...Introduction This paper will be divided into two distinct parts the first part will consist of the 6 terms used to describe macroeconomics and second part will provide 3 examples of economic activities. The purpose of part 1 is to define six terms of macroeconomics which include: Gross domestic product, Real GDP, Nominal GDP, Unemployment rate, Inflation rate and Interest rate. Part 2 will discuss how the following economic activities: purchasing of groceries, massive layoff of employees and decrease in taxes affects the government, households and businesses. Macroeconomic Terms: Gross Domestic Product The Gross domestic product which is referred to as the GDP for short, is best defined as the as the main indicator used to calculate the state of a country’s economy. The GDP is the total market value of all products and services produced in an economy within the time period of one year (Colander, 2010). The GDP is categorized into four expenditure categories: consumption, investment, government spending and net exports. A factor to keep in mind is that when the GDP is calculated it does not include intermediate goods (Colander, 2010). The intermediate goods are eliminated from the GDP either by measuring only the final sale or by measuring only value added (Colander, 2010). Economists express that the GDP may be a poor means to measure and compare the living standards of people among different countries because it specifically measures market activities only. Real Gross...
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...an original. Do not submit as is E2-6 Instructions (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? (2) What is the predetermined manufacturing overhead rate? (3) What are the total cost and the unit cost of the completed job? (b) Prepare the entry to record the completion of the job. (a) (1) The source documents are: Direct materials—Materials requisition slips. Direct labor—Time tickets. Manufacturing overhead—Predetermined overhead rate. (2) The predetermined overhead rate is 120% of direct labor cost. For example, on July 15, the computation is $528 ÷ $440 = 120%. The same result is obtained on July 22 and 31. (3) The total cost is: Direct materials $4,825 Direct labor 1,360 Manufacturing overhead 1,632 $7,820 The unit cost is $3.91 ($7,820 ÷ 2,000). (b) July 31 Finished Goods Inventory 7,820 Work in Process Inventory 7,820 E2-9 At May 31, 2005, the accounts of Yellow Knife Manufacturing Company show the following. 1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories—finished goods $11,500, work in process $17,900, and raw materials $7,100. 3. Debit postings to work in process were: direct materials $62,400, direct labor $32,000, and manufacturing overhead applied...
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...Week 2 Individual Problems Chapter 1, E1-2 Prob. # | Answer | | 1. | A | | 3. | C | | 4. | C | | 7 | B | | 9 | D | | 10 | C | | Chapter 2, Question 12 What is a CAFR? What are its main components? The CAFR is short for Comprehensive Annual Financial Report. The CAFR reports the governments’ activities from the fund accounts and the government-wide financial statements. The Main components are the introduction section, financial section, and statistical section. Differentiating between a budget and a Comprehensive Annual Financial Report (CAFR). The CAFR is a combination of financial reports for the transactions of the government. What makes it different from a budget is the transactions are complete and show revenues that pay expenditures.A budget represents what cash the government wants to use for the year or financial period on specific projects. This means a plan of services and actions by the government to meet public needs and requirements. Budget changes happen when revenues do not equal project amounts.This information comes from the annual CAFR to meet each period’s budget. With the CAFR the public views the amount spent and the amount in reserve. So the budget is the plan, and the CAFR is the report of completion. The breakdown of the two is different also. The CAFR is an introductory describing the government, a financial section shows spending and revenues, and the statistical section with demographic and department statistics.The budget...
