed ROM (MROM) Programmable ROM (PROM) Erasable-Programmable ROM (EPROM) Electrically Erasable PROM (EEPROM) Input devices: Input devices are any piece of computer hardware equipment used to provide data and give in information to the computer. They allow us to enter the information and data into the computer.E.g. Mouse: Is an input device which inputs information by clicking the mouse and being able to move the arrow in the monitor by using the mouse. Mouse can display mainframe data records that contain a leading 4 byte record length counter. With proper options, mouse can add carriage returns to fixed length records. Types of mouse: laser mouse mechanical mouse cordless mouse KEYBORAD: The set of typewriter like keys that enables you to enter data into a computer. Computer keyboards are similar to electric-typewriter keyboards but contain additional keys. It control the computer and purposes includes a plurality of sets of two or more keys arranged for receiving the tips of the finger of a hand of an operator, the keys of each set have such a small superficial touch area and are clustered together. So as to be substantially comprehended and selectively operated by a single finger tip of an operator. There different types of keyboards: Ergonomic Keyboards Wireless keyboards Illuminated keyboards Output Devices: Output Devices are used to communicate the outcomes of data processing carried out by information to the computer to the outside world. Which we get information out of the computer. E.g. Printers will print anything that in on that is on the monitor onto paper. This can be pictures, words and numbers. Monitor Monitor is a device that displays images or symbols generated by computers, an output device that is a part of your computer display system. They Serve as the visual display to help you navigate your computer. Also to display text and graphics, produced by a computer. The resolution is the measurement of the number of pixels that a computer displays, also called a computer monitor, can show at one time. Monitors that display more pixels offer a sharper, brighter image. Monitors are measured in inches, diagonally from top left to bottom right. Types of monitors: CRT (Cathode Ray Tube) Monitor LCD (Liquid Crystal Display) Monitor Printers: Printer is a peripheral which produces a text and/or graphics) of documents stored in electronic form, usually on physical print media such as paper or transparencies. It lets you to get a hard copy of a document, or picture. DPI (dots per inch) most printers print 600 dpi printers print 600 tiny little dots across one inch and 600 dots vertically for one inch. The higher the resolution of your printer or image setter, the greater detail you can print and the better appearance of your output. The speed of printers is measured in print-per-minute (PPM) for example, laser printer ratings range from 6 to 15 ppm, inkjets are rated 4 ppm and up for black text, and photo-quality inkjets range from 0.3 to 12 ppm, depending on the job. Types of printers: Laser printers Ink-jet printers Dot matrix printers Disk Storage devices (Backing store) Disk Drives are used to record information from the computer onto a floppy disk or CD. Hard Disk Drive: Hard disk drive (HDD) main storage used to permanently store all including the operating system, data, files and programs on the computer. Most hard drives are permanently stored in an internal drive bay at the front of the computer. Capacity per HDD increasing from 3.75 megabytes to greater than 1 terabyte. The typical capacity of hard disk in a PC is uses a 400 to 500 GB drive. Types of Hard Disk: Desktop Hard Disk Types: 3.5, IDE and Sata Interfaces Laptop Hard Disk Types:2.5, 1.8, IDE, Sata, SCSI Server Hard Disk types:3.5 Sata, SCSI Optical Disk Storage CD/DVD/Blu-Ray CD Disk: A Compact Disc (CD) is an optical disc used to store digital data. It was originally developed to store sound recordings exclusively, but later it also allowed the preservation of other types of data.It is used to store data, video or music. So that makes it a storage device. A standard CD has a capacity of about 74 minutes of standard CD audio music. There are extended CDs that can actually exceed this limit and pack more than 80 minutes on a disk. CDs are capable of storing up to 700 mb. The types of CDs are: CD-ROM is a pre-pressed compact disc that contains data accessible to, but not writable by, a computer for data storage and music playback. CD-R a CD-R (Compact Disc-Recordable) is a variation of the Compact Disc invented by Philips and Sony. CD-R is a Write Once Read Many (WORM) optical medium, though the whole disk does not have to be entirely written in the same session. CD-Rewritable disk, a type of CD disk that enables you to write onto it in multiple sessions. One of the problems with CD-R disks is that you can only write to them once. DVD Disk: DVD (Digital Video Disc) is an optical disc storage media format, which are of the same dimensions as compact discs (CDs), but are capable of storing almost seven times as much data. The storage capacity of a DVD is approximately 4.7 GB (gigabytes). A dual layer doubles the storage but requires a dual-layer DVD player/recorder to use the dual-layer media. The types of DVDS: DVD-R DVD-RW DVD-ROM Blu-Ray Disk: Blu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The format defines as its standard physical media a 12Â  cm (same as DVDs and CDs), 25 GB per-layer optical disc, with dual layer discs (50 GB) the norm for feature-length video discs and additional layers possible later. The capacity of Blu-ray disk is 25Â  GB (single-layer) 50Â  GB (dual-layer). USB Memory Stick USB flash drives are computer devices that inputs information that is saved on the USB and inputs it in to the computer when you insert the USB. Also typically removable and rewritable, and physically much smaller than a floppy disk. USB drives range in capacity from megabytes up to 256GB and offer much more storage than writable CDs and DVDs. Operating system Is software, containing of programs and data, which runs on computers and manages the computer hardware and runs common services for active carrying out of various application software. Operating systems are responsible for everything from the control and allocation of memory to recognizing input from external devices and transmitting output to computer displays. They also manage files on computer hard drives and control peripherals, like printers and scanners. An operating system also has a vital role to play in security. Its job includes preventing unauthorized users from accessing the computer system. Examples of operating systems: Windows Vista Windows 7 Task 2: Types of computers: Desktop PC (personal computer) Is a personal computer any common-purpose computer whose size, capabilities, and original sales price make it useful for individuals and which is planned to be operated directly by an end user with no principal computer operator 3 common applications of desktop PC: Access the internet Most time used in offices e.g. Microsoft office used to alto of things: like writing letters, posters etc. Starting your own home business, e.g. selling items through online auction websites. Laptop A laptop computer or simply laptop, is called a notebook, is a small personal computer designed for portability. Usually all of the interface hardware needed to operate the laptop, such as USB ports, graphics card, sound channel, etc., is built in to a single unit. Laptops hold high capacity batteries that can power the device for general periods of time, attractive portability The main purpose of a laptop computer is to be portable. 