Identify at least three weaknesses in Eid Corporation’s revenue cycle activities. Describe the problem resulting from each weakness. Recommend control procedures that should be added to the system to correct the weakness.

/in /by

Assignment Question(s):   (Marks 15)

Question 1: (03 Marks)

Under the expenditure cycle ordering materials, supplies and services are the first activity. Explain the following ordering threats with suitable example with each of these.

  1. a) Purchasing at inflated prices
  2. b) Unreliable Suppliers
  3. c) Kickbacks

Answer:

 

Question 2:       (03 Marks)

What are the advantages of the REA data model over the traditional AIS model?

Answer:

Question 3:    (04 Marks)

Under the payroll system of an organization we find several components such as HRM Department, Employees, Bank, Government Agencies, Insurance and other companies, Various other departments. Take an example of an organization and explain the relationship of these components with reference to Payroll System of that organization                                                                        

Answer:

Question 4:   (05 Marks)

Eid Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in a renovated warehouse a few blocks away.

 

Customers place orders on the company’s website, by fax, or by telephone. All sales are on credit, FOB destination. During the past year sales have increased dramatically, but 15% of credit sales have had to written off as uncollectible, including several large online orders to first-time customers who denied ordering or receiving the merchandise.

 

Customer orders are picked and sent to the warehouse, where they are placed near the loading dock in alphabetical sequence by customer name. The loading dock is used both for outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty incoming deliveries every day, from a variety of sources.

 

The increased volume of sales has resulted in a number of errors in which customers were sent the wrong items. There have also been some delays in shipping because items that supposedly were in stock could not be found in the warehouse. Although a perpetual inventory is maintained, there has not been a physical count of inventory for two years. When an item is missing, the warehouse staff writes the information down in log book. Once a week, the warehouse staff uses the log book to update the inventory records.

 

The system is configured to prepare the sales invoice only after shipping employees enter the actual quantities sent to a customer, thereby ensuring that customers are billed only for items actually sent and not for anything on back order.

Questions:

  1. Identify at least three weaknesses in Eid Corporation’s revenue cycle activities.
  2. Describe the problem resulting from each weakness.
  3. Recommend control procedures that should be added to the system to correct the weakness.

Answer:

 

 

Record how the entry for depreciation would look for any one of the above amounts Which method would result in the lowest profit in the first year? Which would result in the highest?

/in /by

ASSIGNMENT

INTRODUCTION

Brighton Mines is a company that owns three mines in northern British Columbia. They are responsible for the extraction and refining of ore in order to produce precious metals. Many different long-lived assets are used throughout their operations.

PART A:

The company is looking to purchase a new truck for the transportation of the ore harvested from the mine to the refining facility. The equipment manager has found a truck for sale that will have a purchase price of $120,000. Brighton will have to pay $2,000 for the truck to be painted with the Brighton Mines logo, and will have to equip the truck with a different truck bed to handle the heavy ore, which will cost $20,000. The truck bed will have the same useful life as the truck once installed. Brighton will also have to pay $9,000 to purchase the first year of insurance on the truck and a provincial eco-tax of $5,000, the eco-tax cannot be recovered.

 

The truck was purchased on April 1st 2022 and all required costs, included above were paid.

 

Instructions:

  1. Record the purchase of the truck on April 1st
GENERAL JOURNAL  
DATE PARTICULARS PR DEBIT CREDIT
           
           
           
           
           
           
           
           

PART B:

Equipment used in the refining of the ore was purchased on June 1st in 2020 for a total cost of $800,000. This equipment was estimated to have a useful life of either 15 years or 10 million tonnes of ore processed, with a residual value of $50,000. The equipment processed 600,000 tonnes of ore in 2020, 1,100,000 in 2021, and 900,000 in 2022. Brighton has a December 31st year end and pro-rates all of their depreciation to the nearest month.

Instructions:

  1. Calculate the first three years of depreciation using the:
    1. Straight-Line Method
    2. Diminishing-Balance Method (with the double-declining rate)
    3. Units of Production Method
  2. Record how the entry for depreciation would look for any one of the above amounts
  3. Which method would result in the lowest profit in the first year? Which would result in the highest?

 

Straight-line

Year Depreciable Amount Rate Depreciation Expense Accumulated Depreciation Carrying Amount Show calculations here
          800,000.00 ↓
2020            
2021            
2022            

Double-Diminishing

Year Depreciable Amount Rate Depreciation Expense Accumulated Depreciation Carrying Amount
          800,000.00
2020          
2021          
2022          

 

Units of production

Cost per unit:

Year Depreciable Amount Units Depreciation Expense Accumulated Depreciation Carrying Amount
          800,000.00
2020          
2021          
2022          

 

Date Particulars Debit Credit
       
       
       
       

 

Which method would result in the lowest profit in the first year? Which would result in the highest?
 

