Understanding the Ins and Outs of Payday Loans


What is accounting fraud?

Accounting fraud is a deliberate and improper manipulation of the recording of sales revenue and/or expenses in order to make a company's profit performance appear better than it actually is. Some things that companies do that can constitute fraud are:

--Not listing prepaid expenses or other incidental assets--Not showing certain classifications of current assets and/or liabilities--Collapsing short- and long-term debt into one amount.

Over-recording sales revenue is the most common technique of accounting fraud. A business may ship products to customers that they haven't ordered, knowing that those customers will return the products after the end of the year. Until the returns are made, the business records the shipments as if they were actual sales. Or a business may engage in channel stuffing. It delivers products to dealers or final customers that they really don't want, but business makes deals on the side that provide incentives and special privileges if the dealers or customers don't object to taking premature delivery of the products. A business may also delay recording products that have been returned by customers to avoid recognizing these offsets against sales revenue in the current year

The other way a business commits accounting fraud is by under-recording expenses, such as not recording depreciation expense. Or a business may choose not to record all of its cost of goods sold expense fore the sales made during a period. This would make the gross margin higher, but the business's inventory asset would include products that actually are not in inventory because they've been delivered to customers.

A business might also choose not to record asset losses that should be recognized, such as uncollectible accounts receivable, or it might not write down inventory under the lower of cost or market rule. A business might also not record the full amount of the liability for an expense, making that liability understated in the company's balance sheet. Its profit, therefore, would be overstated.


Have you noticed that most big companies often support a charitable institution? Some of them even launch public campaigns for the benefit of these organizations.In the Philippines for example, television networks such as ABS-CBN and GMA7 both have their own foundations that help the poor and the oppressed in the country.Even international companies such as Starbucks do their share of good deeds through SparkHope, a project with UNICEF which aims to provide early childhood care for local communities.These companies realize that supporting charities can make good business sense. According to research, 57% of consumers said that they are more loyal to socially responsible companies and 52% are more likely to talk to friends and family about those corporations, products and services.Aside from the favorable publicity and tax deductions, supporting a cause adds another dimension to your brand and business and more importantly, provide a sense of meaning and fulfillment to you and your employees.Cause Marketing is not limited to large corporations and national franchises. Small and home-based businesses can also gain from this endeavor. Here are some tips which you can do if you want to invest in good this site aside the budget for these campaigns. A percentage of your dividend or personal income is always a good place to start. You can also allot a portion of your advertising and marketing funds into these.Select a cause that you believe in and at the same time, compliments your business. If you own an internet cafe, then why not offer free computer tutorials for adults? If you own a pharmacy, you could organize medical missions for your local community.It is always beneficial to ask the support of local government officials and solicit sponsorship from bigger companies to help fund your cause.Be consistent. Make these charitable works a regular activity for your business. This will create a long-term impression within your community and help establish a good and solid reputation.To set myself as an example, I would like to promote this website which aims to help end world hunger by providing free rice to hungry people. Click on the banner below and play the game on their site, not only will you improve your English vocabulary, but you will also help in feeding the world.