3 common applications of Laptop: Can be used away from an outlet using a rechargeable battery. Connect to any network, including wireless network Answer email on the train, plane, or passenger seat of a car Palmtop A computer small enough to hold in one hand and operate with the other. Also called a hand top, these ultra-small computers may have particular keyboards or keypads for data entry applications. 3 common applications: Send an email Create text message Access internet Network Server A network server is a computer planned to process requests and carry data to other computers over a local network or the Internet by using the same network. 3 common applications: Web server a static content to a Web browser by loading a file from a disk and serving it across the network to a users Web browser. Chat Server enables a large number of users to exchange information in an environment similar to Internet newsgroups that offer real-time discussion capabilities. Fax Servers a is an ideal solution for organizations looking to reduce incoming and outgoing telephone resources but that need to fax actual documents. Supercomputer A supercomputer is a computer which performs an amount of speed which is far above of other computers. Known constantly changing the world of computing. Supercomputers are used for highly calculation-intensive tasks such as problems involving important physics, weather forecasting, climate research, molecular modelling .A particular class of problems, known as Grand Challenge problems, are problems whose full solution requires semi-infinite computing resources. Task 3 Diagram flows around a computer system: Backing store (Disk storage devices) CPU Central Processing Unit Main memory (RAM) Output devices Input devices When clicking on the mouse or typing on the keyboard its sends information to the CPU. Once the information is recognise on to the CPU, The CPU sends informations on to the output device and will appear either on the printer or monitor When the PC is turned on the RAM sends information to the CPU and sends information to the backing store When you save work on to the PC the backing store saves it sends the information to the CPU then to the main memory and is saved there

grendel vs. frankenstein Essay -- essays research papers

Grendel and Frankenstein are two monsters whose society ignores their existence and find them to be burdensome to their society based on the mere fact that they are not like the rest of their surrounding man-kind. Grendel and Frankenstein both strive to accept their place in the views of their surrounding peoples. Although their sporadic happiness comes from them engaging in fights and killing members of their societies, they learn to accept their place within the societies by coping with their ability to stay loyal to themselves and to fight back with self-devotion and not wanting to give up on themselves.   Ã‚  Ã‚  Ã‚  Ã‚  Grendel, surprisingly, adapts quite well to his society despite its detestation of his existence. Grendel live is a rattlesnake-guarded cave, which allows himself to detach from his society, giving him the necessary space to cope with the troublesome thoughts among his people about Grendel. Unlike Frankenstein, Grendel tries to associate with the members of his civilization but is rejected every time he tries to do so. Every night Grendel goes to Herot to listen to the Sharper’s stories because the history interests him. He is quite intrigued and appreciative of the tales he hears, but when he comes in contact with those from Herot, they do not reciprocate the appreciation of his presence in Herot. The ones he admires so much taunt and torture him to the point they try to kill him for â€Å"intruding.† As retaliation, Grendel fights back and raids Herot every night.   Ã‚  Ã‚  Ã‚  Ã‚  On the flipside, Frankenstein shows no interest in interacting with his society. He feels as though his society already has pre-conceived notions about his existence, and that if he even tried to win their affection, he would fail in doing so. He knows that the members of his surrounding civilization detest those different from themselves. Eventually their ways of demoralizing Frankenstein’s feelings lead Frankenstein to escape from their antagonizing. Frankenstein ventures to the North Pole, one of the coldest and most deserted, barren, and empty places known to man-kind. He stays isolated at the North Pole until he realizes Dr. Frankenstein has been following him, hoping to push him off the edge of world, never to be seen or heard from again. Frankenstein, once again flees, trying to escape his father, whom later dies. Frankenstein, alt... ...d doing for others are always good deeds. And to be honest, he is used to being on the run, so it is no different for him whether or not a miracle happens and someone takes him in for saving their lives or if he continues to live how he has been, always on the go. Frankenstein is an independent person and learns to accept his place in the world as that.   Ã‚  Ã‚  Ã‚  Ã‚  Both these characters exude such power and strength through their personalities. The way they handle situations and the way they don’t give up on themselves is something that is truly honorable. Grendel and Frankenstein, both very different from each other, are both very similar in regards to their heroism. These two characters are essentially alone in their societies and have nobody to turn to for help. They base everything around their beliefs and what they feel is the good and bad thing to do, whether society rejects their beliefs or not. Their loyalty to themselves illustrates their heroism of honesty, loyalty, courage and bravery and their never ending power to continue to fight alone for themselves against a world who wishes to overlook their existence and contributions to diversify the society.

