Disposable Plates, Cup Holders, and Fast Food Containers

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, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

A company. Lifepack, in Colombia is making eco-friendly plates out of the tops of old pineapple tops.

Questions:

  1. How old is the company?
  2. The company also makes cups that contain seeds. What types of plants can be grown with these products?
  3. About how many eco-friendly plates does the company turn out a day?
  4. What are the challenges to the company?

Source:

Rueda, M. (2021). Plates made from biodegradable scraps grow edible plants. Business Insider, April 22 (Retrievable online at https://www.businessinsider.com/lifepack-colombia-plates-pineapple-tops-crowns-2020-11)

Another Ponzi Scheme

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.

A recent Department of Justice (DoJ) press release indicates that John Piccarreto, Jr., 38, of Rochester, NY, was convicted of conspiracy to commit mail fraud and filing a false tax return in connection with a Ponzi scheme.

Questions:

  1. What was Mr. Piccarreto’s sentence and the amount of restitution required?
  2. How many investors were defrauded?
  3. What did Mr. Piccarreto and his co-defendant, Mr. Parris, use the money for?
  4. When did the scheme take place and how did the defendants attract investors?

Source:

DoJ. (2021). Rochester Man Going To Prison And Ordered To Pay Millions In Restitution For His Role In Ponzi Scheme That Bilked Investors Out Of Millions Of Dollars. Department of Justice (Retrievable online at https://www.justice.gov/usao-wdny/pr/rochester-man-going-prison-and-ordered-pay-millions-restitution-his-role-ponzi-scheme)

The Giving Season is Always Open Season for Fraudsters

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, Uncategorized.

According to New Jersey Advance Media, a Burlington County, N.J. man, Mark D’Amico, 42, and his then-girlfriend admitted setting up a GoFundMe page, based on a lie about a helpful homeless man, and ultimately bilked online givers out of $400,000.

Questions:

  1. What did D’Amico and his girlfriend use the money for?
  2. The page said that the fundraiser was for____________________ with a goal of ____________________.
  3. What was the heartwarming story that attracted online donations?
  4. What did the homeless man get from the scam and what did he use it for?
  5. What were D’Amico and his girlfriend charged with?
  6. What is the rest of the story about the money and the homeless man?
  7. What did GoFundMe do about the fraud and how do you think the company accounts for this type of situation?

Source:

Cohen, N.M. (2021) N.J. man pleads guilty in $400K GoFundMe scam involving homeless veteran. NJ.com, Nov. 23 (Retrievable online at https://www.pennlive.com/news/2021/11/nj-man-pleads-guilty-in-400k-gofundme-scam-involving-homeless-veteran.html)

Associated Press Staff (2018). GoFundMe says donors in alleged homeless scam refunded. Dec. 25 (Retrievable online at https://www.pennlive.com/news/2018/12/gofundme-says-donors-in-alleged-homeless-scam-refunded.html)

Everett, R. (2018). Prosecutor details greed, backstabbing that he said undid GoFundMe scam by homeless vet, N.J. couple. Nov. 15 (Retrievable online at https://www.pennlive.com/nation-world/2018/11/prosecutor-details-greed-backstabbing-that-he-said-undid-gofundme-scam-by-homeless-vet-nj-couple.html)

Be Sure to Leave Santa a lot of Milk (and Cookies) and Dairy Farmers will Thank you!

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

According to the Business Insider, for years, the US government has supported the dairy industry to encourage production, but the rising costs and falling returns have forced some farmers to ditch cows altogether.

Questions:

  1. What happened to milk prices during the Great Depression?
  2. What did the government do to make sure keep milk prices high after WWII?
  3. Briefly explain what President Reagan did about the government support program for milk in the early 1980s?
  4. In 1993, what was the advertising campaign to promote milk?
  5. Why can’t smaller family farms make a profit? What is the operative number of cows to make a profit?

Source:

Nixdorf, K. and B. Stephanis (2021). The US is producing more milk than ever, even as Americans are drinking less of it. Here’s why. Business Insider, Nov. 4, (Retrievable online at https://www.businessinsider.com/rise-and-fall-of-milk-dairy-industry-2021-11)

Twitter CEO steps down

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.

