Michael and Michelle Are Partners in M & M Consulting

question 26

Essay

Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
-M & M's client currently employs over 100 accounting staff. Each quarter, they must consolidate the financial information from the client's international subsidiaries and prepare a report for the SEC-a process that frequently takes three to four weeks. Discuss ways XBRL can help the client save time and money in its accounting processes.

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Definitions:

Risky Projects

Initiatives or investments that carry a high degree of uncertainty or hazard, with the potential for significant returns or losses.

Company Cash

Monetary resources that a corporation holds in its accounts, which are liquid and can be used for operational expenses, investments, or other purposes.

Mergers and Acquisitions

Business strategies involving the consolidation of companies or assets, through different types of financial transactions, including merger or takeover.

Availability Bias

The tendency to judge the likelihood of an event by the ease with which examples come to mind, which can lead to misjudgment of actual probability.