When presidential candidates are asked why they are running they invariably say something like "I'm bursting with so much love for this great country and its people that running for President is the only patriotic thing to do". These candidates are also quick to assure us that they do not simply love our country in the abstract, they love each and every one of us personally.
Of course our...
The text book definition of "sunk costs" reads something like this:
Sunk Costs: Costs that were incurred in the past that cannot be recovered and thus are irrelevant for decision making.
Well most costs are incurred in the past so that part of the definition is not all that helpful. More central is the idea of recoverability. But the key underlying idea, which is not spelled out in the...
The following item was reported in a recent American Institute of Certified Public Accountants communication:
"The Exempt Organizations Division of the IRS had posted on the IRS web site a controversial document setting forth the Service's view on what constitutes good governance practices for tax-exempt entities. Included in the document was the suggestion that audit firms be rotated on a...
Is there any specific experience that can best prepare an individual to be the President of the United States? Service in the military? Running a business? Governing a state? Or will the much maligned legislative experience suffice? How much of the right sort of experience is enough? Consider the resumes of two of our best presidents.
Consider first Mr. Lincoln. When Lincoln came to office...
The basic advantages of a computerized accounting system are efficiency and speed. In a manual system receipts and disbursements are initially recorded in registers. This can involve writing a check and then writing a description in a register or this can be done on a one-write system. Either way the transactions in the registers must be manually posted to the general ledger and then compiled...
It is a widely accepted belief that risk is an important factor in investment decisions. The income method of investment valuation stipulates that the price an investor is willing to pay for an investment is a function of the future expected cash flow, discounted by a rate that reflects the risk associated with receiving this expected cash flow. The Ibbotson build-up, Black/Green, and Schilt...
