Roy was the accounting manager at Zico Tire, a tire manufacturer , and he played golf with Hugo, the CEO ,who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zico increased net income by year-end. Roy was eager to get into Hugo’s elite social circle; he boasted to Hugo that he knew some accounting tricks that could increase company income by simply revising a few journal entries for rental payments on storage units . At the end of the year , Roy changed the debits from “ rent expenses” to “ prepaid rent ” on several entries. Later, Hugo got his bonus, and the deviations were never discovered.
1 Explain how the change in the journal entries affect the net income of the company at year end .
2 Suggest who gained and who lost as a result of these actions.
Cheetham and Wynne, a fast-growing law firm started in 1976 by Owen Cheetham and Jack Wynne, had been located in a downtown Auckland office for nearly 40 years. The compa...Jul 07 2020
A local energy provider offers a landowner $180,000 for the exploration rights to natural gas on a certain site and the option for future development. This option, if exe...May 08 2020
Chapter 7 presents a comparative analysis of various tools useful in policymaking. Select two tools described in chapter 7 from different categories, and describe how the...Jul 13 2020
Earth's largest phosphorus reservoir is ________.a. the atmosphereb. the oceanc. sedimentary rockd. living organismsJul 05 2021
The national speed limit in the United States was reduced to 55 mph in 1974. Proponents and critics of this legislation have looked at the number of traffic fatalities on...Apr 21 2020
Reposition the riser in Problem 1 so that it sits directly on top of the flat rectangle, with its bottom circular surface being part of the surface of the casting, and re...May 19 2020
Multicellular organisms and unicellular yeasts are contained in (A) Animalia (B) Plantae (C) Protista (D) Fungi (E) EubacteriaMar 22 2018
A bond has a face value of $1,000, is redeemable in eight years, and pay interest of $100 at the end of each of the eight years. if the bond can be purchased for $981, wh...Jun 01 2018
The money demand curve will shift to the right when which of the following occurs?A) an increase in incomeB) a reduction in the interest rateC) an increase in the money s...Jun 05 2021
Suppose we plan a comparative study of two eye drops (A, B) to reduce intraocular pressure (IOP) among patients with glaucoma. A contralateral design is used, in which dr...Aug 01 2020