Generally Accepted Accounting Principles Essay Example

Generally Accepted Accounting Principles Essay Example Generally Accepted Accounting Principles Essay Generally Accepted Accounting Principles Essay If the instrument is classified as debt, the annual payments are classified as interest expense, which reduces earnings, and the redemption premium is corded as a loss on retirement, also reducing earnings. (If the $6,000 excess of retirement price over par were contracted in advance, it would be accrued over the life of the liability). If the financial instrument were equity, both items would reduce retained earnings directly, by-passing earnings. 5. Retractable preferred shares are preferred shares that must be paid back with cash at a specific time, or paid in cash at the option of the shareholder. Because the agreement to pay out the redemption price is legally enforceable, such shares are classified as debt. 6. The principal of convertible debt is classified as equity if it is mandatory convertible into a fixed number of shares. The portion related to annual interest is an unavoidable cash obligation of the company and must be classified as a liability. Thus, the security is compound financial instrument. If the convertible debt is convertible at the investors option, the initial proceeds are divided between the debt element (both principal and interest) and the equity element, the conversion option. 7. If a convertible bond has a conversion price that is set in reference to the air market value of shares on the conversion date, then the bond is classified entirely as debt. No (price) risk or reward is transferred to the investor and therefore there is no equity element. 8. When a convertible bond is converted, the common share conversion option account is transferred into the common stock account. If the bond is not converted, this account is still left in equity, but transferred to a different contributed capital account. 9. Interest expense, $76,400 x . 08 = $6,112 Annual payment, $400,000 x . 08 = $32,000 10. : Stock options provide the holder with an option to acquire a specified umber of shares in a corporation under prescribed conditions and within a stated future time period. Options that are issued as an attachment to other securities are called stock warrants. Warrants may trade separately while options do not. Options often have a limited life while warrants often have no expiry date. 1 1 . A share-based payment to a supplier is measured based on the fair value of the goods or services rendered. In the rare circumstances that these cannot be valued, then the fair value of the rights is used to measure the transaction. 12. If stock rights are recognized on issuance, the stock rights account is rendered into the common stock account on exercise and into a different contributed capital account if options are allowed to lapse. This is identical to the treatment given to the common share conversion option account for convertible bonds. 13. A share-based compensation contract would result in recognition of an equity account if the contract is share-settled, or required issuance of shares. The contract would result in recognition of a liability element if the contract was cash-settled, meaning that compensation is required to be paid in cash. An equity-settled plan is trued up only to the retention rate; he fair value is estimated on initial grant date and is not adjusted to the value that employees receive. 17. A Sara program involves a payment to the employee at the settlement date. The value paid is equal to the fair value of the shares on the payment date, less some reference price, which is usually the fair value of the shares when the Sara were granted. That is, the employee receives a payment (cash or shares) equal to the appreciation in stock price over the life of the Sara. 18. A derivative is an exchange contract meant to transfer risk. It is a secondary financial instrument whose value is linked to a primary financial instrument, an index, or a commodity. Derivatives are options, futures or forward contracts, or a combination of these. Derivatives embody an exchange of financial instruments at fixed terms. A hedge is a way to offset risk to which the company would otherwise be exposed. For an item to be a hedge, the company must first have risk in an area, and then put a hedge in place to counter the risk. That is, a loss on a primary instrument will offset a gain on a hedge instrument. 9. The company could hedge against the risk of exchange fluctuations by entering into a forward exchange contract with a bank to deliver US dollars. The price to be paid would be set by the terms of the contract, and would not fluctuate. The contract would be recorded at cost, and revalued to fair market value annually. Changes in market value of BOTH the transaction balance and the hedge would be reported as gains/losses in earning s and offset. 20. Disclosure for financial instruments is required in the following general categories [per text listing]: 1 . The important components of each financial statement category; e. G. , various loans. 2. Information related to fair value for liabilities. Methods used to assess fair value must be explained. When a financial instrument has been valued at fair value, detail about the change in fair value is required. 