Reference no: EM131230144
Case 15-10 Stock Splits and Stock Dividends
A corporation may use stock splits and stock dividends to change the number of shares of its stock outstanding.
Required:
a. What is meant by a stock split effected in the form of a dividend?
b. From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
c. How should a stock dividend that has been declared but not yet issued be classified in a statement of financial position? Why?
Case 17-2 Ethical Dilemma
Barbara Montgomery is a first-year auditor for Coppers and Rose, a large public accounting firm. She has been assigned to the audit of Lakes Brothers, a clothing retailer with retail outlets throughout the United States. This audit has proved troublesome in the past, and during a staff meeting preceding the audit, Robert Cooley, the supervisor on the audit, says: 'We are going to be required to work several hours 'off-the-clock' each week until this audit is completed.' He also observes that the client is putting a great deal of pressure on the firm to maintain an acceptable level of fees.
Barbara has just been to staff training school, where it was emphasized that not charging a client for hours actually worked is a violation of Coppers and Rose's employment policy, a violation that could cause her to be dismissed. She also knows that only staff personnel are paid overtime and that supervisors are evalu¬ated on successfully completing audits within allowable budgets. Barbara dis¬cusses the issue with John Reed, a second-year staff accountant. John says, 'Don't worry, if you go along nobody will find out and Robert will give you a good evaluation.' John also says that Robert is very highly regarded by the senior members of the firm and is likely to be promoted to manager in the near future.
observes that the client is putting a great deal of pressure on the firm to maintain an acceptable level of fees.
Barbara has just been to staff training school, where it was emphasized that not charging a client for hours actually worked is a violation of Coppers and Rose's employment policy, a violation that could cause her to be dismissed. She also knows that only staff personnel are paid overtime and that supervisors are evaluated on successfully completing audits within allowable budgets. Barbara dis¬cusses the issue with John Reed, a second-year staff accountant. John says, "Don't worry, if you go along nobody will find out and Robert will give you a good evaluation." John also says that Robert is very highly regarded by the senior members of the firm and is likely to be promoted to manager in the near future.
Required:
a. Is it ethical for Barbara to work hours and not charge them to the client?
b. Use the six-step approach outlined in this chapter to resolve this ethical dilemma.
|
Knowledge management is a business process
: Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and production.
|
|
Paper topic-web services
: The reason I picked Web Services as a point, on the grounds that the Web is extending increasingly each and regular. You can now use programming, for example, Microsoft office on the web in stages, for example
|
|
Defined and included in the organization irp
: You are to choose an organization, such as a school district, state/federal agency, or hospital,, and propose a set of roles and responsibilities to be defined and included in the organization's IRP.
|
|
Testing process to measure performance of handheld devices
: What could Census Bureau management and the Harris Corporation have done to prevent this outcome?
|
|
What is meant by a stock split effected in the form
: What is meant by a stock split effected in the form of a dividend - From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
|
|
Construct an efficient portfolio
: Construct an efficient portfolio. Assume the risk free rate over the period is 6.4%. Calculate the Efficient Frontier and Capital Allocation Line (CAL) for three asset classes: Australian Shares, Australian Bonds and the Australian Cash Rate using..
|
|
Secure data in today systems
: What methods/facilities are available to secure data in today's systems? Have these methods proved to be adequate? If not, what changes would you recommend to make these methods more secure? 3.
|
|
Management functions organizing usually precedes planning
: Of the four primary management functions organizing usually precedes planning. Planners need not have significant practical experience within the organization if they have good human relations skills. The high failure rate of new businesses seems pri..
|
|
What were the benefits of the new system
: List and describe the information requirements of HPC's new management system. What problems was the new system designed to solve?
|