Chapter 18 Solutions

EXERCISE 18-1 (10-15 minutes) Add or deduct from accounting income (a)2deduct (b)1add (c)3add (d)1add (e)2deduct (f)2deduct (g)1add (h3deduct (i)3deduct (j)1add (k)1add (l)1add EXERCISE 18-3 (15-20 minutes) (a) Accounting income$105,000 Permanent differences: Non-deductible fines 11,000 116,000 Timing differences: Excess of CCA over amortization (16,000) Excess rent collected over rent earned? 24,000 Taxable income$124,000 Current income taxes – 30% $37,200 (b) Deductible Balance(Taxable)Future TaxCurrent SheetTemporaryTax AssetLong- AccountDifferencesXRate(Liability)TermPP & E($16,000)*30%($4,800) LT Unearned Rent revenue 24,00030% 7,200C Future income tax asset, Dec. 31, 20092,400 Future income tax asset before adjustment 0 Incr. in future income tax asset and future income tax benefit for 2009$2,400 *Carrying amount and tax basis are not given in the exercise, only the net difference (c)Current Income Tax Expense37,200 Income Tax Payable37,200 Future Income Tax Asset? 7,200 * Future Income Tax Benefit2,400 Future Income Tax Liability? 4,800* *or a net debit to Future Income Tax Asset of $2,400 Because of a flat tax rate, these totals can be reconciled: $24,000 – $16,000) X 30% = $7,200 + ($4,800). EXERCISE 18-3 (Continued) (d)Income before income taxes$105,000 Income tax expense Current$37,200 Future benefit? (2,400)? 34,800 Net income$70,200 (e) Divided by Accounting @ 30% Income Accounting income $ 105,000 31,500 30. 0% Non-deductible fines 11,000 3,300 3. 1% 34,800 33. 1% Effective tax rate ($34,800/$105,000)33. 1% (f)Current assets Future income tax asset$7,200 Non-Current liabilities Future Income Tax Liability4,800 EXERCISE 18-9 (15-20 minutes) (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAssetDec. 31, 2008AmountBasisDifferencesRate(Liability) Warranty liability($130,000)$0 $130,000 25%$32,500 Future income tax asset, December 31, 200832,500 Future income tax asset before adjustment 0 Increase in future i ncome tax asset and future income tax benefit for 2008$32,500 Future years Total200920102011 Deductible temporary difference Warranty liability $130,000 $50,000 $35,000 $45,000 Tax rate enacted for the year 25%25%25% Future tax asset $32,500 $12,500 $8,750 $11,250 EXERCISE 18-9 (Continued) (b)2008 Accounting income$135,000Permanent differences:-0- Timing difference: Warranty expense > warranty costs incurred 130,000 Taxable income 265,000 Current income taxes – 25%$66,250 (c) Current Income Tax Expense66,250 Income Tax Payable 66,250 Future Income Tax Asset32,500 Future Income Tax Benefit32,500 (d)Income before income taxes$135,000 Income tax expense Current$66,250 Future benefit? (32,500) 33,750 Net income$101,250 EXERCISE 18-15 (40-45 minutes) (a) Basic Calculations of Capital Cost Allowance, Amounts and Balances: C-B (A)(B)A – B(C)Timing YearBaseCCAUCCAmort. NBVDifference 2007 $600,000 X 40 % X . $ 120,000 $ 480,000 $120,000$480,000$0 2008 480,000 X 40 % 192,000 288 ,000 120,000360,000(72,000) 2009 288,000 X 40 % 115,200 172,800 120,000240,0004,800 2010 172,800 X 40 % 69,120 103,680 120,000120,00050,880 2011 103,680 X 40 % 41,472 62,208120,000078,528 $537,792 (b) 20072008200920102011 Accounting income $ 340,000 $340,000 $340,000 $340,000 $ 340,000 Timing difference – (72,000) 4,800 50,880 78,528 Taxable income $ 340,000 $268,000 $344,800 $390,880 $ 418,528 X 34 %X 34 %X 34 %X 34 %X 34 %Income taxes payable$115,600$91,120$117,232$132,899$142,300 EXERCISE 18-15 (Continued) (c) and (d) 2007 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2007AmountBasisDifferencesRate(Liability) Property Plant & Equipment$480,000 $480,000 034%$0 Future income tax asset/liability, December 31, 20070 Future income tax asset/liability before adjustment 0 Increase in future income tax liability and future income tax expense for 2007$0 Current Income Tax Expense115,600 Income Taxes Payable? 115,600 ($340,000 X 34%) part (a) EXERCISE 18-15 (Continued) (c) and (d) continued 008 Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008AmountBasisDifferencesRate(Liability) Property Plant & Equipment$360,000$288,000 (72,000)34%($24,480) Future income tax liability, December 31, 2008(24,480) Future income tax liability before adjustment 0 Increase in future income tax liability and future income tax expense for 2008($24,480) Current Income Tax Expense91,120 Income Taxes Payable? 91,120 ($268,000 X 34%) part (a) Future Income Tax Expense24,480 Future Income Tax Liability? 