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...Week 2 Individual Assignments from the Reading Chapter 8 3) What are the essential features of the allowance method of accounting for bad debts? The essential features of the allowance method of accounting for bad debts are: (1) Uncollectible accounts receivable are estimated and matched against revenues in the same accounting period in which the revenues occurred. (2) Estimated uncollectibles are debited to Bad Debts Expense and credited to Allowance for Doubtful Accounts through an adjusting entry at the end of each period. (3) Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time the specific account is written off as uncollectible. 4) Lauren Anderson cannot understand why the cash realizable value does not decrease when an uncollectible account is written off under the allowance method. Clarify this point for Lauren. Lauren should realize that the decrease in cash realizable value occurs when estimated uncollectibles are recognized in an adjusting entry. The write-off of an uncollectible account reduces both accounts receivable and the allowance for doubtful accounts by the same amount. Thus, cash realizable value does not change. E8-5) Hachey Company has accounts receivable of $95,100 at March 31, 2007. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2007 2006 March $65,000 $75,000 February 12,600 8,000 December and January 10,100 2,400 November and...
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...•After reading "Resolving Ethical Business Challenges" (at the end of Chapter 2) on pages 54-55, answer the exercise questions on page 55. •Each answer should be between 100-200 words and supported by evidence in the case and/or ideas from the text or outside research. 1. What are the ethical and legal issues at stake in this scenario? The ethical issues would be not using a woman character to bring in more business. Plus if you have to buy credits to advance to different levels than that is an ethical issue as well. The legal issues would be making sure that the game is up to the right standards for every country that wants to buy the product. Like the internet is ready for the full nudity but only for purchase for adult users only and want it more lifelike. The U.S. market is not ready for the full nudity so that version needs to be toned down a bit so it will sell better. The Mexican market likes it if the violence was toned down a bit. The Taiwanese market wants more graphics in the violence and the nudity areas. 2. What are Karl’s options? Karl’s options to make the company, Bounce, a lot of money by making sure that everyone is aware of all the things that need to be changed for all the different types of markets. If Karl makes all the different changes than the company will be making lots of money due to making the changes to make the customers happy. The changes that need to be made are listed in the first question. This would make sure that no one gets laid off...
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...Resource: Legal Issues in International and Domestic Business: Foreign Corrupt Practices Act articles on the student website Select and read four of the articles listed under Legal Issues in International and Domestic Business: Foreign Corrupt Practices Act. Discuss with your Learning Team the compliance issues associated with the Foreign Corrupt Practices Act. The challenge for many companies is how to identify and reduce the FCPA risks posed by employees and non-employees who may not understand the many nuances of anti-corruption and anti-bribery laws and policies. . Compliance programs have not been spared (though decreases in compliance budgets have not been as steep as many anticipated, and some companies have allocated more money to this area). The combination of tighter legal requirements and tighter budgets has forced compliance offi cers to rethink processes of risk assessment and mitigation with an eye toward becoming both more effective and effi cient in program design and resource allocation. Compliance professionals typically are tasked with managing delivery of training and certifi cations—in one form or another—across the enterprise. For many companies, the process requires multilanguage versions of compliance messaging and document delivery across the globe. Program managers that depend on manual approaches to bread-and-butter compliance functions such as the annual code of conduct certifi cation or confl ict of interest...
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...Accountability in Reporting Memo To: Nonfinancial Audience From: Gabriella Goodfield, Accountant Date: June 25, 2012 Subject: Impact of public scrutiny on not-fot-profit reporting requirements The nonfinancial audience main concerns were and are why is the so much information in the financial reporting. Also, the nonfinancial is questioning why is it necessary for the extra information. Starting with the fact that all financial reports and statements has to give a full picture of what is going on within the organization. This one why it is important that there is a need for certain information. Not-for-profit organizations in part receive money from the U.S. Government. In some case receive contributions from pledges, contributions, donations. In part the not-for-profit could be the government itself. These not-for-profits organization and governments recently were being question by the public where is the money being spent. Therefore the Governmental Accounting Standards Board, Financial Accounting Standard Board has install several statement of standards that tells the not-for-profits what has to be reported and also how to report the financial statements. These standards from GASB and the FASB are the results of the nonfinancial audience concerns about not-for-profits and government entities. The concerns force the GASB and the FASB to review and update their standards. Also provide new standards as well. Reference Titard, P. W (2003)...