3. Information related to the legal terms of the financial instrument, including maturity dates, interest rates, collateral, etc. 4. Various revenue and expense amounts and OIC reserve amounts must be disclosed separately, including interest expense, changes in equity reserve accounts, etc. . Information on exposure to various sources Of risk, as appropriate. Risks might include credit, risk, liquidity risk and market risk. Objectives, policies, and processes or managing risk must be disclosed. Such disclosure is extensive, and includes both qualitative and quantitative elements. 6. Accounting policy information is required as a matter of course for all financial statement elements. Ext ensive disclosure is required to describe the terms of the financial instrument. 15-AI to 15-AAA Financial restructuring; material posted on Connect. 1 . A financial restructuring happens when a company that is in legal violation of debt agreements is financially reorganized and allowed to continue operating, rather than be placed in receivership or bankruptcy. Restructuring an involve a financial reorganization (substantial realignment of debt and equity) or a troubled debt restructuring (lenders settle for less). 2. Financial restructuring may be bound by the following principles or rules, although there are no explicit standards in Canada: a. Accounting entries must reflect the terms of the agreements made by debt and equity holders. . Conversions of debt to equity are made at book value. C. Debt forgiveness is recognized as a gain in earnings. 3. The debt and the assets would be removed from the books. A $1 50,000 gain on asset disposal and a $200,000 gain on debt restructure would be agonized to balance the entry. 4. In a comprehensive revaluation, all assets and liabilities are revalued to fair value, whether fair value is highe r or lower than book value. Retained earnings (if any) are reclassified; any debit balance of retained earnings is eliminated by reducing other equity accounts. Gains and losses go directly to retained earnings and by-pass earnings. Cases Case 15-1 Zebu Limited Overview Zebu Limited is a subsidiary of Holdings Limited, and complies with FIRS. The company has several transactions to complete for XX, and several financing options to consider for XX. The company must com ply with a current ratio and a total liabilities to tangible net worth ratio, as part of existing loan arrangements. There may be pressure to adopt accounting policies to achieve compliance; ethical behavior is important. Issues . Required adjustments 2. Statement of changes in equity 3. Covenant evaluation 4. Financing alternatives 5. Action re: covenant issues Analysis and conclusion 1. Required adjustments Retirement and conversion of the preferred shares and all stock option transactions are journalized in Exhibit 1 and revised draft SSP accounts are shown in Exhibit 2. These transactions are straight-forward and no reporting alternatives are available. The Zebu statement of changes in equity, in multi-column form, is shown in Exhibit 3. It is assumed that no dividends were declared during the year; if there were dividends, the earnings amount changes. Changes in retained earnings and accumulated OIC were entirely assumed to relate to comprehensive income for XX. Based on the xx revised financial statements in exhibit 2, the covenants are as follows: Covenant Limit Calculation (per exhibit 2) Rest It Current assets to current liabilities Not less than 0. 82 Total liabilities to tangible net worth Not greater than 1. 5:1 ($28,589 $5,500) 1 . 61 Zebu is out of line with the current ratio covenant, since 0. 82 is less than 1. They are also out of line on the total liabilities covenant, since 1 . 61 is greater than 1. 5. This situation must be addressed. Possible actions are explored in item 5, below. 4. Financing alternatives. The two financing alternatives are identical in terms of capital raised, term, and security. The alternatives are different in the following ways: 1 Alternative 1 has an interest cost of 4% while alternative 2 has an interest cost f 6%. This is a difference of SSL O million x 2% = $200,000 annually for ten year; assuming a tax rate of 40%, this is $1 20,000 of after-tax savings per year. 2. Alternative 1 allows the company to substitute shares for principal at maturity, eliminating $10 million of principal repayment at maturity if the company wishes. However, it also dilutes ownership, if this is an issue for existing shareholders. 3. Alternative 1 sets a share price of $20 per share for shares issued at maturity ($10 million/500,OHO shares). Based on the outstanding options, the companys share price seems to be in the range of 20; $30 options were allowed to lapse and new options were issued for $20. Therefore, the $20 used as a reference price in Alternative 1 seems to set the terms of the debt arrangement at current market prices. This must be attractive to investors, since the interest rate on Alternative 1 is lower than that for Alternative 2; Alternative 2 does not set a share price for conversion. 4. Alternative 1 would be accounted for as partially debt and partially equity while Alternative 2, since the share price is undetermined, is all debt. Alternative 1 would be split as follows: $10,000 Interest liability $7,025 Issuance price $200 PDP) 2,975 Equity component A discount rate of 3% has been used, looking at Alternative 2 with no equity component and a 6% rate (3% 6%/2).

