Fahad Analysis Draft 1 Essay Example | Topics and Well Written Essays - 1000 words

Fahad Analysis Draft 1 - Essay Example The poem consists of four stanzas of five lines each; the rhythm of the poem is ABAAB. The poem has a strong masculine tone, it does not contain much emotion, and exception is the last line where he writes ‘sigh’. With the subject of choosing between two roads Frost symbolizes the fact of life that in life you have to choose between who possibilities, and what you choose shapes your life entire. The title of this poem actually explains a lot about what this poem is, what are the main themes discussed. The author shows through the title that he is not talking about how took a particular road or a major life decision, but in reality he talks about the aspect of ‘lost opportunities’. He highlights the fact that how if you choose a path or make a decision you give up on experiences you could have experienced if you had taken the different path. It mainly talks about the complexities of choice and how even if you want to travel on both roads how life brings you to a point where you have to choose between the two, and then live with the decision. The poet has paid special attention to nature while writing this poem. He in many different ways tries to incorporate nature. He uses words like ‘yellow’ and ‘grassy’ to paint a picture of the surroundings. The poem starts off with the mention of roads, how the person is standing in a forest and he has to choose between two roads. He uses this figure of speech to paint a picture of a person who has to make a decision in his life. He is not literally talking about which road to take but he symbolizes the roads as the choices a man has in his life. He talks about how both those roads and choices look the same to him. In line four he talks about how only when we have chosen a path or made a decision we realize the consequences of our decisions. He expresses his sorrow that he has to choose between

The Effect of a Change in Language of Instruction on the Returns to Schooling in Morocco Essay Example for Free

The Effect of a Change in Language of Instruction on the Returns to Schooling in Morocco Essay According to this journal, in the last few decades, language reform has been a strong movement throughout the Kingdom of Morocco from a primarily French speaking country, to an Arabic speaking one. In the schools, the French teachers were removed and replaced with native speaking ones. Although the Curriculum changed, the books language did not, because many of the jobs available are in a French speaking language and nation. So, the economic value of the Moroccan people speaking French is greater than only speaking Arabic. In 1983, A process named â€Å"Arabization† by many, removed the French language and replaced it with Arabic. In schools in Morocco, many parents left their children in middle school until there was room for them in secondary school. In this article they have correlated the similarities between speaking the French language and The economy, and how each has affected each other. Islamic Radicalism Slows Moroccan Reforms. Steven Erlanger and Souad Mekhennet. New York Times. 26 August, 2009. According to this article, Morocco has been viewed as â€Å"a rare, liberalizing, Islamic State†¦that can live in peace with Israel. † (NY Times) King Mohammed VI is under extreme Islamic pressure and has slowed the pace of change. Although he says he is focused on democracy, according the article, it is more of just a facade. Many of the head officials have talked of a balance between freedom and democracy but many are worried of extremism. In 2003, bombings by Islamic radicals have increased tension in Morocco, and may have thwarted the attempts to make it a more accepting society. Since the Bombings, there has been a major crackdown on extremists in the country, going so far as to jail someone for having a long beard, and accusing them of terrorist activities because of this. Some say this is all over the top and the arrests are based on circumstantial evidence, but others such as Morocco’s intelligence leader stated that it was not based on political parties but a crack-down on terrorism. The king has decided to rid the country of the slums, in an attempt to smut out all radicalism. Although this crackdown has removed some extremism , it has interfered with human rights, especially that of people in jail. Background Note: Morocco. U. S Department of State. Bureau of Northeastern affairs. 12 March, 2012. This United states government website gives a profile of the geography, people, government, and economics of the Kingdom of Morocco. The location is North Africa on the Atlantic Ocean and Mediterranean Sea. The population is listed as 34,859,364 people. Their GDP as of 2010 was $90. 5 million. According to this article, the Moroccan people are mainly Sunni Muslims of Arab descent. Arabic is Morocco’s official language but French is most widely taught. It also states that most people live west of the Atlas mountains, near Casablanca. Although education is compulsory, the average literacy rate is surprisingly low, around 30% for women, and approximately 65% for men, but in rural areas is expected to be about only 10% for women. During World War II there was a strong campaign for independence from France. Morocco finally gained its independence on March 2nd, 1956. Currently Moroccan Government is ruled by a monarchy, but now has a stronger parliament to help improve democracy and human rights. Introducing Morocco. Lonely Planet. Website. 20 January 2012. http://www. lonelyplanet. com/morocco This Travel site describes Morocco as a sensory overload. Tangier is considered a common first port of call, but Casablanca is the most recognizable due to its popularity from portrayals in movies. Their monetary system is the Dirham, which is comparable, 1 USD= 8. 15 (DH). It also states that their chief of state is Mohammad VI. The Article says that Malaria is no longer a problem in the country. CIA. The World Fact book. Website. https://www. cia. gov/library/publications/the-world-factbook/fields/2049. html This site explains the main exports of Morocco, which are clothing and textiles, electrical components, crude minerals, fertilizers, petroleum products, citrus fruits, vegetables, and fish. It is a very diverse, open-market economy. The economy over the years has seen steady growth with low inflation rates. The core of the economy revolves around agriculture, tourism, and apparel. Although they have had slow economic success, they still suffer from unemployment and poverty. Key challenges for the Moroccan economic system includes fighting corruption and reducing government spending. In 2006, Morocco entered a Free Trade Agreement with the United States, the only African country to have one. Morocco’s Labor force as of 2011 has 11. 6 million people approximately.

Pros and Cons of Cosmetic Surgery Essay example -- Plastic Surgery Essa

Pros and Cons of Cosmetic Surgery Cosmetic Surgery is a great discovery that has been around for many centuries. â€Å"The history of plastic surgery origins in the early 800 B.C. when surgeons in India restored noses to persons who had them taken off as a form of punishment.† (History of Cosmetic Surgery, 2008) Many people have used over the years cosmetic and reconstructive surgery to enhance their physical appearance weather it be for health problems associated with birth defect or problems that they have developed over the years or to even alter physical appearances for instance nose jobs and tummy tucks. There are numerous types of cosmetic surgery that can be done today in the United States, over the year’s surgeons techniques have improved dramatically. There are a number of pro’s and con’s that go along with cosmetic surgery, such as the amount of recovery time and the initial cost of surgery. Statistics also show that cosmetic surgery has grown so rapidly over the years it is phen omenal people who receive cosmetic surgery goes up by the millions every year. While there can be many related health risks due to cosmetic sugary, many times cosmetic surgery is necessary and its is made more affordable than thought to be. There are many Cons’ that are associated with cosmetic and reconstructive surgery. Some procedures can leave a person scared for life physically or even mentally. For instance, â€Å"Liposuction is the removal of fat cells to produce smoother contours, if to much fat and fluid is removed at once the patient could go into shock, bleed internally, or worst of all die.† (Margie Parent 2002) After some cosmetic and reconstructive surgeries sometimes it is found very common for a person to have a hard time adjust... .../history-of-cosmetic-surgery.html Parent, Margie. 2002. â€Å"The Pro’s and Con’s of Plastic Surgery Procedure.† Retrieved on January 28th, 2008. From www.ri.essortment.com/plasticsugeryp_rewz.htm Miami Beach 411. N.D. â€Å"A Guide to Cosmetic and Plastic Surgery Costs†. Retrieved on January 28th, 2008. From http://www.miamibeach411.com/cosmetic/guide_2.html â€Å"History of Cosmetic Surgery†. 2008. Retrieved on January 28th, 2008. From http://www.ebreastaug.com/cosmetic-surgery/history.html Colins, Joan. N.d..†The Pro’s and Con’s of Plastic Surgery†. Retrieved on January 28th, 2008. From http://cseserv.engr,scu.edu/StudentWebPages/KNguyen/researchpaper.htm American Society of Plastic Surgery. 2008. â€Å"2007 Report of 2006 Statistics†. Retrieved on January 28th, 2008. From http://www.plasticsurgery.org/media/Press_Kits/Procedural-Statistics-Press-Kit-Index.cfm

NUR 403 Joy Travelbee Essay

Introduction Joyce Travelbee was born in 1926 and is well known for her contribution and work as a nursing theorist. In 1956 earned her degree as a Bachelor in Nursing from Louisiana State University, later in 1959 received the degree of Master in Science at Yale University. During most of her carrier she dealt with psychiatric nursing and also education. Died tragically while trying to obtain her PhD degree in 1973. Key Points of her Theory There are some main or mayor concepts on this theory defined by Joyce Travelbee to assist nurse to understand the model nursing, hope, meaning, suffering, communication, and self-therapy. Existentialism and Logotherapy are important in this theory, Existentialism states that humans remain constantly under the influence of choices that creates conflicts and are responsible for the results of those choices they made. Logotherapy is also a concept on this theory based on the assumption that emotional stability is best protected by meaningful fulfillment in life, it focuses on the future. Health is another concept included in this theory is describe as an equilibrium of every person physically, emotionally and spiritually in relation with the environment where the loss of this equilibrium bring an uneasy feeling called suffering. Historical Background The historical surrounding of this theorist was the calamities and human suffering during and after War World Two and the bases for her theory, philosophy and model are on Soren Kierkegaard’s philosophy of existentialism and Viktor Frankl’s Logotherapy. Existentialism stated that people are accountable for the choices they make in life and the repercussion on the people who make those choices. Logotherapy, was first proposed in Frankl’s book Man’s Searching for Meaning (1963), a type of psychotherapy that include the idea that fulfillment is the greatest protection against emotional instability. This was part of idea proposed by a Jewish prisoner of the Auschwitz concentration camp who found meaning for his life in the midst of extreme suffering, this is described on his account of the experiences he had while working in the harsh conditions while in the concentration camp. Term Definition Applied to Nursing Practice Applied to Nursing Education Applied to Nursing Research Person Person is define as a Human being with physical, emotional and psychological component. Both the patient and the nurse are consider as a human being with its own uniqueness that allow to take in consideration when we are developing the nursing process taking care of the mind and the body too. As a nurse is important to develop the rapport between nurse student, educator and patient as a person and share each one experiences. A human being as a unique individual, in constant evolution and change. Important to define this with the new changes related with genetics. Health The physical, mental or psychological and spiritual balance in a person. By knowing the different components of health we can comprehend and target better factors that affect the individual and measure the health status by physical examination, laboratory test and assessment. The optimal equilibrium of the individual or person, state of well-being. Knowing the objective component of health give us the opportunity to research about diseases. Nursing Is a process establish between the nurse professional, the individual, family or community to assist with disease prevention, health promotion or coping with the illness finding a meaning in this conditions. Establish a better understanding of the nursing process where no only the patient is important but also the family and the community. Assist to target in the education process no only the patient direct but also family and the community to better fulfill our roles as educators. As researchers investigation should include all the persons involve in the nursing process. Environment As experiences we encountered during our life and the response to it as sufferings, pain, hope, and illness. Promotes nurses to get familiar with external factors that may impact the individual health stage that should be targeted during the nursing process. In the education process knowing the factor that may bring emotional instability will give us a proper tool to educate on how to deal with them. Nurse involvement in search how the external factors may affect the individual health References: Octaviano, E. F. & Balita, C. E. (2008). Theoretical Foundations of Nursing: The Philippine Perspective. Philippines: Ultimate Learning Series, 93-98. Tomey, A. M. & Alligood, M. R. (2002). Nursing Theorists and Their Work. 5th ed. Missouri: Mosby, 418-425.

