Monday, April 20, 2009

Deducing with Sociological Imagination

Sociology is the scientific study of human groups and social behavior. Sociologists focus primarily on human interactions, including how social relationships influence people's attitudes and how societies form and change. Sociology, therefore, is a discipline of broad scope: Virtually no topic—gender, race, religion, politics, education, health care, drug abuse, pornography, group behavior, conformity—is taboo for sociological examination and interpretation.

Sociologists typically focus their studies on how people and society influence other people, because external, or social, forces shape most personal experiences. These social forces exist in the form of interpersonal relationships among family and friends, as well as among the people encountered in academic, religious, political, economic, and other types of social institutions. In 1959, sociologist C. Wright Mills defined sociological imagination as the ability to see the impact of social forces on individuals' private and public lives. Sociological imagination, then, plays a central role in the sociological perspective.

As an example, consider a depressed individual. You may reasonably assume that a person becomes depressed when something “bad” has happened in his or her life. But you cannot so easily explain depression in all cases. How do you account for depressed people who have not experienced an unpleasant or negative event?

Sociologists look at events from a holistic, or multidimensional, perspective. Using sociological imagination, they examine both personal and social forces when explaining any phenomenon. Another version of this holistic model is the biopsychosocial perspective, which attributes complex sociological phenomena to interacting biological (internal), psychological (internal), and social (external) forces. In the case of depression, chemical imbalances in the brain (biological), negative attitudes (psychological), and an impoverished home environment (social) can all contribute to the problem. The reductionist perspective, which “reduces” complex sociological phenomena to a single “simple” cause, stands in contrast to the holistic perspective. A reductionist may claim that you can treat all cases of depression with medication because all depression comes from chemical imbalances in the brain.

On a topic related to depression, French sociologist Emile Durkheim studied suicide in the late 19th century. Being interested in the differences in rates of suicide across assorted peoples and countries and groups, Durkheim found that social rather than personal influences primarily caused these rates. To explain these differences in rates of suicide, Durkheim examined social integration, or the degree to which people connect to a social group. Interestingly, he found that when social integration is either deficient or excessive, suicide rates tend to be higher. For example, he found that divorced people are more likely to experience poor social integration, and thus are more likely to commit suicide than are married people. As another example, in the past, Hindu widows traditionally committed ritualistic suicide (called “suttee” meaning “good women”) because the cultural pressure at the time to kill themselves overwhelmed them.

Social forces are powerful, and social groups are more than simply the sum of their parts. Social groups have characteristics that come about only when individuals interact. So the sociological perspective and the social imagination help sociologists to explain these social forces and characteristics, as well as to apply their findings to everyday life.

Introduction to Accounting

Introduction to Accounting

Accounting is the language of business. It is the system of recording, summarizing, and analyzing an economic entity's financial transactions. Effectively communicating this information is key to the success of every business. Those who rely on financial information include internal users, such as a company's managers and employees, and external users, such as banks, investors, governmental agencies, financial analysts, and labor unions. These users depend upon data supplied by accountants to answer the following types of questions:
  • Is the company profitable?

  • Is there enough cash to meet payroll needs?

  • How much debt does the company have?

  • How does the company's net income compare to its budget?

  • What is the balance owed by customers?

  • Has the company consistently paid cash dividends?

  • How much income does each division generate?

  • Should the company invest money to expand?

Accountants must present an organization's financial information in clear, concise reports that help make questions like these easy to answer. The most common accounting reports are called financial statements.

Understanding Financial Statements

The financial statements shown on the next several pages are for a sole proprietorship, which is a business owned by an individual. Corporate financial statements are slightly different. The four basic financial statements are the income statement, statement of owner's equity, balance sheet, and statement of cash flows. The income statement, statement of owner's equity, and statement of cash flows report activity for a specific period of time, usually a month, quarter, or year. The balance sheet reports balances of certain elements at a specific time. All four statements have a three-line heading in the following format.





