The two biggest concerns relating to possible fraud for the motel part of the business are: a) The couple failing to record hotel guest stays in order to steal the cash paid. By not recording the hotel stay their cash reconciliations would be clear. b) The couple has no incentive help the motel perform at a profit since they are paid at salary. Since there is a high demand for their motel‚ service and quality could take a significant slip without losing too much money. The first control that could
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Consignment Accounting Journal Entries: Learning Objectives: 1. Make journal entries in the books of consignor and that of consignee. As the goods sent on consignment by the consigner are not his sales‚ he must not record consignment as sales and the consignee must must not record them as purchases. Theconsigner should not take up any profit on the transaction until the goods have been actually sold by the consignee. Since the goods still belong to the consignor‚ any unsold goods in the hands
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----------------------- A PRIMA - FACIE CASE FOR ISLAMIC ACCOUNTING • Purpose Accounting : To permit informed decision which will enable scare resources to be allocated efficient to achieved ‘social welfare’. |Islamic |Conversational | |To achieve socio – |To meet needs of | |economic & religions|‘capitalist’ | |objective of Islamic|economy. | |Institution & | | |Muslims Users. | | |Provide holistic
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Textbook case: Managerial Accounting for Managers‚ 2nd edition Noreen‚ Brewer and Garrison (McGraw-Hill/Irwin‚ 2008). Case 4-33 Cost Structure; Target profit and Break-Even Analysis Contribution Income Statement for all three scenarios: 15% commission 20% commission Own sales force Sales $16‚000‚000 $16‚000‚000 $16‚000‚000 Variable manuf. cost $7‚200‚000 $7‚200‚000 $7‚200‚000 Commissions $2‚400‚000 $3‚200‚000 $1‚200‚000 -Tot. variable cost ($9‚600‚000)
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Chapter 1 & 2 Summary Accounting is a process of identifying‚ measuring‚ and communicating economic information to permit informed judgments and decisions by users of the information. It is a service activity and the language of business. Its main function is to provide qualitative information that is intended to be useful in making economic decisions. The Accounting process is a series of repetitive activities of recording‚ summarizing and reporting economic transactions from the beginning
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Accounting Ethics Accounting Ethics‚ Second Edition. Ronald Duska‚ Brenda Shay Duska‚ and Julie Ragatz © 2011 John Wiley & Sons‚ Ltd. Published 2011 by John Wiley & Sons‚ Ltd. ISBN: 978-1-405-19613-0 Foundations of Business Ethics Series editors: W. Michael Hoffman and Robert E. Frederick Written by an assembly of the most distinguished figures in business ethics‚ the Foundations of Business Ethics series aims to explain and assess the fundamental issues that motivate interest in each of
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Analyse the problem of accounting fraud in a listed company and evaluate possible solutions In 2001‚ Enron Corporation went into bankruptcy due to the disclosure of false information in its financial statements. Similarly‚ when Lehman Brothers collapsed there was no evidence that it had ever publicly disclosed certain detrimental accounting information. Cases of accounting fraud such as these have become increasingly serious. Accounting fraud can result in creditors and stockholders losing confidence
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Running head: CASE ANALYSIS OF THE ACCOUNTING FRAUD AT WORLDCOM Case Analysis of the Accounting Fraud at WorldCom Angela Crossley Troy University October 27‚ 2008 History The origin of WorldCom can be traced back to 1983. The CEO‚ Bernard J. Ebbers‚ of WorldCom had very interesting beginnings. He invested in Long Distance Discount Services (LLDS) with eight other investors‚ and believed that the telecommunications industry was a very good business venture. In the beginning
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CHAPTER 1 FInANCIAL ACCOUNTING AND ITS ECONOMIC CONTEXT ISSUES FOR DISCUSSION ID1–1 Security analysts and stockholders: These users would use financial statements to try to estimate the future earnings and cash flow potential of the company‚ which would be used to project a value for the company’s stock. Bank loan officers: These users would use the financial statements to determine the ability of a company to repay loans to the bank. A company’s
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+0)26-4 Accounting Theory NEED FOR ACCOUNTING Business is one of the sources of earning income. Whenever a business is started‚ it requires investment of certain amount which is called as capital. With this amount of capital the businessman may deal either with trading business or manufacturing business. In a trading business‚ he will buy goods at a lesser price and sells the same to others at a higher price. In case of manufacturing business‚ he has to buy raw materials and incur other
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