The Information of Different Needs of Different User Groups

1 Introduction to accounting Introduction n this opening chapter we begin by considering the role of accounting. We shall see that it can be a valuable tool for decision-making. We shall identify the main users of accounting and financial information and discuss the ways in which this information can improve the quality of decisions that those users make. We shall then go on to consider the particular role of financial accounting and the differences between financial and management accounting.Since this book is concerned with accounting and financial decision making for private-sector businesses, we shall also examine the main forms of business enterprise and consider what are likely to be the key objectives of a business. I Learning outcomes When you have completed this chapter, you should be able to: ? explain the nature and roles of accounting; ? identify the main users of financial information and discuss their needs; ? distinguish between financial and management accounting; ? e xplain the purpose of a business and describe how businesses are organised and structured. 2 CHAPTER 1INTRODUCTION TO ACCOUNTING What is accounting? ? Accounting is concerned with collecting, analysing and communicating ? nancial information. The purpose is to help people who use this information to make more informed decisions. If the ? nancial information that is communicated is not capable of improving the quality of decisions made, there would be no point in producing it. Sometimes the impression is given that the purpose of accounting is simply to prepare ? nancial reports on a regular basis. While it is true that accountants undertake this kind of work, it does not represent an end in itself.The ultimate purpose of the accountant’s work is to give people better ? nancial information on which to base their decisions. This decision-making perspective of accounting ? ts in with the theme of this book and shapes the way in which we deal with each topic. Who are the users of accounting information? For accounting information to be useful, the accountant must be clear for whom the information is being prepared and for what purpose the information will be used. There are likely to be various groups of people (known as ‘user groups’) with an interest in a particular organisation, in the sense of needing to make decisions about it.For the typical private-sector business, the more important of these groups are shown in Figure 1. 1. Take a look at this ? gure and then try Activity 1. 1. Figure 1. 1 Main users of financial information relating to a business Several user groups have an interest in accounting information relating to a business. The majority of these are outside the business but, nevertheless, have a stake in it. This is not meant to be an exhaustive list of potential users; however, the groups identified are normally the most important. W HO ARE THE USERS OF ACCOUNTING INFORMATION?Activity 1. 1 Ptarmigan Insurance plc (PI) is a lar ge motor insurance business. Taking the user groups identified in Figure 1. 1, suggest, for each group, the sorts of decisions likely to be made about PI and the factors to be taken into account when making these decisions. Your answer may be along the following lines: User group Decision Customers Whether to take further motor policies with PI. This might involve an assessment of PI’s ability to continue in business and to meet their needs, particularly in respect of any insurance claims made. CompetitorsHow best to compete against PI or, perhaps, whether to leave the market on the grounds that it is not possible to compete profitably with PI. This might involve competitors using PI’s performance in various aspects as a ‘benchmark’ when evaluating their own performance. They might also try to assess PI’s financial strength and to identify significant changes that may signal PI’s future actions (for example, raising funds as a prelude to mark et expansion). Employees Whether to continue working for PI and, if so, whether to demand higher rewards for doing so.The future plans, profits and financial strength of the business are likely to be of particular interest when making these decisions. Government Whether PI should pay tax and, if so, how much, whether it complies with agreed pricing policies, whether financial support is needed and so on. In making these decisions an assessment of its profits, sales revenues and financial strength would be made. Community Whether to allow PI to expand its premises and/or whether to provide representatives economic support for the business.PI’s ability to continue to provide employment for the community, the extent to which it is likely to use community resources and its likely willingness to help fund environmental improvements are likely to be considered when arriving at such decisions. Investment Whether to advise clients to invest in PI. This would involve an analysts asses sment of the likely risks and future returns associated with PI. Suppliers Whether to continue to supply PI and, if so, whether to supply on credit. This would involve an assessment of PI’s ability to pay for any goods and services supplied.Lenders Whether to lend money to PI and/or whether to require repayment of any existing loans. PI’s ability to pay the interest and to repay the principal sum would be important factors in such decisions. Managers Whether the performance of the business needs to be improved. Performance to date would be compared with earlier plans or some other ‘benchmark’ to decide whether action needs to be taken. Managers may also wish to decide whether there should be a change in PI’s future direction. This would involve looking at PI’s ability to perform and at the opportunities available to it.Owners Whether to invest more in PI or to sell all, or part, of the investment currently held. This would involve an assessme nt of the likely risks and returns associated with PI. Owners may also be involved with decisions on rewarding senior managers. The financial performance of the business would normally be considered when making such a decision. Although this answer covers many of the key points, you may have identified other decisions and/or other factors to be taken into account by each group. 3 4 CHAPTER 1 INTRODUCTION TO ACCOUNTING The conflicting interests of usersWe have seen above that each user group looks at a business from a different perspective and has its own particular interests. This means that there is always the risk that the interests of one group will collide with those of another group. Con? ict between user groups is most likely to occur over the way in which the wealth of the business is generated and/or distributed. A good example is the con? ict that may arise between the managers and the owners of the business. Although managers are appointed to act in the best interests of t he owners, there is always a danger that they will not do so.Instead, managers may use the wealth of the business to award themselves large pay rises, to furnish large of? ces or to buy expensive cars for their own use. Accounting information has an important role to play in reporting the extent to which various groups have bene? ted from the business. Thus, owners may rely on accounting information to check whether the pay and bene? ts of managers are in line with agreed policy. A further example is the potential con? ict of interest between lenders and owners. There is a risk that the funds loaned to a business will not be used for purposes that have been agreed.Lenders may, therefore, rely on accounting information to check that the funds have been applied in an appropriate manner and that the terms of the loan agreement are not being broken. Activity 1. 2 Can you think of other examples where accounting information may be used to monitor potential conflicts of interest between t he various user groups identified? Two possible examples that spring to mind are: ? ? employees (or their representatives) wishing to check that they are receiving a ‘fair share’ of the wealth created by the business and that agreed profit-sharing schemes are being adhered to; overnment wishing to check that the profits made from a contract that it has given to a business are not excessive. You may have thought of other examples. How useful is accounting information? No one would seriously claim that accounting information fully meets all of the needs of each of the various user groups. Accounting is still a developing subject and we still have much to learn about user needs and the ways in which these needs should be met. Nevertheless, the information contained in accounting reports should help users make decisions relating to the business.The information should reduce uncertainty about the ? nancial position and performance of the business. It should help to answer qu estions concerning the availability of funds to pay owners a return, to repay loans, to reward employees and so on. Typically, there is no close substitute for the information provided by the ? nancial statements. Thus, if users cannot glean the required information from the ? nancial statements, it is often unavailable to them. Other sources of information concerning the ? nancial health of a business are normally uch less useful. HOW USEFUL IS ACCOUNTING INFORMATION? Activity 1. 3 What other sources of information might, say, an investment analayst use in an attempt to gain an impression of the financial position and performance of a business? What kind of information might be gleaned from these sources? Other sources of information available include: ? ? ? ? ? ? ? ? meetings with managers of the business; public announcements made by the business; newspaper and magazine articles; websites, including the website of the business; adio and TV reports; information-gathering agencies (for example, agencies that assess businesses’ creditworthiness or credit ratings); industry reports; economy-wide reports. These sources can provide information on various aspects of the business, such as new products or services being offered, management changes, new contracts offered or awarded, the competitive environment within which the business operates, the impact of new technology, changes in legislation, changes in interest rates and future levels of inflation.However, the various sources of information identified are not really substitutes for accounting reports. Rather, they are best used in conjunction with the reports in order to obtain a clearer picture of the financial health of a business. Evidence on the usefulness of accounting ? There are arguments and convincing evidence that accounting information is at least perceived as being useful to users. Numerous research surveys have asked users to rank the importance of accounting information, in relation to oth er sources of information, for decision-making purposes.Generally, these studies have found that users rank accounting information very highly. There is also considerable evidence that businesses choose to produce accounting information that exceeds the minimum requirements imposed by accounting regulations. (For example, businesses often produce a considerable amount of accounting information for managers, which is not required by any regulations. ) Presumably, the cost of producing this additional accounting information is justi? ed on the grounds that users ? nd it useful.Such arguments and evidence, however, leave unanswered the question of whether the information produced is actually used for decision-making purposes, that is: does it affect people’s behaviour? It is normally very dif? cult to assess the impact of accounting on decision making. One situation arises, however, where the impact of accounting information can be observed and measured. This is where the shares (portions of ownership of a business) are traded on a stock exchange. The evidence reveals that, when a business makes an announcement concerning its accounting pro? s, the prices at which shares are traded and the volume of shares traded often change signi? cantly. This suggests that investors are changing their views about the future prospects of the business as a result of this new information becoming available to them and that this, in turn, leads them to make a decision either to buy or to sell shares in the business. Although there is evidence that accounting reports are perceived as being useful and are used for decision-making purposes, it is impossible to measure just how useful 5 6 CHAPTER 1 INTRODUCTION TO ACCOUNTING ccounting reports are to users. As a result we cannot say with certainty whether the cost of producing those reports represents value for money. Accounting information will usually represent only one input to a particular decision and so the precise weight attached to the accounting information by the decision maker and the bene? ts which ? ow as a result cannot be accurately assessed. We shall now go on to see, however, that it is at least possible to identify the kinds of qualities which accounting information must possess in order to be useful.Where these qualities are lacking, the usefulness of the information will be diminished. Providing a service One way of viewing accounting is as a form of service. Accountants provide economic information to their ‘clients’, who are the various users identi? ed in Figure 1. 