Case 6: Fraud examination
Joseph Gonzales recently bought a new business that included a small 20-room motel and coffee shop. He hired a young couple to run the business and plans to pay them a monthly salary. The couple will live for free in a small apartment behind the motel office and will be in charge of the daily operations of the motel and coffee shop. They will also be responsible for hiring and supervising the four or five part-time employees who will help with cleaning the rooms, cooking, and waiting on customers in the restaurant. The couple will also maintain records of rooms rented, meals served, and payments received (which can be in the form of cash, checks, or credit cards). They will make weekly depos- its of the business’s proceeds at the local bank. Joseph lives about six hours away and will only be able to visit periodically.
1. What are your two biggest concerns about possible fraud on the part of the couple?

Perception means how a person is thinking, learning refers to acquiring new knowledge and attitudes means feeling towers the product or service. Consumer decision-making is significantly influenced by perception, learning, and attitudes.

Perception, learning, and attitudes are all important factors that affect consumer decision making. Perception influences how a consumer interprets and evaluates stimuli in the marketplace. Learning affects how a consumer learns from past experiences and develops buying habits. Attitudes influence a consumer's predisposition towards a product or service. Marketers can influence these processes by designing their campaigns to appeal to the target audience's senses, past experiences, and biases.

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The correct answer is “are not considered when evaluating new proposals”.

Sunk costs are sums of money that have already been spent and cannot be recovered. For instance, a manufacturing business may have a range of sunk costs, such as the price of machinery, equipment, and facility lease payments.

In economics and finance, a cost that has already been incurred and which cannot be recovered is known as a sunk cost. Sunk expenses are viewed as bygone in economic decision-making and are not taken into account when determining whether to continue an investment project.

There is a barrier to entry when an industry has large sunk costs. If a company must invest a significant amount of money, it won't be able to recover.

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The journal entry will show a debit to cash for the amount of cash received from the sale of the bonds.

The issuance of 4800, 10-year, 8%, $1000 bonds by Martinez Corp. dated January 1, 2020, at 97 involves a journal entry to record the transaction. The journal entry will show a debit to cash for the amount of cash received from the sale of the bonds, which is calculated as follows:

Number of bonds issued = 4800
Face value of each bond = $1000
Total face value of bonds issued = 4800 x $1000 = $4,800,000
Issue price of each bond = 97% of face value = 0.97 x $1000 = $970
Total cash received from sale of bonds = 4800 x $970 = $4,656,000

Therefore, the journal entry to record the issuance will show a debit to cash for $4,656,000, and a credit to bonds payable for $4,800,000.

The difference between the cash received and the face value of the bonds represents the discount on the bonds, which is amortized over the life of the bonds using the effective interest method. The entry would be as follows:

Debit: Cash $4,656,000
Credit: Bonds Payable $4,800,000

Overall, the issuance of bonds at a discount allows the issuer to raise capital at a lower cost of borrowing than issuing bonds at face value or a premium.

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The factors that effect demand for labour are:

The quantity of a produt that labor produces

A change in the production process that uses more or less labor

A change in goverment policy that effects the quantity of labor

The reason stockholders' equity debit/credit rules are more complex than liabilities is: B. The elements of Stockholders' Equity are broken into different types of accounts; some are increased with debits and some with credits.

Stockholders' equity be defined as the method that help to show the assets that a company have after deducting the liabilities.

Formula for Stockholders' equity  is:

Stockholders' equity =Assets-Liabilities

The major reason why stockholders' equity debit/credit rules are  more complex than liabilities is that the elements of Stockholders' Equity are broken into different accounts in which some tend to increased with debits and  while some tend to increase with credits.

Therefore the correct option is b.

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The complete question is:

Stockholders' equity and liabilities both have normal credit balances. Why are the stockholders' equity debit/credit rules more complex than liabilities?

A. Dividends are paid to common stockholders, thus reducing Common Stock.

B. The elements of Stockholders' Equity are broken into different types of accounts; some are increased with debits and some with credits.

C. Net income can be a loss, thus changing the debit/credit relationship.

D. Stockholders' equity is composed of both Common Stock and Retained Earnings, one of which is increased with debits and the other with credits.

All the characteristics mentioned in the answer choices are typically included in the cost management plan, so there is no exception in this case.

1. The project is likely headed for a cost overrun. The cumulative AC (Actual Cost) is higher than both the cumulative PV (Planned Value) and cumulative EV (Earned Value).

This indicates that the project has incurred more costs (AC) than what was planned (PV) and achieved (EV) at this point. The higher cumulative AC suggests a cost overrun, meaning the project is spending more than anticipated.

