Closet cleaning? Did you sell something online for over $600 this year? Watch out for your IRS Form 1099.

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

According to the New York Times, a new change in tax law may result in Form 1099s to be sent to some small time sellers for online sales.

Questions:

  1. What was the aim of this new tax law?
  2. When did the law take effect?
  3. The law is part of which congressional action?
  4. Which online marketplaces and payment services will you most likely receive 1099s from?
  5. How does the law differ between 2021 and 2022?

Source:

Carrns, A. (2022). Did You Sell an Old Desk Online? You May Receive a Tax Form. The New York Times, Sep. 30 (Retrievable online at https://www.nytimes.com/2022/09/30/your-money/online-marketplaces-1099-k.html)

Watch out Walmart, Here they Come!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Washington Post, Kroger and Albertsons are putting together a merger deal that could pose a competitive threat to Walmart and other grocery chains, as a major industry consolidation. 

Questions:

  1. Do you think that the merger will result in lower or higher prices for consumers?
  2. What types of issues is the FTC concerned about in this merger?
  3. After the merger, will Kroger be as large as Walmart?
  4. What is the SpinCo store?

Source:

Lehman, R. (2022). Kroger says it will buy Albertsons, creating grocery empire. The Washington Post, Oct. 14 (Retrievable online at https://www.washingtonpost.com/business/2022/10/14/kroger-albertsons-grocery-merger/)

Nightmare Logistics: Stay Away from this Gold Standard Moving and Storage!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Uncategorized, Video Updates.

How would you like your belongings moved across the U.S. only to find that they were auctioned off before you got them back? That’s what some moving customers are finding with a company calling itself Gold Standard Moving and Storage.

Questions:

  1. According to the video and article what is Gold Standard and their status?
  2. Who was the company behind Gold Standard?
  3. What were some of the “red flags” of fraud or troubles ahead as noted in the video or article?
  4. What types of issues will you investigate upon using a moving company after reading this article?

CBS – Los Angeles staff. (2021). Moving Company Under Criminal Investigation After Dozens Of Families Lose Their Belongings. CBS – Los Angeles – TV2, Nov. 16 (Retrievable online at https://www.cbsnews.com/losangeles/news/2-on-your-side-moving-company-under-criminal-investigation-dozens-of-families-lose-their-belongings/)

A $5 Million Fraud Against Hundreds in California Results from Postal Theft and Fraud

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Uncategorized, Video Updates.

According to the California Attorney General, 56 individuals involved in a scheme resulting in the theft of nearly $5 million from hundreds of people in a widespread mail theft and postal fraud operation.

Questions:

  1. How many suspects were arrested as part of the fraud?
  2. Out of which counties were the suspects operating?
  3. What will the arrested individuals be charged with?
  4. Describe the extensive resources and agencies involved in fraud enforcement for this particular scheme.
  5. How long was the investigation?

Source:

California Department of Justice (DOJ). (2022). Attorney General Bonta Announces 56 Arrests in $5 Million Postal Theft and Fraud Operation. California DOJ Press Release, Oct. 7 (Retrievable online at https://oag.ca.gov/news/press-releases/attorney-general-bonta-announces-56-arrests-5-million-postal-theft-and-fraud)

Amityville Horror?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Uncategorized.

According to Susan Edelman, witnesses in alleged COVID vaccine fraud case have put 82 NYC educators in potential legal danger.

Questions:

  1. Why are these educators in potential legal danger?
  2. Who committed the fraud?
  3. What was the amount of ill-gotten gains derived from the fraud?
  4. According to the article, what percentage of the COVID vaccines given in the offices of the Wild Child Pediatric Center in Amityville on Long Island?

Source:

Edelman, S. (2022). Witnesses in alleged COVID vaccine fraud case put 82 NYC educators in potential legal danger. New York Post, Oct. 8 (Retrievable online at https://nypost.com/2022/10/08/covid-vaccine-fraud-witnesses-put-82-nyc-teachers-in-legal-limbo/)

Unionization Cost Raises at Starbucks?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Starbucks illegally withheld wages and benefits from thousands of unionized baristas, the National Labor Relations Board (NLRB) alleged in a complaint Wednesday.

Questions:

  1. How many Starbucks locations have voted to join the union?
  2. What does the NLRB seek as a result of the complaint?
  3. Explain the disparity in wages between unionized and non-unionized.
  4. What other Starbuck dispute has happened in Memphis?

Source:

Gurley, L. (2022) Starbucks illegally withheld raises from union workers, labor board says. The Washington Post, Aug. 25 (Retrievable online at https://www.washingtonpost.com/business/2022/08/24/starbucks-raises-nlrb-complaint/)

Stocks extend Losses

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

There has been a lot of market movement since Fed Chair Powell’s Jackson Hole speech last Friday.

Questions:

  1. What did Powell say about interest rates?

2. What did the article say that Powell’s speech is trying to remind people about?

3. How high do you think interest rates will be raised?

4. What do the “talking heads” in the video think will happen?

Source:

Chappattta, B. (2022) Powell’s 8-Minute Speech Erases $78 Billion From Richest Americans. Bloomberg.com, August 26 (Retrievable at https://www.bloomberg.com/news/articles/2022-08-26/powell-s-jackson-hole-speech-erases-78-billion-from-richest-americans-fortunes)

Long Awaited Agreement is Only a First Step

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to Thomson Reuters, the U.S. Public Company Accounting Oversight Board (PCAOB) on Aug. 26, 2022, finally signed an agreement with Chinese authorities that will allow the board to inspect and investigate audit firms based in China and Hong Kong whose clients trade on American exchanges.

Questions:

  1. When will the PCAOB start inspections?
  2. What were the legislative provisions that helped the PCAOB seal the deal?
  3. What are some of the reasons why China has so far not granted full access to audit papers?
  4. What fraud, mentioned in the article, cost a lot of money for U.S. investors?

Source:

Ho, S. (2022) U.S. and China Sign Historic Agreement on Audit Firm Supervision. Thomson Reuters Tax and Accounting News, Aug. 29 (Retrievable online at https://tax.thomsonreuters.com/news/u-s-and-china-sign-historic-agreement-on-audit-firm-supervision/)

A Lawsuit in U.S. District Court to Stop The Merger of Two of the Largest Publishers

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to The New York Times, Steven King, well-known author, testified as a witness for the government in its lawsuit to stop the merger of two of the largest publishers.

Questions:

  1. What is the amount of the proposed acquisition?
  2. Who are the two publishers and which one is acquiring the other in this consolidation?
  3. How does Mr. King’s testimony illustrate the government argument that consolidation in the publishing industry has hurt authors and the industry? Discuss and give examples.
  4. What does the word “imprint” mean as it is used in this article?

Source:

Bednar, A. (2022). Stephen King Testifies That Merger Between Publishing Giants Would Hurt Writers. The New York Times, August 2 (Retrievable online at https://www.nytimes.com/2022/08/02/business/stephen-king-penguin-random-house-antitrust-testimony.html)

Layoffs Announced at Robinhood

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According to the New York Times, Robinhood announced layoffs for the second time this year.

Questions:

  1. What is Robinhood?
  2. What percent of employees will be layed off in this second round?
  3. Why are the layoffs occuring?
  4. What roles in the company will be primarily affected?

Source

Kelley, L. and D. Yaffee-Bellany. (2022). Robinhood lays off 23% of its staff, blaming crypto meltdown and inflation. The New York Times, August 2 (Retrievable at https://www.nytimes.com/2022/08/02/business/robinhood-layoffs.html)