PART C:

A partial balance sheet for Brighton Mines can be found below:

Brighton Mines

Balance sheet (partial)

December 31, 2020

Ore Processing Plant 5,000,000

Accumulated Depreciation – Ore processing Plant 1,500,00 3,500,000

The company found out on December 31st that the ore processing plant listed above is sitting near a mine that had less ore than was expected, therefore its value has decreased. An independent valuator was called in and determined the recoverable amount would be $2,500,000.

The plant was purchased in January of 2018 and has been depreciated using the straight-line method. It has a total useful life of 10 years at which time it would have no residual value.

Instructions:

  1. Record impairment, if necessary, on December 31st, 2020
  2. Calculate and record the revised depreciation for December 31st, 2021
  3. On March 1st, 2022 the company considered getting rid of this plant. Record the disposal of this plant on March 1st under each of the following scenarios (imagine each of the following is occurring independently of the other scenarios)
  1. The plant was scrapped
  2. The plant was sold for $1,300,000 cash
  3. The plant was sold for $4,000,000 cash
  4. An outside company offered to trade the plant for another plant further north. They are offering to give you $2,000,000 towards the purchase of the northern new plant in exchange for the old plus $6,000,000 cash. An independent valuator tells you that your current plant has a current fair-value of $1,700,000.
GENERAL JOURNAL PAGE  
DATE PARTICULARS PR DEBIT CREDIT Show calculations here
            ↓
             
             
             
             
             
             
             
             

 

PART D:

On April 1st, 2020, Brighton Mines purchased a patent for a new technology to be used in the refinement of their mined ore. They paid $300,000 for the patent.

Instructions:

  1. Record the purchase of the patent
  2. The patent has an estimated useful life of 10 years, at which time it will have no residual value. Record the amortization on the patent on December 31, 2020
  3. On January 1st, 2021 a team set up to evaluate our assets determined that the patent will only provide us with $250,000 of fair value in the future. Record any necessary impairment of the patent.
  4. Record the amortization on the patent on December 31, 2021
GENERAL JOURNAL PAGE    
DATE PARTICULARS PR DEBIT CREDIT   Show calculations here
              ↓
               
               
               
               
               
               
               
               

PART E:

The following is information about Brighton Mines for the past three years.

  2020 2021 2022
Sales 1,200,000 1,500,000 2,000,000
Net Profit 400,000 450,000 700,000
Total Assets 5,000,000 6,500,000 7,250,000

Instructions:

  1. Calculate the asset turnover for 2021 and 2022
  2. Calculate the return on assets for 2021 and 2022
  3. Briefly comment on each of the numbers calculated: What does each number mean? What is the current trend in both these numbers?
  2021 2022
Asset Turnover    
   
   
   
   

 

  2021 2022
Return on Assets    
   
   
   
   

 

Comment

 

Describe some of the MISSING internal control components and/or principles of internal control activities. Describe what you learned about fraud and internal control from listening to these “real life” stories.

/in /by

Mini-Case #2: Fraud Podcast

This course covered advanced forensic techniques. Many want to find out more and here is your chance to study another fraud area more in-depth. To learn more about fraud, for this assignment, you will listen to a podcast or watch the TV show American Greed. Summarize the podcast and present your findings.

1. Select and listen to one of the AMERICAN GREED podcasts. They are available on Apple, Google, Spotify, or watch on Peacock. Podcasts are free, if you want to watch the TV show, there may be a fee, depending on what subscription services you have.

The podcasts can also be found at your preferred podcast provider under “CNBC American Greed”

2. Summarize the podcast. (You don’t need to submit your summary.)
Describe the fraud that occurred. Include the names of the people in the interview. Where do they work? What are their titles?

Describe “what happened.”

Were all the components of the fraud triangle in place?

Describe some of the MISSING internal control components and/or principles of internal control activities.

Describe what you learned about fraud and internal control from listening to these “real life” stories.

How appropriate and clear is the title of the article? How clear are the author’s statements, and does the discussion maintain cohesion? Was this article in your opinion an informative article or a persuasive article?

