Strivant Industries is a struggling company whose profits are dropping, Manager Jill Trainor is looking at the numbers on the annual report she is preparing to send out to investors. She takes a red pencil and strikes through several numbers, replacing them with figures that make Strivant seem more profitable than it really is. This is an example of Multiple Choice O editing. auditing. O embezzling. fraud.
Q: Which of the following controls can minimize the threat of inaccurate financial statements? Backup…
A: Financial statements are formal records that present the financial activities and position of a…
Q: Suppose that a truck is purchased by a company at a cost of 150.000 TL for production purposes on 16…
A: Depreciation refers to the decline in the book value of the non-current assets. The most commonly…
Q: Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920…
A: Lets understand the basics.The income statement shows the revenue earned and expenses incurred…
Q: 4 Book Ask Print rences Check my work On January 1, 2024, Pine Company owns 40 percent (96,000…
A: Equity method: Equity method is the method used for accounting equity investments which claim a…
Q: The following transactions were completed by the company: a. The company completed consulting work…
A: The accounting equation is a fundamental concept in accounting that represents the relationship…
Q: Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near…
A: Flexible budget means the budget prepared by using actual level of activity achieved at standard…
Q: On January 1, 2023, Premium Co. purchased equipment for filing sales reports. Premium expects to use…
A: Eliminating the incorrect options:Option B. One-tenth of the cabinet costs in cost of goods sold:…
Q: irst Class, Inc., expects to sell 22,000 pool cues for $12 each. Direct materials costs are $3,…
A: On the 2020 budgeted income statement, The amount will be reported for sales = $264,000
Q: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signe Co sell…
A: Lets understand the basics.Accounting equation also known as balance sheet equation. As per this…
Q: The HIJ Partnership has decided to liquidate their business: Cash $20,000 Other Assets $170,000…
A: The liquidation schedule is prepared to sale of all non-cash assets, pay the liabilities and…
Q: Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on…
A: Journal entries are the primary entries that are recorded in the financial transactions initially.…
Q: 1. During 2016, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of…
A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…
Q: Cullumber Corporation's accounting records show the following at year-end December 31, 2022:…
A: COGS (Cost of Goods Sold) represents the total cost incurred to producing or acquiring the goods…
Q: Intel's 12/31/2020 balance sheet showed the following: 6% preferred stock, $20 par value,…
A: The paid-in capital is computed by adding the face value and paid-in capital in excess of par value…
Q: a-2. What is the trend in the net income to total assets ratio? O Strong upward movement O Strong…
A: The question is related to Rstio Anaysis.Ratio of Net Income to total assets is calculated with the…
Q: Identify the following users as either External users or Internal users. a. Customers b. Suppliers…
A: Lets understand the basics.Financial statement used by internal and external persons for the purpose…
Q: The following information was extracted from the accounting records of Roosevelt Manufacturing…
A: Cost of goods manufactured:— It is the total cost of completed finished goods transferred from work…
Q: Copr. Goed Cosmo Co. uses a job order costing system. Manufacturing overhead is applied using…
A: Total manufacturing cost is the total costs incurred in the manufacturing of product during the…
Q: ccounting type Question: For the purpose of final accounts, stoc : A. cost or market value whichever…
A: Closing stock : The value of goods that is not sold at the end of an accounting period is termed as…
Q: Joanna has taxable income in 2023/24 of £66,500 (non-savings income) and £107,000 (dividend income).…
A: To calculate Joanna's income tax liability for the UK tax year 2023/24, we need to consider the…
Q: Mary Jarvis is a single individual who is working on filing her tax return for the previous year.…
A: Answer:- Federal tax liability:- This is the tax liability of a person filing returns in various…
Q: Directly proportional to respectively.