24,480 EXERCISE 18-15 (Continued) (c) and (d) continued 2009Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2009AmountBasisDifferencesRate(Liability) Property Plant & Equipment$240,000$172,800 ($67,200)34%($22,848) Future income tax liability, December 31, 2009(22,848) Future income tax liability before adjustment (24,480) Decrease in future income tax liab ility and future income tax benefit for 2009$1,632 2009 Current Income Tax Expense117,232 Income Taxes Payable? 117,232 ($344,800 X 34%) part (a) Future Income Tax Liability1,632 Future Income Tax Benefit? 1,632 EXERCISE 18-15 (Continued) (c) and (d) continued 2010 Balance DeductibleSheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2010AmountBasisDifferencesRate(Liability) Property Plant & Equipment$120,000$103,680 ($16,320)34%($5,549) Future income tax liability, December 31, 2010(5,549) Future income tax liability before adjustment (22,848) Decrease in future income tax liability and future income tax benefit for 2010$17,299 2010 Current Income Tax Expense132,899 Income Taxes Payable? 132,899 ($390,880 X 34%) part (a) Future Income Tax Liability17,299 Future Income Tax Benefit? 17,299 EXERCISE 18-15 (Continued) (c) and (d) continued 2011 Balance DeductibleSheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2011AmountBasisDifferencesRate(Li ability) Property Plant & Equipment$0$62,208 $62,20834%$21,151 Future income tax asset, December 31, 201121,151 Future income tax liability before adjustment (5,549) Increase in future income tax asset and future income tax benefit for 2011$26,700 2011 Current Income Tax Expense142,300 Income Taxes Payable? 142,300 ($418,528 X 34%) part (a) Future Income Tax Liability5,549* Future Income Tax Asset21,151* Future Income Tax Benefit? 26,700 *Alternately, a debit to Future Tax Asset26,700 EXERCISE 18-15 (Continued) (e) 2007Current Income Tax Expense115,600 Income Taxes Payable? 115,600 ($340,000 X 34%) 2008 Current Income Tax Expense91,120 Income Taxes Payable? 91,120 ($268,000 X 34%) 2009 Current Income Tax Expense117,232 Income Taxes Payable? 117,232 ($344,800 X 34%) 2010 Current Income Tax Expense132,899 Income Taxes Payable? 132,899 ($390,880 X 34%) 2011 Current Income Tax Expense142,300 Income Taxes Payable? 142,300 ($418,528 X 34%) PROBLEM 18-9 Part 1. (a) Mixed tax rates Future y ears 20092010201120122013Total Future taxable amounts ($300) ($300) ($300) ($200) ($100) ($1,200) Tax rate enacted for the year 30%30%30%35%35%Future tax (liability) ($90) ($90) ($90) ($70) ($35) ($375) Future years 20092010201120122013Total Future deductible amounts $1,800 $1,800 Tax rate enacted for the year 30%30%30%35%35% Future tax asset – – – $ 630 – $ 630 PROBLEM 18-9 (Continued) Part 1. (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008Amount*Basis*DifferencesRate(Liability) Property Plant & Equipment($1,200)Mixed($375) Litigation Liability1,800Mixed630 Future income tax asset, December 31, 2008255Future income tax liability before adjustment (500) Increase in future income tax asset and future income tax benefit for 2008$755 * not given in the problem Part 1. part (b) Current Income Tax Expense1,200 Income Tax Payable1,200 ($4,000 X 30%) Future Income Tax Asset/Liability755 Future Income Tax Benefi t755* *Alternately: Future Income Tax Asset630 Future Income Tax Liability125 Future Income Tax Benefit755 PROBLEM 18-9 (Continued) Part 2. (a) Mixed tax rates Future years 2009201020112012Total Future taxable amounts ($400) ($400) ($400) ($400) ($1,600) Tax rate enacted for the year 30%30%30%35%Future tax (liability) ($120) ($120) ($120) ($140) ($500) Future years 2009201020112012Total Future deductible amounts $3,000 $3,000 Tax rate enacted for the year 30%30%30%35% Future tax asset – – $900 – $900 PROBLEM 18-9 (Continued) Part 2. (a) Balance Deductible Sheet (Taxable) Future Tax AccountCarryingTaxTemporaryTaxAsset Dec. 31, 2008Amount*Basis*DifferencesRate(Liability) Property Plant & Equipment($1,600)Mixed($500) Litigation Liability3,000Mixed900 Future income tax asset, December 31, 2008400 Future income tax asset before adjustment 600Decrease in future income tax asset and future income tax expense for 2008$200 * not given in the problem Part 2. part (b) Curr ent Income Tax Expense1,200 Income Tax Payable1,200 ($4,000 X 30%) Future Income Tax Expense200* Future Income Tax Asset200* *Alternately: Future Income Tax Expense200 Future Income Tax Asset300 Future Income Tax Liability500 PROBLEM 18-9 (Continued) (c) Part 1 – All balance sheet related accounts are non-current Pirates Corp. Balance Sheet December 31, 2008 Non-current assets Future income tax asset$255 Part 2 – All balance sheet related accounts are non-current Eagles Corp. Balance Sheet December 31, 2008Non-current assets Future income tax asset$400 PROBLEM 18-12 (a)2007 Income Tax Refund Receivable—20047,500 ($25,000 X 30%) Income Tax Refund Receivable—200518,000 ?