Positive Accounting Theory Research Paper Example | Topics and Well Written Essays - 1250 words

Positive Accounting Theory - Research Paper Example The predictions of real world situations help small businesses in choosing the appropriate accounting policies that would help them in advancing. The predictions of positive accounting theory with regards to the real world situation go a long way in assisting firms to react positively to new standards of accounting introduced by the legal bodies. Moreover, the overall objective of the positive accounting theory is to enable firms to predict and understand their accounting policies choices. The theory also puts into consideration, the economic consequences of the policies on the firms and the economy in general. Positive Accounting Theory Small businesses organize their operations in an efficient manner using the positive accounting theory, which helps firms in maximizing economic opportunities for growth and survival in the business world. Due to the need for business operations efficiency, firms will need to minimize contract related costs. Ordinarily, contract related costs include negotiation costs, monitoring and renegotiation costs with regards to accounting variables in terms of financial ratios and net income accounting information. Minimization of contract related costs fully relies on the mandate of a firm in choosing the most appropriate accounting policies with regards to its operations. ... environment, appropriate accounting policies and contract related costs minimization may be comprised by the opportunistic interests of the company’s management. Political cost hypothesis The political environment is proved to interfere in business operations in many cases, thus affecting managerial decisions with regards to accounting policies. The more a company faces political costs, the greater the chances that managers of a particular firm will choose accounting policies that alter current reported earnings to future expected earnings. This is mainly because current reported earnings that depict high levels of profits will certainly lead to political interferences that may influence incorporation of new government regulations and tax charges. These interferences are relevant to both small and large businesses though growth and stability of small businesses may be greatly hampered as compared to large entities that are stable. Small Businesses Positive accounting theory ap plications help managers in spearheading growth and development of small businesses, which play an important role of creating employment and growth of Gross Domestic Product. Governments such as the United Kingdom federal government have enacted policies and programs that assist small businesses to develop. Strategies have been outlined by governments of developing countries and trade organizations to facilitate growth of small businesses. Banks have also played a big role in growth and development of enterprises through loans and involvement in policy formulation and innovations. Moreover, best accounting policies that have been practically efficient in spearheading corporate development have been implemented. The existing variations in different economies directly impact on the differences

People who care about the Earth Term Paper Example | Topics and Well Written Essays - 750 words

People who care about the Earth - Term Paper Example Compared to other biogas plant system, for example, the one that uses dung and sewerage, the system that uses food waste is pro- active since a small amount of food waste produces a lot of energy and only in a shorter period of time compared to the other conventional biogas system that uses dung and sewerage which requires up to over one month to complete the reaction and produce electrical energy (Pimm and Thomas 14). To be precise, two kilograms of food waste takes around 24 hours to complete the reaction after which approximately 500g of energy are produced in the form of methane. This invention of ARTI Biogas plant clearly indicates that it is the most efficient biogas system as it produces results with over approximately 800 times as efficient compared to other biogas systems (Bill 50). A brief history of people who invented the solar system includes Alexandre Edmond, who was instrumental in explaining how electricity can be harvested from sunlight (Frankham, David and Jonathan 46). Russell Ohl came later and invented the solar cell. The panel composed of particular metals which would emit electrons after being hit by direct sunlight. The electrons then flow through a conductor that then creates electricity. The use of solar power through the use of sunlight is increasingly efficient since it generates a lot of electricity without posing a threat to the universe through waste emissions and pollution. Solar panels are also considered efficient since they have a long lifespan meaning that it is quite reliable (Bill 56). Another individual who has contributed to conserving the planet is Tom Krimigis. Tom spent over 45 years of inventing and exploring the solar system. Tom even went ahead and won an achievement trophy, the National Air and Space Museum’s Trophy, which is currently the highest museum’s honor. Tom was highly instrumental in coming up with