A: The third option is the correct one.The electric field is inversely proportional to r3 & r2…
Q: On October 20, Sunland sells merchandise with a cost of $2,820 to Carla Vista for $4,700 cash. On…
A: A perpetual inventory system is a program that continuously estimates your inventory based on your…
Q: Sheridan Company manufactures toasters. For the first 8 months of 2022, the company reported the…
A: While doing analysis for a special order only Revenues from the special order and its associated…
Q: Swifty Inc. had beginning inventory of $11,000 at cost and $19,800 at retail. Net purchases were…
A: Conventional retail method used by retailers that resell merchandise to estimate their ending…
Q: All records in a file must have a unique way of identifying a particular record within that file,…
A: A primary key is a single field or combination of fields that uniquely identify a record in a…
Q: [The following information applies to the questions displayed below.]. BMX Company has one employee.…
A: FUTA -Any company with employees is required by law to pay a payroll tax under the Federal…
Q: Chuck, a single taxpayer, earns $77,800 in taxable income and $11,500 in interest from an investment…
A: Tax refers to the amount charged by the government to the individual or organization on the income…
Q: 1. The KLM Company has established the following overhead cost pools and cost drivers. Overhead Cost…
A: The objective of the question is to calculate the total overhead cost assigned to the order of Alfa…
Q: Company K operates in a jurisdiction that levies an income tax with the following rate structure:…
A: Answer:- Tax savings:- Tax saving refers to the decrease in the amount of taxes that are to be paid…
Q: Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work…
A: A cost of goods sold budget is a financial plan that lists the estimated expenses associated with…
Q: the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $…
A: Cost of goods manufactured:— It is the total cost of completed finished goods transferred from work…
Q: What is the tax benefit associated with the first year of
A: The tax benefit refers to the financial advantage gained by a taxpayer through eligible deductions…
Q: Listed below are several transactions that took place during the second and third years of…
A: Under accrual basis, revenues and expenses are recognized and incurred as and when they accrue,…
Q: Pedrotti Corporation would like to use target costing for a new product it is considering…
A: Target costing is a technique used to determine the maximum cost that a product can have to ensure…
Q: 5) Budgets can be used to motivate employees because budgeted performance levels can provide goals…
A: A budget is defined as a comprehensive financial plan that outlines anticipated income, expenses,…
Q: The objectivity standards of management accountants state that they must communicate information…
A: The management accountants are the accountants which are having the role in the business in those…
Q: Sandhill Manufacturing Company has the following data at June 30, 2022: Raw materials inventory,…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Draw V Type here to search Read aloud 7-2B-CVP Analysis, "What if?" Analysis Kevin Co.'s projected…
A: Contribution margin = Sales - Variable cost(A)Sales-(B)Variable cost=(C)Contribution margin $…
Q: Public Company Ltd. is a large, publicly held company with shares actively traded on the Toronto…
A: The crucial concepts, principles, and ideas forming part of the given case include - capitalization,…
Q: Required information [The following information applies to the questions displayed below. Following…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: The following information is taken form a perpetual inventory record. Calculate the value of ending…
A: Perpetual Inventory System may be defined as a system of records maintained by the controlling…
Q: On April 22, 2023, Carla Vista Enterprises purchased equipment for $137.720. The company expects to…
A: Depreciation is the reduction in the value of asset due to normal wear and tear and passage of…
Q: Franklin Stewart arrived at the following tax information Gross salary Interest earnings Eligible…
A: Taxable income is used to calculate a taxpayer's tax burden. The tax must be paid to the tax…
Q: 3-47 P-F:2-30A. Journalizing transactions, posting journal entries to T- accounts, and preparing a…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: During the year, Patriot Partners had $245,000 in revenues, $120,000 in expenses, and $40,000 in…
A: Retained earnings is the amount of accumulated earnings over the life of an entity that has not yet…
Q: in predicts the following sales in units for the coming four months: April May June July 360 400 420…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and loss…
Q: Scott and Bonnue, married taxpayers, earn $258,000 in taxable income and $7.700 in interest from an…
A: The taxable income is the income that is subject to tax and used to calculate the tax liability. The…
Q: On December 7, Smart Touch delivers equipment to a small retailer on consignment. The cost of the…
A: When goods are sent on consignment, it means that a business owner (consignor) sends its products to…
Step by step
Solved in 3 steps
- THE CONFUSED ACCOUNTANT Yvonne Pillar is a young accountant who came from a poor family. She was recently hired by a big company called Chameleon Co. When it was time to audit the accounting books of the company, Yvonne was instructed by her boss to manipulate the numbers in order to reduce taxes the company will have to pay the government. The company official said that if she would not heed the command, she would be terminated. The employment condition that time was really tight and the chances of finding another job are very minimal. Questions : 1.)if you were Yvonne Pillar, will you obey your boss? Why or why not? 2.) Are morally obligated to follow an order that is illegal?Peter Pan is a young accountant who came from a poor family. He was recently hired by a big company called PetraPak. When it was time to audit the accounting books of the company, Peter was instructed by his boss to manipulate the numbers in order to reduce the taxes expense the company will have to pay the Bureau of Internal Revenue. The company official said that if he would not heed the command, he would be terminated. The employment condition that time was really tight and the chance of finding another job is very minimal. Question: If you were Peter Pan, will you obey your boss? Why? Or why not?"Dennis Jones, an old college friend, contacted you last week. Dennis owns several car washes, and he believes that financial statement fraud may be occurring. (He pays each car wash manager a bonus if a certain level of profits is earned and is worried that some managers are overstating profits to earn a higher bonus.)Dennisiscomingovertoday to see whether you can help him determine if his suspicions are valid. He is bringing along the financial statements for each car wash (income statements, balance sheets, and cash flow statements) for the last five years.1.What kind of financial statement analysis could you perform to help Dennis detect possible fraud?"
