HULAHAKA

Wherever you make your career whether in accounting, marketing, management, finance, government, or elsewhere your behavior and actions will affect other people and organizations. The standards of conduct by which one’s actions
Understand why ethics are judged as right or wrong, honest or dishonest, fair or not fair, are ethics. Is a fundamental Imagine trying to carry on a business, perform an audit, or invest money if you business concept. Could not depend on the individuals you deal with to be honest. If managers,
customers, investors, co-workers, sand creditors all consistently lied, effective communication and economic activity would be impossible. Information would have no credibility.
Fortunately most individuals in business are ethical. Their actions are both legal and responsible, and they consider the organization’s interests in their decision making. However, in some situations public officials, business executives, and respected Continue reading »

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Many individuals mistakenly consider bookkeeping and accounting to be one and the same. This confusion is understandable because the accounting process includes the bookkeeping function. However, accounting also includes much more. Bookkeeping usually involves only the recording of economic events and is therefore just one part of the accounting process. In total, accounting involves the entire process of identification, recording, and communication.

The bookkeeping function is often performed by individuals with limited skills in accounting. As a result, it is not surprising that the increased use of computers by business enterprises has resulted in much of the detailed work that is part of the bookkeeping process being performed by machines. Continue reading »

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The sales agreement should indicate whether the seller or the buyer is to pay the cost of transporting the goods to the buyer’s place of business. When a common carrier such as a railroad, trucking company, or airline is used, the transportation company prepares a freight bill (often called a bill of lading) in accordance with the sales agreement. Freight terms are expressed as either FOB shipping point or FOB destination. The letters FOB mean free on board. Thus, FOB shipping point means that goods are placed free on board the carrier by the seller, and the buyer pays the freight costs. Conversely, FOB destination means that the goods are placed free on board at the buyer’s place of business, and the seller pays the freight. For example, the sales invoice in Illustration 5-3 on page 183 indicates that freight is FOB shipping point. Thus, the buyer (Chelsea Video) pays the freight charges.
When the purchaser directly incurs the freight costs, the account Freight-in (or Transportation-in) is debited. For example, if upon delivery of the goods on May 6, Chelsea Video pays Acme Freight Company $150 for freight charges

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