1. The quality of the service provided is determined by the extent to which the needs of the various user groups have been met. To meet these users’ needs, it can be argued that accounting information should possess certain key qualities, or characteristics: relevance, reliability, comparability and understandability. ? ? Relevance. Accounting information must have the ability to in? uence decisions. Un less this characteristic is present, there is really no point in producing the information. The information may be relevant to the prediction of future events (for example, in predicting how much pro? t is likely to be earned next year) or relevant in helping to con? rm past events (for example, in establishing how much pro? t was earned last year). The role of accounting in con? rming past events is important because users often wish to check the accuracy of earlier predictions that they have made.The accuracy (or inaccuracy) of earlier predictions may help users to judge the accuracy of current predictions. To in? uence a decision, the information must, of course, be available when the decision is being made. Thus, relevant information must be timely. ? Reliability. Accounting should be free from signi? cant error or bias. It should be capable of being relied upon by managers to represent what it is supposed to represent. Though both relevance and reliability are very important, t he problem that we often face in accounting is that information that is highly relevant may not be very reliable.Similarly, that which is reliable may not be very relevant. Activity 1. 4 To illustrate this last point, let us assume that a manager has to sell a custom-built machine owned by their business and has recently received a bid for it. This machine is very unusual and there is no ready market for it. What information would be relevant to the manager when deciding whether to accept the bid? How reliable would that information be? The manager would probably like to know the current market value of the machine before deciding whether or not to accept the bid.The current market value would be highly relevant to the final decision, but it might not be very reliable because the machine is unique and there is likely to be little information concerning market values. BUT †¦ IS IT MATERIAL? When seeking to strike the right balance between relevance and reliability, the needs of users should be the overriding consideration. ? ? ? Comparability. This quality will enable users to identify changes in the business over time (for example, the trend in sales revenue over the past ? ve years).It will also help them to evaluate the performance of the business in relation to similar businesses. Comparability is achieved by treating items that are basically the same in the same manner for accounting purposes. Comparability may also be enhanced by making clear the policies that have been adopted in measuring and presenting the information. ? Understandability. Accounting reports should be expressed as clearly as possible and should be understood by those at whom the information is aimed. Activity 1. 5 Do you think that accounting reports should be understandable to those who have not studied accounting?It would be very useful if accounting reports could be understood by everyone. This, however, is unrealistic as complex financial events and transactions cannot normall y be expressed in simple terms. It is probably best that we regard accounting reports in the same way that we regard a report written in a foreign language. To understand either of these, we need to have had some preparation. Generally speaking, accounting reports assume that the user not only has a reasonable knowledge of business and accounting but is also prepared to invest some time in studying the reports.Despite the answer to Activity 1. 5, the onus is clearly on accountants to provide information in a way that makes it as understandable as possible to non-accountants. But . . . is it material? ? The qualities, or characteristics, that have just been described will help us to decide whether accounting information is potentially useful. If a particular piece of information has these qualities then it may be useful. However, this does not automatically mean that it should be reported to users. We also have to consider whether the information is material, or signi? cant.This mean s that we should ask whether its omission or misrepresentation in the accounting reports would really alter the decisions that users make. Thus, in addition to possessing the characteristics mentioned above, accounting information must also cross the threshold of materiality. If the information is not regarded as material, it should not be included within the reports as it will merely clutter them up and, perhaps, interfere with the users’ ability to interpret the ? nancial results. The type of information and amounts involved will normally determine whether it is material. 8 CHAPTER 1 INTRODUCTION TO ACCOUNTING Weighing up the costs and benefits Having read the previous sections you may feel that, when considering a piece of accounting information, provided the four main qualities identi? ed are present and it is material it should be gathered and made available to users. Unfortunately, there is one more hurdle to jump. Something may still exclude a piece of accounting infor mation from the reports even when it is considered to be useful. Consider Activity 1. 6. Activity 1. 6 Suppose an item of information is capable of being provided. It is relevant o a particular decision; it is also reliable, comparable, can be understood by the decision maker concerned and is material. Can you think of a reason why, in practice, you might choose not to produce the information? The reason that you may decide not to produce, or discover, the information is that you judge the cost of doing so to be greater than the potential benefit of having the information. This cost–benefit issue will limit the extent to which accounting information is provided. In theory, a particular item of accounting information should only be produced if the costs of providing it are less than the bene? s, or value, to be derived from its use. Figure 1. 2 shows the relationship between the costs and value of providing additional accounting information. Figure 1. 2 Relationship between co sts and the value of providing additional accounting information The benefits of accounting information eventually decline. The cost of providing information, however, will rise with each additional piece of information. The optimal level of information provision is where the gap between the value of the information and the cost of providing it is at its greatest. WEIGHING UP THE COSTS AND BENEFITS The ? ure shows how the value of information received by the decision maker eventually begins to decline. This is, perhaps, because additional information becomes less relevant, or because of the problems that a decision maker may have in processing the sheer quantity of information provided. The costs of providing the information, however, will increase with each additional piece of information. The broken line indicates the point at which the gap between the value of information and the cost of providing that information is at its greatest. This represents the optimal amount of informat ion that can be provided.This theoretical model, however, poses a number of problems in practice. We shall now go on to discuss these. To illustrate the practical problems of establishing the value of information, let us assume that someone has collided with our car in a car park and dented and scraped the paint from one of the doors. We wish to have the dent taken out and the door resprayed at a local garage. We know that the nearest garage would charge ? 250 but believe that other local garages may offer to do the job for a lower price. The only way of ? nding out the prices at other garages is to visit them, so that they can see the extent of the damage.Visiting the garages will involve using some petrol and will take up some of our time. Is it worth the cost of ? nding out the price for the job at the various local garages? The answer, as we have seen, is that if the cost of discovering the price is less than the potential bene? t, it is worth having that information. To identif y the various prices for the job, there are several points to be considered, including: ? How many garages shall we visit? ? What is the cost of petrol to visit each garage? ? How long will it take to make all the garage visits? ? At what price do we value our time? The economic bene? of having the information on the price of the job is probably even harder to assess. The following points need to be considered: ? What is the cheapest price that we might be quoted for the job? ? How likely is it that we shall be quoted a price cheaper than ? 250? As we can imagine, the answers to these questions may be far from clear – remember that we have only contacted the local garage so far. When assessing the value of accounting information we are confronted with similar problems. The provision of accounting information can be very costly; however, the costs are often dif? cult to quantify.The direct, out-of-pocket, costs such as salaries of accounting staff are not really a problem to i dentify, but these are only part of the total costs involved. There are also less direct costs such as the cost of the user’s time spent on analysing and interpreting the information contained in reports. The economic bene? t of having accounting information is even harder to assess. It is possible to apply some ‘science’ to the problem of weighing the costs and bene? ts, but a lot of subjective judgement is likely to be involved. No one would seriously advocate that the typical business should produce no accounting information.At the same time, no one would advocate that every item of information that could be seen as possessing one or more of the key characteristics should be produced, irrespective of the cost of producing it. The characteristics that in? uence the usefulness of accounting information and which have been discussed in this section and the preceding section are set out in Figure 1. 3. 9 10 CHAPTER 1 INTRODUCTION TO ACCOUNTING Figure 1. 3 The char acteristics that influence the usefulness of accounting information There are four main qualitative characteristics that influence the usefulness of accounting information.In addition, however, accounting information should be material and the benefits of providing the information should outweigh the costs. Accounting as an information system ? We have already seen that accounting can be seen as the provision of a service to ‘clients’. Another way of viewing accounting is as a part of the business’s total information system. Users, both inside and outside the business, have to make decisions concerning the allocation of scarce economic resources. To ensure that these resources are ef? ciently allocated, users need economic information on which to base decisions.It is the role of the accounting system to provide that information and this will involve information gathering and communication. The accounting information system should have certain features that are co mmon to all valid information systems within a business. These are: ? identifying and capturing relevant information (in this case ? nancial information); ? recording the information collected in a systematic manner; ? analysing and interpreting the information collected; ? reporting the information in a manner that suits the needs of users. The relationship between these features is set out in Figure 1. . ACCOUNTING AS AN INFORMATION SYSTEM Figure 1. 4 The accounting information system There are four sequential stages of an accounting information system. The first two stages are concerned with preparation, whereas the last two stages are concerned with using the information collected. Given the decision-making emphasis of this book, we shall be concerned primarily with the ? nal two elements of the process: the analysis and reporting of accounting information. We shall consider the way in which information is used by, and is useful to, users rather than the way in which it is ident i? ed and recorded. Ef? ient accounting systems are an essential ingredient of an ef? cient business. When the accounting systems fail, the results can be disastrous. Real World 1. 1 provides an example of a systems failure when two businesses combined and then attempted to integrate their respective systems. Real World 1. 1 Blaming the system FT When Sir Ken Morrison bought Safeway for ? 3. 35bn in March 2004, he almost doubled the size of his supermarket chain overnight and went from being a regional operator to a national force. His plan was simple enough. He had to sell off some Safeway stores – Morrison has to date sold off 184 stores for an estimated ? . 