The utilization of the truth serum would be to coerce individuals to the telling of the truth in any given situation. There are a range of pros to the usage of the truth serum one of which include that it’s the fine alternative as opposed to the use of torture for people to tell the truth. It would be better as it would decrease human suffering (Horngren). The other benefit is that through the method, it would be easy to notice the truth to delicate crook cases. The demerits include that the drug may have some fitness side effects on the a number individuals. The other would be that it is unethical, it is not proper as it is administrated without the consent of the individuals. I will support the utilization of the truth serum if it is administrated as the last option with the individual’s consent as it would reduce the torture individuals are exposed to tell the truth (Weil, Schipper, and Francis).
Through financial accounting, there are various concepts that I have been able to learn that broaden the knowledge in accounting. One of the concepts is the concept of the accounting equation that creates the necessary foundation in the administration of the double entry in the bookkeeping process. In the idea, it can be determined that assets are the sum of the liabilities as well as the shareholder_x0092_s equity (Witkowski and Parkes). In the same equation, it can be developed that liabilities is given by the subtraction of the assets and the shareholder_x0092_s equity. Some of the assets will include cash, the inventory as well as the receivables
The other concept is the financial statement that can be defined to be the collection of all materials that lead to the financial reporting of any organization. In the statements, they can show the capability of the company in the generation of the cash flow and the ability of the team in the payment of the debts that it owes to the various individuals. The report will include multiple concepts such as the balance sheet, the statement of the cash flow and lastly the income statement (Glynn). This idea interests me as it categorically states of all the relevant information that will aid an organization in noting if it is on the right track towards success.
The other concept is the concept of accrual and that of the cash basis in which they are aimed in the recording of all the relevant expenses and the revenue. In the first idea of accrual is intended to recognize the income and ensure the incurring of all the appropriate expenses (Witkowski and Parkes). The cash basis, on the other hand, will record the revenue when cash is received and expenses when there is the spending of the cash. Most organization use the accrual method as it follows the Generally Accepted Accounting Principles (GAAP).
Financial reporting is aimed in the creation of the reports that can be distributed to the various individuals outside the organization. The utilization of this report is useful to the creditors, the lenders and investors as it dictates if the organization is the best investment opportunity that individuals can have. The positioning of the organization in the stock will dictate for the mandatory inclusion of its financial data to the public.
Lastly, the debits and the credits are also crucial in the carrying out of the double entry system. It has in the previous times been seen as the best way that can determine the accuracy of the organization in all set sizes. In this way, it states that any form of transactions will have an equal size on the financial transaction that will affect various accounts (Glynn). A debit will represent an increase in the asset or expense which is a decrease in liability. Credit, on the other hand, will represent an increase in the liability or the reduction in the set assets.
It can be seen that the interpretation of the various accounting terms will be the best way that will lead to the realization of success in financial accounting.
Glynn, Adam N. “What can we learn with statistical truth serum? Design and analysis of the list experiment.” Public Opinion Quarterly 77.S1 (2013): 159-172.
Horngren, Charles, et al. Financial accounting. Pearson Higher Education AU, 2012.
Weil, Roman L., Katherine Schipper, and Jennifer Francis. Financial accounting: an introduction to concepts, methods and uses. Cengage Learning, 2013.
Witkowski, Jens, and David C. Parkes. “A Robust Bayesian Truth Serum for Small Populations.” AAAI. 2012.