Evolution of Management Accounting Term Paper Example | Topics and Well Written Essays - 2750 words

Evolution of Management Accounting - Term Paper Example Since then, there has been gradual development and implementation of changes in managerial approaches to match the new business requirements (Riahi-Belkaoui, 54). However, the business environment has been undergoing tremendous developments both in nature and scope over the last six decades (Bhimani, 76). This is due to emerging innovations and increase in operations as a result of globalization. Therefore, each business should be aware of its goals and develop strategies for accounting to achieve its goals of production more effectively and efficiently. As a result of 1980s innovations, there is an increase in competition for the businesses which requires a change in the way businesses use to make their financial reports and regulate their operations (Kaplan, 399). Due to poor stock market performances of 1920s, business directors started focusing on creating financial report as a financial reporting requirement at that time hence limiting the growth of management accounting strateg ies. As a result of emerging competitions among the world nations, Automobile manufactures of Japan forced Americans and European nations to establish broader view of business performance based on value and service as opposed to assessment based on efficiency of output (Kaplan, 394). The business performance has been undergoing a lot of changes aimed at improving their operations and increasing the managerial efficiency. The ancient strategies are inadequate to match the modern requirement for effective business operations (Riahi-Belkaoui123). This is because in the modern period business are focusing on cost reduction and profit maximization through technology and advancement. There is no room for errors in the current period since a slight defect could make... As a result of 1980s innovations, there is an increase in competition for the businesses which require a change in the way businesses use to make their financial reports and regulate their operations (Kaplan, 399). Due to poor stock market performances of the 1920s, business directors started focusing on creating the financial report as a financial reporting requirement at that time hence limiting the growth of management accounting strategies. As a result of emerging competitions among the world nations, Automobile manufacturers of Japan forced Americans and European nations to establish a broader view of business performance based on value and service as opposed to assessment based on an efficiency of output. The business performance has been undergoing a lot of changes aimed at improving their operations and increasing the managerial efficiency. The ancient strategies are inadequate to match the modern requirement for effective business operations. This is because in the modern pe riod business is focusing on cost reduction and profit maximization through technology and advancement. There is no room for errors in the current period since a slight defect could make the business to lose its entire operations to the competitors. Furthermore, businesses are focusing on minimization of the expenses through reduction of inventory. Therefore, businesses have to develop production strategies to ensure they meet daily client’s needs without surplus or deficit as a result of a deficiency of inputs.

