Posts Tagged: contemporary business issues

Amazon’s profit strategy?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Almost daily, Amazon announces that it is entering another new venture. How do they do it, since they have yet to show profit that supports their share price? Questions: 1. After reading the article, do you think that Amazon with stay with a discounter form of commerce? 2. How do you think Amazon accounts for… Read more »

Numbers tell the story

Posted by & filed under Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized, Video Updates.

Unless you have been vacationing on another planet, you have probably heard about the government shutdown this week. This video by the New York Times provides some quantification of the situation. Questions: 1. Which number in the video surprised you the most? 2. Explain why not reaching an agreement by Oct 17 on the debt… Read more »

Do you have to be Good at Accounting to Embezzle $16.6 M from a Small Business?

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A fruitcake company, the Collin Street Bakery, in Texas just found out the answer to this question! The company’s controller, Sandy Jenkins, 64, of Corsicana, Texas, was arrested by special agents of the FBI on a federal criminal complaint charging 10 counts mail fraud and allegations that he wrote 888 checks totaling $16.65 million to… Read more »

Based on Projections, The Affordable Healthcare Act (ACA) will Likely Benefit Hospitals

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Uncategorized.

According to Fitch Ratings, the benefit for hospitals via enrollment in plans offered on the state health insurance exchanges starting Oct. 1 is uncertain, since participant numbers have yet to be disclosed. However, it is anticipated that as enrollment increases, hospitals’ ability to reduce bad debt will also increase and that would clearly be a… Read more »

A Dragnet for Astroturfing

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

As a result of a year-long investigation, New York regulators will announced on September 23, 2013 that they would crackdown on deceptive and fake Internet reviews on products and services. Agreements have been reached with 19 companies to cease their misleading practices and pay a total of $350,000 in penalties. Questions: 1. Where were some… Read more »

Biotechnology Firm, Amgen, Acquires Anti-cancer Drugs

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Although Amgen is the world’s largest biotechnology company, they have not been in the anti-cancer drug market until now. Amgen, like other drug makers, is trying to refresh aging product lines through the acquisition. Questions: 1. What is the ranking of this takeover of biotechnology firms, in terms of historic purchases? What are examples of… Read more »

The Reinvention of Pawn Shops

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

The pawnshop industry is growing. In 2007, there were approximately 6,400 pawn shops nation-wide. Now there are over 10,000. The expansion in pawnshops is fed, in part, by the increased number of Americans with tarnished credit which often bars them from the mainstream financial system. This article explains some of the niche services now offered… Read more »

Donald Trump is in the News Again!

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New York Attorney General, Eric Schneiderman, has sued Donald Trump for $40 million as a result of what he terms a fraudulent educational program through “Trump University.” The program promised to make students rich but instead steered them into expensive and useless seminars. They also failed to deliver promised apprenticeships. Questions: 1. Instead of meeting… Read more »

Beware of rising rates

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This video offers advice for you on when to lock in low interest rates and pay off credit card debt. Questions: 1. Why does the bond market have so much affect on your life? 2. Why would you want to be as aggressive as you can to pay down credit card debt? 3. Why are… Read more »

Deutsche Bank Shrinks its Balance Sheet

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Deutsche Bank said it would significantly shrink its balance sheet to comply with stricter leverage rules as the lender missed analysts’ expectations in the second quarter. Questions: 1. What are some of the factors on why the bank is shrinking its balance sheet? Be specific. 2. Why have Deutsche Bank’s profits fallen recently? 3. Explain… Read more »