2. The cost management plan is based on project cost estimates and is separate from the project management plan.

Explanation: The cost management plan is a component of the overall project management plan and focuses specifically on how project costs will be planned, structured, and controlled. It outlines the approaches, methods, and procedures to be followed for cost estimation, budgeting, monitoring, and control.

It also specifies the variance thresholds for cost performance monitoring and any rounding precision for cost estimates. Therefore, all the characteristics mentioned in the answer choices are typically included in the cost management plan, so there is no exception in this case.

It's important to note that effective cost management is crucial for project success. Monitoring and controlling costs help ensure that the project stays within budget and allows for timely corrective actions if deviations occur.

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The minimum price necessary for the company to supply one thousand cups can be found by observing the output level where total cost equals $85. This occurs at an output level of 1,000 cups. Thus, the minimum price necessary for the company to supply one thousand cups is $85 per thousand cups.

At an industry price of $75 per thousand cups, the company would be willing to supply the number of cups at which the price is equal to the marginal cost of producing an additional cup. From the table, this occurs at an output level of 1,000 cups.

Thus, the company would supply 1,000 cups.At an industry price of $100 per thousand cups, the company would be willing to supply the number of cups at which the price is equal to the marginal cost of producing an additional cup. From the table, this occurs at an output level of 4,000 cups. Thus, the company would supply 4,000 cups.

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You look for seed finance from angel investors, then proceed to venture capitalists, and finally make an initial public offering, depending on the stage your business is in and its capacity to generate profits (IPO).

What Is Startup Capital?

The money a new business raises to cover its start-up expenses is referred to as startup capital. A strong business plan or a working prototype must be built by entrepreneurs seeking startup money in order to sell their concept.

Which funding options do small business owners frequently use?

When they are short on cash, small enterprises in the startup stage may employ debt finance or equity financing to raise money. One type of debt financing that small business entrepreneurs use is a bank loan. Allowing stakeholders to own a portion of the company is known as equity financing.

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Answer:

Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69

Explanation:

Per hour amount paid to Matt = $6.75

Total number of hours worked by Matt = 20.25

To find Gross pay, multiply hours worked and hourly rate of pay.

Therefore,

Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours \(=20.25(6.75)=\$136.6875\) ≈ $136.69

Oversees financial forecasts, planning, and management. produces financial models and variance analysis reports. oversees the monitoring of the financial performance in real time. any financial problems to management.

Financial performance is a gauge of how effectively a company can utilize resources from its main line of business and generate income. The phrase is also used as a broad indicator of a company's long-term financial stability.

Financial performance is compared by analysts and investors between similar companies in the same industry or between industries or sectors as a whole. Indicators of financial performance are quantitative criteria used to gauge a company's performance.

No one metric should be used to assess a company's financial performance. The balance sheet, the income statement, and the statement of cash flows are financial statements that are used to assess overall financial performance.

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Answer:

Insider trading - persons who have access to sensitive or important non-public information about a corporation trading its securities

Larceny - the stealing and transporting of personal property without the owner's consent with the purpose to rob like stealing that persons bike shoplifting  

Forgery - the fraudulent act of creating, modifying, or imitating (as a document or signature).

Counterfeit - an item that unlawfully utilizes the trademark of another without that person's consent. By producing or offering a fake.

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Under ASPE (Accounting Standards for Private Enterprises), Eastern Consulting Ltd. would recognize revenue from this transaction on a straight-line basis over the 12-month period.

Under IFRS (International Financial Reporting Standards), Eastern Consulting Ltd. would recognize revenue from this transaction over time based on the stage of completion of the services provided. This can be determined by using a measure of progress, such as the hours expended or the costs incurred.

Under ASPE, revenue recognition is based on the passage of time or the completion of specific criteria. In this case, since Eastern Consulting Ltd. is providing 20 hours of consulting services per month for the entire year, they would recognize revenue evenly over the 12-month period. Each month, $3,000 would be recognized as revenue.

Under IFRS, revenue recognition is based on the principle of recognizing revenue when it can be reliably measured and when it is probable that economic benefits will flow to the entity. In this case, Eastern Consulting Ltd. would need to assess the stage of completion of the services provided to Riverside Inc. If they can reliably measure the progress based on the hours expended or costs incurred, they would recognize revenue proportionally to the services rendered. For example, if after 6 months they have provided 120 hours out of the total 240 hours contracted, they would recognize 50% of the total revenue ($18,000) as revenue at that point.

