What could a Logitech staff accountant have done if he/she knew that the CFO and controller failed to write down the discontinued Revue parts inventory?

In the fourth quarter of 2010, Logitech International released the Revue, a TV set-top box designed to integrate cable/satellite TV with internet content. The Revue Google search bar would be able to find any desired content from any provider and project that content to the TV screen. The Revue was manufactured by contract manufacturers, not […]

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How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?

In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]

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How will Brooklinen, the luxury bedsheets startup, account for its $10 million Series A stock issuance?

Vicki and Rich Fulop, a millennial couple from Brooklyn, New York, went on vacation and stayed in a hotel where they fell in love with the bedsheets. When the Fulops made inquiries about how they might purchase the bedsheets, they found out that those sheets were not available for sale by retail customers.  Similar sheets […]

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If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers’ variances be impacted?

AMD is rumored to be releasing a new 16-core, 32 thread CPU, that would be significantly more powerful than its competitors – and it would be about $1,000 less expensive than the closest Intel CPU. This AMD chip is named “AMD Ryzen” and it has six more cores than Intel’s current primary desktop CPU – […]

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What internal controls might have stopped a Cargill accountant from embezzling $3.1 million?

Cargill, Inc., is the largest privately held corporation in the United States as measured by revenue. According to Wikipedia, if it were a publicly-held corporation, it would rank number 12 on the Fortune 500. In addition to its agricultural business, it also deals in energy, food ingredients, financial services, and a broad array of other […]

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How should Ford treat the contingency resulting from the Ford Mustang Shelby GT350 owners’ class action lawsuit?

Ford Motor Company produces and sells the Ford Mustang Shelby GT350, which Ford markets as a track-ready car built to reach and sustain high speeds. Three of the 2016 Ford Mustang Shelby GT350 owners have filed a class action suit against Ford, alleging that these cars are not track-ready. These owners claim that the car […]

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How would process costing work for gummy bears to be produced at the new US Haribo manufacturing plant?

Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around the world. Starting in 2020, those gummy bears will also be made in the US when Haribo opens a new plant in Wisconsin. Worldwide, about 100 million gummy bears are made by Haribo per day. The ingredients in gummy […]

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Introductory managerial accounting Jeopardy game for end-of-semester review

A few days ago, I shared a Jeopardy-style PowerPoint file that can be used for an end-of-semester review in introductory financial accounting classes. In this post, I am sharing a Jeopardy-style game that covers basic topics within an introductory managerial accounting course. This PowerPoint file contains a Jeopardy-style game suitable for use in an introductory […]

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How is Tesla’s balance sheet impacted by its issuance of common stock and convertible five-year notes?

Tesla, Inc. (NASDAQ: TSLA) is ramping up to begin production of the Tesla Model 3. The Model 3 is an all-electric four-door compact luxury sedan that will have a range of at least 215 miles. It will be the most affordable of the Tesla models, starting at $35,000 for the base model. As of mid-March […]

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Introductory financial accounting Jeopardy game for end-of-semester review

At the end of the semester, I thought it might be useful to have a review game before the final exam. I have created a Jeopardy-style game that covers basic topics within an introductory financial accounting course. This PowerPoint file contains a Jeopardy-style game suitable for use in an introductory financial accounting class. There are […]

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