Question 1
1. Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting? a. lack of controls related to the calculation and approval of accounting estimates b. ineffective oversight of financial reporting by the board of directors c. management?s practice of making overly aggressive forecasts d. high turnover of accounting, internal audit and information technology staff e. none of the above 2. The common law definition of fraud involves a false statement a. that is material b. knowledge that the statement was false when made c. that is not relied on by the victim d. a and b e. a, b, and c 3. What is the best way to minimize fraud within an organization? a. detection of fraud b. investigation of fraudulent behavior c. prevention activities d. research company activities e. hire internal auditors 4. Embezzlement refers to a. the willful taking for one?s own use, another?s money or property of which the wrongdoer acquired possession lawfully, by reason of some employment or position of trust b. an unauthorized assumption and exercise of the right of ownership over goods or personal chattels belonging to another to the exclusion of the owner?s rights c. a felonious stealing, taking and carrying, leading, riding, or driving away with another?s personal property with the intent to deprive the owner thereof d. purposefully obtaining the property of another by deception 5. A person deceives if he or she purposely a. creates or reinforces a false impression, including false impressions as to law, value, intention, or other state of mind b. does not prevent another from acquiring information which would offset his judgment of a transaction c. fails to correct a false impression which the deceiver previously created or reinforced d. a and b e. a and c 6. Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks. Which of the following conditions should alert an auditor about the initial assessment? a. missing or conflicting evidence b. discrepancies in the accounting records c. unusual relationships between the auditor and management d. larger firms often undertake a higher number of complex transactions that may leave them open to accusations of unscrupulousness e. none of the above 7. While quantifying the financial damage from fraud is hard, it can be even more difficult to estimate the collateral damage such as a. damage to company brand or reputation b. a decline in staff morale c. a loss of year-end bonuses for rank-and-file employees d. a and b e. none of the above 8. We outlined three classes or categories of fraud in this course. Regardless of the fact that only fraud in group 1 can be studied, a generally accepted view of all fraud has arisen. A reason that we can be certain that researchers have accurately determined the true nature of group1 fraud is a. that they have been studied many times by different researchers b. confessions of convicted fraudsters ratify the conclusions of fraud researchers c. experienced fraud auditors and investigators tend to concur with researchers? conclusions d. a and c e. a and b 9. Many reasons exist to conduct a fraud investigation, but the specific objectives usually involve obtaining evidence for one or more of the following purposes: a. determine if fraud is occurring, support criminal or civil action against dishonest individuals, form a basis for terminating a dishonest employee. b. support an insurance claim, support defense of an accused employee. c. determine whether assets or income were hidden by a party to a legal proceeding. d. a, b, and c e. b and c 10. The client can significantly affect the desirability of accepting an engagement. Key considerations include the following: a. identification of the client ( as a fraud investigator is often hired by an attorney) and assessment of management motives b. whether the client pays a retainer to the fraud investigator. c. whether the client agrees to sign an engagement letter. d. whether the client may try to impose unreasonable time or fee constraints that could impair the investigator?s ability to perform adequate work. e. a and d. 11. Which scheme does not inflate sales? a. recognizing sales on disputed claims against customers b. recognizing sales without shipping the goods. c. understating allowances for sales discounts d. recognizing full sales amounts for partial shipments e. all inflate sales Question 12 is based on the following information. The following was taken from the bank transfer schedule prepared during the fraud audit of Fox Co.?s financial statements for the year ended December 31, year 1. Assume all checks are dated and issued on December 30, year 1. Bank Accounts Disbursement Date Receipt Date Per Per Per Per Check # From To Books Bank Books Bank 101 National Federal Dec 30 Jan 4 Dec 30 Jan 3 202 County State Jan 3 Jan 2 Dec 30 Dec 31 303 Federal American Dec 31 Jan 3 Jan 2 Jan 2 404 State Republic Jan 2 Jan 2 Jan 2 Dec 31 _____________________________________________________________________ 12. Which of the following checks might indicate kiting? a. #101 and #303 b. #202 and #404 c. #101 and #404 d. #202 and #303 13. A fraud auditor should test bank transfers for the last part of the audit period and first part of the subsequent period to detect whether a. The cash receipts journal was held open for a few days after year-end. b. The last checks recorded before year-end were actually mailed by year-end. c. Cash balances were overstated because of kiting. d. Any unusual payments to or receipts from related parties occurred. e. None of the above. 