It's important for Eastern Consulting Ltd. to consider the specific requirements and guidelines of their reporting framework (ASPE or IFRS) and ensure consistent application of the chosen standard.

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The results of a partial least squares structural equation modeling analysis imply that aspects of the stadium, club management, and the fan-based support for the club are the most important determinants of fan satisfaction.

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Answer: The costumer would find it better and easier, which means sport event will make more profit because the fans are satisfied.

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The most frequently used monetary device for achieving price stability is open-market operations.

The correct answer is an option a: open-market operations. Open-market operations refer to the buying and selling of government securities, such as Treasury bonds and bills, by the central bank in the open market. It is the primary tool used by central banks to influence the money supply and interest rates in an economy.

Open-market operations play a crucial role in controlling inflation and achieving price stability. When the central bank wants to reduce the money supply and prevent inflation, it conducts open-market operations by selling government securities. This action reduces the amount of money in circulation and tightens credit conditions, which can help stabilize prices by reducing aggregate demand.

Conversely, if the central bank wants to stimulate the economy and prevent deflation, it conducts open-market operations by buying government securities. This injects money into the economy, increases the money supply, and lowers interest rates, which can stimulate spending and economic activity.

Overall, open-market operations are a flexible and effective tool for central banks to influence the money supply, interest rates, and ultimately achieve price stability in an economy.

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Copywriting for advertisements should be concise and to the point, utilize descriptive language, use active voice, include an attention-grabbing headline, and provide a clear call-to-action.

Copywriting is the practice of crafting words and phrases in order to create promotional materials that are designed to sell products or services. It requires a great deal of creativity and an ability to write in an engaging and persuasive manner. Copywriting involves researching, understanding the target audience, creating attention-grabbing headlines and crafting persuasive copy to persuade readers to take action. It is an essential part of the marketing process and can be used to effectively reach potential customers and increase sales. Copywriters use a variety of techniques to create effective copy, such as using powerful words, creating vivid imagery, and making use of persuasive language. Copywriters must be able to understand the needs of their target audience, create compelling headlines and body copy, and be able to effectively target the right people. In addition, copywriters must be able to measure the success of their copy and make adjustments based on the results.

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Statement of cash flows:

Cash Flow from Operating Activities:    

Net Income                                                  $  418,000.00  

Adjustments to reconcile net income to cash provided by operating activities    

Depreciation expense                                    $    45,400.00  

Amortization expense                                    $   8,300.00  

Gain on sale of plan asset                            $     6,100.00  

Changes in current assets and liabilities    

Decrease in accounts receivable              $  36,100.00  

Decrease in Inventory                                      $     51,000.00  

Increase in prepaid expenses                      $     5,500.00  

Decrease in accounts payable                      $    9,300.00  

Increase in salaries payable                      $      2,200.00  

Net Cash Flow from Operating Activities      $    540,100.00  

General notes for cash flow

Cash is increased when Current liability increases or Current asset Decrease.

Cash is Decreased when Current liability Decrease or Current asset Increase.

Depreciation or loss on sale of any asset is a noncash expense hence it will be added to  net income to get operating cash

Profit on the sale of asset or investment is a noncash profit and hence will be deducted from operating income.

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The  Cash Flow From Assets (CFFA)  in Year 0 for this given project is $76,000.

To calculate the Cash Flow From Assets (CFFA) in Year 0, we need to consider the initial investment in net working capital (NWC), the depreciation of manufacturing equipment, and the operating cash flow (OCF) for the next three years.

Step 1: Calculate the initial investment in NWC

The initial investment in NWC is given as $20,000.

Step 2: Calculate the depreciation expense

The manufacturing equipment is fully depreciated over the three-year life of the project. Since the total investment in manufacturing equipment is $60,000, the annual depreciation expense is $60,000 / 3 years = $20,000 per year.

Step 3: Calculate the CFFA in Year 0

In Year 0, the CFFA is the sum of the initial investment in NWC and the initial investment in fixed assets. The fixed assets are worth $60,000, and the net working capital is $20,000. Therefore, the CFFA in Year 0 is $60,000 + $20,000 = $80,000.

However, we also need to consider the tax implications. The tax rate is 20%, so we need to adjust for the tax savings due to depreciation. The tax savings is equal to the depreciation expense multiplied by the tax rate. In this case, the tax savings per year is $20,000 * 20% = $4,000.

Subtracting the tax savings from the CFFA in Year 0, we get $80,000 - $4,000 = $76,000.

Thus the  CFFA in Yr 0 is $76,000.

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Based on financial knowledge, the actionable steps you can take to apply what you have learned in Financial literacy include Preparing a Budget.

