Accounting

Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting. Instructions: Read the following scenario. Answer the questions that follow. This will be a 2-3 page submission in a question and answer format (also in paragraph form). An introduction and conclusion is not required. Refer back to your textbook for guidance on how to think through the scenario. You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your immediate supervisor is the controller who also reports directly to the VP of Finance. The controller has assigned you the task of preparing the year-end adjusting entries. In the receivables area, you have prepared an aging accounts receivable and have applied historical percentages to the balances of each of the age categories. The analysis indicates that an appropriate estimated balance for the allowance for uncollectible accounts is $180,000. The existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new category. This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you “We need the extra income, the bottom line is too low.” Required: In a 2-3 page paper, discuss the following: Consider what you have learned relative to ethics and financial reporting. What is the rationale for the calculations/process used to estimate the $180,000 uncollectible allowance? How do you think the misstatement of funds will impact the income statement and balance sheet? What is the ethical dilemma you face? What are the ethical considerations? Consider your options and responsibilities as assistant controller. Identify the key internal and external stakeholders. What are the negative impacts that can happen if you do not follow the instructions of your supervisor? What are the potential consequences if you do comply with your supervisor’s instructions? Who will be negatively impacted? Additional Requirements: Use at least one (1) quality academic resource (in addition to your textbook) for this assignment. (Textbook: Accounting Principles Volume I 13th Edition by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso) Note: Wikipedia and similar websites do not qualify as academic resources.

Question 1. Identify which basic principle of accounting is best described in each of the following items: (20 points)a. ABBA Company, in addition the Financial Statements, publishes also notes to its financial statements and supplementary information. (5 points)b. Gamma Co. reports trading investments on its statement of financial position at their estimated fair value. (5 points)c. EdilCentro recognizes supplies cost as an expense when using them, instead of when purchasing them. (5 points)d. KCC Co. records revenues when it performs a service for its customers even though cash is collected later. (5 points)Question 2. Presented below is information related to Brown Co (amounts in thousands) (80 points)Interest revenue € 30,000 Sales revenue 2,800,000 Sales returns and allowances 120,000 Sales discounts 36,000 Cost of goods sold 1,000,000 Advertising Expense 200,000 Sales Commissions 160,000 Salaries of Sales personnel 240,000 Depreciation of Office Buildings 120,000 Office Supplies Expenses 68,000 Other general expenses 80,000 Interest expense 160,000 Gain from sale of equipment 320,000 Loss from sale of a division 80,000 Dividends paid on preferred shares 18,000 Assume the total effective tax rate on all items is 20%. 100,000 ordinary shares were outstanding during the year Required Prepare an Income Statement. (80 points)

Pick a large company that does business in your community and view their financial results. For the most recent year, list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? Is your company a profitable company? How can you tell?

Write a  report of important information contained on your State Board of Accountancy website. If you are an international student, then select the state or territory of your choice. You may locate the website for your state or territory by going to AICPA.org.  Click on Advocacy > State > State Contact Info, then select your state or territory. Include the following in your report: 1. Specific educational requirements to sit for the CPA exam and, ultimately, to become a CPA; 2. Experience requirements; 3. Fees for CPA license and examination; 4. Information about ethics; 5. CPE requirements; and 6. Other information provided on the website.

This class is taught on the basis of real world examples in the accounting profession where auditors, tax preparers, advisory groups, etc. all work as teams and in groups to do projects for clients. In the group project, each student has been assigned a team and two sets of publically traded companies which they will analyze and compete against the other team to influence an investor who has hired them to invest in the stock of their assigned company. The group project is subjective and there is no one correct answer. It depends on how you and your group determine the best way to format, analyze and present to the investor in both a written analysis and an oral presentation. Written analysis needs to be approximately 15-25 pages. VIDEO presentations for each group should be 12-15 minutes. Detail individual: 1. For this project, the company you are assigned is Keysight Technologies. 2. Please read the Project Requirement carefully. 3. The topic you need to discuss is 8 & 10. – 8. Identify areas where you feel management may manipulate earnings? 5% – 10. Determine a CAPM and Beta based on information in the book. Be reasonable here, often there is no one correct answer 5%. 4. Write 2 page of the topic and you can insert chart if needed which is not count as a page.  5. Please watch the example project I provide ( Costco, Target) before do the project. 6. Due is September 1 (Tuesday). 7. The resource for the project you can find from the following website: – Google Finance, Yahoo Finance, & SEC.gov

