According to the U.S. Census, there are approximately 100 million ethnic minorities in the United States, and the Bureau estimates that about one in three of U.S. residents are a minority. In addition, the population will continue to increase, and by 2050, minorities will legend for nearly half of the U.S. population (U.S. Census, 2009) . Based on this data, there is a high chance that minorities sage for a increasing percentage of working in the accounting profession.
Today, minorities in the CPA profession narrative for 8%, consisting of 4% Asian/Pacific Islander, 3% Hispanic, and only 1% African American. There has been a certain turn around in the past few years with minorities only occupying 1% of the CPA profession, which includes African American, Latino, and Asian ethnics. This data above, illustrates how minorities are slowly entering the accounting professions (The CPA Journal, 2009) .
The percentage of accounting graduates who are minorities is 22%, consisting of 10% Asian/Pacific Islander, 7% African American, and 5% Hispanic or Latino. According to U.S. News & World portray, City University of current York’s Baruch College has been the country’s largest and most diverse business school for the last nine years. More than 600 accounting students graduated in 2007, 25% of the class consisted of African American and Hispanic students. This is not the case for every accredited institution. Previous studies showed minority graduates, particularly African American are not being kept in the profession of CPAs and ultimately partners or executives. Only 7% graduate, 3% are hired, and 1% becomes a CPA or partner.
There are accounting organizations that were established to enhance opportunities for minorities in accounting, finance and related professions. NABA (National Association of shaded Accountants) and ALPFA (Association of Latino Professionals in Finance and Accounting) are well known organizations that relieve minorities in this profession. The indispensable purpose of these organizes is to get, succor, and help as a resource for African American and other minorities in the accounting profession.
NABA is a nationwide membership organization established in 1969 by nine African American professionals who were concerned about the slight numbers of minority accountants participating in the field of accounting, particularly the number of certified accountants. Since 1969, NABA has been the leader in expanding the influence of minority professionals in the field of finance and accounting. The goals of the association are to promote and get the professional skills of the members, to back and attend minority students in entering the accounting profession, to provide opportunities for members through networking, and to ensure long-term financial stability and provide adequate resources to implement chapter, regional, and programs. Today, through the efforts of NABA, there are now over 200,000 African Americans participating in the field of accounting, of which over 5,000 are CPAs. NABA continues to earn opportunities for the purpose of enlarging the pipeline of African Americans into every level of accounting and finance.
ALPFA (Association of Latino Professionals in Finance and Accounting) is a successor of the American of Hispanic Certified Public Accountants association established in 1972. ALPFA creates opportunities, adds values, and builds network opportunities for its members. According to ALPFA’s website, its guiding principles are a commitment to increase opportunities for Latinos, to commit to honesty, integrity and the highest professional and ethical standards, and most importantly, to embrace community service and advocacy.
ALPFA offers scholarships every year to students, in the U.S. or Puerto Rico, who are pursuing undergraduate/graduate degrees. With 52% of ALPFA’s 11,000 members comprised of students, ALPFA is committed to providing greater access to scholarships in addition to programs and opportunities that will aid students transfer into the corporate world. The ALPFA expects to distribute $130,000 in scholarships in 2010 and bring the top scholarship recipients to the ALPFA Annual Convention to network with executives from the top CPA firms (PricewaterhouseCoopers, KPMG, Ernst & Young and Deloitte) .
Accountant organizations such as NABA and ALPFA are encouraging young members of all ethnic backgrounds to pursue the CPA profession through their outreach programs and mentoring strategies. The number of minority CPAs are increasing and the retention rate of minorities within the accounting profession is also improving with the assistance of NABA/ ALPFA Statistics have shown that the accounting profession has improved in its recruitment of minorities; however, the number of minority candidates tranquil remains the teach. With so many internships and scholarships offered each year, it quiet remains a examine of why minorities are not attracted to professions within the accounting industry. Questions have arisen relating to early exposure of accounting during pre-collegiate education.Accounting Questions For Review and Discussion
What is the distinction between expenditures and expenses as the terms are ancient in governmental accounting?
Expenditures are concerned with governmental funds, while expenses are concerned with proprietary funds. Expenditures are decreases in fetch financial resources and expenses are decreases in secure economic resources. When an asset is acquired, it is generally approved as an expenditure. When an asset is consumed it is generally favorite as an expense.
A government expects to pay its electric bill relating to its fresh fiscal year sometime in the following year. An official of the government requests your advice as to whether the anticipated payment should be charged as an expenditure of the novel or the following year. How would you reply?
The government should portray its electric bill as an encumbrance to be paid in the following year. When the encumbrance is recorded, the budgeted amount for expenditures is reduced, while a part of unreserved fund balance is reserved for the encumbrance.
Although many governments prepare budgets for both capital projects and debt service funds and integrate them into their accounts, budgetary control over these funds is not as indispensable as it is for other governmental funds. Do you agree? interpret. If budgets are prepared for capital projects funds, in what famous device may they differ from those prepared for other funds?
I disagree that budgetary control over capital projects and debt service funds in not as primary as it is for other governmental funds. While budgetary entries for projects and service funds are intended as an internal control mechanism, and do not affect year-end financial statements, it is smooth well-known to beget budgetary control to prevent expenditures exceeding authorizations. Budgets prepared for these projects funds are significantly different from those prepared for other funds in the sense that capital project funds are stationary in nature and can often be preserved for a significantly greater number of years.
How should governments record their capital projects and debt service activities in their government-wide statements?
Governments should characterize their capital projects and debt service activities in their government-wide statements as long-term obligations as combined funds which includes all other governmental funds in the governmental activities column.