IRS destroys 30 M Paper returns due to Backlog

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According to Accounting Today, the IRS destroyed about 30 M paper-filed information returns in March 2021 due to its inability to process them.

Questions:

  1. What does the IRS typically use the information returns for?
  2. Since 2014, what has been the overall percentage increase of business tax returns that are e-filed?
  3. In 2018, what was the difference in the amount reported by the Treasury Inspector General for Tax Administration (TIGTA) for processing spent for paper filings versus electronic filings?

Source:

Cohn, M. (2022). IRS destroyed 30M paper information returns due to backlog. Accounting Today, May 9 (Retrievable online at https://www.accountingtoday.com/news/irs-destroyed-30m-paper-information-returns-due-to-backlog)

Who’s on the FORBES AI 50 List this year?

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, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

On Sunday, May 9, Forbes released its fourth annual artificial intelligence (AI) list of the top companies that will shape the future.

Questions:

  1. As you can see from the list, there is significant breadth and depth of artificial intelligence. Which area do you see as most promising and why?
  2. How was the list compiled?
  3. How much does PwC predict that AI firms will contribute to the global economy by 2030?

Source:

Popkin, H. (2022). AI 50 2022: North America’s Top AI Companies Shaping The Future. Forbes, May 9 (Retrievable online at https://www.forbes.com/sites/helenpopkin/2022/05/06/ai-50-2022-north-americas-top-ai-companies-shaping-the-future/?sh=2dc517d834b5)

Who Can You Trust in the World of Money Laundering?

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Augustine Osemwegie, the owner of a used car dealership in Fall River, Massachusetts, has pleaded guilty to money laundering.

Questions:

  1. How was Osemwegie caught?
  2. What was the method he used to launder money?
  3. Was this his own money? Explain.

Source:

Media Team of RegXSA. (2022). US-based owner of used car dealership pleads guilty to international money laundering. RegXSA, April 26 (Retrievable at https://www.regxsa.com/ml-tf-updates/us-based-owner-of-used-car-dealership-pleads-guilty-to-international-money-laundering/)

Audacious Fraud

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Dermatologist, Farhaad Riyaz, peer-voted as one of the top doctors in the Washington DC area in 2019 committed one of the most bizarre frauds in recent times, according to The Washingtonian.  

Questions:

  1. How did Dr. Riyaz perpetrate the crime?
  2. What was the scheme?
  3. What is and/or was his potential punishment?
  4. Who did Dr. Riyaz defraud?

Source: Beaujon, A. (2022). Virginia Doctor Pleads Guilty to Audacious Amazon Return Fraud. The Washingtonian, Jan. 18 (Retrievable online at https://www.washingtonian.com/2022/01/18/virginia-doctor-pleads-guilty-to-audacious-amazon-return-fraud/)

The Future is EV Energy

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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to The Verge, the Biden administration invoked the Defense Production Act for EV batteries and clean energy last week.

Questions:

  1. What does this mean in the near term for certain types of mines in the U.S.?
  2. Are lithium batteries sustainable in the long-term? Discuss.
  3. What is the Defense Production Act?
  4. How do you see the rise in EV energy affecting accounting?
  5. What was the most interesting thing you learned about the EV Energy Industry in the video?

Source

Calma, J. (2022). Joe Biden invokes Defense Production Act for EV batteries and clean energy. The Verge, March 31 (Retrievable online at https://www.theverge.com/2022/3/31/22996690/joe-biden-defense-production-act-ev-batteries)

The New World of Autonomous Trucking

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

According to Axios, autonomous trucks could one day replace more than 90% of all highway trucking, which could have a profound impact on as many as 500,000 long-haul truckers, a new study found.

Questions:

  1. According to the study by researchers at the University of Michigan and Carnegie Mellon University, if automation is restricted to Sun Belt states due to rough weather, how will operator hours will be affected?
  2. If automated trucks were deployed across the U.S., in all types of weather, how will operator hours be affected?
  3. What are the logistics on how automated trucking will work?

Source:

Muller, J. (2022). Automation could send long-haul truckers driving into the sunset. Axios, April 3 (Retrievable online at https://www.axios.com/automation-long-haul-truckers-jobs-c7a390ef-dd4c-4ad8-93d0-64272833a6f9.html)

Smart Thinking about Cryptocurrency

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, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Axios, cryto is no fad and it will change how, where and what people buy and sell. 

Questions:

  1. According to the article, what is the unique investing relationship between millenials and cryptocurrency?
  2. According to the article, what is the relationship between crypto and blockchain?
  3. How is the value of crypto determined?
  4. If you invest in crypto, why should you pay close attention?

Source:

Pandey, E. (2022) How to Think Smartly about Crypto. Axios.com, April 3 (Retrievable online at https://www.axios.com/how-to-think-smartly-about-crypto-37fa16ac-047c-44a6-9f06-2e94a20d9e13.html)

Exploiting Inflation to Pad Bottom Lines

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According to The Washington Post, some companies are exploiting inflation to pad their bottom lines.

Questions:

  1. What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases?
  2. If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same.
  3. How do analysts expect EBIT margins to react this year?
  4. What do you think is driving inflation? Why?

Source:

Kaissar, N. (2022). Companies exploit inflation to pad their bottom lines. The Washington Post, March 4 (Retrievable online at https://www.washingtonpost.com/business/companies-exploitinflation-to-pad-their-bottom-lines/2022/03/04/73c8b42c-9bb3-11ec-9987-9dceee62a3f6_story.html)

Consolidated vs. combined financial statement? How to choose?

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According to Accounting Today, choosing a consolidated versus combined financial statement for companies with multiple businesses can be a complex and confusing process.

Questions:

  1. According to the article, what tool(s) make(s) it easier to spot trends and highlight relevant data points?
  2. According to the article, what makes preparing complex financial statements easier and less time consuming?
  3. What is the difference between a consolidated financial statement and a combined financial statement?

Source:

Hatch, J. (2022) Is a consolidated or combined financial statement best for a business? Accounting Today, March 3 (Retrievable online at https://www.accountingtoday.com/opinion/is-a-consolidated-or-combined-financial-statement-best-for-a-business?)

Finally the End for Nikola Motors (NKLA)?

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, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Electrek.com, Nikola Motors has lost almost its entire supply chain leadership over the last few months as the situation at the company is starting to look dire.

Questions:

  1. Why has the founder of Nikola Motors been in the news over the past few years?
  2. Why did the company move away from developing a lot of their core technology to rely on suppliers in the first place?
  3. What parallels does this case have to the Theranos case?

Source:

Lambert, F. (2022). Nikola Motors (NKLA) loses it whole supply chain leadership, puts hiring freeze as situation looks dire. Electrek.com, Feb. 8 (Retrievable online at https://electrek.co/2022/02/08/nikola-motors-nkla-loses-supply-chain-leadership-hiring-freeze-situation-dire/)