He goes on to say in the second misperception, “college graduates are finding it harder to get good jobs with liberal arts degrees”, but “the recession has no differentiated among major fields of study in its impact” (192). Ungar believes students who focus on one particular field of study do not learn necessities such as writing and literary texts, and this puts them at a disadvantage when compared to a liberal arts graduate. While long-standing jobs, such as doctors and lawyers, will not become extinct soon, liberal arts graduates have a better chance of employment in most areas. 95% of employers surveyed would give hiring preference to graduates with skills to contribute in the workplace. 74% would recommend a liberal arts education to a young person they know today, so they will be prepared for success in today’s global economy.
In groups of three or four, make a list of possible reasons that the actual ending inventory might not agree with the ending inventory according to a computer system. Jason Tierro, an inventory Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This year, Jason was very busy due to a shortage of personnel at the company, so he decided to just estimate the amount of ending inventory instead of doing an accurate count. He reasoned that he could come very close to the true amount because of his past experience working with inventory.
The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further Profitability.
The reason for increased operating income is the deferral of fixed manufacturing overhead contained in unsold inventory (Chapter 9: Absorption/Variable Costing, n.d.). * One motivation for an undesirable buildup of inventories could be due to the fact that a manager’s bonus is based on absorption-costing operating income. * Top management, with help from the controller and management accountants, can take several steps to reduce the undesirable effects of absorption costing. * Focus on careful budgeting and inventory planning to reduce management’s freedom to build up excess inventory. * Incorporate a “carrying charge” for inventory in the internal accounting system.
In such cases, the auditor will likely issue a: • Question 18 Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern? • Question 19 The members of a client's "audit committee" should be: • Question 20 Which of the following services are allowed by the SEC whenever a CPA also audits the company? • Question 21 A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to: • Question 22 Under the AICPA independence rules, the
One could argue though, that receiving a five year employment borderlines financial benefits especially given the worsening financial position of Pharma. Adams and Barker also lacked diligence in investigating the proposal, decision, and transaction and never consulted outside experts. “Directors’ and officers’ decision-making procedures must be set up in a way that allows careful decisions to be made regarding the best interests of the corporation”. (The Legal Environment of Business, 2011) The argument could be made both ways about protection by the business judgment rule concerning rational belief. For Pharma to survive and become viable it was obvious that some decisions had to be made, but was the sale of the assets in the best interest of the corporation, or was it in the best interest of Adams and Barker?
How would corporate management and the accounting function be better organized? The management override of control： Based on the case, Michael himself override the control of company for several times. For example, approved invoice of $5000 or more for payment, processing wire transfers and cashier’s checks outside of accounts payable system did not require his approval. Have difficulties on IT and maintaining effective accounting system: the computerized accounting system was almost 30 years old and did not have sufficient controls. Didn’t set up good “ tone at the
It nearly destroyed him emotionally, which is why he retired to everyone’s surprise in 1997 at the age of 54, just a year after the fraud began. To avoid an ethics meltdown of the proportions that lead to the accounting fraud at HealthSouth, Beam advised that companies support their goals with values, create a culture that allows employees to speak up and report things safely, ensure that the board is strong, avoid conflicts of interest and have clear rules about conflicts of interest and be aware of the basics of economics and economic cycles” (para. 8). In hindsight, the choices that were made do not seem so financially brilliant. However, at the time, it seemed like the only way out.
By 1933, many people had lost their faith in the banking system because of the widespread bank failures. The more important thing that FRD had done was the Fireside Chats. FDR used simple language explaining about his New Deal policy and the issues of public concern. This informal speaking made the people thinks that the president was just talking beside them. After that in the same year, FDR regulated banking and finance by Glass-Steagall Act and Federal Securities Act.
Arthur Andersen is perhaps best known as an accountant and consultant that served Enron, among many other major firms. Many students today probably only known Arthur Andersen in a negative context, but before becoming entangled with Enron and going out of business it was one of the “Big Five” accounting firms, and was highly respected. In addition to profiling the firm’s lengthy history, the case goes into details over its dealings with major clients. The case also describes some of the trials and tribulations the firm experienced in its final years, particularly as it placed increasing weight on its consulting service—even positioning it to compete with its more well-established accounting unit. This case provides details of some of Arthur Andersen’s court cases that led up to the firm’s demise, as well as aspects of the company’s corporate culture that allowed for misconduct to occur.