Transparency Improved or Impeded?

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A little-noticed accounting change is coming down the pike that will have a major impact on business. According to the New York Times, this one has corporate executives up in arms — and scrambling to comply. Questions: 1. What is the title of the new FASB rule? 2. Which equity investments are affected? 3. How… Read more »

Apple Market Capitalization

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Apple became the first U.S. company to top the $800 billion mark in market capitalization on Tuesday, slightly more than two years after it crossed the $700 billion threshold. Questions: 1. How much have the iPhone maker’s shares have gained this year? 2. What percentage does Apple make up of the entire S&P 500 .SPX… Read more »

Upside or downside?

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According to the Washington Post, Purdue has acquired the for-profit Kaplan University to extend its reach into online and adult education, which some see as an unusual move for a public institution. Questions: 1. What were the benefits to Purdue of acquiring Kaplan? 2. What are the potential downsides of this acquisition for Purdue? 3…. Read more »

Private Debt Collectors used by the IRS. What could go wrong?

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

According to Slate, last year, Congress authorized the Internal Revenue Service to use private debt collectors to go after unpaid tax liabilities—and this month, if you are one of the unfortunate, you may have already had the pleasure first-hand. Questions: 1. What is the pleasure that this article is referring to? 2. Has this been… Read more »

$15 minimum wage

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According to The American Interest, local minimum wage hikes cause restaurants to leave or shut down and deter new ones from entering, according to a new Harvard Business School study of the San Francisco Bay Area restaurant industry that contradicts the orthodox liberal view that steeply raising the cost of unskilled labor will not affect… Read more »

Too Many Bureaucrats?

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The California State Auditor has delivered a damning assessment of the management practices at the single largest university system in the United States. Questions: 1. What controls could have prevented this situation? 2. How does this affect costs? 3. According to the audit, how does the rate compare to other organizations within the California government… Read more »

Morphing or not?

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The world of retail is changing, with growth in online shopping dominated by Amazon. But does it signal a death spiral to our traditional way of life? Questions: After reading the article, please answer: 1. What is the inventory problem? 2. What is the supplier problem? 3. What is the supply chain problem? Source: Hoium,… Read more »

Something new?

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Amazon.com Inc. has invited the world’s biggest brands to Seattle to persuade them that it’s time to start shipping products directly to online shoppers, thus bypassing chains like Wal-Mart, Target, and Costco. Questions: 1. What would be the costs to these brand companies? What would be the benefits? 2. What would be the benefits to… Read more »

Detainees for Profit

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Libre, a for-profit company whose name means “free” in Spanish, is charging immigrants who sign contracts $420 per month for their freedom while wearing the company’s GPS devices. The company is now subject to a number of lawsuits and allegations of fraud by immigrants. Questions: 1. Do you think a company should be allowed to… Read more »

Really?

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Commonly called “pay-to-stay” or “private jail,” at least 26 jails in Los Angeles and Orange counties are opening their doors to defendants who can afford the option. This is evolving into a two-tiered justice system that allows people convicted of serious crimes to buy their way into safer and more comfortable jail stays. Questions: 1…. Read more »