14. Which of the following cash transfers results in a misstatement of cash at Dec 31, year 1? Bank Transfer Schedule Disbursement Receipt Recorded Paid by Recorded Received Transfer In Books Bank In Books By Bank a. 12/31/Y1 01/04/Y2 12/31/Y1 12/31/Y1 b. 01/04/Y2 01/05/Y2 12/31/Y1 01/04/Y2 c. 12/31/Y1 01/05/Y2 12/31/Y1 01/04/Y2 d. 01/04/Y2 01/11/Y2 01/04/Y2 01/04/Y2 15. A fraud auditor confirms a representative number of open accounts receivable as of December 31 and investigates respondents? exceptions and comments. By this procedure the fraud auditor would be most likely to learn of which of the following? a. One of the cashiers has been covering a personal embezzlement by lapping. b. One of the sales clerks has not been preparing charge slips for credit sales to family and friends. c. One of the computer control clerks has been removing all sales invoices applicable to his account from the data file. d. The credit manager has misappropriated remittances from customers whose accounts have been written off. e. None of the above. 16. A fraud examiner suspects that a client?s cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme, the examiner most likely would compare the a. Dates checks are deposited per bank statements with the dates remittance credits are recorded. b. Daily cash summaries with the sums of the cash receipts journal entries. c. Individual bank deposit slips with the details of the monthly bank statements. d. Dates uncollectible accounts are authorized to be written off with the dates the write-offs are actually recorded. e. None of the above. 17. A fraud auditor who has confirmed accounts receivable may discover that the sales journal was held open past year-end if: a. Positive confirmations sent to debtors are not returned. b. Negative confirmations sent to debtors are not returned. c. Most of the returned negative confirmations indicate that the debtor owes a larger balance than the amount being confirmed. d. Most of the positive confirmations indicate that the debtor owes a smaller balance than the amount being confirmed. e. None of the above. 18. When the auditor suspects that fraud may be present, SAS No. 99 requires the auditor to: a. terminate the engagement with sufficient notice given to the client b. issue an adverse opinion or a disclaimer of opinion c. obtain additional evidence to determine whether material fraud has occurred d. always conduct more substantive tests e. none of the above 19. The fraud examiner is concerned that individuals in the purchasing department are initiating purchases on their own to companies in which they have a vested interest. The document the examiner would be most interested in reviewing under these circumstances would be the : a. purchase order b. receiving report c. voucher d. purchase requisition e. bill of lading 20. Which of the following procedures could be used in the detection of deposit account fraud? a. Positively confirm deposit account balances with customers. b. Substitute other employees to perform the duties of those with opportunities to commit this type of fraud. c. Review employee deposit accounts. d. Perform surprise teller cash counts. e. All of the above. 21 Which of the following controls most likely would assure that all billed sales are correctly posted to the accounts receivable ledger? a. Daily sales summaries are compared to daily postings to the accounts receivable ledger. b. Each sales invoice is supported by a prenumbered shipping document. c. The accounts receivable ledger is reconciled daily to the control account in the general ledger. d. Each shipment on credit is supported by a prenumbered sales invoice. 22. Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded? a. The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances. b. The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control monthly. c. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. c. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. e. None of the above. 23. During the consideration of a small business client?s internal controls, the fraud examiner discovered that the accounts receivable clerk approves credit memos and has access to cash. Which of the following controls would be most effective in offsetting this weakness? a. The owner reviews errors in billings to customers and postings to the subsidiary ledger. b. The controller receives the monthly bank statement directly and reconciles the checking accounts. c. The owner reviews credit memos after they are recorded. d. The controller reconciles the total of the detail accounts receivable accounts to the amount shown in the ledger. 24. To enhance controls in the credit sales area, the warehouse should be instructed not to release goods until: a. they communicate directly with the customer. b. they have a completed sales invoice. c. they receive an approved sales order. d. the shipping department requests the goods. e. they received a faxed copy of the sales requisition. 25. Standard control procedures over customer remittances received through the mail include having the mailroom personnel: a. forward the remittances, unopened, directly to the cashier. b. open the mail, restrictively endorse the checks, and then list each remittance on a multicopy prelist. c. forward the remittances, unopened, directly to the accounts receivable clerk. d. open the mail, restrictively endorse the checks, then forward the remittances directly to the cashier. e. None of the above. 