3bn – and convert the remaining 230 Safeway stores into Morrison’s. Sir Ken has about another 50 to sell. But, nearly fifteen months on, and the integration process is proving harder in practice than it looked on paper. Morrison, once known for its robust performance, has issued four profit warnings in the past ten months. Each time the retailer has blamed Safeway. Last July, it was because of a faster-thanexpected sales decline in Safeway stores. In March – there were two warnings that month – it was the fault of Safeway’s accounting systems, which left Morrison with lower supplier incomes.This month’s warning was put down to higher-than-expected costs from running parallel store systems. At the time of the first warning last July, Simon Procter, of the stockbrokers Charles Stanley, noted that the news ‘has blown all profit forecasts out of the water and visibility is very poor from here on out’. But if it was difficult then to predict where Morrison’s profits were heading, it is impossible now. Morrison itself cannot give guidance. ‘No one envisaged this,’ says Mr Procter. ‘When I made that comment about visibility last July, I was thinking on a twelve-month time frame, not a two-year one. Morrison says the complexi ty of the Safeway deal has put a ‘significant strain’ on its ability to cope with managing internal accounts. ‘This is impacting the ability of the board to forecast likely trends in profitability and the directors are therefore not currently in a position to provide reliable guidance on the level of profitability as a whole,’ admits the retailer. Source: ‘Morrison in uphill battle to integrate Safeway’, Elizabeth Rigby, Financial Times, 26 May 2005. As a footnote to Real World 1. 1, though Morrison had its problems, these were quickly overcome and the Safeway takeover has proved to be a success. 1 12 CHAPTER 1 INTRODUCTION TO ACCOUNTING Management accounting and financial accounting Accounting is usually seen as having two distinct strands. These are: ? ? ? management accounting, which seeks to meet the accounting needs of managers; and ? financial accounting, which seeks to meet the accounting needs of all of the other users identi? ed earlie r in the chapter (see Figure 1. 1). The difference in their targeted user groups has led to each strand of accounting developing along different lines. The main areas of difference are as follows. ? Nature of the reports produced.Financial accounting reports tend to be general- ? ? ? ? ? purpose, that is, they contain ? nancial information that will be useful for a broad range of users and decisions rather than being speci? cally designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, are often speci? c-purpose reports. They are designed with a particular decision in mind and/or for a particular manager. Level of detail. Financial accounting reports provide users with a broad overview of the performance and position of the business for a period.As a result, information is aggregated and detail is often lost. Management accounting reports, however, often provide managers with considerable detail to help them with a particula r operational decision. Regulations. Financial accounting reports, for many businesses, are subject to accounting regulations that try to ensure they are produced with standard content and in a standard format. The law and accounting rule makers impose these regulations. As management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports.They can be designed to meet the needs of particular managers. Reporting interval. For most businesses, ? nancial accounting reports are produced on an annual basis, though some large businesses produce half-yearly reports and a few produce quarterly ones. Management accounting reports may be produced as frequently as required by managers. In many businesses, managers are provided with certain reports on a daily, weekly or monthly basis, which allows them to check progress frequently. In addition, special-purpose reports will be prepared when required (for example, to evaluate a proposal to purchase a piece of equipment).Time orientation. Financial accounting reports re? ect the performance and position of the business for the past period. In essence, they are backward looking. Management accounting reports, on the other hand, often provide information concerning future performance as well as past performance. It is an oversimpli? cation, however, to suggest that ? nancial accounting reports never incorporate expectations concerning the future. Occasionally, businesses will release projected information to other users in an attempt to raise capital or to ? ght off unwanted takeover bids. Even preparation of the routine ? ancial accounting reports typically requires making some judgements about the future, as we shall see in Chapter 3. Range and quality of information. Financial accounting reports concentrate on information that can be quanti? ed in monetary terms. Management accounting also produces such reports, but is also more likely to pr oduce reports that contain information of a non-? nancial nature, such as physical volume of inventories, number of sales orders received, number of new products launched, physical output per employee and so on. Financial accounting places greater emphasis on the use of objective, veri? ble evidence when preparing reports. Management accounting reports may use information that is less objective and veri? able, but nevertheless provide managers with the information they need. SCOPE OF THIS BOOK We can see from this that management accounting is less constrained than ? nancial accounting. It may draw from a variety of sources and use information that has varying degrees of reliability. The only real test to be applied when assessing the value of the information produced for managers is whether or not it improves the quality of the decisions made.The distinctions between management and ? nancial accounting suggest that there are differences between the information needs of managers and those of other users. While differences undoubtedly exist, there is also a good deal of overlap between these needs. Activity 1. 7 Can you think of any areas of overlap between the information needs of managers and those of other users? We thought of two points: ? ? Managers will, at times, be interested in receiving a historical overview of business operations of the sort provided to other users.Other users would be interested in receiving information relating to the future, such as the planned level of profits and non-financial information such as the state of the sales order book and the extent of product innovations. The distinction between the two areas of accounting re? ects, to some extent, the differences in access to ? nancial information. Managers have much more control over the form and content of information they receive. Other users have to rely on what managers are prepared to provide or what the ? nancial reporting regulations require to be provided. Though the scope of ? ancial accounting reports has increased over time, fears concerning loss of competitive advantage and user ignorance concerning the reliability of forecast data have led businesses to resist providing other users with the same detailed and wide-ranging information available to managers. In the past, it has been argued that accounting systems are far too geared to meeting the regulatory requirements of ? nancial accounting to be able to provide the information most helpful to managers. This is to say that ? nancial accounting requirements have been the main priority and management accounting has suffered as a result.Recent survey evidence suggests, however, that this argument has lost its force. Modern management accounting systems tend to provide managers with information that is relevant to their needs rather than what is determined by external reporting requirements. Financial reporting cycles, however, retain some in? uence over management accounting and managers are aware of expectations of external users (see the reference at the end of the chapter). Scope of this book This book is concerned with ? nancial accounting rather than management accounting. In Chapter 2 we begin by introducing the three principal ? ancial statements: ? the statement of ? nancial position (sometimes known as the balance sheet); ? the income statement (also called the pro? t and loss account); and ? the statement of cash ? ows. 13 14 CHAPTER 1 ? INTRODUCTION TO ACCOUNTING These statements are brie? y reviewed before we go on to consider the statement of ? nancial position in more detail. We shall see that the statement of ? nancial position provides information concerning the wealth held by a business at a particular point in time and the claims against this wealth. Included in our consideration of the statement of ? ancial position will be an introduction to the conventions of accounting. Conventions are the generally accepted rules that accountants tend to follow when pre paring ? nancial statements. Chapter 3 introduces the second of the major ? nancial statements, the income statement. This provides information concerning the wealth created by a business during a period. In this chapter we shall be looking at such issues as how pro? t is measured, the point in time at which we recognise that a pro? t has been made and the accounting conventions that apply to this particular statement.In the UK and throughout much of the industrialised world, the limited company is the major form of business unit. In Chapter 4 we consider the accounting aspects of limited companies. Although there is nothing of essence that makes the accounting aspects of companies different from other types of private-sector business, there are some points of detail that we need to consider. In Chapter 5 we continue our examination of limited companies and, in particular, consider the framework of rules that must be adhered to when presenting accounting reports to owners and extern al users.Chapter 6 deals with the last of the three principal ? nancial statements, the statement of cash ? ows. This ? nancial statement is important in identifying the ? nancing and investing activities of the business over a period. It sets out how cash was generated and how cash was used during a period. Reading the three statements will provide information about the performance and position of a business. It is possible, however, to gain even more helpful insights about the business by analysing the statements using ? nancial ratios and other techniques. Combining two ? ures in the ? nancial statements in a ratio and comparing this with a similar ratio for, say, another business, can often tell us much more than just reading the ? gures themselves. Chapters 7 and 8 are concerned with techniques for analysing ? nancial statements. The typical large business in the UK is a group of companies rather than just a single company. A group of companies will exist where one company cont rols one or more other companies. In Chapter 9 we shall see why groups exist and consider the accounting issues raised by the combination of companies into groups.The scope of ? nancial reporting has tended to alter over the years. In Chapter 10 we shall consider where ? nancial reporting has come from and how it seems to be developing. Finally, in Chapter 11, we shall consider the way in which larger businesses are managed and how directors and other senior managers are accountable to the owners and to other groups with an interest in the business. Has accounting become too interesting? In recent years, accounting has become front-page news and has been a major talking point among those connected with the world of business.Unfortunately, the attention that accounting has attracted has been for all the wrong reasons. We have seen that investors rely on ? nancial reports to help to keep an eye both on their investment and on the performance of the managers. What, though, if the manag ers provide misleading ? nancial reports to investors? Recent revelations suggest that the managers of some large businesses have been doing just this. HAS ACCOUNTING BECOME TOO INTERESTING? Two of the most notorious cases have been those of: ? Enron, an energy-trading business based in Texas, which was accused of entering into complicated ? ancial arrangements in an attempt to obscure losses and to in? ate pro? ts; and ? WorldCom, a major long-distance telephone operator in the US, which was accused of reclassifying $3. 9 billion of expenses so as to falsely in? ate the pro? t ? gures that the business reported to its owners (shareholders) and to others. In the wake of these scandals, there was much closer scrutiny by investment analysts and investors of the ? nancial reports that businesses produce. This led to further businesses, in both the US and Europe, being accused of using dubious accounting practices to bolster reported pro? ts.Accounting scandals can have a profound effec t on all those connected with the business. The Enron scandal, for example, ultimately led to the collapse of the company, which, in turn, resulted in lost jobs and large ? nancial losses for lenders, suppliers and investors. Con? dence in the world of business can be badly shaken by such events and this can pose problems for society as a whole. Not surprisingly, therefore, the relevant authorities tend to be severe on those who perpetrate such scandals. In the US, Bernie Ebbers, the former chief executive of WorldCom, received 25 years in prison for his part in the fraud.Various reasons have been put forward to explain this spate of scandals. Some may have been caused by the pressures on managers to meet unrealistic expectations of investors for continually rising pro? ts, others by the greed of unscrupulous executives whose pay is linked to ? nancial performance. However, they may all re? ect a particular economic environment. Real World 1. 