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...Reporting Practices and Ethics Your Name University of Phoenix Health Care Financial Accounting HCS/405 Ashonta Tharps May 26, 2012 Reporting Practices and Ethics Revenue’s and expenses of any organization require the four main elements of financial management. These elements are planning, controlling, organizing and directing, as well as decision making. The reporting practices of the financial department has improved over the years with new and improved principles and general financial ethical standards being put into place. This paper will give the reader a better understanding of the four elements of financial management, acceptable accounting principles, and financial ethical standards. Any organization will have a Chief Financial Officer. These management personnel will follow these four basic elements to manage the financial process of the organization they work for. The first step is to plan the objectives of the organization and each step needed to complete their goals. The planning process is important to how the financial manager will keep track of money spent on projects and how they are accomplished. The controlling process is used to manage each step in the planning process to make sure the projects are on target and budget for completion. Managers use past reports to help them figure out what areas of the organization are in need of assistance and what the issues are. They are also used to determine what kind of assistance is needed or if...
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...problem. I briefly will describe each stage. The first stage is “Searching for Challenges.” In this stage, meeting challenges in an imaginative, original, and effective way is the essence of creativity. This stage of the creative process represents the habit of constantly searching for challenges. It is this fact where creativity hinders on the challenges that one perceives. The second stage is “Expressing the Problem or Issue.” Finding the best expression that will produce the most helpful ideas is the objective in this stage. Consider as many expressions as possible. Each expression produces different avenues of thought. This will help an individual see a problem from many perspectives. The last thing a person wants to do is view a problem form just one perspective. That will limit that individual from many beneficial avenues of creative thought. “Investigating the Problem or Issue” is the third stage. This stage allows you to gather the necessary information to effectively deal with the problem. Research, experiences, and observations will be factors in dealing with the current problem. You can also interview knowledgeable people with expertise in that field. The fourth stage is “Producing Ideas.” The objective in this stage is to produce enough ideas to allow a decision or what action to take or belief to embrace. Try to avoid a couple of obstacles in this stage. The tendency to limit ideas to what is familiar or common, which will...
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...As companies conduct business internationally there are many issues it must be knowledgeable about to operate successfully. Two issues that were explored during Law/421 in week two’s simulation were how to address legal and ethical situations that arise when conducting business abroad. When resolving legal disputes in international transactions one must be aware of international and local laws. It is also important to know the customs and culture of the area where business transactions are taking place. Prior to conducting business abroad a choice of law must be established before any conflict arises. This will yield a resolution to the conflict that will be favorable for both parties. When taking legal action against a foreign business partner based in another country one should consider the laws of that country. Laws in others countries differ from those in the United States. Also when considering taking legal action on a company, one must analyze all possible cause and effects from that legal action. Taking legal action may be the company’s right to do, but it may cause negative customer relations in the area. In the simulation, CadMex’s decision to grant sublicensing agreements could be beneficial to the company yet work against the company. Sublicensing may cause the company to be liable in lawsuits due to the negligence of those sublicensed parties. When local customs and laws conflict with the customs and laws of an organization operating abroad, the laws...
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...from customers, over time, to identify trends that will assist in refining its processes and offerings in order to better satisfy all of their customers. Additionally, the information the Kudler Fine Foods Frequent Shopper Program collects from individual customers will be used to develop targeted offers and high value incentives to participants in the program. Before the design and implementation of this system can begin, there are many potential legal, ethical, and informational security concerns related to the development of the program that must be considered by management. Also, the effect this program will have on the organization’s structure must be considered. As stated previously, there are many legal concerns related to the implementation of Kudler Fine Foods' frequent shopper program that must be considered by management. “Most American and European privacy law is based on a regime called Fair Information Practices (FIP)” (Laudon & Laudon, 2010 p.132). The core principles of the report are already inline with Kudler Fine Foods’ Privacy policy, as outlined on the terms and conditions page of the website. By continuing to follow this policy, Kudler Fine Foods will be able to continue to avoid lawsuits from individuals, or fines from government agencies. Ethics and perception are larger concerns for Kudler Fine Foods, in part because of their customer base. Higher end customers, with delicate sensibilities, will be more concerned about how their personal information...
