Accounting ACG 3024: Submission Preview

The submissions for this assignment are posts in the assignment's discussion. Below are the discussion posts for Sofie Micklisch, or you can view the full discussion.

Sofie Micklisch

Accounting discussion

Florida SouthWestern State College

In Accounting it is important to be timely because the numbers can change at any point in time, and if the person is not accurate it could lead to errors in the financial statements. Hertz has done an amazing thing when wanting to expand their company into Florida, but if their CEO does not come with them it may hurt them in the long run (Whitehouse, 2014). It was because of their financial statements that lawsuits started to be issued last year, and because of this time company could face issues when wanting to set up their headquarters in Florida (Whitehouse, 2014).

There are several accounting concepts that come into mind when reading this article. The article itself mentions a couple of them. One of these concepts is that of depreciation. This concept refers to, “an annual allowance for the wear and tear, deterioration, or obsolescence of the property (IRS, 2015, paragraph 1).” In the case of Hertz, their depreciation was on their vehicles. This depreciation was filed wrong in their financial statements (Whitehouse, 2014). If they are not filed right it could look bad for their customers and shareholders when renting a car.

The concept of financial statements is something that comes up in this article more than once. There are five different financial statements. These are the statement of income, the statement of comprehensive income, the balance sheet, the statement of cash flows, and the statement of stockholders equity (Averkamp, 2015). If a mistake is made on any of these financial statements it could mess with the other financial statements, and these mistakes can even be transferred over to the next year. Hertz is described as making a number of different mistakes on these financial statements (Whitehouse, 2014). Assets are another concept that comes up in this article. In the case of Hertz, the assets that are mentioned are those of the cars that they rent out to their customers (Whitehouse, 2014). These assets do have certain depreciation to them, and if they are not filed right on the financial statements customers could be driving with vehicles that may not be fit to drive in the future.

References

Whitehouse, T. (2014). How wheels came off of Hertz’s accounting. RGL Forensics. Retrieved from http://www.rgl.com/news/xprNewsDetail.aspx?xpST=NewsDetail&news=512

IRS. (2015). A brief overview of depreciation. IRS. Retrieved from https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/A-Brief-Overview-of-Depreciation

Averkamp, H. (2015). What are the required financial statements?. Accounting Coach. Retrieved from http://www.accountingcoach.com/blog/what-are-the-required-financial-statements

Sofie Micklisch
Accounting discussion
Florida SouthWestern State College
            In Accounting it is important to be timely because the numbers can change at any point in time, and if the person is not accurate it could lead to errors in the financial statements. Hertz has done an amazing thing when wanting to expand their company into Florida, but if their CEO does not come with them it may hurt them in the long run (Whitehouse, 2014). It was because of their financial statements that lawsuits started to be issued last year, and because of this time company could face issues when wanting to set up their headquarters in Florida (Whitehouse, 2014).
            There are several accounting concepts that come into mind when reading this article. The article itself mentions a couple of them. One of these concepts is that of depreciation. This concept refers to, “an annual allowance for the wear and tear, deterioration, or obsolescence of the property (IRS, 2015, paragraph 1).” In the case of Hertz, their depreciation was on their vehicles. This depreciation was filed wrong in their financial statements (Whitehouse, 2014). If they are not filed right it could look bad for their customers and shareholders when renting a car.
            The concept of financial statements is something that comes up in this article more than once. There are five different financial statements. These are the statement of income, the statement of comprehensive income, the balance sheet, the statement of cash flows, and the statement of stockholders equity (Averkamp, 2015). If a mistake is made on any of these financial statements it could mess with the other financial statements, and these mistakes can even be transferred over to the next year. Hertz is described as making a number of different mistakes on these financial statements (Whitehouse, 2014). Assets are another concept that comes up in this article. In the case of Hertz, the assets that are mentioned are those of the cars that they rent out to their customers (Whitehouse, 2014). These assets do have certain depreciation to them, and if they are not filed right on the financial statements customers could be driving with vehicles that may not be fit to drive in the future.
References
Whitehouse, T. (2014). How wheels came off of Hertz’s accounting. RGL Forensics. Retrieved from <a href="http://www.rgl.com/news/xprNewsDetail.aspx?xpST=NewsDetail&amp;news=512">http://www.rgl.com/news/xprNewsDetail.aspx?xpST=NewsDetail&amp;news=512</a>
IRS. (2015). A brief overview of depreciation. IRS. Retrieved from <a href="https://www.irs.gov/Businesses/Small-Businesses-&amp;-Self-Employed/A-Brief-Overview-of-Depreciation">https://www.irs.gov/Businesses/Small-Businesses-&amp;-Self-Employed/A-Brief-Overview-of-Depreciation</a>
Averkamp, H. (2015). What are the required financial statements?. Accounting Coach. Retrieved from <a href="http://www.accountingcoach.com/blog/what-are-the-required-financial-statements">http://www.accountingcoach.com/blog/what-are-the-required-financial-statements</a>