26. Which of the following is an example of fraudulent financial reporting? a. Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold b. The treasurer diverts customer payments to his personal due, concealing his actions by debiting an expense account, thus overstating expenses c. An employee steals inventory and the ?shrinkage? is recorded in costs of goods sold c. An employee steals small tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense e. None of the above. 27. The client?s attorney usually decides whether a formal report on the fraud investigation is necessary. If the results of the investigation were inconclusive, the attorney may not wish to incur the additional expense of a report. The attorney may request a formal report if it will be needed to: a. refer to during restitution negotiations and/or file an insurance claim. b. submit as evidence when the investigator is expected to testify at trial. c. help fulfill a bankruptcy trustee?s or examiner?s responsibility to report on an investigation. d. a and b e. a, b, and c 28. Which of the following characteristics most likely would heighten an auditor?s concern about the risk of material misstatements in an entity?s financial statements? a. the entity?s industry is experiencing declining customer demand b. employees who handle cash receipts are not bonded c. bank reconciliations usually include in-transit deposits d. equipment is often sold at a loss before being fully depreciated e. none of the above 29. Which of the following best describes what is meant by the term ?fraud risk factor?? a. factors whose presence indicates that the risk of fraud is high b. factors whose presence often have been observed in circumstances where frauds have occurred c. factors whose presence requires modification of planned audit procedures d. reportable conditions identified during an audit e. none of the above. 30. Which of the following statements is NOT true? a. Typewriter fonts and ribbons cannot be compared to typewritten text on a document to determine whether it was typed on a specific typewriter. b. Analysis of whether the paper or ink on a document was manufactured before a certain date cannot provide evidence about matters such as whether the document was backdated or whether a page was substituted in a document. c. Forensic handwriting experts can examine documents for evidence of forgery. d. Scientific, chemical and photographic analysis can provide evidence about whether a document was altered using additives, erasures, photocopying, etc. e. Both a and b are not true. 31. When an accounts receivable clerk is allowed to steal one customer?s payment and apply the next one toward that payment and so on, this is a violation of: a. segregation of duties b. management oversight c. checks and balances d. all of the above 32. The scheme where normally the books are ?closed? at the end of each reporting period, and sales that occur after the closing date do not appear in the current period income statement is called: a. sham sales b. recognition of conditional sales c. improper cutoff of sales d. conditional sales e. None of the above. 33. Which of the following procedures would a fraud examiner most likely perform in searching for unrecorded liabilities? a. Trace a sample of accounts payable entries recorded just before year end to the unmatched receiving report file. b. Compare a sample of purchase orders issued just after year end with the year-end accounts payable trial balance. c. Vouch a sample of cash disbursements recorded just after year end to receiving reports and vendor invoices. d. Scan the cash disbursements entries recorded just before year end for indications of unusual transactions. 34. The most difficult type of misstatement to detect is fraud based on a. the overrecording of transactions b. the nonrecording of transactions c. recorded transactions in subsidiaries d. related party receivables e. none of the above 35. Which financial ratio is not useful in detecting revenue-related fraud? a. Gross profit margin ratio b. Account receivable turnover ratio c. Asset turnover ratio d. None of the above. 36. What will NOT happen when inventory purchases of a company are understated? a. Goods available for sale is understated. b. Cost of goods sold is understated. c. Ending inventory is understated. d. Net income is overstated. 37. Which of the following is NOT useful in detecting fraud that non-existent assets are recorded in statement accounts? a. Total fixed assets/total assets. b. Total fixed assets/long-term debt. c. Individual fixed asset account balances/total fixed assets. d. Fixed assets/total current liabilities. 38. In doing vertical analysis of an income statement, you notice that cost of goods sold increased from 50% of sales in year 1 to 60% of sales in year 2. A possible explanation is: a. Inventory costs rose faster than sales prices. b. Inventory is being stolen. c. The accounting records are not accurate. d. All of the above. 