Corporate welfare Essay Example | Topics and Well Written Essays - 250 words

Corporate welfare - Essay Example Corporate Welfare takes a variety of forms from indirect to direct subsidizing, grants, loans, reduced tax-rates, and bailouts. The crisis that created the Corporate Welfare program in the 1930s was the Great Depression. This led to the government subsidizing the agricultural as well as other industries. Agriculture has traditionally been the most widely subsidized by the U.S. government (2). The effectiveness of Corporate Welfare is widely debated. Proponents view it as an investment that helps businesses and therefore the economy grow. The welfareinfo.org website states that â€Å"American companies remain competitive leaders in the global business industry and many owe at least a portion of their success to the funding support provided by Corporate Welfare† (3). However, many counter this argument by saying that only big companies and basically those who are â€Å"already rich† are subsidized at the expense of middle-class and poor people (4). They point to the recen t example of General Motors, which was a failing company until the government stepped in simply because they were â€Å"too big to fail.† It is clear from these historical examples and the opinions of experts that big businesses are given preferential treatment to smaller companies when it comes to Corporate Welfare.

Financial Statement Research Paper Example | Topics and Well Written Essays - 500 words

Financial Statement - Research Paper Example 2. Damaged Goods: if the organization has damaged goods, these goods will be evaluated and scrap should be sold to recover some amount and contacted to the insurance company for insurance recovery and write off the loss from the damages. 3. Stolen Inventory: if the organization faces loss from stolen inventory it should be reported for recovery but if after a period unable to found stolen goods it should be treated as loss. Explanation Losses may be normal or abnormal faced by the organization and there is different accounting treatment for each type of loss. If a company is having normal cost then it will have no special treatment it will only increase the production cost and normal loss is unavoidable and inherent which is valued with the closing stock. If the inventory is decreased by sales it will be treated as an expense in the form of a reduction in inventory (Smith and Butters, 1949). But if abnormal loss is faced by the company it will be valued and Debit to the abnormal loss account and credit to process account. These kinds of losses may arise from accidents and carelessness. For recording of this loss another account will be created in the chart of accounts and it will be debited and after that it will be write-off as an expense in the income statement.