The Challenges of Call Centre Restructuring Essay

The Challenges of Call Centre Restructuring - Essay Example Tengo Ltd., an online supplier of notebook computers, established a customer contact centre to deal with customer complaints and inquiries about the company’s products. Recently, the company decided to restructure because the HR director discovered that there is an overstaffing problem at the call centre. This decision has resulted in job losses. This essay analyses the wisdom of the restructuring of the call centre, taking into account the external factor of the labour market and job competition, as well as the components of change management, performance management, effective leadership, and employee motivation. Restructuring the Call Centre Companies are restructuring and job designs are being streamlined. The labour force and production processes have been restructured to cut down expenses, helping companies successfully reduce expenses in reaction to growing competition. The external labour market of call centres is in fact large, composed of a large pool of white-collar workers. The external labour market of call centres is global, national, and local (Butler, 2004, p. 168). Hence, restructuring of the call centre harms many employees. It is essential to be knowledgeable of the external labour market because of the differences in employee characteristics. Different work groups express different beliefs on career growth and motivation. For instance, white-collar employees have a tendency to expand their career outside the limits of a particular company (Liao, Martocchio, & Joshi, 2010, p. 94). This is what happened to Tengo Ltd. It suffered a high rate of turnover because its professionals in the customer department were not satisfied with their jobs anymore. The turnover is primarily caused by the restructuring. Corporate decisions to restructure or initiate change in its internal labour markets are strongly influenced by external labour markets. The external labour markets decide what arrangements of retention, expertise, and wage rate are appropr iate for an organisation (Sharma, 2006, p. 59). Companies, like Tengo Ltd., choose to restructure because they confronted new circumstances or external pressures. The HR director who found out the problem in retaining call centre workers with a profitable nearby call centre was certainly dealing with the new situations of the external labour market. Therefore, organisational processes are mainly determined by the relationship between managerial approach and external labour markets. External labour markets significantly restrict the capacity of strategy. As stated by a manager, â€Å"If you’re not going to be the highest-paying wage base in the area, you will have high turnover† (Kumar, 2010, p. 292). For example, Tengo Ltd, after restructuring, gives the best reward package to Level 3 employees. Hence, it experienced increase in labour turnover among Level 1 and Level 2 employees who handle customer complaints. In terms of job competition, call centres have replaced hu man labour with automated processes. Technology carries with it the possibility of new and easier ways of doing things, while carrying as well the ability to eliminate human labour and separate the worker from his/her fruits of labour. Tengo Ltd., through rationalisation, invested more in new automated computer system to improve response time and quality of customer service. However, along with this investment is an increase in labour turnover because the company tried to reduce its expenses in the training and development of new employees. However, the poor outcomes of the restructuring attempt of Tengo Ltd. cannot be entirely attributed to the external labour markets and job competition. Other factors are involved such as the psychological and sociological responses of employees to

Active Versus Passive Mind Debate Essay Example for Free

Active Versus Passive Mind Debate Essay Étienne Bonnot de Condillac an 18th-century French philosopher contended that the senses are the foundation for all ideas and other functions carried out in the mind. Another prominent French philosopher, Renà © Descartes supported the Rationalistic theory; an explanation of behavior based on logic that has nothing to do with the senses. Condillac’s Sensationalism premise and Descartes theory of Rationalism serve as fuel for the classic active versus passive mind debate. The passive mind theory suggests that all learning occurs through the experience of sensations, in the absence of voluntary mind control processes, while the active mind theory claims the exact opposite; that individuals actively focus certain mental processes on the subject matter and the senses play no part in the process. Descartes also believed that sensory data was inclined to be false and was therefore useless, suggesting that mathematical deduction was the only path to the truth. Justin Skirry 2008 I believe that both theories have some validity. The problem arises for me with the use of the word all by Condillac, and the use of the word only by Descartes, which is what takes the theories from the moderate part of the continuum to the extreme. Sensory learning is of course a proven fact, but it is also a fact that active learning occurs as well. It is not unusual for a philosopher to be both a sensationalist and a rationalist at the same time. I tend to trust my deductive powers of reasoning more than my senses, because many outside forces can alter the senses. Take emotion for instance, I am aware of the role unchecked emotions can play in faulty decision-making. I have learned not to make important decisions when I am in a highly emotional state.