2 gives some comments suggesting that wh en all appears to be going well with a business, people can be quite gullible and over-trusting. Real World 1. 2 The thoughts of Warren BuffettWarren Buffett is one of the world’s shrewdest and most successful investors. He believes that the accounting scandals mentioned above were perpetrated during the ‘new economy boom’ of the late 1990s when confidence was high and exaggerated predictions were being made concerning the future. He states that during that period You had an erosion of accounting standards. You had an erosion, to some extent, of executive behaviour. But during a period when everybody ‘believes’, people who are inclined to take advantage of other people can get away with a lot.He believes that the worst is now over and that the ‘dirty laundry’ created during this heady period is being washed away and that the washing machine is now in the ‘rinse cycle’. Source: The Times, Business Section, 26 September 2002, p. 25. nisyndication. com. Whatever the causes, the result of these accounting scandals has been to undermine the credibility of ? nancial statements and to introduce much stricter regulations concerning the quality of ? nancial information. We shall return to this issue in later chapters when we consider the ? nancial statements. 15 16 CHAPTER 1INTRODUCTION TO ACCOUNTING The changing face of accounting Over the past 25 years, the environment within which businesses operate has become increasingly turbulent and competitive. Various reasons have been identi? ed to explain these changes, including: ? the increasing sophistication of customers; ? the development of a global economy where national frontiers become less important; ? rapid changes in technology; ? the deregulation of domestic markets (for example, electricity, water and gas); ? increasing pressure from owners (shareholders) for competitive economic returns; ? he increasing volatility of ? nancial markets. This new, more c omplex, environment has brought new challenges for managers and other users of accounting information. Their needs have changed and both ? nancial accounting and management accounting have had to respond. To meet the changing needs of users there has been a radical review of the kind of information to be reported. The changing business environment has given added impetus to the search for a clear framework and principles upon which to base ? nancial accounting reports. Various attempts have been made to clarify the purpose of ? ancial accounting reports and to provide a more solid foundation for the development of accounting rules. The frameworks and principles that have been developed try to address fundamental questions such as: ? Who are the users of ? nancial accounting information? ? What kinds of ? nancial accounting reports should be prepared and what should they contain? ? How should items (such as pro? t and asset values) be measured? In response to criticisms that the ? na ncial reports of some businesses are not clear enough to users, accounting rule makers have tried to improve reporting rules to ensure that the accounting policies of businesses are ore comparable and more transparent, and that they portray economic reality more faithfully. While this has had a generally bene? cial effect, the recent accounting scandals have highlighted the limitations of accounting rules in protecting investors and others. The internationalisation of businesses has created a need for accounting rules to have an international reach. It can no longer be assumed that users of accounting information relating to a particular business are based in the country in which the business operates or are familiar with the accounting rules of that country.Thus, there has been increasing harmonisation of accounting rules across national frontiers. A more detailed review of these developments is included in Chapter 5. Management accounting has also changed by becoming more outward looking in its focus. In the past, information provided to managers has been largely restricted to that collected within the business. However, the attitude and behaviour of customers and rival businesses have now become the object of much information gathering. Increasingly, successful businesses are those that are able to secure and maintain competitive advantage over their rivals.To obtain this advantage, businesses have become more ‘customer driven’ (that is, concerned with satisfying customer needs). This has led to management accounting information that provides details of customers and the market, such as customer evaluation of services provided and market share. In addition, information about the costs and pro? ts of rival businesses, which can be used as ‘benchmarks’ by which to gauge competitiveness, is gathered and reported. WHAT KINDS OF BUSINESS OWNERSHIP EXIST? To compete successfully, businesses must also ? d ways of managing costs. The cost base of modern businesses is under continual review and this, in turn, has led to the development of more sophisticated methods of measuring and controlling costs. What kinds of business ownership exist? The particular form of business ownership has important implications for accounting purposes and so it is useful to be clear about the main forms of ownership that can arise. There are basically three arrangements: ? sole proprietorship; ? partnership; and ? limited company. Each of these is considered below. Sole proprietorship ?Sole proprietorship, as the name suggests, is where an individual is the sole owner of a business. This type of business is often quite small in terms of size (as measured, for example, by sales revenue generated or number of staff employed); however, the number of such businesses is very large indeed. Examples of sole-proprietor businesses can be found in most industrial sectors but particularly within the service sector. Hence, services such as electrical repairs, picture framing, photography, driving instruction, retail shops and hotels have a large proportion of sole-proprietor businesses.The sole-proprietor business is easy to set up. No formal procedures are required and operations can often commence immediately (unless special permission is required because of the nature of the trade or service, such as running licensed premises). The owner can decide the way in which the business is to be conducted and has the ? exibility to restructure or dissolve the business whenever it suits. The law does not recognise the sole-proprietor business as being separate from the owner, so the business will cease on the death of the owner.Although the owner must produce accounting information to satisfy the taxation authorities, there is no legal requirement to produce accounting information relating to the business for other user groups. However, some user groups may demand accounting information about the business and may be in a position to h ave their demands met (for example, a bank requiring accounting information on a regular basis as a condition of a loan). The sole proprietor will have unlimited liability which means that no distinction will be made between the proprietor’s personal wealth and that of the business if there are business debts that must be paid.Partnership ? A partnership exists where at least two individuals carry on a business together with the intention of making a pro? t. Partnerships have much in common with sole-proprietor businesses. They are usually quite small in size (although some, such as partnerships of accountants and solicitors, can be large). Partnerships are also easy to set up as no formal procedures are required (and it is not even necessary to have a written agreement between the partners). The partners can agree whatever arrangements suit them concerning the ? nancial and management aspects of the business.Similarly, the partnership can be restructured or dissolved by agre ement between the partners. 17 18 CHAPTER 1 INTRODUCTION TO ACCOUNTING Partnerships are not recognised in law as separate entities and so contracts with third parties must be entered into in the name of individual partners. The partners of a business usually have unlimited liability. Activity 1. 8 What are the main advantages and disadvantages that should be considered when deciding between a sole proprietorship and a partnership? The main advantages of a partnership over a sole-proprietor business are: ? ? ? sharing the burden of ownership; he opportunity to specialise rather than cover the whole range of services (for example, in a solicitors’ practice each partner may specialise in a different aspect of the law); the ability to raise capital where this is beyond the capacity of a single individual. The main disadvantages of a partnership compared with a sole proprietorship are: ? ? the risks of sharing ownership of a business with unsuitable individuals; the limits placed on individual decision making that a partnership will impose. Limited company ? Limited companies can range in size from quite small to very large.The number of individuals who subscribe capital and become the owners may be unlimited, which provides the opportunity to create a very large-scale business. The liability of owners, however, is limited (hence ‘limited’ company), which means that those individuals subscribing capital to the company are liable only for debts incurred by the company up to the amount that they have agreed to invest. This cap on the liability of the owners is designed to limit risk and to produce greater con? dence to invest. Without such limits on owner liability, it is dif? cult to see how a modern capitalist economy could operate.In many cases, the owners of a limited company are not involved in the day-to-day running of the business and will, therefore, invest in a business only if there is a clear limit set on the level of investment risk. T he bene? t of limited liability, however, imposes certain obligations on such companies. To start up a limited company, documents of incorporation must be prepared that set out, among other things, the objectives of the business. Furthermore, a framework of regulations exists that places obligations on limited companies concerning the way in which they conduct their affairs. Part of this regulatory framework requires annual ? ancial reports to be made available to owners and lenders and usually an annual general meeting of the owners has to be held to approve the reports. In addition, a copy of the annual ? nancial reports must be lodged with the Registrar of Companies for public inspection. In this way, the ? nancial affairs of a limited company enter the public domain. With the exception of small companies, there is also a requirement for the annual ? nancial reports to be subject to an audit. This involves an independent ? rm of accountants examining the annual reports and underl ying records to see whether the reports provide a true and fair view of the ? ancial health of the company and whether they comply with the relevant accounting rules established by law and by accounting rule makers. All of the large household-name UK businesses (Marks and Spencer, Tesco, Shell, BSkyB, BA, BT, easyJet and so on) are limited companies. Limited companies are considered in more detail in Chapters 4 and 5. HOW ARE BUSINESSES ORGANISED? Activity 1. 