39. When management creates fictitious revenues, it ______________current year?s income and ________________the next year?s income. a. Overstates, does not affect b. Overstates, overstates c. Understates, overstates d. Overstates, understates 40. When management overstates inventory, it ________________current year?s income and ___________________the next year?s income. a. Overstates, does not affect b. Overstates, overstates c. Understates, overstates d. Overstates, understates 41. If skimming has been in practice for years in a business, why might it be hard to detect using horizontal analysis? a. Comparing a year in which receipts have been skimmed to other years in which receipts have been skimmed will usually not reveal differences b. Horizontal analysis is typically performed in industries that have high skimming rates c. Gross margins for the industry typically will not reveal any fraud when evaluated via horizontal analysis d. Skimming typically is revealed on the income statement and horizontal analysis is only done on balance sheet accounts e. None of the above. 42. Which of the following is most likely to be a response to the auditor?s assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. observe test counts of inventory at certain locations on an unannounced basis b. perform analytical procedures rather than taking test counts c. request that inventories be counted prior to year end d. request that inventory counts at the various locations be counted on different dates so as to allow the same auditor to be present at every count e. none of the above 43. Smart embezzlers realize that when making false journal entries, reducing ___________is not a good concealment method. a. Time spent at work b. Liabilities c. Management interaction d. Time spent making journal entry 44. Which of the following is not a form of vendor fraud? a. Overcharge for purchased goods b. Shipment of inferior goods c. Nonshipment of goods even though payment is made d. Not paying for goods purchased e. None of the above 45. Embezzlement of assets reduces the left side of the accounting equation. To conceal the theft, the embezzler must find a way to reduce the right side of the accounting equation. A perpetrator would most likely reduce the right side of the equation by: a. Reducing accounts payable b. Paying dividends c. Increasing expenses d. Altering stock accounts e. None of the above 46. Which of the following is not a fraud symptom related to journal entries? a. Unexplained adjustments to receivables, payables, revenues, or expenses b. Journal entries that do not balance c. Journal entries without documentary support d. Journal entries made near the beginning of accounting periods e. None of the above 47. Which of the following statements describes why a properly designed and executed audit may not detect material fraud? a. audit procedures that are effective for detecting an unintentional misstatement may be ineffective for an intentional misstatement that is concealed through collusion b. an audit is designed to provide reasonable assurance of detecting material errors, but there is no similar responsibility concerning material fraud c. the factors considered in assessing control risk indicated an increased risk of intentional misstatements, but only a low risk of unintentional errors in the financial statements d. the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial statements taken as a whole e. None of the above 48. Which of the following indicate common fraud symptoms relating to ledgers? a. A ledger that does not balance b. A ledger that balances too perfectly c. Master account balances that do not equal the sum of the individual customer or vendor balances d. Both a and c e. None of the above 49. Horizontal analysis is different from vertical analysis in that: a. Horizontal analysis is more important than vertical analysis b. Horizontal analysis calculates the percentage change in balance sheet and income statement numbers from one period to the next, while vertical analysis converts balances in a single period to percentages c. Horizontal analysis converts balances in a single period to percentages, while vertical analysis calculates the percentage change in balance sheet and income statement numbers from one period to the next d. Key ratios are compared from one period to the next e. None of the above 50. If a search reveals that an employee and a vendor have the same telephone number, this result may indicate: a. Vendors are overcharging for goods purchased b. Employees may be establishing dummy vendors c. Contractors are billing at the wrong rates d. A vendor is receiving kickbacks or other favors e. None of the above 51. When deciding whether to investigate, which of the following factors should an organization not consider? a. Possible cost of the investigation b. Perceived strength of the predication c. Possible public exposure resulting because of investigation d. All of the above should be considered e. None of the above should be considered 52. If the auditor believes the risk of material misstatement due to fraud is high, what does SAS 99 suggest they do? a. Assign audit personnel who have the requisite knowledge, skills and abilities commensurate with the fraud risk assessed and consider engaging other persons who have specialized skills and knowledge such as forensic specialists b. Carefully consider whether management?s choice of accounting principles is appropriate, especially those that involve the use of subjective measurements and those that apply to