Cpa Journal: 2009-02-01

BUSINESS ENVIRONMENT & CONCEPTS

This section covers knowledge of general business environment and business concepts that a candidate need to know in order to understand the underlying business reasons for, and accounting implications of business transactions and the skills needed to apply that knowledge.

2.5 Hrs of examination in 3 MCQ test lets(Multiple choice questions)

BUS. ENV.1: Sole proprietorship and joint venture, General partnership, Limited Liability partnership, Limited partnership, Limited liability company, Corporation.
BUS. ENV.2: Business cycles and reasons for business fluctuations, Economic measures and reasons for changes in
the economy, Market influences on business strategies, Implications of dealings in foreign currencies.
BUS. ENV.3: Factors affecting financial modelling and decision making, Financial modelling for capital decisions,
Strategies for short-term and long-term financing, Financial Statement and business implications of liquid asset management.
BUS. ENV.4: Introduction to information technology, Roles and responsibilities within the information technology (IT) function, IT fundamentals, Risks, controls, disaster recovery & business continuity, Electronic business.
BUS. ENV.5: Cost measurement and cost measurement concepts, Accumulating and assigning costs, Factors affecting production costs, Financial models used for operating decisions, Forecasting and projection techniques, Planning/Budgeting overview and Planning/budgeting techniques, Budget variance analysis, Organizational performance measures, Benchmarking techniques and best practices.

partnership law: an overview

partnership law: an overview

partnership - is a for-profit business association of two or more persons. Because the business component is defined broadly by state laws and because "persons" can include individuals, groups of individuals, companies, and corporations.
partnerships are highly adaptable in form and vary in complexity. Each partner shares directly in the organization's profits and shares control of the business operation. The consequence of this profit sharing is that partners are jointly and independently liable for the partnership's debts.

Creation, organization, and dissolution of partnerships are governed by state law. Many states have adopted the Uniform Partnership Act (See California's adoption of the U.P.A. -- §§ 16100 to 16962). A partner relationship is generally the result of a contract either express or implied with no formal requirements (suchas a signed document).

To determine whether a partnership exists courts look at:

(1) intention of the parties,
(2) sharing of profits and losses
(3) joint administration and control of business operation,
(4) capital investment by each partner, and (5) common ownership of property.

Under state agency law (See Agency Law), partners are personally liable for torts committed by the partnership and its agents. (This is not the case of a limited partnership where one or more general partners manage business operations and assume personally liable for partnership debts while other contributing/profit sharing partners take no part in running the business and incur no liability beyond contribution obligations.)

Limited partnerships are governed in many states by the Uniform Limited Partnership Act (See New York's U.L.P.A.)]. State property law also impacts partnerships by defining ownership in a partnership and determining how the death of a partner changes the partnershipstructure.

Federal law plays a minimal role in partnership law except in the context of a diversity action, or in instances where a partnership agreement contains an effective choice-of-law provision designating the application of federal law. Federal law also governs whether a partnership exists for federal tax purposes.

For state and federal tax purposes, a partnership is not a taxable entity. Partnership income is taxable to the partners in proportion to their share in the company's profits.

SOURCE : http://topics.law.cornell.edu/wex/partnership

Shri Ganesh - start of my journey

My Journey to become a CPA started when I posted my Foreign Education Credentials to FACS. They sent me a mail yesterday updating that my evaluation report will be completing in 4 to 6 weeks and they will send one copy to the State board and one to me.

I will update about my credentials after I receive my evaluation report.
Meanwhile I will be preparing for Business environment and concepts exam.

I didn't purchased any books till now but I will refresh all the topics in the paper using the available resources online.I visit Borders occasionally and request books like Wiley CPA review from County Library.

I will post links and self prepared study notes here in this blog for your use.

FACS - Educational Evaluation

I posted my Foreign Education Credentials to FACS.
http://www.facsusa.com/

All my certificates were notarised in UPS and they charged two dollars per signature. They billed us $35 for all certificates including Mark sheets.
I chose Colorado as my state board even though I live in Missouri thinking that Corrado will approve my application if my credit hours stay between 120 and 150. Missouri needs 150 hours. I chose Colorado because I just want to be on the safe side.
I did my education in India. I have a bachelor of commerce degree end and along with it I completed my intermediate from the Institute of chartered accountants of India and from the Institute of cost and works accountants of India.
I also completed group 1 final CA but the mark list was missing. I was a little worried because I anticipated that it will add more credit hours to my credentials. I went through forums and according to them CA a final group 1 will be valued same as intermediate because the subjects are same. I took risk and send them only intermediate pass certificates.
Let's see how many credit hours they will award me for bachelor of commerce, masters of commerce one year pass Mark list and intermediate of CA and CWA.
I also sent them pgdca certificate and also a computer certificate from the Institute of cost and works accountants of India.

They will send one copy to Colorado State board and a copy to me.
I will update about my credentials after I receive my evaluation report.