($60,000 X 30%) Income Tax Refund Receivable—200632,000 ($80,000 X 40%) Current Income Tax Benefit (Due to Loss Carryback)57,500 Note:An acceptable alternative is to record only one Income Tax Refund Receivable account for the amount of $57,500. Future Income Tax Asset18,000 Future I ncome Tax Benefit (Due to Loss Carryforward)18,000 ($210,000 – $25,000 – $60,000 – $80,000 = $45,000) ($45,000 X 40% = $18,000) 2008 Current Income Tax Expense10,000Income Tax Payable? 10,000 [($70,000 – $45,000) X 40%] Future Income Tax Expense18,000 Future Income Tax Asset18,000 ($18,000 – $0) 2009 Current Income Tax Expense31,500 Income Tax Payable ($90,000 X 35%)31,500 PROBLEM 18-12 (Continued) (b)One or more income tax refund receivable accounts totalling $57,500 will be reported under current assets on the balance sheet at December 31, 2007. This type of receivable is usually listed immediately above inventory in the current asset section. This receivable is normally collec ¬tible within two months of filing the amendment to the tax returns reflecting the carryback.A future income tax asset of $18,000 should also be classified as a current asset because the benefits of the loss carryforward are expected to be realized in the year that im mediately follows the loss year, which means the benefits are expected to be realized in 2008. A current future income tax asset is usually listed at or near the end of the list of current assets on the balance sheet. Also, retained earnings is increased by $75,500 ($57,500 + $18,000) as a result of the entries to record the benefits of the loss carryback and the loss carryforward. (c)2007 Income StatementOperating loss before income taxes($210,000) Income tax benefit Current benefit due to loss carryback$57,500 Future benefit due to loss carryforward? 18,000 75,500 Net loss($134,500) (d)2008 Income Statement Income before income taxes$70,000 Income tax expense Current$10,000a Future? 18,000? 28,000 Net income$42,000 a [($70,000 – $45,000) X 40%] PROBLEM 18-12 (Continued) (e)2007 Income Tax Refund Receivable—20047,500 ($25,000 X 30%) Income Tax Refund Receivable—200518,000 ($60,000 X 30%) Income Tax Refund Receivable—200632,000 ?($80,000 X 40%) Current Income Tax Benefit (Due to Loss Carryback)57,500Note:An acceptable alternative is to record only one Income Tax Refund Receivable account for the amount of $57,500. Although the tax benefit is not recognized in the accounts, Mearat Inc. has a tax loss carryforward of $45,000 which should be disclosed. 2008 Current Income Tax Expense10,000 Income Tax Payable? 10,000 [($70,000 – $45,000) X 40%] 2009 Current Income Tax Expense31,500 Income Tax Payable ($90,000 X 35%)31,500 (f)2007: entry for current taxes – no change 2007: if a valuation allowance is used, the full benefit and future tax asset related to the tax loss carryforward is recognized and then offset by the allowance, as follows.Future Income Tax Asset18,000 Future Income Tax Benefit (Due to Loss Carryforward)18,000 ($45,000 X 40% = $18,000) Problem 18-12 (f) (Continued) Future Income Tax Expense18,000 Allowance to Reduce Future Income Tax Asset to Realizable Value)18,000 ($18,000 – $0) 2008: entry for cu rrent taxes – no change 2008: because the tax loss carryforward has now been used, both the amount in the future tax account and in its allowance account must be removed, as follows. Future Income Tax Expense (Due to Use of Loss Carryforward)18,000 Future Income Tax Asset18,000 Allowance to Reduce Future IncomeTax Asset to Realizable Value18,000 Future Income Tax Benefit (from Adjustment of Allowance)18,000 Alternatively, one entry could have been made: Allowance to Reduce Future Income Tax Asset to Realizable Value18,000 Future Income Tax Asset18,000 2009: No change to part (e) entry. (g)2007 Income Statement Operating loss before income taxes($200,000) Income tax benefit Current benefit due to loss carryback? 57,500 Net loss($142,500) 2008 Income Statement Income before income taxes$70,000 Income tax expense – Current a 14,000 Net income$56,000 a [($70,000 – $35,000) X 40%] PROBLEM 18-12 (Continued) h)Using the valuation allowance instead of applying the redu ction in value directly does not have any impact on cash flows. The use of the contra allowance simply permits the recording of the full benefits associated with all future deductible amounts in the asset account. This facilitates tracking for management purposes. It has no use for financial reporting purposes except, perhaps, for the transparency of the information. Readers can see the total possible benefits and the extent to which management has judged they will not be realized. Use of the allowance has no impact on cash flows.