complex transactions c. Incorporate an element of unpredictability to the nature, timing, and extent of audit testing so that the client cannot easily arrange to avoid detection of management fraud d. All of the above 53. Why must financial institutions file large currency transaction reports? a. So bank auditors can ensure that there is no fraud within the bank b. So that the IRS can ensure proper taxes are paid c. To help provide the link between the movement of money and people who supplied it d. To help fraud investigators perform their ratio analysis e. None of the above 54. Which of the following relatively small misstatements most likely could have a material effect on an entity?s financial statements? a. An illegal payment to a foreign official that was not recorded b. A piece of obsolete office equipment that was not retired c. A petty cash fund disbursement that was not properly authorized d. An uncollectible account receivable that was not written off 55. An entity?s financial statements were misstated over a period of years because large amounts of revenue were recorded in journal entries that involved debits and credits to an illogical combination of accounts. The auditor could most likely have been alerted to this fraud by a. Scanning the general journal for unusual entries b. Performing a revenue cutoff test at year-end c. Tracing a sample of journal entries to the general ledger d. Examining documentary evidence of sales returns and allowances recorded after year-end e. None of the above 56. The most common method of detecting occupational fraud is a. External auditors b. Internal auditors c. Accident d. Tips e. Some other method 57. A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income. a. $540,000 b. $720,000 c. $820,000 d. $1,000,000 e. Some other amount II. Short-Answer Essays. Please write a cogent response to each of the questions below. Please write legibly and do not use bullets unless otherwise indicated. 1. Recently there has been a significant number of highly publicized cases of alleged or actual management fraud involving the misstatement of financial statements. Although most client managements possess unquestioned integrity, a very small number, given sufficient incentive and opportunity, may be predisposed to fraudulently misstate reported financial condition and operating results. Required: a. What distinguishes management fraud from a defalcation? b. What are an auditor?s responsibilities under generally accepted auditing standards to detect management fraud? c. What are the characteristics of management fraud that an auditor should consider to fulfill the auditor?s responsibilities under generally accepted auditing standards related to detecting management fraud? d. Three factors that heighten an auditor?s concern about the existence of management fraud include (1) an intended public placement of securities in the near future, (2) management remuneration dependent on operating results, and (3) a weak internal control environment evidenced by lack of concern for basic controls and disregard of the auditor?s recommendations. What other factors should heighten an auditor?s concern about the existence of management fraud? Please write separate answers to each part of the question. Do not write just one answer for parts a-d.,Any ETA on this assignment....?,I thought the deadline was yesterday by 12 midnight. Please correct me if I am wrong I need this assignment by 3/8/12 bfeore 8pm. Thank you,Are all the answers correct in this document? Last time there were a few things incorrect when I used your services previously?
Question 2
Sample Financial report on JetBlue,I.E Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past 3 years, fiscal or calendar. Ratio Analysis. Perform trend and ratio analysis on current and fixed assets, current and long term liabilities, owner's equity, sales revenues, EBIT, net income, and earnings per share. Project these trends 3 years in the future (prepare financial projections). Stock Price Analysis. Research the company's common stock price for the past 5 years. Research the Standard & Poor's Stock Market Index (S&P 500) for the past 5 years. Chart the price movement in the company's common stock against the S&P price movement. State and support your opinion on the company's common stock as an investment today. References. Use at least 5 references and apply APA format to the report.,Need a Finacial research Report on JetBlue Airline. Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past 3 years, fiscal or calendar. Ratio Analysis. Perform trend and ratio analysis on current and fixed assets, current and long term liabilities, owner's equity, sales revenues, EBIT, net income, and earnings per share. Project these trends 3 years in the future (prepare financial projections). Stock Price Analysis. Research the company's common stock price for the past 5 years. Research the Standard & Poor's Stock Market Index (S&P 500) for the past 5 years. Chart the price movement in the company's common stock against the S&P price movement. State and support your opinion on the company's common stock as an investment today. References. Use at least 5 references and apply APA format to the report.,4 to 5 reference page does not count in total,Hows it coming, thanks a million for your help.,Have you attached the excel file? The solution looks outstanding!!!