9 What are the main advantages and disadvantages that should be considered when deciding between a partnership business and a limited liability company?The main advantages of a partnership over a limited company are: ? ? ? ? the ease of setting up the business; the degree of flexibility concerning the way in which the business is conducted; the degree of flexibility concerning restructuring and dissolution of the business; freedom from administrative burdens imposed by law (for example, the annual general meeting and the need f or an independent audit). The main disadvantage of a partnership compared with a limited company is the fact that it is not possible to limit the liability of all of the partners.This book concentrates on the accounting aspects of limited liability companies because this type of business is by far the most important in economic terms. The early chapters will introduce accounting concepts through examples that do not draw a distinction between the different types of business. Once we have dealt with the basic accounting principles, which are the same for all three types of business, we can then go on to see how they are applied to limited companies. It must be emphasised that there are no differences in the way that these three forms of business keep their day-to-day accounting records.In preparing their periodic ? nancial statements, there are certain differences that need to be considered. These differences are not ones of principle, however, but of detail. How are businesses organ ised? As we have just seen, nearly all businesses that involve more than a few owners and/or employees are set up as limited companies. This means that the ? nance will come from the owners (shareholders) both in the form of a direct cash investment to buy shares (in the ownership of the business) and through the owners allowing past pro? s, which belong to them, to be reinvested in the business. Finance will also come from lenders (banks, for example), who earn interest on their loans and from suppliers of goods and services being prepared to supply on credit, with payment occurring a month or so after the date of supply, usually on an interest-free basis. In larger limited companies, the owners (shareholders) are not involved in the daily running of the business; instead they appoint a board of directors to manage the business on their behalf. The board is charged with three major tasks: ? etting the overall direction and strategy for the business; ? monitoring and controlling its activities; and ? communicating with owners and others connected with the business. Each board has a chairman, elected by the directors, who is responsible for running the board in an ef? cient manner. In addition, each board has a chief executive of? cer (CEO), or managing director, who is responsible for running the business on a dayto-day basis. Occasionally, the roles of chairman and CEO are combined, although it is usually considered to be a good idea to eparate them in order to prevent a single individual having excessive power. We shall come back to consider the relationship between directors and shareholders in more detail in Chapter 4. 19 20 CHAPTER 1 INTRODUCTION TO ACCOUNTING The board of directors represents the most senior level of management. Below this level, managers are employed, with each manager given responsibility for a particular part of the business’s operations. What is the financial objective of a business? A business is created to enhance the wealth of its owners.Throughout this book we shall assume that this is its main objective. This may come as a surprise, as there are other objectives that a business may pursue that are related to the needs of others associated with the business. For example, a business may seek to provide good working conditions for its employees, or it may seek to conserve the environment for the local community. While a business may pursue these objectives, it is normally set up with a view to increasing the wealth of its owners. In practice, the behaviour of businesses over time appears to be consistent with this objective.Real World 1. 3 reveals how one well-known business has changed its focus in order to improve pro? tability. Real World 1. 3 Profiting from change It speaks volumes for the work done by Kate Swann in turning around W H Smith that when she became chief executive five years ago, the company was being spoken of in similar tems to Woolworths. Comments such as ‘You wouldn’t invent it if you were starting out today’ and ‘What is it actually for these days? ’ were typical among analysts, as they were with Woolies.Indeed, many thought that W H Smith was beyond help and argued that the supermarkets were eating away at sales. Ms Swann has defied the sceptics, achieving an impressive turnaround. The company’s magazine and newspaper distribution division was hived off as a separate entity and new outlets were opened at airports and railway stations – so much so that sales by W H Smith’s travel unit now threaten to overtake those of its traditional high street stores. Lower-[profit-]margin lines, such as CDs and DVDs, have been cleared from the shelves to make way for higher-margin items, such as stationery.The last plank of the strategy was in evidence again in yesterday’s update, in which Ms Swann reported that sales in the nine weeks to January 17 were down by 7 per cent in the high street stores and by 2 per cent in the travel stores, partly because W H Smith is continuing to reduce its exposure to the entertainment category. That was the bad news. The good news was that, although sales overall were down, the reduced focus on entertainment was good for profits. W H Smith made an extra 2p of profit in every ? 1 of sales, compared with the same period a year earlier, a stunning achievement given the deflation hitting the high street.Source: ‘Business big shot’, Ian King, The Times, 27 January 2009, p. 39. nisyndication. com. Within a market economy there are strong competitive forces at work that ensure that failure to enhance owners’ wealth will not be tolerated for long. Competition for the funds provided by the owners and competition for managers’ jobs will normally mean that the owners’ interests will prevail. If the managers do not provide the expected increase in ownership wealth, the owners have the power to replace the existing management team wit h a new team that is more responsive to owners’ needs. WHAT IS THE FINANCIAL OBJECTIVE OF A BUSINESS?Does this mean that the needs of other groups associated with the business (employees, customers, suppliers, the community and so on) are not really important? The answer to this question is certainly no, if the business wishes to survive and prosper over the longer term. Satisfying the needs of other groups will normally be consistent with increasing the wealth of the owners over the longer term. The importance of customers to a business cannot be overstated. Dissatis? ed customers will take their business to another supplier and this will, in turn, lead to a loss of wealth for the owners of the business losing the customers.Real World 1. 4 provides an illustration of the way in which one business acknowledges the link between customer satisfaction and creating wealth for its owners. Real World 1. 4 Checking out Sainsbury’s objectives J Sainsbury plc is a leading food retailer that recognises the importance of customers to increasing the wealth of the owners (shareholders) as follows: Our objective is to serve customers well and thereby provide shareholders with good, sustainable financial returns. Source: Investor FAQs, www. j-sainsbury. co. uk, 8 January 2009, p. 1. A dissatis? d workforce may result in low productivity, strikes and so forth, which will in turn have an adverse effect on owners’ wealth. Similarly, a business that upsets the local community by unacceptable behaviour, such as polluting the environment, may attract bad publicity, resulting in a loss of customers and heavy ? nes. Real World 1. 5 provides an example of how two businesses responded to potentially damaging allegations. Real World 1. 5 The price of clothes FT US clothing and sportswear manufacturers Gap and Nike have many of their clothes produced in Asia where labour tends to be cheap.However, some of the contractors that produce clothes on behalf of the two com panies have been accused of unacceptable practices. Campaigners visited the factories and came up with damaging allegations. The factories were employing minors, they said, and managers were harassing female employees. Nike and Gap reacted by allowing independent inspectors into the factories. They promised to ensure their contractors obeyed minimum standards of employment. Earlier this year, Nike took the extraordinary step of publishing the names and addresses of all its contractors’ factories on the internet.The company said it could not be sure all the abuse had stopped. It said that if campaigners visited its contractors’ factories and found examples of continued malpractice, it would take action. Nike and Gap said the approach made business sense. They needed society’s approval if they were to prosper. Nike said it was concerned about the reaction of potential US recruits to the campaigners’ allegations. They would not want to work for a company tha t was constantly in the news because of the allegedly cruel treatment of those who made its products. Source: ‘Fair shares? , Michael Skapinker, Financial Times, 11 June 2005. 21 22 CHAPTER 1 INTRODUCTION TO ACCOUNTING It is important to recognise that generating wealth for the owners is not the same as seeking to maximise the current year’s pro? t. Wealth creation is a longer-term concept, which relates not only to this year’s pro? t but to that of future years as well. In the short term, corners can be cut and risks taken that improve current pro? t at the expense of future pro? t. Real World 1. 6 gives some examples of how emphasis on short-term pro? t can be damaging. Real World 1. 6 Short-term gains, long-term problemsFT Human beings are bad at learning and changing. It takes a good crisis to drive home what may have been staring us in the face. So what in particular are the lessons for all those concerned with saving, investment, borrowing and lending? For many years, under the guise of defending capitalism, we have been allowing ourselves to degrade it. We have been poisoning the well from which we have drawn wealth. We have misunderstood the importance of values to capitalism. We have surrendered to the idea that success is pursued by making as much money as the law allowed without regard to how it was made.Thirty years ago, retailers would b

Distribution of Power Within Politics essays

Distribution of Power Within Politics essays "An argument against egalitarianism" The most prevalent sentiment of the times is summed up in one word and that is equality. At every level and on all fronts including political, social and economic, the egalitarian gospel has been asserted as the way the light the truth. The rights of the child are considered equal to those of the parent, the pupils to that of the teacher, Jack is as good as his master, a professor of economics political assessment judgement is neither superior nor inferior to that of an illiterate road labourer, each being provided with identical voting power. The obvious difference of nation, race and sex are nothing more than historic hangovers. It is instilled in us from childhood the great evil of inequality while paying no regard to individual differences. The thrust of broader educational guidance is towards a collective responsibility where children are not encouraged to excel so much as they are to fit in. When differences prevail they are condemned, so the All Black scoring a spectacular try hangs his head as he returns to the halfway mark in a facade of modesty and repentance for his individual assertiveness. The egalitarian sentiment underlines the thrusts and trends of this centuries changes in human relationships. Witness the outrage from the professional do-gooder social worker set, on behalf of the victim of societys inequalities lout who knocks over an old lady and steals her purse. The old lady is dismissed as a symbol of societys oppression whilst the thug, we are told, is uttering a cry for help. The do-gooders offer a flood of words and sometimes convincing arguments but as William Blake said He who would do good to another must do it in minute particulars. General good is the plea of the scoundrel, the hypocrite and the flatterer. The seed for equality was planted centuries ago but it was not until the mid...

Aquinas on the Possibility of Merit †Religion Research Paper