Prior to beginning work on this discussion, please read the articles “Who Needs Budgets?     (Links to an external site.)  in the Financial Planning page of the CFO Edge website, and Traditional Budgeting Versus Beyond Budgeting: A Literature Review  (Links to an external site.) . In the words of GE’s legendary ex-CEO Jack Welch, Jack Welch, “The budgeting process at most companies has to be the most ineffective practice in management. It sucks the energy, time, fun, and big dreams out of an organization (…) [and] brings out the most unproductive behaviors (…)” (Welch & Welch, 2005, p. 189). Some argue that the purposes of budgeting can be achieved without the conventional budgeting process. These companies espouse an idea called beyond budgeting that proposes to replace annual budgets with rolling forecasts of key performance indicators (Hope & Fraser, 2003). Others disagree, pointing out that the work of continuous planning is costlier than budgeting and that doing something continuously tends to make the process superficial. So, the jury is still out. But so far, GE still prepares budgets! Discuss in 200 words whether the controversial concept of beyond budgeting is a better approach for financial planning and analysis (FP&A) than traditional budgeting.

You have recently hired several new members to your team who will be assisting with financial statement analysis for your clients. As part of their training, you want to make sure that they fully understand the requirements of the SEC regarding financial reporting and the tools available to analyze the financial performance of a firm. Explain all of the following: outline the governing authorities over financial reporting outline the financial reporting requirements of the SEC describe 2 tools one could use to analyze the financial performance of a firm describe the tools explain how each might be useful in the analysis

In a professionally written document, discuss what the financial statement notes tell the user about the topics you choose from the list below. Pick three of the following topics: Equity (common stock, treasury stock, and dividends) Investments (held-to-maturity, available-for-sale, etc.) Revenue Recognition (percentage of competition, installment sales, etc.) Full Disclosure (segment reporting and subsequent events) Pensions and Retirement Plans Leases (capital and operating) For each topic, address the following items in 250-500 words for a total word count of 750-1,500 for all three topics: A discussion of the topic. Include a description and the significance to GAAP. A summary of the financial impact of the topic for your company. Describe how it is reported on the balance sheet and income statement. A summary on the importance for your company to disclose this item to users.

Fortune magazine is headquartered in the United States. This magazine is well-known for regularly reporting ranked lists such as the Fortune 500 list. The Fortune 500 list details the top ranked U.S. based companies according to company revenue. This list can be useful to investors and also to competitors. For management accounting, it is important to be aware of other company trends, strengths, and challenges. For discussion, visit the Fortune 500 ranking list (Links to an external site.) and scroll through to select a company.  (Links to an external site.)This discussion board focuses on the following student learning objective(s) as it relates to the course objectives (CO) described under the Getting Started – About This Course page: apply critical thinking skills to consider and evaluate written cases to effectively formulate meaningful, relevant written communications to accounting issues. (CO1, CO4) General Instructions: For this discussion, you will be responsible for reviewing the list of 500 companies and selecting 1 company to discuss. Complete and submit the assignment by 23:59 EST Wednesday. The second post instructions are listed below. Your final response will be due by 23:59 EST Sunday. Detailed Instructions: Review the list of 500 companies for a company that makes or sells a product. Do not select Walmart for your company. I will be using Walmart for some examples later in the course.  When you click on the company name, you are directed to specific information about that company. You can also see a link for the company website. Click on the company website link. Search for the “2019 annual report,” which will contain the financial statements and information from the company to the public (shareholders/investors/or customers) and the management discussion and analysis. Save the 2019 annual report as you will be using it later in the course. Note: There are different types of financial reports. You are looking for the “annual report” because it contains the final audited complete financial information. On the discussion board, tell us the following: • What is the name of the company? • Why did you choose this company? • At least 2 interesting things (in detail) that you learned from reviewing the annual report. I would expect at least 1 paragraph for each thing. • Be sure to copy and paste the company link into your discussion. You will be graded based on following instructions, critical thinking, well-developed response, clear and concise, and mechanics such as grammar, punctuation, and sentence structure. Please see the enclosed rubric for more details. To avoid plagiarism, please be sure to follow APA format and cite the reference where needed. If your comments are in your own words, it is not necessary to quote or cite the reference. To assist you with grammatical concerns, you may find the following link helpful https://www.englishgrammar.org/

As with the accounting field in general, auditing continues to see significant changes in principles and procedures. Additionally, as information technology continues to advance, the way we conduct audits can change. It is important to keep up with trends in our industry to prepare for the future of auditing. We also need to be familiar with the pitfalls of auditing. We should focus on audit quality and learn from prior audit failures. Search the internet or the Shapiro Library to find a scholarly article related to current trends in auditing or audit failures. Summarize the article and provide the link. If you chose an article related to trends, what trend do you find most concerning and why? If you chose an article related to an audit failure, explain why the audit failure occurred and provide at least one suggestion on how the audit failure could have been avoided. Explain how the article you presented confirms or changes your opinion on the current climate in auditing.