An Analysis of the Television Sitcom, Different Strokes :: Media

An Analysis of the Television Sitcom, Different Strokes Different Strokes a comedy sitcom, first aired in 1978, and lasted until 1986. This sitcom consisted of a widowed Manhattan millionaire, Phillip Drummond , who adopted two orphaned brothers. Arnold who was 8 years old and Willis who was 12. The boys' mother was Drummonds housekeeper who became very ill, so Drummond made a promise to her that he would take care of her two sons after she passed away. Drummond treated the two boys like his own. He also lived with his daughter, Kimberly, who was 13 years old, and his current housekeeper. This sitcom showed typical life lessons in growing up, and social problems that were occurring during that time. Some of the aspects of this show were both positive and negative. Positive Aspects In this sitcom there are several different ways in which minorities are positively portrayed. For instance, even though Arnold and Willis were two brothers of another ethnic background and race, Drummond who was a Caucasian millionaire still took these boys in. Another example of positive portrayal is that Drummond also called Arnold and Willis his â€Å"sons† not just his adopted children. He raised them as if they were his own children. The third example of a positive portrayal is that in this sitcom they showed evidence of social problems, such as racial discrimination. They realized that it did exist and that it was a problem. Finally, this sitcom also showed how blacks and whites could live equally and be happy together. These four portrayals are definitely positive and show how two minorities were portrayed in â€Å"Diff’rent Strokes†. Negative Aspects Different Strokes, which was first televised November 3, 1978, was one of the better, most influential shows of that time. This show was a perfect example of how minorities were portrayed to be unable to support themselves. The African American family characterized in this show was a single mother family, leading to the belief that most African American children were without a father in their lives. In agreement with the stereotypes of the time, their income was also low because the mother was a housekeeper. The audience may presume that she had no other skills than housekeeping which leads to the negative belief that African Americans have no job skills. In addition to these family problems and income issues, the children spoke slang and were even referred to as ghetto.

Chris Herren Unguarded: American Dream or American Tragedy?