Governance In The Modern Global Corporate Environment Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2564 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Over a past decade, the corporate governance has been considerably spotlighted by business people all over the globe. One of the reasons which sparked the anxiety on corporate governance is the collapse of one of the largest companies in the USA, Enron. The massive company was filed for bankruptcy in December 2001. Don’t waste time! Our writers will create an original "Governance In The Modern Global Corporate Environment Finance Essay" essay for you Create order The failure of corporate governance was claimed to be the cause of Enron ¿Ãƒâ€šÃ‚ ½s collapse (The Journal of Corporate Citizenship, 2002). Most of all aspects of Enron ¿Ãƒâ€šÃ‚ ½s corporate governance were identified as a poor level. From the top, number of people who were in the board of directors, were indicated to be willing to perform the deception. The failure of internal auditors, who did not execute its function effectively, caused a gap for the financial director and chief executive to make fraudulent accounts for the firm (Solomon, 2004). This corporate scandal has stimulated both local and across borders firms to earnestly examined their own corporate governance mechanism whether they had the similar issue like Enron, in order to fix before it was too late. Moreover, the policies to prevent further failures were developed by the number of regulators all over the world after the Enron saga (Veneeva, 2006). The downfall of Enron demonstrates that even the compa ny with a good financial result still might be bankrupt if the solid and effective corporate governance mechanism is absented. This essay is going to discuss about the corporate governance in globalization i.e. the definition of corporate governance, the important of effective corporate governance in globalization, the demonstration of corporate governance in globalization, and the explanation of why corporate governance structure is nearly similarly across countries. There are a number of definitions of corporate governance. The definitions can be classified into 2 main views. On one hand, the narrow view, defines the corporate governance as structure and relationships between a firm and its shareholders. Solomon argues that the corporate governance is  ¿Ãƒâ€šÃ‚ ½the process of supervision and control intended to ensure that the company ¿Ãƒâ€šÃ‚ ½s management acts in accordance with the interests of shareholders ¿Ãƒâ€šÃ‚ ½ (Solomon, 2004, P.13). On the other hand, broad view, the stakeholders are taken into account of corporate governance. In more inclusive way, broad view explains that the corporate governance is the system of structure and relationship between firm, its shareholder and also wide range of its stakeholders which including employees, suppliers, customers, creditors, communities, wider society, even the natural environment and so forth by encompassing laws, regulations and voluntary private sector practices tha t enable corporation to create the profit, attract capital and meet both legal standards and societal expectations.  ¿Ãƒâ€šÃ‚ ½Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The aim is to align as nearly as possible the interests of individuals, of corporations and of society ¿Ãƒâ€šÃ‚ ½ (Waring, 2004, P. xii). Nevertheless, both narrow and broad views have the identical framework of corporate governance which is about how the company is managed, monitored and controlled in extent of balancing the interests and goals of all shareholders and stakeholders who can be affected by the company ¿Ãƒâ€šÃ‚ ½s activities. Corporate governance requires a transparency and disclosure from board of directors, managers and accountancy to report on the performance of the firm. Solomon (2004) also suggested that corporate governance requires a system of checks and balances both internally and externally in order to guarantee that the firm dispenses its accountability to all parties of corporate relations and also to ensure that the business transactions are performed in a social responsible way. The good and effective corporate governance system is substantially significant in present business globalization. Various modes of benefit are returned to the firms where effective corporate governance structure is adopted. Mohamad (2004) argues that the quality of corporate governance is crucial as it directly influences on efficiency of firm ¿Ãƒâ€šÃ‚ ½s assets utilization, capability of the firm to attract low-cost capital, firm ¿Ãƒâ€šÃ‚ ½s ability to satisfy the expectation of society and also firm ¿Ãƒâ€šÃ‚ ½s overall performance. The optimal utilization of the firm ¿Ãƒâ€šÃ‚ ½s assets and resources is able to be guaranteed by effective corporate governance. Under an effective corporate governance structure, debt and equity capital are conducted to be invested in the most efficient way for the production of both most demanded goods and services along with those with the highest rate of return (Mohamad, 2004). Moreover, it is more likely that incompetent manager, or who fails to utilize the resources and assets efficiently are replaced (Gregory, 1999). As the assets and resources of the firm are ensured to be utilized efficiently, consequently, the effective corporate governance supports the firm to attracting the low-cost capital by enhancing both internal and external borders investor confidence. McKinsey Report (2003) found that investors would willingly to pay a premium from 13 percent to 30 percent varies by region for the companies they believed had greater corporate governance. To be successful in long-term of business, the firm has to obey with the set of laws, regulations and also the societal expectations where it is operated. Numerous companies intensely comply with the corporate social responsibility practices and contribute to society (Stanwick, 2008). Although, some companies