Reference no: EM131202684
1. The following is taken from the asset section of a recently issued annual report ($ in millions): Loans, net of unearned income $244,206 Allowance for possible credit losses (6,679) What sort of business do you think this company is in? (Their total assets are approximately $717 billion.) Explain the allowance in terminology that you have learned in this week. Is the basic accounting for these transactions the same as what you have learned for retailing? Don’t worry about additional industry-specific rules you may not know.
2. Anton Blair is the manager of a medium-sized company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December, he estimates year-end financial figures in anticipation of the bonus he will receive. If the bonus is not as high as he would like, he offers several recommendations to the accountants for year-end adjustments; one of his favorite recommendations if for the controller to reduce the estimate of doubtful accounts.
In your response, address the following:
What effect does lowering the estimate of doubtful accounts have on the income statement and balance sheet?
Do you believe Blair’s recommendation to adjust the allowance for doubtful accounts is within his right as a manager, or do you believe this action is an ethics violation? Justify your response.
What type of internal control(s) might be useful for this company in overseeing the manager’s recommendations for accounting changes?
Several entries in the worksheet are not decipherable
: The accounting staff of Usher Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tas..
|
Define the interactive role of the owner
: Describe the differences between project objectives and project scope definition. Define the interactive role of the owner and designer in this process to ensure a well-defined understanding between the two parties.
|
Considering investing in new heart-monitoring equipment
: Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding exp..
|
Respond to the given two readings
: Respond to the given two readings.- From the readings of The Phaedo, one can draw a philosophical mindset that suggest a viewpoint that declares the human composition as being: spirit, mind (soul), and body.
|
Estimate of doubtful accounts have on income statement
: The following is taken from the asset section of a recently issued annual report ($ in millions): Loans, net of unearned income $244,206 Allowance for possible credit losses (6,679) What sort of business do you think this company is in? What effect d..
|
Describe the concept and process of partnering
: Review published articles that describe the concept and process of partnering, and list major differences between partnering and traditional methods of contracting strategies.
|
Prepares a cost estimate at different times
: Usually each of the three principal parties (the owner, designer, and contractor) prepares a cost estimate at different times during the life of a project. Describe the purpose of each estimate and the impact that estimating errors may have on the..
|
Why is it important to define the range of accuracy
: Why is it important to define the range of accuracy, in percentage, that should be applied to any estimate? Who should set this range and who should be informed of the selected range?
|