What is the typical time span for filing for Chapter 11, confirmation, and successful completion of the reorganization plan?
United States bankruptcy laws permits debtors to either dismiss repaying certain debts to creditors or to repay creditors over a given time period. As stated in the U.S. Bankruptcy Code, a company or an individual can file under different chapters of bankruptcy to relief themselves of having to repay money they owe to creditors.

What is the ratio of Chapter 7 to Chapter 11 filings for businesses?
The ratio of Chapter 7 filings in comparison to Chapter 11 filings by businesses is relatively high. Businesses generally will prefer to file under Chapter 11 in hopes of reorganizing and setting up a repayment plan with creditors so to prevent the loss of the company. When businesses file under Chapter 7, they are forced to turn their assets over to a trustee to be liquidated for repaying debts.

What are the most common reasons that force an individual to file for bankruptcy?
Some common reasons for filing for bankruptcy are associated with health issues and medical fees, losing employment, and over extending credit. We have seen record numbers of foreclosed homes over the past 12 months; which is a very real example of how over extending one’s credit, mixed with poor lending practices, can lead to detrimental effects on the economy as a whole.

What kind of individual debts may not be discharged through a Chapter 7 filing?
Individual debts that may not be discharged through a Chapter 7 filing, or debts that are considered exempt, includes student loans, income tax liens, payroll tax liens, and child support.

If a debtor is unable to make payments under a Chapter 13 plan, can it be modified?
If an individual filed bankruptcy under Chapter 13, the debtor would be permitted to modify their payment plan or even possibly switch to a Chapter 7 filing.

Applying critical thinking to a work-related decision:
For most individuals that are in various sales positions, and while it is evident that customer attitudes and behaviors must be indulged before determining a best course of action— sales approach, critical thinking must help lead up to the sale. In a simplistic and idealistic buying model, there are typically four different stages that every buyer goes through.

The first stage of the buying process addresses the level of satisfaction the buyer is at, the majority of buyers are in the satisfaction stage and this stage ranges from being completely satisfied to having strong dissatisfaction. The second stage—the shopping stage, involves the buyer evaluating the options and narrowing them down towards one or two options which best meet his/her needs. From there the buyer will move into what is known as the apprehension stage. In this stage the buyer will consider all the potentially negative consequences of purchasing. When risk levels have been assessed and the buyer’s apprehension level has been significantly lowered, the final stage—the execution stage, can be implemented. In the final stage the buyer is brought from being moderately enthusiastic to having positive results, placing the buyer back into the first stage—the satisfaction stage.

Learning and understanding various buying models forces the salesperson to critically think about how to best approach any given selling opportunity. The model emphasizes the need for the seller to move the buyer, in a seamless fashion, through each of the four stages. When the salesperson can determine how to best meet the buyer’s needs and continuously become better at meeting the buyer’s needs; he/she will become a far more effective and productive seller.

Applying critical thinking:
Applying critical thinking to life’s everyday experiences is something one does cognitively. Whether it is consciously or subconsciously, critical thinking happens for most individuals at every waking moment of the day. The human thought process involves making choices and acting on them. From asking oneself, “what’s for breakfast?”—to, “how can I best perform my job duties?”—we all think critically day-in and day-out. Below is a discussion about the concept of critical thinking, including the benefits and the relevant components.

Importance and benefits of critical thinking:
The most obvious benefits related to critical thinking are the abilities to raise ones: intellectual thinking, capacity to communicate more effectively and efficiently, and problem solving skills. Critical thinkers have learned to discipline their minds. With this discipline, certain traits begin to develop. These traits include positive perceptions such as: integrity, empathy, and courage; along with some less desired perceptional traits, including humility and perseverance. Continuously thriving to further develop these skills will result in being more productive in the workplace, at home, and in social settings. On the other hand, the undisciplined mind can express characteristic traits such as: hypocrisy, arrogance, laziness, cowardice, and centeredness; just to name a few.

Critical thinking and thinking intellectually:
Critical thinking is absolutely a crucial aspect of humanity. Individuals will think critically in every aspect of their lives, from social and personal settings to the sophisticated realms of the corporate business world, such as tax planning and projecting. Equally as important as thinking intellectually, is evaluating the consequences of an inaccurate judgment. Failure to appreciate any negative repercussions is simply a failure to properly discipline one’s mind. Being a disciplined critical thinker means that an individual possesses both intellect and knowledge, two of the most important attributes towards being successful.

Information systems and the audit process:
Integrating an information system to perform auditing processes will usually encompass multiple resources and procedures; including people, hardware, data, communications, software, and databases. It is vital that the auditing process examines all components to ensure accurate data for internal and external users.

The auditing process consists of a preliminary review of the information systems controls. If the auditor wishes to rely on the current IT controls he/she will audit the company through the computerized system. This includes reviewing general and application controls, performing compliance tests of computer controls, and performing substantive tests of account balances.

An auditor may be an internal auditor or an external auditor. With the recent updated accounting guidelines set forth by the Sarbanes-Oxley Act, there has been an increased need for certified auditors to accurately report control procedures. An advantage to having an internal auditor is that he/she is more familiar with the organization’s information system, operating system platform, application programs, and miscellaneous hardware.

Regardless of whether the auditor is internal or external, it is his/her job to evaluate the information system controls and its effectiveness on maintaining accounting laws and guidelines. This is ensured by conducting a risk assessment to determine threats, identify and evaluate control procedures, and to evaluate any weaknesses or potential weaknesses.

Data management and integration:
Data is most frequently managed through the use of information systems and databases. A database is a collection of data that is commonly related and stored in computerized linked files. Database use is favored by many users of information systems because of the ability to manipulate the database information into database management systems. Most organizations, large and small, will have integrated some form of database management. Areas that are often tracked by databases are production, scheduling, inventory, and the general ledger. Databases are extremely important for helping a firm to identify similarities and differences, which inevitably allow the firm to operate in a more efficient and effective manor.

Database management can be used to store and access important information and financial data, by multiple departments within a given firm. They can also be used to ensure data accuracy, consistency, and completeness. Databases can be secured and can prevent access to data/information from unauthorized users. And because databases are created and stored electronically, recreating files and backing up files can be conducted with ease.

Once a database is created, the data can then be manipulated and designed to store information in a hierarchy manor, or in a manor of importance to the user. When a hierarchy of the database’s fields and tables is established, record structures and keys can be enabled to uniquely distinguish one record from the next.

The changing dynamics of accounting:
The changing dynamics of accounting is widespread in all accounting functions due to the endless evolving of accounting information systems and technology associated with these systems. It is imperative that accounting systems change, not only to allow an organization to function more effectively and efficiently; but to ensure security from both internal and external threats. A crucial factor for corporations and most businesses is internal controls. Accounting has changed to meet this goal, which affects all areas of management and business functions within a given organization.

Accounting information systems is how many of today’s businesses manage their internal controls. Because threats are constantly and issue to business owners and corporations, accounting information system software and hardware is regularly being changed, updated, and created to meet the particular needs of specific departments. The ability to change a departmental information system is a major advantage to firms that wish to remain competitive within their given industries. By allowing current systems to be evaluated by its users for its usability, ability to conduct necessary functions, and for its effectiveness with other information systems within the firm; permits a smoother transition for integrating new technologies. This process is a never ending one, and will likely continue to change the dynamics of accounting for as long as the need to improve and become more efficient exists.