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...January 29, 2014 RES/320 Week 2 Individual Assignment Chapter 5 Discussion Questions 2 and 3 Question 2 - Define the distinctions between primary, secondary, and tertiary sources in a secondary search. Primary sources are data that has not been interpreted and are the original research performed. These sources are from the source of the information. The data given from a primary source has not been translated into information by another person. Primary sources are the source of the data given. Many books of law are primary sources. A court transcript would be a primary source for an appealed case. Secondary sources have been interpreted from primary data. School textbooks are an example of a secondary source because the authors gathered the information from many primary sources. They translated that data too this secondary source. Almost all research found falls into secondary sources category. Most information on the Internet has been translated from a primary source. Tertiary sources take secondary sources and interpret them. These can be guides, timelines, and almanacs. They have condensed primary and secondary sources to create an index. Bibliographies are also an example of a tertiary source. Question 3 - What problems of secondary data quality must researchers face? How can they deal with them? There are five problems of secondary data quality: Purpose, scope, authority, audience, and format. When evaluating purpose of a secondary source a research must...
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...Week 2 Individual Assignment Huffman Trucking started in 1936 in Cleveland, Ohio with just one tractor-trailer doing contract hauling in the same area. During World War II when the demand for moving of goods grew the company from 16 to 36 trailers by the end of the war. When the Motor Carrier Act of 1980 was passed, which deregulating the trucking industry, Huffman became a national carrier. The company does work for the Government, Auto manufacturing, consumer electronics, as well as raw materials. The company has union and non-union workers employed at its locations. This new benefits system is for both employee types to track their benefit information. The risks are many for this type of system as the type of data is the employee’s personal information. The information that needs protecting include Social security numbers, bank accounts numbers, their salaries and all the information that an identity thief would need to steal someone’s identity or use for other nefarious purposes. What risks are there in this new benefits election system? The benefits election system is the system that tracks all the benefits that the employees get from Huffman trucking as part of the compensation for working there. This includes heath care coverage, dental, vision, 401k, and anything else that needs tracking in the employees benefit packages. The data that is needed for this system are all the things that define a person in the United States. The risks that need addressing with this type...
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...companies, their employees and vendors with most everyone at every turn paying taxes. Prices tend to rise as spending increases. It is in essence a continuous cycle or movement of funds from one person or entity to another. During a recession households may reduce their spending on items such as grocery purchases by limiting their spending to the few items they deem necessary. When people start to hold on to their money instead of spending it, money is pulled out of the economy. Businesses such as grocery stores see less income and may cut back on employee’s hours or even lay off employees. Less tax revenue is generated and government spending may tighten. Government programs may be cut and additional employees will see layoffs. Individual spending tightens more, prices fall and the...
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...Week 2 Assignment from Text – Jamie Oswalt 16-33 a. The payroll procedures at the Galena plant do contain some shortcomings. The first one is that the supervisors in the production department are not approving actual hours. Another one found is that payroll clerk seems to be in charge of most duties, which clearly signifies a lack of segregation of duties. Finally, the employee from the personnel department should not be the one to have access to the payroll checks and hold them until time for delivery. In order to fix these shortcomings and improve the internal controls of Galena’s payroll procedures, there are certain changes that should be made. All employees should sign off on their own time cards and then give the time card to his or her immediate supervisor for approval. There should also be at least two payroll clerks with different duties. One should prepare the information that will need to be processed through the payroll data processing. Another should be the one to reconcile the time cards and the payroll register. The payroll clerk should not be authorized to void and reissue checks. This should be approved at the management level. The payroll checks should be given to the accounting department for safe keeping instead of the personnel department. b. All of the shortcomings mentioned above could lead to material errors and irregularities. The lack of the segregation of duties is a material weakness. The payroll clerk could easily submit false or fictitious...
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