A crummy $56?????

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

Drivers who worked for the “taxi” service known as Lyft, (in California) during the past four years, would have been entitled to an estimated $126 million in expense reimbursements had they been employees rather than independent contractors. Questions: 1. How much would Lyft drivers have recouped under a standard rate for mileage reimbursement set by… Read more »

Meaningless? Exagerating Customer Savings?

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Just as traditional retailers are faltering, so are list prices. This article exposes some of the secrets regarding list prices and online sellers. Questions: 1. Discuss the question in the article and what it means for you personally? “If everyone is getting a deal, is anyone really getting a deal?” 2. Explain the case against… Read more »

Beware of the Imposter!

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Jeremy Wilson spent 25 years fabricating new aliases, leaving behind a thicket of confusing and falsified records. Along the way, he had more than 27 aliases in five states. Now he is at Rikers Island, awaiting trial. Questions: 1. How did Mr. Wilson use these various identities to commit fraud? 2. What does the article… Read more »

Shkreli Smurks at Congress and Later Calls Them “Imbeciles”

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Ethical Dilemma, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Martin Shkreli, the former chief executive of Turing Pharmaceuticals, repeatedly exercised his Fifth Amendment right to avoid self-incrimination, infuriating members of the House Committee on Oversight and Government Reform. Mr. Shkreli is facing federal securities fraud charges. Questions: 1. What is the scandal that Mr. Shkreli’s company is apart of? 2. What is the connection… Read more »

Lucky Pets

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According to the article, a small but growing number of dedicated food pantries have sprung up to help people feed their pets. This is in response to pleas from people who see their pets as family and will spend their last dollar on pets, despite going hungry themselves. Questions: 1. What is the ASPCA? 2…. Read more »

Enormous Chinese Ponzi Scheme!

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A criminal investigation by Chinese officials has found that the online company, Ezubao, once a dynamo of the financial industry, offered mostly fake investment products to its nearly one million investors. This has highlighted the urgent need for tougher supervision of online financing system in the world’s second largest economy. Questions: 1. What interest rate… Read more »

Be sure to remember your server!

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

According to the Washington Post, after a change in tax rules last year, the auto-gratuity added to the bill of large parties at restaurants is on its way out. Questions: 1. What is the new rule that the Internal Revenue Service imposed on restaurants that led to this change? 2. How does this change lead… Read more »

Arbitration Lurks in the Fine Print

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In this article, the New York Times found that arbitration rules tend to favor businesses, and judges and juries have been replaced by arbitrators who commonly consider the companies to be their clients. According to the authors, this has created an alternative justice system with conflicts of interest. Questions: 1. What types of claims are… Read more »

Release Cards: Another High Interest Problem?

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As this article points out, unlike consumer debit cards, prison-issued cards are unregulated and subject to exorbitant fees. Questions: 1. What are the typical charges for these cards? 2. For the person that had $120 and was able to use only $70, calculate the percentage of fees. 3. Who is making the money on these… Read more »

Asset Forfeiture Followup

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During 2014, law enforcement officers took more property from American citizens than burglars did. This was a new record. Questions: 1. What was the source of these data? 2. Why aren’t the asset forfeiture deposit amounts necessarily good indicators of the rise in the use of forfeiture? 3. Why are the net assets of the… Read more »