Question 3
I need help with this ASAP Which of the following is not a characteristic of a well-structured decision? a.) Response is programmed b.) Straight forward c.) Clearly defined d.) Custom response required 2. The following scenario is an example of which means and modes of knowledge diffusion? Scenario: A University Chemistry Professor made a presentation to the Biology team of another university in a professional conference. a.) informal and internal b.) informal and external c.) formal and internal c.) formal and external 3. A police officer uses a court order to arrest a criminal suspect is exercising ______________. a.) referent power b.) legitimate power c.) reward power d.) expert power 4. According to the presentation team, the use of Marijuana in the medical field is an example for illustration of ________________ . a.) Ethics and controversial laws b.) Types of Ethics c.) Legal but unethical scenario d.) Ethical Changes in different generation 5. John wants to work extra hours for his manager without extra compensation because he admires and respects his manager. John?s manager has ______________ over him. a.) referent power b.) legitimate power c.) reward power d.) expert power 6. Which of the following is the correct sequence of the five-point value system for a person to become an effective and ethical leader according to the presentation team? a.) One?s Value: Know, Cherish, Declare, Act on, Act Habitually on b.) One?s Value: Cherish, Understand, Declare, Act on, Act Habitually on c.) One?s Value: Know, Declare, Cherish, Act on, Act Habitually on d.) One?s Value: Understand, Cherish, Act on, Declare, Act Habitually on 7. A learner who can abstract conceptualize will prefer all of the following learning approaches except_____________. a.) teacher as communicator of information b.) well-structured presentation of ideas c.) theory reading d.) peer feedback and discussion 8. Which of the following is a decision making step that people easily miss in a rational decision making process? a.) Identify the correct problem for treatment b.) Evaluate if the problem defined is resolved c.) Identifying what is relevant and irrelevant for assessing the decision alternatives d.) Allocating weight to the decision criteria 9. According to Kolb?s learning styles inventory, what are two contrasting ways for interpreting, evaluating, and responding to information? a.) Concrete experience and active experimentation b.) Abstract conceptualization and reflective observation c.) Concrete experience and abstract conceptualization d.) Active experimentation and reflective observation 10. All of the following about Boisot?s Social Learning Cycle is correct except__________? a.) It is a model with six categories of information characteristics derived from the I-Space model b.) Codification is one of the model dimensions that explains the degree to which information can be written on paper for communication c.) Diffusion and Absorption are two categories captured under Team Learner Style Quadrant 3 (TLSQ 3) because the two categories share similar knowledge progression modes and means d.) It is a four dimensional model that explains the flow of information in a knowledge creation process 11. According to David Kolb, this learner style is best suited for careers that require the use of machines and technology. a.) Converging style b.) Accommodating style c.) Assimilating style d.) Diverging style 12. People of this learning style are best fit to be Artist, Social Workers or Human Resources managers according to Kolb?s learning style inventory. a.) Converging style b.) Accommodating style c.) Assimilating style d.) Diverging style 13. When there is high conformity and low deviance in a group, the group?s performance is likely to be: a.) high because the group cannot control its members? behavior b.) high because the group is cohesive c.) low because the group is too satisfied d.) low because the group fails to change dysfunctional norms 14. All of the following is true about Six-sigma except_________________. a.) It is a quality initiative used by many service industries today to improve business and operational processes b.) It means less than 3.4 defect per million quantitatively c.) Master Black Belt is one of the managerial targets for achievement and evaluation d.) The basic responsibility of Six Sigma programs falls on front-line management 15. All of the following are process theories of motivation except______________. a.) Equity theory b.) Goal-setting theory c.) Expectancy theory d.) Hierarchy of needs ***** 16. Which of the following is not true about the Matrix Design in an organizational structure? a.) Employees focus on one organizational goal at a time b.) Some employees have dual (or even triple or more) reporting relationships c.) Power struggle, overlapping responsibilities, and conflict are common d.) Intense politics and high coordination costs are part of its characteristics 17. According to Hackman and Oldham?s Job Characteristics model, ?meaningfulness of work? is determined by all of the following except_______________. a.) Skill variety b.) Task variety c.) Task significance d.) Responsibility level 18. If a person desires to move up in the general management hierarchy, what should the person do? a.) Become a specialist b.) Develop a niche c.) Become a specialist while developing a niche d.) Build a broad knowledge base 19. According to this motivation theory, specific and challenging goals are regulators of performance. a.) goal-setting theory b.) sociotechnical theory c.) goal-enhancing theory d.) cognitive theory 20. Immanuel Kant suggested which of the following approaches to ethics? a.) Act only if that act could be acted out universally b.) Act to help others even if they result in personal loss c.) The character of the moral agent is the key to ethical thinking d.) Act to be congruent with the organizational value system 21. This rule suggests that a manager should compare and contrast the various alternatives based on how well they will fairly divide the benefits and harms. a.) Justice Rule b.) Stakeholder Rule c.) Practical Rule d.) Categorical Rule 22. Ethics comes from a Greek word that means? a.) character b.) belief c.) cognition d.) righteousness 23. All of the following are true about span?
