Discussion Questions And Answers
When reading a history textbook you can get by if you’re able to understand 90 percent of the information or if you come away with a general idea of what’s going on. If you understand a concept being introduced, then it’s okay to skim the text or skip ahead.
In cost accounting, money is cast as an economic factor in production, whereas in financial accounting, money is considered to be a measure of a company’s economic performance. Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows. The Satyam governance structure lacked the most important component of governance − independence − which is critical to establishing checks and balances.
Questions To Ask About Profit
You can increase sales by offering discounts, decreasing your prices, participating in nationwide events like Small Business Saturday®, and more effectively market your products. You must collect sales tax from customers if your business has a physical presence in a state that enforces the tax. Your state, county, or city determines the sales tax rate you must collect. To price your products or services, you need to know your target market and competitor prices.
In another factory, the equivalent production was 7,000 units during a period in which 500 units, 75% complete, were on hand at the start and 600 units,75% complete, were on hand at the end of the period. Why are units completed and on hand in a processing department included in the department’s work in process? The statement of financial position shows the company’s assets, liabilities and shareholder equity. In general, the role of accounting is to asset stakeholders to make efficient business decisions by providing them with accurate financial information. Some of the limitations of the trial balance are that it does not prove that transactions have been analyzed and recorded in the proper accounts and/or for the proper amounts. In what accounting period does the matching principle indicate that an expense should be recognized? The matching principle indicates that expenses should be recognized in the period that the expenditure helps to produce revenue.
Chapter 2: Types Of Corporate Fraud
Mastering accounting is as easy as mastering the homework problems in your textbook, in study guides and those given to you in class. If you will work on your homework problems, you will learn accounting. Studying accounting from a textbook is different from studying other subjects such as history, economics or biology. The following are rules and suggestions for using your textbook effectively to learn accounting.
And the hiring market is competitive, with a high demand and limited supply of candidates. According to the Association of Certified Fraud Examiners, corporate fraud spreads across 125 countries in 23 industry categories equating to $7 billion in total losses. In another survey conducted by PwC’s Global Economic Crime and Fraud Survey, 49 percent of the respondents claim that corporate fraud has affected their companies. Between 2003 and 2008, the audit fee earned by PwC from Satyam increased over 300 percent.
An income statement is one of three main financial statements you can create to observe your business’s financial health, obtain outside financing, and make financial decisions. The other two financial statements include the small business balance sheet and cash flow statement. Accounting is one of the key functions of almost any business. It may be handled by a bookkeeper or an accountant at a small firm, or by sizable finance departments with dozens of employees at larger companies. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions. Enron’s primary fraudulent activities relate to its improper use of SPEs. Enron’s SPEs contained large amounts of debt that Enron fraudulently omitted from its consolidated balance sheet.
However, inductive investigation methods produce so much data or “red flags” that investigating all of them is often too costly. Therefore, forensic accountants often prefer a deductive approach, which is a more holistic approach to finding fraud.
Chapter 5: Corporate Culture And Fraud
You can shop around for different vendors to see if you can find better deals on supplies, inventory, and equipment. Or, you could look for expenses that you can reduce or cut out altogether. Sole proprietors attach Schedule C, Profit or Loss From Business, to Form 1040 to file their small business tax return. You can structure your business as a sole proprietorship, partnership, limited liability company , corporation, or S Corp.
As with the question above, how applicants reply will show whether they’re ready for an entry-level job at your company. Don’t be afraid to ask deeper accounting questions, because when you do, you’ll get a more complete picture of the candidates and a better sense of how they’ll work with your team. Their answers can reveal key insights into both hard skills and soft skills that will help you pinpoint the right applicant for the job. According to the accounting literature on fraud, many incentives exist to commit fraud. These incentives can be classified into self-oriented and organization-oriented incentives. They include increasing compensation, maintaining the firm’s credit rating, maintaining an appearance of strong financial performance or masking weak results, and responding to personal financial pressure. Justice Owen’s report included some important recommendations to avoid further collapse of big institutions.