/in /by

CASE STUDY

1. How appropriate and clear is the title of the article?

2. How clear are the author’s statements, and does the discussion maintain cohesion?

3. Was this article in your opinion an informative article or a persuasive article?

4. What do you think of the author’s writing? Do you feel like the author is a professional writer or an amateur?

5. How well does the organization fit the article’s purpose and articulate key goals?

Your Journal needs to be 1 – 2 pages. If it is less than a full page, it will not count towards a grade.
Is Sugar as Bad for Kids as It Is for Adults?
BY MARKHAM HEID Links to an external site.
AUGUST 1, 2019 7:00 AM EDT

Kids love sweets. Of course, so do many adults. But even those grown-ups with a serious sweet tooth would likely struggle to polish off a big bag of candy, while the average kid would relish that chore. “Even during infancy, newborns have an innate preference for breast milk because of its sweetness,” says Juliana Cohen, an assistant professor of nutrition at Merrimack College in Northern Massachusetts and the Harvard School of Public Health.

Cohen says the prevailing theory is that a taste for sugary foods offered early humans an evolutionary advantage: In nature, sweet foods—stuff like fruits or honey—tend to be both safe and rich in calories, while bitter foods are more likely to be toxic. So humans may be born with an inherent desire for sugary foods that fades with age and eating experience.

This fad is a good thing. Studies have repeatedly linked high-sugar diets high to elevated rates of obesity, type 2 diabetes, and heart disease. “Added sugars,”—the type food manufacturers add to processed or packaged products, as opposed to those naturally present in whole foods—seem to be particularly unhealthy. The U.S. Centers for Disease Control and Prevention (CDC) recommends that adults limit their added-sugar intake to less than 10% of their daily calories, and a 2014 study in JAMA Internal Medicine found that people who exceeded this daily limit increased their risk of death due to heart disease by at least 30%.

Much of the research to date suggests that swallowing excessive amounts of sugar is just as dangerous for kids as it is for grown-ups. The CDC and the Dietary Guidelines for Americans both recommend that kids age 1 and older should, like adults, get less than 10% of their daily calories from sugar. The American Heart Association (AHA), meanwhile, recommends that children age two and younger should have no added sugar in their diet at all. But research presented last year by CDC scientists found that 60% of children under the age of 12 months consume at least some added sugar, and that the average daily added-sugar intake among kids between 1 and 2 years old ranges from 5.5 to 7 teaspoons, which works out to between 23 and 29 grams, approximately.

For older kids, meaning those ages 2 to 18, the AHA says daily added-sugar intake should not exceed 25 grams, which equates to roughly 6 teaspoons. Unfortunately, the average American youth blows past this safety threshold: data collected by the CDC show that, between 2009 and 2012, the average American child consumed 19 teaspoons of sugar every day, and that, depending on age, the average kid consumes somewhere between 11% and 17% of his or her daily calories in the form of added sugar.

How is sugar harmful to kids?
Cohen’s research has found that toddlers who drink beverages sweetened with added sugar, as well as children born to mothers who drank these beverages while pregnant, tend to score worse on childhood intelligence and aptitude tests. High fructose corn syrup, a sweetener that turns up in many artificially sweetened beverages—as well as in many packaged sweets—may be especially harmful. “It appears that high fructose corn syrup may be impacting hippocampal function during important periods of development,” says Cohen. The hippocampus plays an important role in learning and memory formation.

A 2018 Purdue University study found that the greatest source of sugar in the average kid’s diet is sugary beverages like fruit juice, soda, and sports drinks. A related 2015 study in the journal Nutrition found kids who consumed soda, fruit juice, and other sugary drinks tended to weigh more than kids who did not. Also, when some of the kids in the study swapped out their sugary juice or soda for either milk or water, their body weights tended to drop. More research has found that, as a child’s added-sugar intake rises, so does that child’s risk for hypertension, fatty liver disease, and type 2 diabetes, among other conditions.

Cohen and others say the message here isn’t that all sweets are bad, nor that kids should be wholly deprived of sugary treats. “Sugar in small doses is okay, but with the portion sizes most people are used to today, we’ve lost perspective on moderation,” she says.

“Sugar is added to foods so much more now than it was in previous generations,” says Jennifer Hyland, a pediatric dietitian at the Cleveland Clinic. “If you’re looking at food labels, you realize it’s hard to find foods marketed to kids that don’t have a lot of sugar in them.” Kids’ yogurt, breakfast cereals, applesauce, desserts, and juice all tend to be packed with sugar, she says.

Why is sugar such a popular food additive?
“The food industry knows that when they add sugar, you buy more,” says Dr. Robert Lustig, a sugar researcher and former professor of pediatrics and endocrinology at the University of California, San Francisco. Lustig says kids tend not to enjoy predominantly bitter or sour or salty foods. Adding sugar to these foods helps mask these tastes. “Sugar covers up the sour in lemonade, or the bitter in chocolate, or the salty in honey-roasted peanuts,” he says.