Financial Literacy is a term that is used to describe the capacity to understand and effectively use various financial and monetary skills judiciously, such as personal financial management, budgeting, and investing.

Generally, there are various actionable plans individuals can utilize in their daily lives to improve their financial and economic situations.

Financial literacy is good knowledge to have to better your life and improve the living standard of your family and children.

Hence, in this case, it is concluded that Financial Literacy is nice proficiency to have.

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Answer:

Two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

Explanation:

An Israeli physicist named, Eliyahu M. Goldratt developed the Critical Chain Project Management (CCPM) and introduced it in his book "Critical Chain" in 1997.

The CCPM is a project management methodology used by managers to better manage a project. The CCPM ensures that the project plan is feasible and immune from any uncertainty or statistical fluctuations.

In the CCPM activity network, there are no milestones and all non-critical activities are performed as late as possible.

CCPM adopts the use of drum buffers, so as to ensure extra safety is applied to a project immediately before using constrained resource.

According to Goldratt, two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

Answer:

True

Explanation:

It is true.

Through the legal process of bankruptcy, individuals or other entities that are unable to pay their creditors back can seek partial or complete relief from their debts. Bankruptcy is typically imposed by a court order that is frequently requested by the debtor.

Bankruptcy helps individuals who can no longer pay their debts get a fresh start by liquidating assets to spend on their debts or by creating a repayment plan. Bankruptcy laws also rescue financially troubled businesses. This section defines the bankruptcy process and laws.

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Labor Productivity - Share the fruits of your progress. When setting and adjusting minimum wages, policymakers often refer to labor productivity.

Employees are typically more efficient when employers invest in them by paying them decent wages. Increased salaries can lead to better performance, higher customer satisfaction, higher morale, and lower error and accident rates.

Setting the minimum wage too high is likely to affect a large number of workers, and can have an unexpectedly large impact on average labor costs and the total wages employers need to pay. This could lead to higher prices or lower employment levels.

Firms profit from the wages they pay because payments for resources go into factor markets and that money goes into household income, and that money goes into consumer spending in product markets and goes back to firms.

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Answer:  False

This line of credit provides cash to the homeowner in which they can do whatever they want with it.

Answer:

d

Explanation:

it was on the test really simple

Answer:

Worker at 10 dollars per hour, producing 8 pounds of candy

Explanation:

Got it right on the test

The cost of making one car is astronomically high, but when more cars are made, the cost per car goes down. An illustration of economic growth might be this. Economic growth is the rise or improvement in the market value of the goods and services generated by an economy over a predetermined period of time, adjusted for inflation.

Traditionally, statisticians have calculated growth as a percentage rate of real gross domestic product, or real GDP. In order to remove the inflationary distortion on the prices of produced items, growth is typically calculated in real terms, or terms adjusted for inflation. Economic growth is measured using national income accounting. Since the annual percent change in the gross domestic product—a key indicator of economic growth.

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The rate of return earned by Rick Mendez from the stock investment is 12.8%.

The rate of return is the gain (or loss) earned from an investment expressed as a ratio of the initial investment cost.

For instance, the rate of return is the difference between the total costs of an investment and its sales proceeds, multiplied by 100.

The investment cost of stock = $5,000

Proceeds from the sale of the stock = $5,650

Broker's finance = $2,500

Interest on borrowed funds = $30

Brokerage commissions = $300

Total brokerage finance costs = $2,830

Net proceeds after brokerage costs = $2,820 ($5,650 - $2,830)

Investment using own funds = $2,500

Gain from investments = $320 ($2,820 - $2,500)

Rate of return = 12.8% ($320/$2,500 x 100)

Thus, we can state that Rick Mendez's investment in the stock yielded a return of 12.8%.

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What is the rate of return earned by Rick Mendez?

The two types of financing are equity financing and debt financing. Equity financing refers to raising capital by selling shares of ownership in a company, while debt financing involves borrowing money that needs to be repaid with interest. Operating financing and investing financing are not commonly recognized types of financing.

The two main types of financing are equity financing and debt financing. Equity financing involves raising funds by selling shares of ownership in a company to investors. This type of financing allows the company to obtain capital without incurring debt but involves giving up a portion of ownership and potential control.

On the other hand, debt financing involves borrowing money from lenders or financial institutions, which needs to be repaid with interest over a specified period. Debt financing allows companies to maintain full ownership but comes with the obligation to make regular debt payments.

Operating financing and investing financing are not widely recognized as distinct types of financing, and their inclusion in this context may be misleading.

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