demonstrate the failure of corporate responsibility and corporate governance by attempt to make a profit from child labor or any other act that not take environment and society into account. This also exemplifies the failure of government to initiate the framework to conduct the corporate responsible for the issues that significantly impacts to society in wide range. The combination of efficient use of assets and resources, enhanced approach to low-cost capital, extended satisfaction of societal expectations and together with the overseeing on management people which are delivered by the effective corporate governance, leads to the enhancement on overall performance of the firm. The link between company overall performance and effective corporate governance makes significant intuitive sense (Ararat, 2007). Furthermore, by implementing effective corporate governance practice at a national level, foreign and local investors are likely to pay a premium for investment in that nation (Stanwick, 2008). As such, effective corporate governance leads to the improvement in financial stability markets and fosters the country to attract further financial investments. This is apparently strong incentives for both corporations and governments all over the globe to considerably make an effort for better governance. The governance practices vary across countries in accordance with their legal framework, financial system and the corporate ownership structure (Davies, 2008). Corporate governance can be broadly categorized into two main models which are outsider model and insider model. The outsider system is identified by distributed of firm ¿Ãƒâ€šÃ‚ ½s equity among a great quantity of outside investors. Bhasa (2004) suggests that USA and UK obey the outsider system. This system also involves with the separation of ownership from control. Main benefits of this system are explicit transparency, powerful investor protection. However, the desire of management and shareholder are potentially not aligned. In contrast, the insider system is existed where ownership is intensified with shares being owned by families, banks or state. This system provides the alignment of interests among management and shareholder, and also protects the firm from hostile takeovers. Nevertheless, drawbacks of this sys tem are weakness in investor protection, lack of transparency, abuse of power and funds. The insider system is existed in most countries of Continental Europe and East Asia (Hackethal, 2005). However, in recent years, important changes have been certainly appearing in corporate governance system. Globalization and rapid improvement on information technology has been resulting in enhancement of interconnection between people across countries which also present the opportunity to the firms for seeking the profit internationally. Multinational company can possibly gain a benefit across borders whether by international trade, foreign direct investment and etc. To run the multinational company, most of the firms have to access the capital markets of foreign country where they invested. By doing so, the firms are required to comply with the laws, regulatory and practices of that market. This demonstrates the convergence of corporate governance. Yoshikawa (2009) argues that the convergence of corporate governance trend has been growing continually in recent years. Three factors has been indicated to be the drivers of convergence of corporate governance which are the internationa l integration of financial markets, product market integration, and the spread of codes of good governance and harmonization of accounting rules. The international integration of financial markets is a main contributor of globalization process for driving changes in corporate governance practice. In the last two decades, international financial markets have become more integrated with remarkable implications for corporate governance (Davis, 2003). There are many forms of financial market integration e.g. listing by firms from one country in the stock exchanges of foreign countries, rising of foreign portfolio investment, cross-border mergers and acquisition, and etc. These forms of financial market integration transform the fundamental in the ownership structure of corporations (Yoshikawa, 2009). In recent years, the number of firms which list their share in multiple exchanges across borders has been growing rapidly. Important regulatory and compliance costs have been incurred to the foreign issuers who entering these exchanges (Bell, 2008). Furthermore, firms are engaging in a bonding mechanism and simultaneously transmit to the investors that they are willing to obey with higher standards of disclosure than required in their home country when they decide to list in a foreign market with higher disclosure practices. As a result, such bonding increases the firm ¿Ãƒâ€šÃ‚ ½s share value. Consequently, outcome of the foreign listing is the convergence as a by-product (Yoshikawa, 2009). Furthermore, substantial growth of foreign portfolio investment all over the world has been seen for a period of time. The regular demand of investors is to diversify their portfolio in order to reduce the risk and obtain more liquidity hence foreign investors essentially own small stakes and often trade their shares. Many companies take a lot of effort to attract foreign institutional investors because the resulting demand for the stock can lift up the prices and suddenly increase the value of the companies (Aguilera, 2003). On top of the attracting investors, retaining the existed and potential investors is extremely necessary. Parrino (2003) argues that selloffs by investors can impact the stock prices negatively and upraise the potential of hostile takeover. Therefore, in order to attract and retain the foreign investors, firms must comply with investor ¿Ãƒâ€šÃ‚ ½s expectation of good governance such as disclosure and protection of the rights of minority