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, Financial Reporting and Analysis, Intermediate Accounting, Uncategorized, Video Updates.

According to the Washington Post, a false hacker post at the SEC’s official account on the social media platform X (previously Twitter), set off a brief frenzy among crypto traders before the agency regained control.

Questions:

  1. Has the SEC approved the listing and trading of spot bitcoin exchange-traded products?
  2. What would have been the benefit of the scam post by anyone with knowledge of the scam post?
  3. The hijack was one of an account with a silver check mark. Why is this notable and what was the question raised in the article?
  4. What has happened with check labeled accounts in recent weeks?
  5. What is SIM-swapping and why is it a security risk?

Source:

Menn, J. (2024). Hackers seize control of SEC’s X account to promote crypto. The Washington Post, Jan. 10 (Retrievable online at https://www.washingtonpost.com/technology/2024/01/09/sec-hack-x-crypto)

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, Managerial Accounting, Uncategorized.

According to the Washington Post, some of the deepest cuts have occurred in the tech and media sectors such as Microsoft, Amazon, Salesforce, HP, and the parent companies of Google and Facebook.

Questions:

  1. Where does unemployment stand as of November 2023?
  2. According to the article and the table shown, which company laid off the most workers in terms of percentage of workers since May 2022 and what percentage was that?
  3. In total number of laid off individuals, which company laid off the most workers and how many was that?
  4. What types of risks did these companies face?
  5. Which company surprised you most and why?

Source:

Mark, J., H. Shaban, A. Gregg, and J. Bogage. (2023). These are some of the notable companies laying off workers. The Washington Post, Dec. 18 (Retrievable online at https://www.washingtonpost.com/business/2023/01/06/layoff-numbers)

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According to the Washington Post, companies such as E.L.F., Essence and NYX have flourished as beauty influencers — particularly on TikTok and YouTube — raised their profiles, and as entrenched inflation made many consumers reassess their spending.

Questions:

  1. By how much in the last quarter, did E.L.F. Beauty see its net sales surge?
  2. By how much in 2023, did E.L.F. Beauty see its stock rise?
  3. E.L.F makes a product similar to Dior’s $40 Addict Lip Glow Oil for what price?
  4. E.L.F. is an acronym for what?
  5. When was the company founded?
  6. When the article says: Dupes Dominate, what does that mean?

Source:

Peiser, J. (2023). Viral ‘dupes’ make E.L.F. the makeup brand of the moment. The Washington Post, December 17 (Retrievable online at https://www.washingtonpost.com/business/2023/12/17/elf-makeup-dupes)

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

According to the Washington Post, Japan’s largest steelmaker, Nippon Steel, will purchase U.S. Steel in a, a deal valued at $14.1 billion.

Questions:

  1. Which domestic U.S. competitors tried to buy the company?
  2. Who founded U.S. Steel?
  3. How will the deal be structured?
  4. What type of opposition has there been against the acquisition?

Source:

Tan, E. (2023). U.S. Steel will be acquired by Japan’s Nippon in a $14.1 billion deal. The Washington Post, December 18 (Retrievable online at https://www.washingtonpost.com/business/2023/12/18/us-steel-nippon-acquistion)

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.

According to Reuters, U.S. health insurer, Cigna (CI.N) has ended its attempt to negotiate an acquisition of rival Humana (HUM.N) after the pair failed to agree on price.

Questions:

  1. How large would the company be based on combined market value if the merger had succeeded?

2. Cigna is still exploring the sale of its Medicare Advantage business. What does this segment focus on?

3. Cigna is planning to do a total of how much total repurchases of stock? Exactly what does this mean?

Source: Sen, A. (2023). Cigna abandons pursuit of Humana, plans $10 billion share buyback. Reuters, Dec. 10 (Retrievable online at https://www.reuters.com/markets/deals/us-health-insurer-cigna-scraps-deal-buy-humana-wsj-2023-12-10)

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According to CNBC, Arkhouse Management and Brigade Capital Management have offered to buy Macy’s Inc. for $5.8 billion, according to people familiar with the matter.

Questions:

  1. What is the difference between the offer per share and the most recent close of Macy’s stock?
  2. Based on the most recent close of Macy’s stock on 12/8/23, has the stock gone up or gone down since the first of the year and by what percentage?
  3. What factors, mentioned in the article, are either benefiting or hurting Macy’s performance?

Source:

Picciotto, R. (2023). Macy’s receives $5.8 billion buyout offer, sources say. CNBC.com, 12/10/23 (Retrievable online at https://www.msn.com/en-us/money/companies/macy-s-receives-5-8-billion-buyout-offer-sources-say/ar-AA1liroj?)

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Does you favorite food seem to be in smaller proportions than usual? If so, you might want to see if you are being faced with “skimpflation”?

Questions

  1. What is a basic definition of skimpflation?
  2. Why is it considered to be a side effect of inflation?
  3. What factors make it hard to detect?

Source:

George, M. (2023). “Skimpflation” may be slipping by grocery shoppers. Here’s how to spot it. Nov. 27 (Retrievable online at https://www.msn.com/en-us/foodanddrink/foodnews/skimpflation-may-be-slipping-by-grocery-shoppers-heres-how-to-spot-it/ar-AA1kBhsJ).

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 CNN.com, WeWork, the beleaguered coworking space company, has filed for bankruptcy, marking a stunning downfall for what was once the world’s most valuable startup.

Questions:

1. Around its peak, what was the company’s stock valued at?

2. WeWork plans to stay open and operational as it does what?

3. According to the article, was the pandemic responsible for the company’s demise?

Source:

Thorbecke, C. (2023). WeWork files for bankruptcy. CNN.com, November 7 (Retrievable online at https://www.cnn.com/2023/11/06/business/wework-bankruptcy/index.html)

WeWork’s Time has Come

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What a con! Free windshield replacements in Florida parking lots! And it is costing insurance companies millions of dollars, which then trickle down as higher rates for the consumer.

Questions:

  1. How does the corruption occur? Describe the entire process.
  2. Who do these harvesters target?
  3. Why do they offer free gifts?
  4. What is the “Fix the Cracks” initiative in Florida?
  5. What are “one-way attorney’s fees”?

Source:

Tan, E. (2023). How Florida’s ‘unscrupulous’ auto glass shops fuel an insurance crisis. The Washington Post, Nov. 12 (Retrievable online at https://www.washingtonpost.com/business/2023/11/12/auto-glass-florida-insurance)

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In a recent meeting, the Federal Trade Commission (FTC) challenged more than 100 patents held by manufacturers of brand-name asthma inhalers, epinephrine autoinjectors, and other drug products as improperly or inaccurately listed in the Food and Drug Administration’s (FDA) publication of “Approved Drug Products with Therapeutic Equivalence Evaluations,” commonly known as the “Orange Book.”

Questions:

  1. What were the reasons for the challenge?
  2. What is the Orange Book?
  3. What does listing in the Orange Book signify?
  4. How many companies were sent FTC letters?
  5. Who were these companies?
  6. How does this issue affect accountants for the challenged companies?

Source:

FTC Staff. (2023). FTC Challenges More Than 100 Patents as Improperly Listed in the FDA’s Orange Book, FTC.gov Press Release, Nov. 7 (Retrievable online at https://www.ftc.gov/news-events/news/press-releases/2023/11/ftc-challenges-more-100-patents-improperly-listed-fdas-orange-book)