Question 4
You will complete three assignments in which you will examine the 2009 Comprehensive Annual Financial Report (CAFR) issued by The Town of Jupiter, Florida. The assignments will be posted in the Assignment Dropbox at least 2 weeks prior to each due date (see below). The Town of Jupiter CAFR for the Year Ended September 30, 2009 is available under at the following link: http://www.jupiter.fl.us/FinanceDepartment/upload/2009-CAFR.pdf 1. Review the information in the Statement of Net Assets (page 11) and answer the following questions: a. What assets are included in Governmental Activities Depreciable Capital Assets? What is the capitalization threshold (policy)? Provide a breakdown of the 2009 change in accumulated depreciation by type of asset and amount. (6 points) b. What are the restrictions placed on the Business-Type Activities Restricted Assets? Identify the purposes (restrictions) and amounts. (4 points) c. What is the breakdown of Governmental Activities Non-current Liabilities (including amounts due within one year & due in more than one year) by type of obligation and amount? Provide a list of obligations and amounts totaling $32,252,113. (4 points) d. What percentage of Governmental Activities Net Assets are unrestricted? What percentage of Business Activities Net Assets are unrestricted? What can you learn from these percentages? (6 points) 2. Review the information in the Statement of Activities (page 12) and answer the following questions: a. Based on Net Expense, which three Governmental Activities had the highest net expenses? Identify the activities and the amounts. (6 points) b. Which Business-type Activities had Net Revenues (i.e., Program Revenues higher than Expenses)? Identify the activities and the amounts. (3 points) c. What were the four largest General Revenues for Governmental Activities? Identify the revenue items and the amounts. (4 points) d. What was the amount of the Change in Net Assets for Business-Type Activities? (1 point) 3. Review the information reported in the Governmental Funds Balance Sheet (page 14) and answer the following questions: a. What are the names of the major government funds? (4 points) b. Describe the transactions that are accounted for in each of the major governmental funds. (8 points) c. A significant portion of Total Fund Balance for the General Fund is reserved. Identify the purposes for which the General Fund fund balance is reserved and the amounts that are reserved for each purpose. (6 points) d. The total fund balance for Other Governmental Funds is $1,892,231. Identify the names of the funds that are combined into the Other Governmental Funds column and list the total fund balance for each of these funds. Make sure you tie back to the total fund balance of $1,892,231. Hint: You will need information that is reported combining schedules. See the Table of Contents to locate those schedules. There are many nonmajor funds, and you will have to look carefully to find all of them. (9 points)
Question 5
QUESTION 4: Lessor Limited is trying to determine the lease payment it quotes for the excavation equipment. Assume that the equipment costs $2,000,000, has a 4 year useful life and a CCA rate of 50%. Before tax operating cost of the asset is $200,000 per year (paid for by the owner (lessor) of the asset. The corporate tax rate is 40%, before tax cost of debt is 6%, risk free (treasury bill) rate is 4% and cost of capital is 8%. CCA tax shield will be claimed at the end of the year and the lease payment and operating costs will be at the beginning of the year. a. Determine the annual lease payment if the resale value of the asset is $400,000 after 4 years. Assume asset pool is open. b. Determine the lease payment if the depreciation is straight line and the resale value is $400,000 after 4 years. Asset pool is closed, therefore, any gain/loss on disposal will be taxable. c. Continuing with a) above, suppose Lessee Inc. has a corporate tax rate of 0%, cost of debt is 6%, risk free rate is 4% and cost of capital is 10%. What is the maximum lease payment Lessee Inc. would be willing to make? Within what range of values Lessor Limited and Lessee Inc. can make a deal?