The obvious solution, recommended by most experts, is to avoid processed or packaged foods. For parents who don’t have the time or resources to prepare food from scratch, experts suggest shopping for peanut butters, breakfast cereals, and other packaged products that contain little or no added sugar. On the other hand, fruits, vegetables, unsweetened milk or yogurt, and other whole foods that naturally contain sugar are all healthy additions to a child’s diet.

But if you are going to do just one thing, you should encourage your children to drink water or milk rather than the sugary beverages that are the greatest source of added sugar in the average child’s diet.

“I don’t want parents to freak out and feel like they need to get rid of everything in their pantry,” Hyland says. “But we all need to be more aware of the added sugar in the foods kids are eating.”

Who are the stakeholders in this situation? What are the ethical considerations of (a) the president’s request and (b) Zoe dating the adjusting entries December 31? Can Zoe accrue revenues, defer expenses, and still be ethical?

/in /by

Unit 6 Assignment Details

Here is an opportunity to connect your current learning about revenues, expenses and adjusting entries with the profession’s commitment to ethics.
EC3: Russell Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Russell’s chemical pesticides. In the coming year, Russell will have environmentally safe and competitive chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed those from any prior years. The decline in sales and profits appears to be a one-year aberration. But even so, the company president fears a large dip in the current year’s profits. He believes that such a dip could cause a significant drop in the market price of Russell’s stock and make the company a takeover target.

To avoid this possibility, the company president calls in Zoe Baas, controller, to discuss this period’s year-end adjusting entries. He urges her to accrue every possible revenue and to defer as many expenses as possible. He says to Zoe, “We need the revenues this year, and next year can easily absorb expenses deferred from this year. We can’t let our stock price be hammered down!” Zoe didn’t get around to recording the adjusting entries until January 17, but she dated the entries December 31 as if they were recorded then. Zoe also made every effort to comply with the president’s request.
Weygandt, J.J., Kimmel, P.D., & Kieso, D.E (2021). Accounting Principles (14th Ed.). Hoboken, NJ: John Wiley & Sons, Inc.

Assignment Instructions
Respond thoroughly to the following questions in your PowerPoint presentation:
Who are the stakeholders in this situation?
What are the ethical considerations of (a) the president’s request and (b) Zoe dating the adjusting entries December 31?
Can Zoe accrue revenues, defer expenses, and still be ethical?
Can Zoe’s accrued revenues and deferred expenses be illegal?
Who do you think can discover Zoe’s accrued revenues and deferred expenses?
Prepare a Microsoft® PowerPoint® Presentation answering the questions presented in this Assignment. This presentation should inform the audience about the connection between revenues, expenses and adjusting entries with the profession’s commitment to ethics and the impact in the financial statements. Make sure to cite at least one source and reference it (in your separate reference slide) following APA guidelines.
A minimum of seven slides including the title, abstract and reference slides are required. Your presentation should be attractive and must include a slide for your abstract, which should include a concise and clear thesis statement.
You want to follow the conventions of Standard English that includes correct grammar, punctuation, and spelling. Your presentation must contain speakers notes at the bottom of each slide and be formatted according to APA guidelines.

Review the items below to ensure you have covered all aspects required for this Assignment.
A minimum of seven slides are required for your oral presentation. The Microsoft PowerPoint Presentation should include:
Title slide
Abstract slide
Answers to the outlined questions
Conclusion slide
Use in text citations where appropriate in your slide’s note section.
Use an APA 7th edition style and guidelines for your reference slide and cite at least one source.
Respond to each question in a thorough manner, providing supporting information concerning revenues, expenses and adjusting entries with the profession’s commitment to ethics and the impact in the income statement.
Demonstrate logical and appropriate transitions from one idea to another, including word choice and oral expressiveness while leading the audience to a dynamic and supported conclusion.
Your presentation should be highly ordered, logical, and unified and demonstrate original thought.
Communication is highly ordered, logical and unified to include an introduction, main content and conclusion.

If the company had purchased all its materials from the online marketplace, describe what inventory cost would be shown for all materials on hand based on the average transaction price.

/in /by

PowerPoint Presentation

Using the scenario linked in the Supporting Materials section, assume that you are the cost accountant for your company, and the CFO has asked for your analysis on purchasing materials from an online marketplace.