Chris Herren is a star and an icon of achievement that America has had. This young man has made remarkable strides in bringing American dream to come true. This is a dream that dictates that every American should not just strive to seek for what the nation can do to them but rather they should bring something to the state. Herren is doing these things through the organization that he has formed as discussed in the paper. However, coming to recognition and an appreciation as to whether Herren is an America Dream or American Tragedy is a matter of discussion.This paper analyzes this dilemma by examining the life of Herren right from high school; and how he has pursued his dream (Reynolds, 90). The paper brings and discusses the bad influence that this young man has had in the country. Hreen has been recorded to be one of the players that have been in constant use of drug for a long time. This paper however depicts Herren as a productive man to the United States of America. Herren, a yo ung man with a predictable bright future joined Durfee School, which is located in Fall River.The young ambitious gentle man started the journey of his life and everybody who knew him saw light and life in him. Like any bright chap, he passed his final exams, which made him to be recognized among students. This made him to be awarded scholarship at the University of Kentucky and Duke University. It is in the America dream to invest into the education of its citizens. Through education, America empowers human resource to come up with a stronger society. This is a nice move to make for any government. This is why the American government invests in the education of young fellows like Herren.Herren was indeed a star that the government had while he was in high school. However, the young man had a different influence from his childhood. Herren was living with his family in Durfee. In Dufree, this family was deeply engrossed in basketball as a game. The culture of this family had influenc e in the life of Herren. The young man developed strong passion for basketball that he made decisions to follow his passion. One of the key ways through which one becomes self actualized is to follow one’s passion and achieve what one so desire (Elsemann, 54).This pursuit of basketball as career made Herren to overlook and turn down the scholarship offer that he from Duke University and Kentucky and Boston College. Herren seemed to be a disappointment to the desires of the nation, which yearn to have all its citizens educated. Herren seemed to be a disappointed to the government but his choice was yet to bring him to the light of stars. Herren is an icon of faith and an inspiration of pursuit of one’s goals. Fortunately, because his dreams were aligned to the major of Boston College, he joined the college purposely for basketball.His performance were marked by excellence that his name dominated the Rolling Stone and Sports Illustrated of Boston. He worn many trophies a nd brought pride to the nation. His victories were recognizable achievement that could not be ignored. Everybody was happy with his achievement. However, this recognition and honor did not last for long. Herren apparently fail several drug tests. This is a disappointing episode in Herren’s life. Nobody could admire to associate with his name in spite of his achievement. Drug is a very destructive thing more so cocaine and marijuana whose tests he failed.As a star and an icon in basketball, this could act as a means of perpetuating drug abuse. This is because people like identifying with stars especially his funs. In the event followers realize that their star is in drugs, chance are that they would start using the same drug that their star is using. This is a bad influence to the American community. This is destructive and this shutters the dreams of the U nited States of America. Having such kind of stars and celebrities in a country who do not honor the rules of the land is not of any benefit but agents of destruction.The law requires none to break the laws. When one is a star but does not honor the constitution, then such a person ceases to be the pride of a nation but rather a burden and a lose to the state. Heroes never give up after a tragedy has befallen them. They rise up again and continue with the pursuit of his desires. After Herren had been suspended from school, he did not just sit back. He never gave up. He sought other means and he decided to dream again to enable his talent to be utilized. The young man joined Fresno State University purposely to join the basketball team and become a star.While playing at Fresno State University, Herren broke his hand: a tragedy that made him to take a period of three years to heal. Immediately after healing Herren was taken for taste to confirm his medical status. Unfortunately, Herren failed another drug test. This was disappointing especially to a star. As an admirable person, he could not be left jus t to handle himself, rather he was taken to the rehabilitation center where he was taught and helped to overcome the use of drugs. This aspect of accepting a personal weakness is a thing that has killed many people.It takes courage to accept ones’ present condition to adopt a brand new life. This is good for a nation because there are people who are struggling with addiction but cannot open up. Herren is a good example to those who are under the influence of drugs. After the Herren had returned from the rehabilitation centre, he joined the team and he skillfully worn many trophies. He made his team to be proud of him and the nation esteemed him as an astute player. Recognizing a weakness and accepting intervention measures is a good thing to do in life when one has the intent of changing.While at the Fesno State University, Herren made remarkable achievements in his basketball career. He excelled well that every club wanted to hire him. In advancing his career, he opted to jo in NBA Draft. This team selected him because he was an excellent performer. Herren entered Denver Nuggets with 33rd overall pick in the second round. While in the team, he played 70 games of which he helped his team to bring victory home. After he was released by the Celtic, Herren opened up his world and opted to advernse his career further. The young man opted to play for various clubs.He played for teams in Italy, Poland, Iran Turkey, and Turkey. While in these countries, Herren made remarkable achievements in his basketball career that he became an icon in basketball. He became a figure of emulation and an icon of inspiration. Whenever he was playing, thousands of people could throng the coat because of his professionalism in the game. The man was so skillful; and while he was a broad, he maintained his identity like an American without betraying his country. The country was proud of him because of the international face and values he brought to the country (Zapata, and David , 321).Herren comes out to be a man who does not get discouraged in spite of the challenges in life that he has passed through. He does not allow his dark past to blur his vision and the continuous desire to be a star. Herren is one of the key figure that the nation can point at and make a declaration that surely dreams that people often have can actually come to pass. Herren in real sense, has been related to the abuse of drugs of all kinds. Sometimes, it would be very difficult to celebrate his achievements because it could be true that he was propelled, and motivated by the drugs.It is not possible to relate national pride to a drug addict. Herren had had several felnies directly linked to drug deals. This could be dangerous for the upcoming generations as well as the young people who look up to him as an icon of emulation. Herren has even been charged with the crime of possession of heroin. This act is not acceptable to the state and by the state. While he was advancing his career at NBA for the Boston Celtic, he embarked on the use of painkillers like OxyContin, and Percocet. Herren even became a careless person who could not control his rationality after using drugs.He had been noted driving under the influence of drugs: a thing that made him cause accidents along the city highways (Dell'Orto, 231). This depicted a bad picture of him. He was not a person of a perfect example in spite the excellence of his performance in basketball. This young player was in the verge of destroying himself and destroying the lives of other. He has become a bad example to his funs and a destructive person to humanity. By abusing drugs, he promotes the sale of illegal drugs and by using them openly; he is directly influencing others into the same.This disqualifies him from being in the spheres of the American dream to the tragedy of America. Herren had had series of counseling which were purposed to help him quite drugs and just be a free man sober and rational in thought and in everything, he does. He thus joined an intensive program of recovery, which demands discipline to adhere to the schedule. It is appreciable accoding to the Art Papers( 46) It is good news to here that even those who have been abusing drugs stubbornly can recover from the abuse and be people who can be admired in life. Herren became one of these people who have undergone rehabilitation and made great  strides of change.Since August 2008, Herren has been drug free and he is in a serious move campaigning against the abuse of drugs. He is not ashamed of his past but rather he is categorically telling people the harmful effects of drug abuse and addiction. Other than advancing the mission of drug awareness campaign, Herren desires to share his life and talent with other young people who have passion in basketball. He thus launched the â€Å"Hoop Dream with Chris Herren† an organization that trains young basketball players in the court and off the court (Frankfurt, 76).He desi res to raise basketball stars in America who can advance the dreams of American as a victorious nation in all industries. Herren has released a documentary giving the detailed account of his life on and off the court. He has talked extensively of his life and the struggles that he has undergone as a person. This documentary has greatly influenced the thought of Americans on drug abuse and addiction. This has propelled him to the table of American admiration. Herren now has something to offer to Americas.He is an asset to the state he is a person of great value to the great nation in spite of his dark past. Life needs people who do not stick to their paste however much dirty they may be (Slone, and Friedman 154). Life is proud of people who desire to change and contribute to the well being of other. Success; real success requires one to leave those who would advance what has been started. This is a good gesture to the Americans. Herren is exactly in the America dream though he starte d it on a bad note of hurt hacks and great disappointments.