Aquinas on the Possibility of Merit – Religion Research Paper Free Online Research Papers Aquinas on the Possibility of Merit Religion Research Paper Thomas Aquinas is known for having presented both a moral and spiritual view of the world he lived in, yet it is still very much applicable to the world that we live in today. Thomas believed above anything else that the final end of man lies entirely in God and no one else. And while Aquinas attempted to reiterate and model his works after his predecessor Augustine, his views differed, and mainly in one fundamental area. Unlike Augustine, Thomas’ view of man, nature, and the free will is much kinder, desiring for good despite the threat of sin and evil. With that said and done, Aquinas questions merit. Why Can People Merit From God? Thomas compares merit with a reward, saying that they are essentially the same thing. He goes on to explain that God is on a different level than that of man, and even if we attempted to compare ourselves, we could never do so. Furthermore, God does not want our merit, or our reward, he wishes only for fulfillment. This fulfillment meaning that we as his people do what we ought to do using the will given to us by God himself. We can only merit from God by doing this, because if we are successful and we even wish for this merit we must do our deeds and good works. God does not wish to gain anything from these good works he wishes only to be glorified by them. Still if we are unsuccessful in this endeavor it is impossible for us to gain merit from God. Objections to God’s Merit? To successfully go back and answer this question of merit, Thomas first had to raise some objections to this idea that had been brought up in the past. While there were many questions that were raised and still exist today, some are much more fundamentally important than others. It is said that no one can possibly merit a reward by simply repaying what he owes another. In this fashion, how could it be that we could ever merit from God. We owe him so much that we could never get to the point to which we could repay him, let alone surpass this level and wish for a reward for our works. No matter how many good works we do, they can only be used in our vale attempt to repay God exactly what we owe. Thomas calls us â€Å"unprofitable servants,† that we only do what is our duty to do. It is also said that if anyone profits from another that makes him his debtor. However there is no way that God could be our debtor. He is a much higher level than to ever be the debtor, as he started the cycle by giving and because of this we are forever in debt to him, no matter how hard we try or how much good we can do. We are in second place from the start and our lives are only lived in order to fulfill what he has destined for us. And while we will never be able to fully repay him, we still work hard each and everyday to do so, because this action appeases God and will eventually lead him to favor us. Thomas’ Answer to These Objections: Thomas answers these objections by stating that merit and reward are one in the same. We commonly call a reward something that is given to someone in return for his work or labor, as a price for it. To give this reward to someone that has in fact done something for you is justice. And Thomas believes that philosophically speaking, justice is synonymous with equality. Thomas believes that some justices are owed, or even deserved, like a son who deserves something from his father or even a slave that deserves from his master. And while it seems that man would argue that he deserves that justice, this can never be challenged. For man and God both suffer from a great inequality, in fact, the distance between the two is infinite. Therefore, and to end all arguments, the kind of justice that is obtained by and only through absolute equality could never and will never exist between man and God. This is where Thomas believes this argument and any objections have to end, for God and ma n are more like two separate being, meaning that they share no grounds for comparison and because of this the true equality lacks. And it is this equality needed to find if merit can be deserved. So it absence scratches the question and holds no weight for any other objections. Thomas’ Idea of â€Å"Ordination†: Thomas’s idea of a â€Å"divine ordination† is his key component of man ever being able to merit from God. It is this ordination, which is given to us by God that allows us to achieve anything, be it in our eyes, or in the eyes of God. Simply put, man can only receive from God what God has given man the power to work for and earn through his own efforts. God is responsible for creation in the beginning and it was at this time that God gave us all of the tools and abilities that we would need throughout our life. So by using these tools that God has given us, we will be able to achieve great things. These great things will then hopefully fulfill God and his intentions and only then may we receive merit from him. From the beginning of time is has been this ordination that has molded us into what we our. It is because of this divine ordination that we are in debt to God in the first place. This ordination is the gift that was so great that no matter what we do and try to give back to God, nothing, especially no one single act, nor the sum of all of our works ever duplicate or surpass the importance of this ordination that God gave us so long ago. Thus the difference in what God did when he created us all is that he only gave this ordination to man. No other being has been or ever will be blessed or bestowed the same honor. For unlike the other beasts that inhabit the earth, God’s giving us this gift supplied us with free will, something we have only for ourselves. It is with this free will that we can be rational and move ourselves toward actions that we know to be good and to also be pleasing to God. And it is this action alone that could ever be important enough to receive merit. Therefore we say that our free will is meritorious, and this is what separates us from all other creates that God created. Does Thomas’ Ordination Differ From Other Views? While we have studied other differing opinions and views on both the questions of grace and merit and the possibility of predestination, Aquinas’ view differs from all of them. As some believe that God has our futures predetermined and mapped out so that we merely live our lives but have no ultimate effect on its’ outcome, others believe in a two fold strategy. While God does have a plan in mind for us he is open to allow the human the chance to either prove God right or wrong according to his good works, perhaps even to the point in which God ultimate decision about our eternal future may be swayed. Thomas’ ordination presents an altogether different spin on things. Unlike the idea of God having complete control and the final say or even man being able to work to save him self, Thomas believes in God’s belief in us. That is to say that God has already done his part, he has given us the tools that we need. It is up to us to take what he has given us and use it, or simply neglect God’s gift and squander it all away. It is almost like God has a partnership with us, with him being the investor, investing his ordination into us and we being his worker. He has laid us a good foundation and put us on the right track and our actions will ultimately tell if we profit from this investment or we lose it all. Aquinas is the first to say that we can save ourselves, as long as we fulfill God’s wishes for us, and win his favor. And while this may not always seem easy to do, it is not unattainable. Thomas’ Link Between Predestination and Merit: By clearly understanding Thomas’ teaching on predestination, his idea of the possibility of merit becomes more understandable. While he makes it clear that God has given us the abilities to be able to do what it is we do, we must understand that it is our place to work for God. Nothing we will ever do will reward God, for he cannot be rewarded. Our worship of God rewards us instead, for even if we gain his merit, he gains nothing from us, for we do not profit him, we only glorify his name. God therefore will never be a debtor to us; rather he will be a debtor to himself, because it is our right to fulfilled everything that he has ordained. Afterthought†¦. Therefore, although it has been said that we may never merit from God because we may never be able to fully repay God for what he has given us, this may not be the most important issue. Rather, it appears that God would be willing to grant merit to us if he does in fact see that we are working to fulfill the wishes that he ordained in us from the beginning. This fulfillment would bring him happiness and his happiness could bring us his favor and perhaps the gift of eternal life. As long as we know that our role is to serve his name and be thankful for the gifts we have been given, we may be able to work in conjunction with God so that we can both receive just what it is we want. For God, the glory that our good works provide and for us the ultimate gift that only a select few will ever receive. 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The Ultimate Guide to McDonald’s Breakfast What to Order

The Ultimate Guide to McDonald’s Breakfast What to Order SAT / ACT Prep Online Guides and Tips In my expert opinion, McDonald’s breakfast is one of the greatest things on the planet. Ever since I tried my first Egg McMuffin as a kid, I was hooked. Since then, the breakfast menu has greatly expanded. Regardless of your taste, you can find some breakfast deliciousness at Mickey D’s. Furthermore, now McDonald’s is offering all-day breakfast. The powers that be heard our cries, so even if you can’t wake up early or you like breakfast for dinner, you can satisfy your cravings. Unfortunately, though, not every breakfast item is offered all day. In this article, I’ll give you all the information you need to know about McDonald’s breakfast. I’ll describe and evaluate each item on the breakfast menu. Additionally, I’ll let you know when regular breakfast is usually offered, and what breakfast items you can get outside of the normal breakfast hours. The McDonald’s Breakfast Menu Below, I'll break down all of the items on the McDonald’s breakfast menu. The prices do vary based on location, and sadly, menu items vary by location. However, these are the current staples of the McDonald’s breakfast menu. Keep in mind that some areas will offer unique items to cater to the tastes of the local population. For example, you can get lobster rolls in the Northeast and cranberry-orange muffins in the Midwest. Additionally, some regions will try out various menu items before they’re rolled out nationally. In February of 2016, McDonald’s began testing low carb breakfast bowls and incorporating Chobani Greek yogurt into the Fruit ‘N Yogurt Parfait at locations in Los Angeles and San Diego. The breakfast bowls that are being tested are an egg white and turkey sausage bowl with spinach and kale, and a scrambled egg and chorizo bowl with a hash brown, salsa, and Pico de Gallo. If these items are successful, you’re bound to see them at more locations in the future. With all that out of the way, it's time for me to guide you through the national McDonald's breakfast menu. It's divided by â€Å"regular† and â€Å"healthy† items. I tried to list the items in order of popularity. For each item, I’ve given the following info: Price A description A score based on taste (from 0-5 sausage patties) My review, semi-ironically entitled "The Skinny" Nutritional Content Regular Breakfast Items These are the breakfast menu items for those who are less concerned about nutritional content and more concerned with flavor. Hash Browns Cost: $1.00 What is it? Fried Russet potatoes. The hash browns come in one piece; it’s like an oval-shaped patty. This makes them easier to eat, especially while driving. You can hold them in your hand and eat them without utensils. Score: 4 sausage patties The Skinny: If you like potatoes, a little crunch, and fried goodness, you’ll enjoy McDonald’s breakfast hash browns. While the hash browns are satisfying on their own, they can be enhanced with some ketchup. Also, they can be a touch on the greasy side, so hold them from the wrapper while you’re eating them if you want to avoid greasy fingers. Nutritional Info Calories Protein Fat Carbs Sodium 150 1 g 9 g 15 g 530 mg Egg McMuffin Cost: $2.79 What Is it? The Egg McMuffin is the most famous of the McDonald’s breakfast offerings. It’s a poached egg with Canadian bacon and melted cheese on an English muffin. Score: 4.5 sausage patties The Skinny: I’m skeptical of anybody who doesn’t like McDonald’s Egg McMuffin. The combination of the egg, cheese, Canadian bacon, and English muffin are completely harmonious. Each layer provides a different texture and flavor that works well together. It’s satiating yet not too heavy. If you’ve never had McDonald’s breakfast, I recommend opting for this breakfast entree for your first time. It’s a safe choice. Nutritional Content Calories Protein Fat Carbs Sodium 300 17 grams 12 grams 29 grams 720 mg Sausage McMuffin Cost: $1.00 What Is it? The Sausage McMuffin is an English muffin topped with a sausage patty and American cheese. Basically, it’s an Egg McMuffin with sausage instead of the poached egg and Canadian bacon. Score: 3.5 sausage patties The Skinny: At $1.00, the Sausage McMuffin provides tremendous value, given that it’s roughly the same size and almost as filling as the Egg McMuffin, but it’s offered for a fraction of the price. The sausage is packed with flavor, but this is the simplest of the breakfast sandwiches. It’s a good option for sausage lovers who want a basic meal. Nutritional Content Calories Protein Fat Carbs Sodium 400 14 grams 25 grams 28 grams 750 mg Sausage McMuffin With Egg Cost: $2.79 What Is it? As the name implies, it’s a Sausage McMuffin with egg. It’s a sausage patty, cheddar cheese, and poached egg on an English muffin. Score: 4 sausage patties The Skinny: This is just an Egg McMuffin substituting sausage for the Canadian bacon. Because Canadian bacon is healthier, the Sausage McMuffin with Egg has more fat and sodium than the Egg McMuffin. However, if you’re just focused on taste, you can’t go wrong with this breakfast sandwich. The poached egg cuts through the saltiness of the sausage, and the English muffin soaks up some of the grease. Each layer is tasty on its own, and you get your meat, dairy, and carbs all in one bite. Nutritional Content Calories Protein Fat Carbs Sodium 470 30 grams 21 grams 29 grams 810 mg Bacon, Egg, and Cheese Biscuit Cost: $2.99 What Is it? A folded egg, American cheese, and Applewood smoked bacon on a buttered buttermilk biscuit. Score: 4.5 Sausage Patties The Skinny: This is your classic breakfast sandwich, and McDonald’s breakfast does it right. Many people prefer the