Acc418

Nonetheless, as we all know the recession and economic changes affecting the women’s apparel industry during late 1980s and early 1990s. As a consequence, it is an indicator that Leslie Fay suspected to overstate its inventory in order to overstate its current asset. According to Account Receivable and Inventories two accounts, there is 10.8% increase in Leslie Fay’s current asset from 1987 (60.9%) to 1990 (71.7%). As far as I can see, Account Receivable and Inventories are the two main accounts which caused an unusual and inconsistent gain in total current asset in four years. Thirdly, there is unusual gain in PP&E account from 1990 (6.8%) to 1991 (9.9%). However, other accounts under Current Asset such as Inventories and Accounts Receivable started to decrease in 1990 and PP&E is the only account that increased 3.1% in one year. Also, I cannot find any equipment and estate purchased by Leslie Fay from 1990 to 1991. As a result, I suspect it might have fraud happened in Leslie Fay. Additionally, there is an unusual decrease in Long-term Debt account from 1990 to 1991. More specifically, the Long-term Debt decreased less than 10% from 1987 (38.2%) to 1990 (29.6%). While, it decreased 8.3% from 1990 (29.6%) to 1991 (21.3%) in one year. As far as I can see, this is an unusual and inconsistent decrease of Long-term Debt and it indicated Leslie Fay suspect to understate its

b. There are two differences between the bank statement and the check register. Describe each of them. (2-4 sentences. 1.0 points) TIP: These are transactions that Jessie

Based on the case, company poor accounting system creates opportunities for Mr Praveet to commit fraud because the information on trade register was authorized and managed by Mr Praveet. There is no other personnel that in charge of the authorization of the fund such as approval of the fund from higher authority of the financial manager, Mr Mehta. Good accounting information system able to provide accurate and timely information, but this does not appear in Taj Mahal Investment Company. The accounting system is important for prevention and detection of fraud and it did not alarm an alert to the company about the losses in investment until when Mr Praveet had left the company. So, Mr Praveet easily commits fraud without notice by the

Directions: Use your graded tests and Unit 4 & 5 notes to answer the following questions. You can find the answers for #’s 1 – 62 on Exam 1 (3rd Nine Weeks Exam) and #’s 63 – 100 on your unit notes. Write your answers in the space provided, below each question.

SFAS No. 87 “Employers’ Accounting for Pensions” maintains that pension information should be prepared on the accrual basis and retained three fundamental aspects of past pension accounting: 1. delaying recognition of certain events, 2. Reporting net cost, and 3. offsetting assets and liabilities” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). “The components of pension costs reflect different aspects of the benefits earned by employees and the method of financing those benefits by the employer. The following are required to be included in the net pension cost recognized by the employer sponsoring a defined benefits pension plan: 1. Service cost, 2. Interest cost, 3. Return on plan assets, 4. Amortization of unrecognized prior service cost, 5. Amortization of gains and losses, 6. Amortization of the unrecognized net obligation or unrecognized net asset at the date of the initial application of SFAS No. 87” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011).

Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the tasks of determining which decisions provide the greatest returns.

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and

S O LU T I O N TO C O R P O R AT I O N P R AC T I C E S E T

b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)

When you feel confident that you have mastered the material in this study unit, complete the following examination. Then submit only your answers to the school for grading, using one of the examination answer options described in your “Test Materials” envelope. Send your answers for this examination as soon as you complete it. Do not wait until another examination is ready. Questions 1–20: Select the one best answer to each question. 1. Which of the qualities required for a good

Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)

The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

First, whether there was reasonable reliance. There is a significant level of reliance on Mali’s behalf as she quit her job, relying on the ‘huge profits’. Though it is unclear whether this was communicated to the BKFC, the BKFC should have reasonably known that an individual depositing $2500 for a stall at their festival, following their words ‘huge profits’, would have reliance. Further, James McNaughton Paper Group v Hicks can be applied with regard to the reasonableness of reliance, where the court concluded the plaintiff should have made their own enquiry into the business rather than relying solely on the defendant’s statement. Additionally, the contract Mali signed further reduces the reasonableness of her reliance.

L & Co dispatched the goods on credit to Blenkarn, who resold 250 dozen to Cundy. Blenkarn did not pay for the goods. L & Co sued Cundy to recover the handkerchiefs. It was held that the contract between L & Co and Blenkarn was void for unilateral mistake. L & Co intended to deal with Blenkiron & Co, not Blenkarn. Cundy was liable to return the handkerchiefs to L & Co because no right of ownership had passed to him.

There are three basic issues that have been cleared , firstly, there is a valid contract between Iyer Associates and Nak Chuy we can say so because under the Company Act ,1956 there is transfer of assets and liabilities ,so the contract of Vishwakarma Hydraulics is transferred to Iyer Associates creating a valid contract between Iyer associates and Nak chuy. Secondly, there is breach of contract done by Iyer Associates as they do not make payments to Nak Chuy for the delivery of cranes they made and fulfilled the contracts. There was to be fulfilment of the contract but as the payment was not made it was Breached by Iyer Associates. Thirdly, the point that has been explained that there has to be payment done to Nak Chuy by the Iyer Associates as they had caused damages by not making the payments. The Iyer Associates are libel to pay the money to Nak Chuy along with the some amount of interest as compensation. Nak Chuy had entered into a valid contract and deserved its payment and compensation with some interest as it went through some damages.