Maslow s Hierarchy Of Needs - 1295 Words

What is the idea behind Maslow’s hierarchy of needs (p. 379 in EP)? Outline each level and discuss how it relates to motivation. Abraham Maslow was born in 1908 in Brooklyn, New York. He originally studied law because of the influence of my parents, but after marrying his first cousin, Bertha Goodman, and moving to Wisconsin, he became interested in psychology. After achieving his Masters in Psychology, Maslow moved back to Brooklyn and started teaching at a school there. â€Å"One of the many interesting things Maslow noticed while he worked with monkeys early in his career, was that some needs take precedence over others. For example, if you are hungry and thirsty, you will tend to try to take care of the thirst first. After all, you can†¦show more content†¦Before a student s cognitive needs can be met they must first fulfil their basic physiological needs. For example a tired and hungry student will find it difficult to focus on learning. Students need to feel emotionally and physically safe and accepted within the classroom to progress and reach their full potential. (Saul McLeod)† Despite the studies and reasonings behind the hierarchy of needs, there are many psychologists and theorists that do not agree with the science behind the hierarchy. For example; A person without a home, or physiological safety, could achieve relationships with people around them, or love and belonging. However agreeable the hierarchy is, it can be incorrect at times. The first level of Maslow’s hierarchy is physiological needs. This level deals with food, shelter, warmth, water, sex, and bodily functions. According to Maslow, if a person does not have stability in any of these areas, they would be anxious and unable to proceed into the next level of human needs. The second level of Maslow’s hierarchy is safety needs. Safety includes order, routine, safety of job, a family safety, and reliability of government/society. These are all related to consistency. If a person does not have a consistent paycheck or place to live or person to be around, they would be unable to p rogress into the next level of human needs. However, when stability is achieved, the individual can proceed to the next level. The third