Income statement. The income statement, which is sometimes called the statement of earnings or statement of operations, is prepared first. It lists revenues and expenses and calculates the company's net income or net loss for a period of time. Net income means total revenues are greater than total expenses. Net loss means total expenses are greater than total revenues. The specific items that appear in financial statements are explained later.

The Greener Landscape Group Income Statement For the Month Ended April 30, 20X2

Revenues



Lawn Cutting Revenue


$845

Expenses



Wages Expense

$280


Depreciation Expense

235


Insurance Expense

100


Interest Expense

79


Advertising Expense

35


Gas Expense

30


Supplies Expense

25


Total Expenses


784

Net Income


$ 61

Statement of owner's equity. The statement of owner's equity is prepared after the income statement. It shows the beginning and ending owner's equity balances and the items affecting owner's equity during the period. These items include investments, the net income or loss from the income statement, and withdrawals. Because the specific revenue and expense categories that determine net income or loss appear on the income statement, the statement of owner's equity shows only the total net income or loss. Balances enclosed by parentheses are subtracted from unenclosed balances.

The Greener Landscape Group Statement of Owner's Equity For the Month Ended April 30, 20X2

J. Green, Capital, April 1


$ 0

Additions



Investments

$15,000


Net Income

61

15,061

Withdrawals


(50)

J. Green, Capital, April 30


$ 15,011

Balance sheet. The balance sheet shows the balance, at a particular time, of each asset, each liability, and owner's equity. It proves that the accounting equation (Assets = Liabilities + Owner's Equity) is in balance. The ending balance on the statement of owner's equity is used to report owner's equity on the balance sheet.

The Greener Landscape Group Balance Sheet April 30, 20X2

ASSETS



Current Assets



Cash


$ 6,355

Accounts Receivable


200

Supplies


25

Prepaid Insurance


1,100

Total Current Assets


7,680

Property, Plant, and Equipment



Equipment

$18,000


Less: Accumulated Depreciation

(235)

17,765

Total Assets


$25,445

LIABILITIES AND OWNER'S EQUITY



Current Liabilities



Accounts Payable


$ 50

Wages Payable


80

Interest Payable


79

Unearned Revenue


225

Total Current Liabilities


434

Long-Term Liabilities



Notes Payable


10,000

Total Liabilities


10,434

Owner's Equity



J. Green, Capital


15,011

Total Liabilities and Owner's Equity


$25,445

Statement of cash flows. The statement of cash flows tracks the movement of cash during a specific accounting period. It assigns all cash exchanges to one of three categories—operating, investing, or financing—to calculate the net change in cash and then reconciles the accounting period's beginning and ending cash balances. As its name implies, the statement of cash flows includes items that affect cash. Although not part of the statement's main body, significant non-cash items must also be disclosed.

According to current accounting standards, operating cash flows may be disclosed using either the direct or the indirect method. The direct method simply lists the net cash flow by type of cash receipt and payment category. For purposes of illustration, the direct method appears below.

The Greener Landscape Group Statement of Cash Flows For the Month Ended April 30, 20X2

Cash Flows from Operating Activities


Cash from Customers

$ 870

Cash to Employees

(200)

Cash to Suppliers

(1,265)

Cash Flow Used by Operating Activities

(595)

Cash Flows from Investing Activities


Purchases of Equipment

(8,000)

Cash Flows from Financing Activities


Investment by Owner

15,000

Withdrawal by Owner

(50)

Cash Flow Provided by Financing Activities

14,950

Net Increase in Cash

6,355

Beginning Cash, April 1

0

Ending Cash, April 30

$6,355

Sunday, April 19, 2009

Solving Simple Linear Equations

Solving Simple Linear Equations

Algebraic equations are translated from complete English sentences. These equations can be solved. In fact, in order to successfully solve a word problem, an equation must be written and solved.

Look at these two definitions in the following sections and compare the examples to ensure you know the distinction between an expression and an equation.

Defining an Algebraic Expression

An algebraic expression is a collection of constants, variables, symbols of operations, and grouping symbols, as shown in Example 1.

