Posts Categorized: Financial Accounting

CEO Quits Effective Immediately

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

In a surprise move, Citigroup announced on Tuesday that Vikram S. Pandit, the bank’s chief executive, had resigned, effective immediately. While his unexpectedly fast departure has raised many questions, critics said there were many signs that the end was near for Pandit. Questions: 1. How long had Mr. Pandit been chief executive of Citigroup? 2…. Read more »

Long Island Stock Broker Creates Complex Web of Deceit

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

Stockbroker, Mark Hotton, defrauded the producers of a Broadway production of “Rebecca,” through the combination of a fictitious loan and phantom investors, conjured up as part of a sham plan to rescue the financially ailing show. Questions: 1. How was the complex fraud described by federal authorities? 2. How could the producers have been proactive… Read more »

Interesting ACLU case

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

The ACLU is filing suit against Morgan Stanley, alleging that the company targeted African American borrowers in risky loan offerings. The ACLU claims that Morgan Stanley is culpable for predatory loan offered through the New Century Financial Corporation, who is a now-defunct subprime lender, because Morgan Stanley pressured New Century to make these troublesome loans… Read more »

Exploding Water Pipe – Fraud Alert

Posted by & filed under Accounting Principles, Auditing, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Forty-five government entities are now joining whistleblower John Hendrix’s suit against JM Eagle. The suit alledges that the largest PVC pipe manufacturer committed fraud by intentionally selling pipe to governments, where the company’s internal quality controls showed 50 to 80 percent failure rates. Questions: 1. What was Hendrix’s position with the firm and what did… Read more »

The Cost Disease

Posted by & filed under Accounting Principles, Advanced Accounting, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Much of our political debate is fueled by the rise in the cost of healthcare, education, and other necessary services. Interestingly, the new book “The Cost Disease” is based on the work of William Baumol, who as a young economist in the 1960s promoted the idea tagged “Baumol’s Disease,” which explains that our current predicament… Read more »

The Disappearing Debt Suddenly Reappears!

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

Jackie Esposito, of Guilford, Conn., got a letter that said her debt with JPMorgan Chase was canceling the amount she owed on a home equity account. While most people would be excited to get such a letter, Ms. Esposito was not. That is because Ms. Esposito had the debt legally wiped out three years ago… Read more »

An Ugly Tale: Double-Life and Secret Fortune

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

CFO John Franklin Howard, the trusted CFO and CPA for Raley Holdings, Inc., a defense contractor based in Grapevine, Texas, now has more than just $32 million to account for from his embezzlement; he is also facing solicitation of murder charges. Interestingly, he used some of the embezzled money to pay someone to murder his… Read more »

When Will Apple Hit the Trillion Dollar Mark?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting.

When will Apple become the first company ever to be valued at $1 trillion? This new guessing game is the focus of the article by Nick Bilton. Questions: 1. Explain the $1 trillion in accounting terms (or the accounting equation). What is/are the product(s) that got the company to this point? Research these products and… Read more »

Aporkalypse? Not So.

Posted by & filed under Accounting Principles, Advanced Accounting, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Video Updates.

A bacon shortage was part of the headlines this week as a result of a September 20 press release from Britain’s National Pig Association, a trade group that describes itself as “Fighting for the growth and prosperity of the British pig industry.” While the pork industry is currently under serious stress, the reality is that… Read more »

The End to Red Ink?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

The struggling online company, Groupon, has just announced promotion that will allow them to stay afloat. It is a combination of hardware and software that will allow businesses to accept credit cards at rate far lower than what most merchants are currently paying. Instead of the usual credit card processing fee of between 2% and… Read more »