Summarize the events of a recent accounting scandal

Discussion questions

Instructions: No word count limit Just be sure to answer all parts of the questions


Module 5 Discussion

1. Summarize the events of a recent accounting scandal.

2. Identify how the illegal/unethical act was detected and the punishments that resulted (fines, prison terms, etc.).

3. What could have been done to detect this act earlier.

4. What could have been done to prevent this from happening in the first place.

IMPORTANT NOTE:  Be sure to consider the core value(s) of responsible stewardship and/or integrity in your responses (particularly with item 4).

Module 6 Discussion

1. How is the cost of a lump-sum purchase allocated to the individual assets acquired? Provide a simple example of how the allocation would be performed if your company paid $1,000,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,200,000 for the 3 asset components $400,000, $500,000, and $300,000, respectively.

2. Does the balance in the Accumulated Depreciation – Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?

3. Assume you work for a company in sales and therefore are entitled to not only hourly pay, but commission and bonus as well. You work 40 hours in a payroll week. Calculate your gross pay for your company if you make $x per hour (you select your rate!), earn a 5% bonus (of gross pay), and earn 10% commission (of gross pay).

4. Unfortunately, you do not get to keep all your Gross Pay. Assuming you have the following withholding deductions taken out of your pay, now calculate your Net Pay.

Withholding deductions:
Employee income tax (20%)
Employee OASDI tax (see book for how to calculate)
Employee Medicare tax (1.45%)
Employee health insurance 75
Employee contribution to United Way 20
Total withholdings:

Module 7 Discussion

In this Module, we learn about Stockholders’ Equity (Chapter 13).  This week’s discussion questions are as follows:

1).  Discuss the difference between authorized shares and outstanding shares. 

2).  Are there other classifications of shares that are important to consider?

3).  What are treasury stocks and why do companies engage in their purchase?

Module 8 Discussion

   1).  What is the reporting purpose of the statement of cash flows? Why is this important to investors?

      2).  Summarize the three types of cash flow activities, and describe at least 2 types of cash flows in EACH type of activity

      3). Is depreciation a source of cash flow? Why or why not?