Example 1: 4( x − 3) + 6

Defining an Algebraic Equation

An algebraic equation is a statement that two algebraic expressions are equal, as shown in Example 2.

Example 2: 4( x − 3) + 6 = 14 + 2 x

The easiest way to distinguish a math problem as an equation is to notice an equals sign.

In Example 3, you take the algebraic expression given in Example 1 and simplify it to review the process of simplification. An algebraic expression is simplified by using the distributive property and combining like terms.

Example 3: Simplify the following expression: 4( x − 3) + 6

Here is how you simplify this expression:

  1. Remove the parentheses using the distributive property.

    4 x + −12 + 6

  2. Combine like terms.

    The simplified expression is 4 x + −6.

Note: This problem does not solve for x. This is because the original problem is an expression, not an equation, and, therefore, cannot be solved.

Four Steps for Solving Simple Linear Equations

In order to solve an equation, follow these steps:

  1. Simplify both sides of the equation by using the distributive property and combining like terms, if possible.

  2. Move all terms with variables to one side of the equation using the addition property of equations, and then simplify.

  3. Move the constants to the other side of the equation using the addition property of equations and simplify.

  4. Divide by the coefficient using the multiplication property of equations.

In Example 4, you solve the equation given in Example 2, using the four preceding steps to find the solution to the equation.

Example 4: Solve the following equation: 4( x − 3) + 6 = 14 + 2 x

Use the four steps to solving a linear equation, as follows:

Example 5: Solve the following equation: 12 + 2(3 x − 7) = 5 x − 4

Use the four steps to solving a linear equation, as follows:

Example 5: Solve the following equation: 6 − 3(2 − x) = −5 x + 40

Use the four steps to solving a linear equation, as follows:

Remember: The four steps for solving equations must be done in order, but not all steps are necessary in every problem.

Solving Simple Linear Equations

Solving Simple Linear Equations

Algebraic equations are translated from complete English sentences. These equations can be solved. In fact, in order to successfully solve a word problem, an equation must be written and solved.

Look at these two definitions in the following sections and compare the examples to ensure you know the distinction between an expression and an equation.

Defining an Algebraic Expression

An algebraic expression is a collection of constants, variables, symbols of operations, and grouping symbols, as shown in Example 1.

Example 1: 4( x − 3) + 6

Defining an Algebraic Equation

An algebraic equation is a statement that two algebraic expressions are equal, as shown in Example 2.

Example 2: 4( x − 3) + 6 = 14 + 2 x

The easiest way to distinguish a math problem as an equation is to notice an equals sign.

In Example 3, you take the algebraic expression given in Example 1 and simplify it to review the process of simplification. An algebraic expression is simplified by using the distributive property and combining like terms.

Example 3: Simplify the following expression: 4( x − 3) + 6

Here is how you simplify this expression:

  1. Remove the parentheses using the distributive property.

    4 x + −12 + 6

  2. Combine like terms.

    The simplified expression is 4 x + −6.

Note: This problem does not solve for x. This is because the original problem is an expression, not an equation, and, therefore, cannot be solved.

Four Steps for Solving Simple Linear Equations

In order to solve an equation, follow these steps:

  1. Simplify both sides of the equation by using the distributive property and combining like terms, if possible.

  2. Move all terms with variables to one side of the equation using the addition property of equations, and then simplify.

  3. Move the constants to the other side of the equation using the addition property of equations and simplify.

  4. Divide by the coefficient using the multiplication property of equations.

In Example 4, you solve the equation given in Example 2, using the four preceding steps to find the solution to the equation.

Example 4: Solve the following equation: 4( x − 3) + 6 = 14 + 2 x

Use the four steps to solving a linear equation, as follows:

Example 5: Solve the following equation: 12 + 2(3 x − 7) = 5 x − 4

Use the four steps to solving a linear equation, as follows:

Example 5: Solve the following equation: 6 − 3(2 − x) = −5 x + 40

Use the four steps to solving a linear equation, as follows:

Remember: The four steps for solving equations must be done in order, but not all steps are necessary in every problem.