- Hannah Montana is interviewing with public accounting firms to become an auditor. Hannah does not believe that fraud is a "big deal" in client organizations and argues that most individuals in management of companies are "honest people". She believes that auditors are becoming too cynical. Describe your response to Hannah's attitude and discuss the major types of fraud that occur in companies.Jane Ellerby and Sam Callison are discussing the recent fraud that occurred at LowRental Leasing, Inc. The fraud involved the improper reporting of revenue to ensure that the company would have income in excess of $1 million. What is fraudulent financial reporting, and how does it differ from an embezzlement of company funds?Identify the fraud triangle risk factor (Opportunity, Pressure, or Rationalization) in each situation. 1. The business has no cameras or security devices at its warehouse. 2. A worker sees other employees regularly take inventory for personal use. 3. Payroll manager feels she is greatly underpaid. 4. No one matches the cash in the register to receipts when shifts end. 5. Managers are expected to grow business or be fired. 6. Managers are told to make extreme cuts in expenses. Opportunity Rationalization Pressure Opportunity Pressure Pressure
- Accounting In a description of a fraud scheme at Sharefore Inc., an analyst writes: “The next quarter, analyst expectations are higher, but sales have not picked up. The firm provides additional incentives to its sales force, uses overtime to boost shipments but now has additional expenses to contend with (incentives and overtime), so it does not fully accrue all its consulting expenses. Third quarter rolls around and sales still haven't improved enough, but the analysts keep increasing targets. Because this time, operating tactics are not sufficient, management pressures the CFO to meet analyst forecast numbers. The CFO becomes aggressive in the interpretation of installment sales and expense accruals. As expectations keep rising, so does the firm's stock price.” What form or forms of financial statement fraud is this? Where would we expect to see the impact of this form of fraud in Sharefore Inc.’s financial statements?You read that there is no generally accepted definition of ‘earnings management’. Using your accounting knowledge, your own research and textbook reading to define, describe, and analyze: When will earnings management be acceptable? When will earnings management become a fraud? Fraudulent earnings management is often identified by two adjectives. What are the two adjectives? How should each of the two adjectives be defined in the context of this week’s lessons on ‘financial reporting fraud’? Include a biblical application in your analysis.The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…
- Otis is the CEO of Bay Corp. The company has been struggling for the last few years and is in danger of defaulting on several of its bank loan covenants. Otis is facing significant pressure from the board of directors to turn the company around. Unless he meets all of the financial goals for the year, he will be out the door without a golden parachute. To improve the financial appearance of the company, Otis undertakes a scheme to boost the balance sheet by faking inventory. The analysis of what financial ratio would most likely bring this scheme to light? Inventory turnover Quick ratio Collection ratio Profit marginUpon hearing that you are enrolled in a fraud class, a manager of a local business asks, “I don’t understand what is happening with all these major scandals such as the Bernie Madoff scandal, the Goldman Sachs accusations, and the Enron fraud. There are billions of dollars being stolen and manipulated. How can any good auditornot notice when billions of dollars are missing?” How would you respond?Companies often try to keep accounting earnings growing at a relatively steady pace, thereby avoiding large swings in earnings from period to period. They also try to meet earnings targets. To do so, they use a variety of tactics. The simplest way is to control the timing of accounting revenues and costs, which all firms can do to at least some extent. For example, if earnings are looking too low this quarter, then some accounting costs can be deferred until next quarter. This practice is called earnings management. It is common, and it raises a lot of questions. Why do firms do it? Why are firms even allowed to do it under GAAP? Is it ethical? What are the implications for cash flow and shareholder wealth?