biscuit to the English muffin. If you’re considering a biscuit sandwich, this is a good one to try. It’s nothing original, but taste trumps originality. Nutritional Info Calories Protein Fat Carbs Sodium 440 19 g 24 g 37 g 720 mg Sausage Biscuit Cost: $1.00 What Is it? A sausage patty on a buttered buttermilk biscuit Score: 3 sausage patties The Skinny: This sandwich is cost-effective, but it’s a tad boring compared to the rest of McDonald’s breakfast menu. Just a sausage patty on a biscuit. At least the Sausage McMuffin comes with cheese. But, if you like biscuits and sausage, you’ll be content with this option. Nutritional Info Calories Protein Fat Carbs Sodium 440 17 g 30 g 29 g 720 mg Sausage Biscuit With Egg Cost: $2.69 What Is it? A sausage patty and folded egg on a buttered buttermilk biscuit The Score: 3.5 sausage patties The Skinny: This is the enhanced sausage biscuit. You get extra protein and flavor with the egg. Personally, I prefer the McDonald’s poached egg to the folded egg, but there’s nothing wrong with the folded egg. It’s a step up from a hospital omelet, but I’m not sure if that’s a ringing endorsement. Nutritional Info Calories Protein Fat Carbs Sodium 510 11 g 33 g 35 g 1090 mg Bacon, Egg, and Cheese McGriddles Cost: $3.19 What Is it? A folded egg, Applewood smoked bacon, and American cheese on griddle cakes with sweet maple baked inside them. The Score: 4.5 sausage patties The Skinny: The griddle cakes on McDonald’s breakfast menu are ridiculously good. They offer a touch of sweetness with the maple-infused flavor, but the sweetness isn’t overpowering. As I previously mentioned, bacon, egg, and cheese are the quintessential breakfast sandwich combo, but the griddle cakes make this entree special. Nutritional Info Calories Protein Fat Carbs Sodium 440 19 g 19 g 48 g 1260 mg Sausage McGriddles Cost: $2.69 What Is it? A sausage patty on maple-flavored griddle cakes The Score: 3.5 sausage patties The Skinny: If you’re contemplating indulging in the excitement of the McGriddle, you might as well have more than just a sausage patty in your sandwich. This is only a good option if you don’t like the other breakfast sandwich toppings. Nutritional Info Calories Protein Fat Carbs Sodium 440 11 g 25 g 44 g 1280 mg Sausage, Egg, and Cheese McGriddles Cost: $3.19 What Is it? A folded egg, sausage patty, and American cheese on maple-flavored griddle cakes The Score: 4.5 sausage patties The Skinny: When I’m feeling extra hungry and gluttonous, this is my go-to breakfast at Mickey D’s. You have the sweet from the griddle cakes, the salty from the sausage, plus the richness of the egg and cheese. I’d give this sandwich 3 thumbs up if I had 3 thumbs. Nutritional Info Calories Protein Fat Carbs Sodium 560 20 32 g 48 g 1280 mg Big Breakfast Cost: $3.39 What Is it? Scrambled eggs, a sausage patty, buttermilk biscuit, and hash browns The Score: 3.5 sausage patties The Skinny: When I’m getting a fast food breakfast, I prefer my breakfast in hand-held form. The Big Breakfast resembles a cafeteria breakfast. However, it’s a good cafeteria breakfast, and you get a full meal for a low price. Nutritional Info Calories Protein Fat Carbs Sodium 730 25 g 48 g 49 g 1420 mg Big Breakfast With Hotcakes Cost: $5.19 What Is it? Scrambled eggs, sausage patty, hash browns, hotcakes, and a buttermilk biscuit The Score: 3.5 sausage patties The Skinny: This is the least healthy of all of the McDonald’s breakfast menu options. Perhaps you find that appealing. You can get a day’s worth of fat in one meal. That’s always fun. Nutritional Info Calories Protein Fat Carbs Sodium 1050 33 g 56 g 104 g 1960 mg Hotcakes Cost: $2.19 What Is it? Three maple-flavored hotcakes with butter The Score: 3.5 sausage patties The Skinny: Don’t expect light, fluffy hotcakes like the ones you find at more upscale establishments. These are pretty basic, but they taste good, especially with butter and syrup. And the maple flavor is a nice touch. Nutritional Info Calories Protein Fat Carbs Sodium 320 8 g 7 g 54 g 530 mg Hotcakes and Sausage Cost: $2.99 What is it? Three maple-flavored hotcakes with butter and a sausage patty The Score: 3.5 sausage patties The Skinny: This meal feels boring to me. If you want hotcakes and sausage, you may as well go for a Sausage McGriddle. That’s more fun, and it’s easier to eat while driving. Nutritional Info Calories Protein Fat Carbs Sodium 510 15 g 25 g 55 g 1290 mg Sausage Burrito Cost: $1.00 What Is it? Scrambled eggs, peppers, onions, and cheese wrapped in a tortilla Score: 3 sausage patties The Skinny: You probably don’t think of burritos when you think of McDonald’s, and neither do I. The sausage burrito looks sad, but it tastes decent. And it comes with McSalsa. That’s McBueno. Nutritional Info Calories Protein Fat Carbs Sodium 300 12 g 16 g 49 g 1420 mg Bacon, Egg, and Cheese Bagel Cost: $3.29 What Is it? A folded egg, Applewood bacon, and American cheese on a bagel The Score: 3.5 sausage patties The Skinny: Similar to the hotcakes, don’t expect the greatest bagel from McDonald’s. The bacon, egg, and cheese taste good, but I think most people will prefer these toppings on the biscuit. I’m sure my dad, a native New Yorker, would eat the entire sandwich, but he wouldn't give the bagel itself high marks. Nutritional Info Calories Protein Fat Carbs Sodium 570 26 g 27g 55 g 1290 mg Steak, Egg, and Cheese Biscuit Cost: $3.79 What Is it? Seasoned steak patty, grilled onions, a folded egg, and American cheese on a buttered buttermilk biscuit The Score: 4 sausage patties The Skinny: The steak patty somewhat resembles a thicker sausage patty, but it has a little more kick, thanks to the seasoning. The grilled onions add some crunch and extra flavor. This sandwich provides a hearty combination of goodness. Nutritional Info Calories Protein Fat Carbs Sodium 520 25 g 30 g 37 g 1440 mg Healthy Options If you want a fast, budget-friendly breakfast, but you’re trying to eat something on the healthy side, McDonald’s has some options for you. Fruit and Maple Oatmeal Cost: $1.99 What Is it? Whole grain oats, a touch of cream, red and green apples, cranberries, and two types of raisins. Available with or without brown sugar. Score: 3.5 sausage patties The Skinny: Normally I find oatmeal relatively bland, but McDonald’s breakfast menu serves up this dish packed with yummy flavors. The fruit is surprisingly good, the cream adds some richness, and the maple provides some additional sweetness. And it only has 4 grams of fat. Nutritional Info Calories Protein Fat Carbs Sodium 290 5 g 4 g 58 g 160 mg Egg White Delight McMuffin Cost: $2.79 What Is it? Grilled egg whites, extra lean Canadian bacon, and white cheddar on a buttered English muffin. The Score: 2.5 sausage patties The Skinny: I don’t know if I can endorse this one. It may be healthier than the Egg McMuffin, but it doesn’t taste as good. With fat comes flavor, and this sandwich could use some flavor enhancement. It’s similar to the Egg McMuffin, but it’s not as tasty. Nutritional Info Calories Protein Fat Carbs Sodium 250 17 g 8 g 28 g 720 mg Fruit ‘N Yogurt Parfait Cost: $1.00 What Is it? Low-fat vanilla yogurt layered with blueberries and strawberries. Topped with crunchy granola. The Score: 4 sausage patties The Skinny: A surprisingly good treat on McDonald’s breakfast menu that is also healthy. I don’t know exactly where McDonald’s gets its fruit and how the fruit is preserved, but the fruit tastes good. The sweetness of the fruit works well with the tartness of the yogurt. And the granola adds some crunch. Not bad at all. Nutritional Info Calories Protein Fat Carbs Sodium 150 4 g 2 g 30 g 80 mg Breakfast Hours The full breakfast menu isn’t available all day, only during the designated breakfast hours. Outside of the designated breakfast hours, you can only get breakfast grub from the all-day breakfast menu, which has a fraction of the breakfast options. Breakfast hours vary by location, but here are the typical McDonald’s breakfast hours: Monday-Friday: 5:00 AM-10:30 AM Saturday-Sunday: 5:00 AM-11:00 AM However, you may be able to get breakfast earlier at 24-hour McDonald’s. The All-Day Breakfast Menu McDonald’s answered my prayers and started offering all-day breakfast in the fall of 2015. Here are the items on the typical all-day breakfast menu. These are usually the only breakfast items you can purchase outside of the designated breakfast hours: Egg McMuffin Sausage McMuffin Sausage McMuffin With Egg Hotcakes Hotcakes and Sausage Fruit 'N Yogurt Parfair Sausage Burrito Fruit and Maple Oatmeal Hash Browns Beverage Choices While I’m more focused on my breakfast food, I know some people take their beverages very seriously. For those of you who need a coffee drink to start your day, McDonald’s has a number of options for you. It expanded from just its basic coffee when it launched its line of McCafe drinks in 2009. Here are all your drink options and their prices. Drink Small Medium Large Premium Roast Coffee $1.00 $1.49 $1.69 McCafe Latte $2.39 $2.89 $3.39 McCafe Mocha $2.39 $2.89 $3.39 McCafe Caramel Mocha $2.39 $2.89 $3.39 McCafe Hot Chocolate $2.09 $2.59 $3.09 Premium Roast Iced Coffee $1.00 $1.99 $2.49 McCafe Iced Mocha $2.39 $2.89 $3.39 McCafe Frappe Mocha $2.39 $2.89 $3.39 McCafe Frappe Caramel $2.39 $2.89 $3.39 McCafe Frappe Chocolate Chip $2.39 $2.89 $3.39 1% Low Fat Milk Jug $2.29 $2.79 $3.29 Fat Free Chocolate Milk Jug $2.29 $2.79 $3.29 Smoothies (Mango Pineapple, Strawberry Banana, or Blueberry Pomegranate) $2.29 $2.79 $3.29 Minute Maid Apple Juice Box $2.29 $2.79 $3.29 Minute Maid Premium Orange Juice $1.99 $2.49 $2.89 Dasani Water $1.99 $2.49 $2.89 Soft Drinks $1.99 $2.49 $2.89 Breakfast Extra Value Meals On top of the menu items, you can add a hash browns and a small coffee by ordering a breakfast entree and making it a meal. You can substitute the coffee for a juice or another beverage for an additional fee, usually the difference in price between a small coffee and your drink of choice. Generally, when you order a combo meal, you're basically paying for your entree and hash browns, and then getting your coffee for free. So it may make sense to order the extra value meal, depending on what you want. Here are the meals normally offered: Egg McMuffin Meal Sausage McMuffin With Egg Meal Bacon, Egg, Cheese Biscuit Meal Sausage Biscuit With Egg Meal Bacon, Egg, Cheese McGriddles Meal Sausage, Egg, Cheese McGriddles Meal Sausage McGriddles Meal Two Sausage Burritos Meal McDonald's Breakfast Master Tips As a self-proclaimed McDonald's breakfast expert, here's my advice on how to maximize your McDonald's breakfast experience. #1: Be Punctual This advice is for those of you who want an item that's only offered during the designated breakfast hours. It's a fast-food tragedy to arrive at McDonald's at 10:45 AM and be told that you can't order McGriddles. Set an alarm. Push yourself to achieve your goal of getting to the golden arches during breakfast time. Then, you can reward yourself with a Bacon, Egg, and Cheese Biscuit, or any other delicious breakfast treat you desire. #2: Consider Your Goals Think about what you're trying to get out of this meal. Do you just want the tastiest meal possible? If you're solely concerned with taste, then think about your preferences. Personally, I think you'll have the tastiest meal by getting a breakfast sandwich and hash browns. Determine which breakfast sandwich to order by answering the following questions: Do you prefer sausage or bacon? Would you rather have your sandwich on an English muffin, biscuit, or McGriddles? Do you prefer a poached egg or folded egg? Your answers will determine the best McDonald's breakfast sandwich for you. If you prefer sausage, biscuits, and folded eggs, then you immediately know that the Sausage Biscuit With Egg is the ideal choice for you and your taste buds. Do you want a cheap meal? If cost is a consideration, then first look at the cheapest entrees. Hopefully, at least one will sound appetizing to you. You can get two Sausage McMuffins or Sausage Biscuits and a hash browns for $3. Also, if you're trying to limit your cost, I recommend sticking with a cup of water for your beverage. If you need some caffeine, go for the regular coffee as opposed to one of the fancier McCafe drinks. Are you trying to be healthy? If you want a healthier meal, order one of the "healthy" options or an Egg McMuffin, which is less unhealthy than the other breakfast sandwiches. You're probably also going to want to pass on the hash browns. I'm sorry. I know they're delicious. #3: Remember: It's Fast Food, NOT Fine Food Some food snobs will harshly judge the McDonald's breakfast because it doesn't use the same high-quality ingredients as upscale sit-down restaurants. Yes, McDonald's may use lower quality eggs than you'll find in your $14 brunch frittata, but McDonald's eggs taste good to me and millions of people. If you can only indulge in fresh, organic ingredients, then Mickey D's probably isn't the place for you. But if you're looking for a fast, satisfying meal at a very reasonable price, then you can't go wrong with McDonald's breakfast. My dream is that McDonald's will give me free breakfast for life for my endorsement.