Posts Categorized: Accounting Principles

Want to open a franchise?

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Intermediate Accounting, Managerial Accounting.

Because Papa John’s is trying to recruit franchisees for new restaurant growth, it is offering enormous discounts to potential U.S. operators. Based on the information in the article, Papa John’s says the incentive package is worth roughly $60,000. Questions: 1. What are the fees that Papa John’s is temporarily waiving? 2. Using the minimum investment… Read more »

Arbitration Lurks in the Fine Print

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Managerial Accounting, Uncategorized, Video Updates.

In this article, the New York Times found that arbitration rules tend to favor businesses, and judges and juries have been replaced by arbitrators who commonly consider the companies to be their clients. According to the authors, this has created an alternative justice system with conflicts of interest. Questions: 1. What types of claims are… Read more »

Paranoia or Internal Control?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Red Star Operating System is North Korea’s homegrown computer operating system that mirrors its political one. The latest version (circa 2013) is based on a version of Linux called Fedora and has the feel of Apple’s OSX. Questions: 1. What are the two major challenges the article said that Pyongyang faces? From an international business… Read more »

Whistleblower in an Unusual Case

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

According to Newsweek, David Danon, a former Vanguard tax lawyer, became a whistleblower two years ago when he filed formal complaints with the Internal Revenue Service and many state taxing agencies claiming that Vanguard’s low fees are an illegal tax dodge. Questions: 1. According to a 2006 law, how much could Danon stand to collect… Read more »

Sam’s Club CEO, Rosalind Brewer, Talks about Changes and Lessons Learned

Posted by & filed under Accounting Information Systems, Accounting Principles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

The rivalry between Sam’s Club and Costco comes close to what you find in college sports. Questions: Source: 1. What things did the Sam’s Club CEO say were learned about Black Friday? 2. What happened to CostCo stock versus Sam’s Club Stock in 2015? 3. What are the differentiation strategies that Sam’s Club is implementing?… Read more »

The Great Experiment

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

Finland has become the latest country to propose a basic income for all. Under the plan, all Finnish citizens would receive an 800 euro stipend, per month, tax-free. Questions: 1. Based on the current exchange rate, what amount of U.S. dollars is this equal to? 2. What incentive does Finland have to implement this proposal?… Read more »

Will the Fed or won’t the Fed?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Ms. Janet Yellen indicated in testimony before Congress on November 4, that an interest rate increase could come in December 2015. But she added that no decision had been made. Questions: 1. When was the last time that the Fed raised interest rates? 2. Where has the benchmark interest rate been since Dec. 16, 2008?… Read more »

Stagefright!

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting.

According to Jeff Larson, for the last five months, military officials and officers have continued to use phones that can be attacked by the “Stagefright” bugs, a collection of flaws in the phones’ software code that gives attackers access to everything that flows through compromised devices. Questions: 1. How is the military adding to the… Read more »

Security Chips and Bearing the Cost of Fraud

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

New payment cards, issued over the last year, come with a small square security chip that can help make in-person transactions more secure. However, retailers complain that they have spent billions of dollars upgrading their payment terminals to accommodate a system that cuts down on the fraud shouldered by banks, but not merchants. Questions: 1…. Read more »

Avoid the crowds with Black Friday Apps

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Questions: 1. What are the benefits of Nifti? 2. What are the benefits of ShopSavvy? 3. Based on the information in this article and video, if you were a brick-and-mortar retailer, what would you do to counteract the convenience of these apps and get more traffic (that translate into higher sales)? 4. From an accounting… Read more »