Alienating Customers?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Video Updates.

Microsoft confirmed it will acquire the studio that created the hit “sandbox” game Minecraft for $2.5 billion, a move that could help bolster the company’s Xbox and mobile ambitions. Questions: 1. According to the article, how does this acquisition strengthen Microsoft’s battle with other technology driven companies? 2. Why does the video hypothesize that Microsoft… Read more »

Payroll Accounting Fraud

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

A former accountant for the University of Sioux Falls has been indicted for wire fraud for reportedly collecting more than $25,200 in unearned paychecks. Brent Alan Fowler, 52, faces 20 counts of wire fraud for individual payroll deposits. Questions: 1. What is the potential jail time for Mr. Fowler, if he receives the maximum punishment?… Read more »

European Backlash!

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According to the New York Times, across Europe, Google has been under fire. This reflects the broader challenges facing American technology companies. Fairly or not, Google has become a glaring proxy for criticism of an intrusive American government and concern over America’s unmatched technology dominance. Questions: 1. What other U.S. tech companies are being carefully… Read more »

Watch Out! They Know Where You Live!

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Eric Merklein, 67, didn’t know he had outstanding student debt until he received his first Social Security check. He thought that his grandmother had paid it off. Unfortunately, Merklein is among the more than 2 million Americans age 60 and older carrying student debt, which is up from about 700,000 in 2005. Questions: 1. What… Read more »

Rip Off: We Work Hard for the Money!

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Although Guadalupe Rangel worked nearly 70 hours per week, he never saw any overtime pay at the Schneider warehouse in Mira Loma, California. As a result he joined a lawsuit involving hundreds of warehouse workers where he will likely receive more than $20,000 in back pay as part of the recent $21 million legal settlement… Read more »

Bad Blood

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Questions: 1. Explain why this is such an unusual labor action. 2. Based on John A. Davis’ blog, what could the board chairman do to help rebuild family unity and commitment to Market Basket? 3. At this point, Market Basket as a continuing entity is hemorrhaging financially. From a corporate governance standpoint, do you think… Read more »

Is Herbalife a Ponzi Scheme?

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Herbalife is a company that sells weight loss shakes, vitamins and other similar products worth billions of dollars. The company has been around for more than 30 years. It is traded on the New York Stock Exchange. So what could be more legitimate? Bill Ackman, who manages a hedge fund thinks the whole thing is… Read more »

A Complex Financial Crime Story

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Stephen Flatow, a grieving father, charged that Iran financed the Gaza bus bombing that killed his 20-year-old daughter in 1995. Buried in court filings, the suit alleged that money from a charity “fronted” financial transfers to terrorists from the Iranian government. In fact, the charity, known as the Alavi Foundation, actually operated and owned a… Read more »

Maybe This Will Catch On?

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Complaining of low profit margins that generally accompany inexpensive menu items, most fast-food restaurants try to keep wages down. However, some fast food chains are seeing the benefit in paying employees above minimum wage and even above the median hourly wage for fast-food workers nationwide of $8.83, because it allows their workers to opportunities to… Read more »

The Dirty Little Secret of “Cramming!”

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On July 1, 2014, the Federal Trade Commission (FTC) accused wireless carrier T-Mobile of adding bogus charges to customers’ accounts without their consent, in U.S. District Court. Questions: 1. How long did T-Mobile use the practice of “cramming” on customer mobile phone bills and what is the estimated amount of the total fraudulent charges? 2…. Read more »