shareholders. Under the viewpoint of product market integration, corporate governance is seen as a new innovation or technology (Khanna, 2004). In present age of global business, high competition in both domestic and international, adopting of the most innovative practice is essential otherwise the firms possibly encounter the competitive failure. Countries and companies that are applying the under optimal governance practices will be less efficient and will suddenly fail or will have to adopt more efficient elements of governance practice (Yoshikawa, 2009). The spread of codes of good governance and harmonization of accounting rules also drives the convergence of governance system. Number of countries has used the Cadbury Committee report in the UK as a seminal development for similar evolution in their nations (Aguilera, 2004). Once the codes are published, they become an important paradigm for convergence in both local and international, regardless of who is the issuer. Yoshikawa (2009, P. 392) also states that  ¿Ãƒâ€šÃ‚ ½integration in the global economy functions as a transmission belt for the need to innovate and facilitate the transfer of practices across countries ¿Ãƒâ€šÃ‚ ½. When firms decide to list in a foreign exchange, they normally confront with the problems that their accounts are required to be restated based on the standards of that country. Likewise, international investors face the problem of understanding the accounting system in another country where they want to make portfolio investment. The harmonization of accounting standards is addressing these problems (Yoshikawa, 2009). It facilitates the firms in running their business internationally and also enhances the attraction of the investors to make investments.  ¿Ãƒâ€šÃ‚ ½The harmonization of accounting standards can greatly facilitate the process of convergence, mainly through mandating uniform disclosure requirement ¿Ãƒâ€šÃ‚ ½ (Yoshikawa, 2009, P. 392). Many countries are attempting to improve their governance practices to the somewhat similar area as there are a number of benefits. By improving the governance practices effectively which including efficient use of resources, ensure the corporate is in compliance with laws and societal expectation, transparency and disclosure and etc.; the confidence of investors are enhanced as such the corporate can simply access to low-cost capital. Also, when business transaction is occurred between two or more countries, it is favorable to the business where all participants adopting the similar effective governance practices. The similar standards of governance give a transparency and disclosure in a better level by uniform disclosure necessity (Yoshikawa, 2009). Recently, China has made a substantial progress in improving its governance practice based on Anglo-Saxon model (Dujuan, 2009). In 2006, China has changed from the Old Company Law to the New Company Law in order to encourage the investment. The New Company Law led to improve the shareholder rights, especially minority shareholders. In addition, it made a considerable progress in seven areas of corporate governance such as rights of shareholders and rules for shareholders ¿Ãƒâ€šÃ‚ ½ meetings, duties and responsibilities of directors and independence of board of directors, performance assessment and incentive and disciplinary systems, information disclosure and transparency and the role of auditor. The laws, for instance, give the right equally among shareholders and, shareholders shall have the right to protect their interests and rights through other legal in accordance with laws and administrative (Dujuan, 2009). In addition, it also provides how minority shareholder can use their rights in the court. Moreover, it forces the directors and managers to faithfully execute their duties, protect the firm ¿Ãƒâ€šÃ‚ ½s interests, answer to the shareholders and must not use the firm ¿Ãƒâ€šÃ‚ ½s assets or resources or their position to seek personal gain. The board of directors takes the responsibility of appointing competent and removing incompetent management. Under the company law, competition with the company is forbidden (Dujuan, 2009). The improvement in New Company Law conducts the directors, managers to act legally and ethically and also delivers to protection to even the minority shareholders in order to encourage the investment and to gain other business advantages. The New Company Law exhibits the progress in convergence of China ¿Ãƒâ€šÃ‚ ½s corporate governance practice. It has been claimed to be one of the contributors of recent substantial economic growth of China (Dujuan, 2009). This essay exhibits the role of corporate governance in business globalization. The trend of convergence in governance practice is appeared even there ¿Ãƒâ€šÃ‚ ½s still a bit of impediments to convergence completely regarding the differences in legal framework, financial standards and the social norms. But, still, the basic characteristics of effective corporate governance is similarly comprised of protection of shareholder rights, independence of directors, the presence of audit, transparency and disclosure, and remuneration. The firms and even nations essentially require pursuing the effective governance practice which provides a number of business advantages in return. The corporate, where effective corporate governance is adopted, mostly surpasses other companies and has greater capabilities in attracting the investors to support in financial term of the company for further economic and business growth. The effective corporate governance is necessary in terms of controllin g and monitoring company management. It cannot prevent the illegal or unethical activity by management, but it can at least detect such activity before it is too late to be fixed. On the contrary, poor corporate governance mostly leads to the disadvantages of the firm ¿Ãƒâ€šÃ‚ ½s potential and, in worst case; the fraudulent activities might be appeared. Appendix