According to the Washington Post, Twitter CEO Jack Dorsey announced his resignation from the social media giant.

Questions:

  1. How did the CEO of Twitter, Jack Dorsey, announce his departure and was it expected?
  2. Who did Mr. Dorsey put in charge?
  3. When Mr. Dorsey announced this, what happened with the stock market and the employees at Twitter?
  4. Since Dorsey left Twitter, how does this give Mark Zuckerberg a distinction among major Silicon Valley service firms?

Source:

 Dwoskin, E. and R. Lerman. (2021). Twitter CEO and founder Jack Dorsey steps down from leadership. The Washington Post, Nov. 29 (Retrievable online at https://www.washingtonpost.com/technology/2021/11/29/dorsey-steps-down-twitter/)

You’d better have the Big Bucks to Move to Austin!

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.

According to the New York Times, Austin, Texas has now surpassed It has the hot housing markets in Boston, Miami and New York City. But, how did Austin become one of the least affordable cities in America?

Questions:

  1. What was the average number of new residents moving to the Austin every day in 2020?
  2. What was the median home price in Austin during October 2021?
  3. What factors have led to this explosive growth?
  4. Explain briefly why this growth has led to the tale of two Austins.
  5. Would this be a good place for you to move for your first accounting staff position after graduation? Why or why not?

Source:

Sandoval, E. (2021). How Austin Became One of the Least Affordable Cities in America. The New York Times, Nov. 29 (Retrievable online at https://www.nytimes.com/2021/11/27/us/austin-texas-unaffordable-city.html)

These Shoes are Pieces of Garbage!

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, Video Updates.

According to the IndiaTimes.com, this is a sustainability concept on steroids!

Questions:

  1. What is the concept behind this already profitable startup?
  2. How old is its founder and where is the startup located?
  3. Would you buy this product?
  4. If you were the accountant advising this company, what would be your main concerns?
  5. What is the company name?

Source:

Sharma, B. (2021). 23-Year-Old Indian’s Startup ‘Thaely’ Turns Plastic Waste Into Sneaker Shoes. IndiaTimes.com, Nov. 17 (Retrievable online at https://www.indiatimes.com/technology/news/thaely-plastic-waste-shoes-554397.html)

 

Have you considered Inflation Bonds?

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

According to the New York Times, rising prices have affected both consumer goods and some government savings bonds. However, they could also benefit investors looking for safe spaces for their money.

Questions:

  1. What type of return will the new series I savings bonds, known as inflation bonds to be issued in the next six months, earn?
  2. How does this rate compare to other government bonds issued?
  3. How does the rate of the I series compare to one-year, online certificates of deposit?
  4. Would the I series bonds be considered cash equivalents?

Source:

Carrns, A. (2021). Inflation Bonds Are Getting a Big Rate Bump. The New York Times, Nov. 5 (Retrievable online at https://www.nytimes.com/2021/11/03/your-money/series-i-bonds-inflation-rate.html)

Interesting New Startup!

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

According to the New York Times, a new startup has come up with a new idea to reforest the planet where wildfires have taken their toll.

Questions:

  1. What is this innovative idea and what type of technology is used?
  2. Where is the startup located?
  3. If you were an accountant advising this startup, what would be some of the concerns that you would pass along to them?
  4. What percentage of growth is considered a success?

Source:

Chaundler, R. (2021). Can Seeds Planted by Drones Spawn New Forests? The New York Times, Oct. 31 (Retrievable online at https://www.nytimes.com/2021/10/31/climate/deforestation-seeds-environment.html)

If You Build It, They Will Respond

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.

According to Leonardo Matignas, it’s time to build boards of directors in a “future-fit” direction.

Questions:

  1. According to an EY survey, what percentage of CEOs around the world agree that public opinion will become as important to companies as their investors in the next five to 10 years? 
  2. At the same time what percentage of the general global population feels that companies are capable of increasing profits and improving the social and economic conditions of the communities where they operate?

Source:

L. Matignas. (2021). Building a future-fit board. Business World, Nov. 7 (Retrievable online at https://www.bworldonline.com/building-a-future-fit-board-2/)