Look for responses that show a recognition of the importance of general business knowledge, technology expertise, customer service orientation and specialized experience that might apply to the role. Authorities indicted both VW and Audi former CEOs on fraud charges and opened an investigation into VW’s legal team on charges on destroying evidence. FATF develops policies to curb money laundering internationally.
- List some of the more analytical functions performed by professional accountants.
- Any subject is easier to understand and remember if you thoroughly learn it the first time through.
- Regulators also rely on accountants for critical functions such as providing auditors’ opinions on companies’ annual 10-K filings.
- It’s far more efficient to review as you go than to attempt to relearn forgotten information at the end of the term or semester.
- Answers should include specifics about how candidates were involved in business metrics, such as helping to determine and monitor a business’s gross margin or the cost of finding new customers.
Definition of Deferral Adjusting Entry A deferral adjusting entry pertains to a transaction that has already been recorded in the general ledger accounts. However, at the time that the transaction was recorded, part of the… Read More. A certain factory transferred out 8,800 completed units during its second period of operation. The period was begun with 400 units 75% completed and ended with 800 units 50% completed. Assuming that the FIFO method is used, what was the equivalent production for the period? How does the FIFO method differ from the average costing method of process costing system?
Cybercrime or cyber fraud encompasses a range of illegal or illicit activities committed using a computer over telecommunications networks. Not all whistleblowing programs contain financial incentives. For example, the UK program was introduced without financial incentives, describing them as costly, ineffective, and counterproductive. In general, programs without financial incentives focus predominantly on protecting whistleblowers from retaliation. In some cases, these programs extend coverage to individuals beyond employees alone such as contractors or relatives.
Accounting Discussion Questions 4
Therefore, most companies will have annual audits for one reason or another. https://accounting-services.net/ Direct materials are not usually easily traced to a product.
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Discussion Questions And Answers
The notion of trust is a cornerstone of crowdfunding for several reasons. For example, contributors neither personally know the project holder to whom they give their money nor have guarantees such as those provided by a bank or investors investing in a listed company.
This response can lead to the behavior being repeated, with rationalizations becoming shared within the organization until the act becomes part of its routine practices. Express on opinion as to the usefulness of data, derived from process costing for the control of cost. Enumerate several of the basic difficulties frequently encountered in process costing. Statement of comprehensive income aggregates income statement and other comprehensive income which isn’t reflected in profits and losses.
The formation of the institute occurred in large part due to the Industrial Revolution. Merchants not only needed to track their records but sought to avoid bankruptcy as well.
Cash Management For Fdic Security Over Short Term Cash Spikes
Increasingly, auditors of the big firms acknowledge this responsibility, but they appear to have done so reluctantly. Different industries offer diverse targets for criminals. In financial services, the target typically has access to the payment system. Retailers are usually targets for identity theft to access online accounts and make unauthorized purchases. Manufacturers and industrial companies are subject to the loss of intellectual property or sabotage by disgruntled employees.
Managerial Accounting: Midterm Discussion Questions
The realization principle answers the question of when revenue should be recognized in accounting records. The work performed by accountants is at the heart of modern financial markets.
Essentially, cost accounting considers all of the costs related to producing a product. Analysts, managers, business owners, and accountants use this information to determine what their products should cost.
Use this question to explore a candidate’s knowledge of ledgers and as a launch pad for further discussion of skills related to the available position. A good response will reveal that the applicant has thought through how accounts relate to lines of business and generally accepted accounting principles .
Forensic accountants act as either consulting experts in an investigation or testifying experts in a legal matter. Consulting experts help counsel build a case and advise counsel as part of the investigative team. In this role, their work and communications with counsel can come within the attorney–client privilege, attorney work product. A company’s outside counsel hires forensic accountants providing litigation support services as testifying experts.