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, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

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)

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

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?)

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/)

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.

According to the New York Times, corporate America is lifting prices and bragging about bigger profits as consumers open their wallets and spend heartily.

Questions

  1. What products/services does the article cover?
  2. How do these price adjustments affect inflation?
  3. What are some of the reasons why consumers are will to pay more?
  4. Have you seen changes in your spending? Why or why not?

Source:

Smialek, J. (2022). Corporations Raise Prices as Consumers Spend ‘With a Vengeance’. The New York Times, Feb. 27 (Retrievable online at https://www.nytimes.com/2022/02/27/business/economy/price-increases-inflation.html)

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, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, Toyota, the world’s largest automaker, said on Monday that it had suspended all production in Japan after a possible cyberattack at a major supplier.

Questions:

  1. What is the name of Toyota’s major supplier?
  2. Why have cyberattacks become increasingly more common in Japan in recent years?
  3. What will the stoppage include?

Source:

Dooley, B. and H. Ueno. (2022). Toyota stops production in Japan after a possible cyberattack at a supplier. The New York Times, Feb. 28 (Retrievable online at https://www.nytimes.com/2022/02/28/business/toyota-stoppage-cyberattack.html)

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.

According to Nigel Jaquiss, Portland was recently ranked 71st out of the largest 75 cities in America for its financial health by a national watchdog group.

Questions:

  1. What is the name of the watchdog group?
  2. What does the failing grade stem from?
  3. What do city officials offer in defense of their denial of the group’s ranking?
  4. Explain the bond ratings, the rating agency, and the bonds’ relationship to the city’s pension plan.
  5. What are unfunded actuarial liabilities?

Source:

Jaquiss, N. (2022). City Officials Dispute Failing Financial Grade From Accounting Watchdog. The Willamette Weekly, Feb. 13 (Retrievable online at https://www.wweek.com/news/2022/02/13/city-officials-dispute-failing-financial-grade-from-accounting-watchdog/)

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

According to the New York Times, Ilya Lichtenstein and Heather Morgan were charged with conspiracy to launder billions of dollars worth of Bitcoin.Credit.

Questions:

  1. What was the Bitfinex hacking?
  2. What was the role of the complex shuffling of Bitcoin by the couple in the fraud in January 2017?  
  3. When the government executed a search warrant at their Manhattan apartment, how many electronic devices were found and seized?
  4. What was the involvmenet of the couple’s cat in the arrest?

Source:

Watkins, A. and B. Weiser. (2022). Inside the Bitcoin Laundering Case That Confounded the Internet. The New York Times, Feb. 13 (Retrievable online at https://www.nytimes.com/2022/02/13/nyregion/bitcoin-bitfinex-hack-heather-morgan-ilya-lichtenstein.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Managerial Accounting, Uncategorized.

According to the Washington Post, Walmart will no longer require fully vaccinated workers to wear masks while working in stores unless required under local or state rules, the company said in a memo to its U.S. employees.

Questions:

  1. How many employees does this change affect?
  2. Will all vaccinated Walmart employees be allowed to drop the requirement?
  3. Has Walmart required masks since 2020?
  4. How does this change affect Walmart’s sister company, Sam’s Club?

Source:

Firozi, P. (2022) Walmart employees can ditch masks if they’re vaccinated, company says. Washington Post, Feb. 13 (Retrievable online https://www.washingtonpost.com/business/2022/02/13/walmart-mask-mandate/)

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

According to Accounting Today, the IRS will suspend more than a dozen automated letters it sends out to taxpayers, including collection notices, balance due notices and unfiled tax return notices, until it catches up on its backlog of unprocessed returns.

Questions:

  1. Why is it doing this?
  2. A coalition of tax professionals was instrument in promoting this move. Who was included in the coalition?
  3. Why is there so great a backlog in processed filings at the IRS?

Source:

Cohn, M. (2022). IRS suspends many of its automated notices. Accounting Today, Feb.9 (Retrievable online at https://www.accountingtoday.com/news/irs-suspends-many-of-its-automated-notices)

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

Questions:

  1. When did Mr. Casey join Walmart?
  2. What company did he work at prior to coming to Walmart?
  3. By how much did Walmart’s global e-commerce sales increase during the nine months ended Oct. 31 as compared with the same period the prior year?
  4. What is Omni?
  5. Why do you think there is a post-holiday executive shuffle at Walmart?

Source:

Nassauer, S. (2022). Walmart’s Top U.S. E-Commerce Executive Is Leaving. The WSJ, Jan. 20 (Retrievable at https://www.wsj.com/articles/walmarts-top-u-s-e-commerce-executive-is-leaving-11642689116)