You will record a presentation in Bongo. You will prepare PowerPoint slides that explain the key points to communicate to the CFO, utilize basic visualizations, and present options for the CFO based on the situation. Then, you will verbally discuss those slides in your Bongo presentation and record the narration. Bongo Learn will provide automated feedback when you complete your presentation. Take a screenshot of the feedback and add the screenshot to the last slide in your slide deck before saving the slide deck.

It is recommended that you try recording several times to feel comfortable with your pace, volume, and diction.

Bongo Learn provides automated feedback about your presentation skills. While this assignment is focused on presenting to stakeholders, the content should be simple and direct. Your objective is to gain the confidence you need to present orally and visually to an audience.

Specifically, you must address the following rubric criteria:

Presentation 

  1. Explain the key points to communicate to the CFO. Use the data sets linked in the Supporting Materials section to answer questions a, b, and c. Include the following details in your response:
    1. If the company had purchased all its materials from the online marketplace, describe what inventory cost would be shown for all materials on hand based on the average transaction price.
    2. Explain if the inventory cost value is higher or lower than the value of all materials if using their standard price.
    3. If the company can freely choose the lower of the standard price or the average price in the online marketplace, explain what the lowest possible inventory cost of all materials on hand is.
    4. Identify whether there is a particular marketplace vendor who always sells at a price lower than the standard price cost of all materials on hand.
  2. Create effective basic visualizations (line chart or column chart) that support key points.
    1. Create a basic visualization for Data Set One, linked in the Supporting Materials section.
    2. Create a basic visualization for Data Set Two, linked in the Supporting Materials section.
  3. Present options for the CFO when considering switching to the online marketplace. Answer question d of the textbook problem. Include the following details in your response:  Based on your observations in (a) and (b), can you explain why the competitors are switching to the online marketplace? What would you recommend to your company?
    1. Explain why the competitors are switching to the online marketplace.
    2. Provide recommendations and rationale for the best options moving forward for your company.

 

What are two or three arguments AGAINST budgeting? How would you try to convince the CEO that budgeting would be a good idea, and how would you counter the CEO’s arguments against budgeting?

/in /by

Budgeting arguments

Project Content

The chief executive officer (CEO) of Rigid Plastics Corporation remarked to a colleague, “I don’t understand why other companies waste so much time in the budgeting process. I set our company goals, and everyone strives to meet them. We’re making money and I don’t have time to waste planning and making a budget, and the actual results are going to be different anyway.

Questions

What are two or three arguments FOR budgeting?
What are two or three arguments AGAINST budgeting?
How would you try to convince the CEO that budgeting would be a good idea, and how would you counter the CEO’s arguments against budgeting?
How would you recommend the accounting staff track the cost savings and other benefits of budgeting in order to justify the decision in the future?
What are some potential drawbacks of implementing a new budgeting system and how would you recommend the CEO overcome those obstacles?

What is a joint process, and what is the difference between a by-product and a main product? How are joint costs allocated? What factors are considered in choosing a joint cost allocation method?

/in /by

Joint Product and By-Product Costing

Q1: What is a joint process, and what is the difference between a by-product and a main product?

Q2: How are joint costs allocated?

Q3: What factors are considered in choosing a joint cost allocation method?

Q4: What information is relevant for deciding whether to process a joint product beyond the split-off point?

Q5: What methods are used to account for the sale of by- products?

Q6: How does a sales mix affect joint cost allocation?

Q7: How do joint cost allocations affect decisions and managerial incentives?

 

Why do companies use the allowance method to account for bad debts? Describe the diverse methods used to estimate bad debts in an accounting system. Provide examples for each method.

/in /by

Assignment Question(s): (Marks15)

Q1. Suppose you are an auditor who has been tasked with looking into the internal controls at a company. How can you evaluate the company’s internal controls to see if they are sufficient? (5Marks)

Q2. Why do companies use the allowance method to account for bad debts? Describe the diverse methods used to estimate bad debts in an accounting system. Provide examples for each method. (5Marks)

Q3. Consider that you own a business that purchases equipment for 50,000SR. How would you calculate this asset’s depreciation? Use the different methods to depreciate the equipment.

Note: To calculate depreciation, you must provide the salvage value, useful life, and annual units produced

 

Engage in a selected activity related to career development. Write a paper (1,500 – 2,000 words).

/in /by

Career Preparation Research Project on AUDITING and ASSURANCE SERVICES:

The purpose of this assignment is to engage in a selected activity related to career development.

Write a paper (1,500 – 2,000 words) that includes the following:
• The career opportunities in the discipline which has the most appeal based on research.
• New knowledge gained through the research.
• How the information influences your studies and future career.

The paper may be written in first-person voice and must be grammatically correct. At least four external sources should be cited in the paper.