Accounting Principles

1. Stock Features

What is “callable preferred stock”? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what type of stock would you want to buy personally and why?

2. Role of Management Accounting

Review the roles of management accounting within a company. What is the most important role of management accounting? How is that different than financial accounting?

Just as the name implies callable ##################################### issued stock after a specific date and at the current market price. There are various reasons why companies issue these types of stock. The ########################33 and to maintain the financial capital base since they will still own the stock after a recall. Personally as an investor, I would opt for the preferred stocks as they have additional benefits and are pegged to high risks, which means $############################## would opt for the cumulative preferred stocks as they allow me to have a high level of dividends. I ############################# is deciding to make any dividend decisions (Weygandt, Kimmel & Kieso, 2015).

Management accounting is an essential element in companies as it involves the collection, recording and reporting financial information through scrutiny, observation, analysis, and determining the level of funds and their allocation to specific business units. The most essential role of management accountants is to determine the efficacy of a company through budgets to guide the expenditure and spending patterns an enterprise should make (Weygandt, Kimmel & Kieso, 2015). Management accountants monitor the operations of a company and make decisions based on the existing data and forecasting techniques, which rely on both the current and future trends. There exists major differences between financial and management accounting in that, while management accounting focuses on making decisions for the day to day operations of a company, financial accounting focuses on examining the soundness of a financial enterprise with the sole aim of communicating the information to external stakeholders.

References

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons.