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> What are the three types of auditor services described in the Government Accountability Office’s Government Auditing Standards, and how do they differ?

> What is the purpose of a financial audit? Who is responsible for setting standards for financial audits of government and not-for-profit organizations?

> What is EMMA and when would someone want to use EMMA?

> Identify factors that the rating agencies use in determining bond ratings. Which of the factors identified is beyond management control and how could this factor affect the government’s finances?

> Government Auditing Standards specifically outline an auditor’s responsibilities with respect to ethics and independence. What are the ethical principles and primary considerations with regard to independence, as identified in GAGAS? How do ethical princ

> In 2013, the Tampa Bay Times published a series of four articles uncovering some of the worst charities in America. Read the articles ( www.tampabay.com/topics/specials/ worst-charities. page ) and answer the following questions. Required: a. What

> Should citizens be concerned if the funded ratio for pension plans decreases over time? Why?

> When conducting a financial analysis, ratios based solely on governmental fund financial statements would not be considered sufficient for assessing economic condition. Explain why this statement would be true.

> Explain the difference between a blended and discretely presented component unit, and explain how each is reported.

> Under the hierarchy of GAAP, what sources of accounting principles have the most authority for state and local governments, federal government entities, and nongovernmental entities? Where do accountants and auditors look when a particular item is not co

> The GASB indicates that economic condition is composed of three components. Identify and define the three components of economic condition.

> State and general purpose local governments are considered primary governments. Under what circumstances a special purpose government would be considered a primary government?  

> Under GASB guidance when should an item be recognized on the face of the financial statements? Under what conditions, would the GASB indicate that a note disclosure should accompany an item that has been recognized on the financial statements?

> W hat are the two tracks in the dual-track accounting system? Explain the purpose of each track. Relate each track to state and local governmental “dual track” accounting.

> What are stewardship assets? How does the accounting for a stewardship asset differ from that for general property, plant, and equipment?

> The federal government uses two groups of funds. Identify the two fund groups, and the funds associated with each group. Compare the funds to those used by state and local governments.

> Go to the Internet Web sites of any five of the charitable organizations listed in Illustration 14–7 and search for financial information and performance measures they may disclose on their Web sites. Required: a. For the most recent year provided on t

> Defining the reporting entity at the federal level is complicated by different perspectives from which the federal government can be viewed. What are the three perspectives? How are they defined? How do they interrelate?

> Explain the differences among these accounts: (1) Estimated Revenues used by state and local governments, (2) Other Appropriations Realized used by federal agencies in their budgetary track, and (3) Fund Balance with Treasury used by federal agenci

> According to the FASAB conceptual framework, there are four objectives for federal financial reporting. Discuss the four objectives and explain why the focus of the FASAB objectives differs from that of the FASB or the GASB.

> Compare the GAAP hierarchy for the federal government to that for state and local governments (see Chapter 11).

> What are the components of the PAR and where would a federal agency go to find out the requirements for preparing a PAR?

> Explain the role of the Government Accountability Office (GAO), the Department of the Treasury, and the Office of Management and Budget (OMB) in the financial accounting and reporting of the federal government.

> What is the Patient Protection Affordability Act, and what impact has it had on NFP hospitals’ financial reporting and tax filing?

> What is premium revenue, and when is it recognized? Discuss the recognition of revenue relative to the revenue recognition and matching concepts in accounting.

> What are assets limited as to use and how do they differ from restricted assets?

> Tupper Memorial Hospital received from a donor a $50,000 contribution and a $50,000 pledge payable in one year. The donor required that the funds be used for heart research. Explain differences in accounting for the donor’s contribution and pledge if Tup

> Phyllis Gene is a certified human resource manager who serves on the board of a local professional association of human resource managers. The association puts on an annual conference for its members at which there are educational workshops and keynote s

> Discuss some of the presentation differences between the operating statements of not-for-profit and business-type governmental health care entities.

> How do the accounting treatments for charity services, patient discounts, contractual adjustments, and provision for bad debts differ in terms of their effects on patient service revenues and related receivables? What, if any, differences exist in the ac

> What are the required financial statements for (a) a not-for-profit health care entity and (b) a governmental health care entity reporting only business-type activities?

> A board member of an NFP hospital has asked you what resources are available to help him in assessing the financial and operational performance of the hospital. Where would you?

> Since the FASB sets the standards for both not-for-profit health care entities and investor-owned entities, the financial reporting requirements are the same for these two entities. Do you agree with this statement? Why or why not?

> What is UPMIFA, and why is it important to colleges and universities? Does UPMIFA apply only to colleges and universities?

> Discussion at a local meeting of government financial officers centered on using a balanced scorecard to present information to the public on the government’s Web site. Describe the components of a balanced scorecard and provide an example of how each co

> Identify some essential components of the annual budget process for a state or local government. How long might the process take?

> Robert Bland suggested that tensions may exist between stakeholders in a government’s budget process. Identify the six sets of stakeholders or topics with potential conflict in Bland’s model.

> Discuss some of the differences in the preparation and presentation of the operating statements of nongovernmental not-for-profit entities and governmental not-for-profit entities reporting as business-type entities.

> Go to the Web site for the American Institute of Certified Public Accountants (AICPA) ( www.aicpa.org) . Information relevant to the following questions can be located under the tab that provides information about the organization. Required: a. Under

> Explain the steps of a criminal prosecution.

> Janelle Rederford suffered from systemic lupus erythematosus when she was terminated from US Airways. Rederford brought suit against US Airways under the Americans with Disabilities Act (ADA), alleging that she had been wrongfully terminated because of h

> Explain the relationship between commercial impracticability and frustration of purpose.

> Spouses Kenneth and Betty Herman hired an attorney, Byrd, to create an amendable trust on their behalf. The Hermans intended the trust to include that after the death of one spouse, the surviving spouse would have control of the assets, including the pow

> Potential expert witnesses made an oral agreement with a plaintiff’s attorney to testify on behalf of the plaintiff for $60,000. However, after receiving the money, the witnesses backed out of the agreement and said they would not testify in court or pay

> The farmers are former customers of Ron Kaufman, the owner and operator of Southeast Implements, Inc., a Case International Harvester equipment dealership. Between 1996 and 1998, they agreed to purchase or lease various items of farm equipment from South

> Prime Finish paints and finishes plastic parts. In 2004, Herbert–Jones became an independent sales representative responsible for developing sales for Prime Finish and formed Cameo to serve this purpose. ITW supplies automotive parts to automakers. After

> The Laths were the owners of a farm that they wanted to sell. Mrs. Mitchell considered purchasing the land but found that an ice house located across the road was objectionable. Mitchell argued that the Laths orally agreed to remove the ice house in cons

> Identify the exceptions to the parol evidence rule and explain why some people might argue that the parol rule is not very effective.

> List the kinds of contracts that require writing under the statute of frauds.

> Choose an area of law that fascinates you. Spend some time on the Internet searching for differences between how the United States and other countries respond to conflicts among people within that area of law, just as we did in the text in the illustrati

> Robert McNeel was married twice during his life. McNeel had two stepdaughters from his first marriage and a son from his second. In 1998, McNeel moved to a ranch near Big Piney. The ranch consisted of approximately 4,015 acres of deeded land and 31,000 a

> After a collision involving Alston and Alexander, Alston was diagnosed with chest problems and prescribed a number of medications. During the time of her treatment and release the day of the accident, she did not make note of any pain in her neck or back

> Explain the primary differences between duress and undue influence.

> Explain how nondisclosure can be treated as misrepresentation.

> Explain when a unilateral mistake can lead to rendering a contract’s voidable.

> The Finches hired Inspectech to perform a home inspection of a property they were purchasing. The contract they signed included a clause that read: “It is understood and agreed that the COMPANY [Inspectech] is not an insurer and that the inspection and r

> Go back to the discussion of contracts that cannot be disaffirmed by minors and explain the policy reasons that support each of the exceptions. Can you make an argument for any additional kinds of contracts that should not be subject to disaffirmance by

> How does the concept of the age of majority in Great Britain differ from that in the United States?

> In February 2000, CNS International Ministries, Inc., signed a contract with Eiman Brothers Roofing Systems. Under the contract, Eiman would provide CNS with a clay tile roof for one of its properties. On the basis of the size of the roof provided in CNS

> Charles Houser began working for appellee, 84 Lumber Company, L.P. (84 Lumber), in 1985. In 1998, Houser became an outside salesman with 84 Lumber, and his compensation changed from a set salary to commission based on his sales. At that time, Houser sign

> Jennifer Erickson sued her employer, Bartell Drug Company, contending that its decision not to cover prescription contraceptives under its employee prescription drug plan constituted sex discrimination. Bartell argued that its decision was not sex discri

> This appeal arises out of the trial court’s division of property in a divorce case. Vincent Simmons appeals from the trial court’s order awarding to his wife, Dorothy Simmons, a one-half interest in land that he inherited from his parents. Vincent conten

> Joana Perez began working for Datamark in January 2005. She received two booklets at orientation, “NonStaff Employee Handbook” and “Summary Plan Description.” She did not read either one of them. According to the human resources director, Perez also rece

> The plaintiff in this case is Amir Peleg, a gay Jewish male of Israeli national origin. He worked at the Neiman Marcus store in Beverly Hills from December 28, 2005, to February 21, 2008. The store is owned by defendant Neiman Marcus Group, Inc. (Neiman

> Cece Hylton and Edward Meztista had a partnership, MMD, which had an advertising account with a grocery store. Pursuant to the partnership agreement, Hylton and Meztista would equally divide the profits MMD earned once expenses were paid. They also agree

> When Holloman applied for a job at Circuit City, she signed a dispute resolution agreement (DRA) that stated: “This agreement requires you and Circuit City to arbitrate certain legal disputes related to your application for employment or employment with

> In 2008, a lawyer for Mutual Life Insurance e-mailed Dr. Miles regarding the settlement of a lawsuit that he had filed against the insurance company. The e-mail that the attorney sent contained proposed settlement terms. Dr. Miles’ attorney sent an e-mai

> Theresa Polk discussed selling her residence and 181 acres of land to BHRGU Avon Properties, LLC. Avon presented an offer for the land. Polk responded by providing two counteroffers, both stipulating that Avon accept before February 7, 2005, at 5 p.m. Av

> Business Systems agreed to provide supplies to IBM as a subcontractor to a deal to update computer systems of the Chicago Transit Authority. The budget for this deal was set at $3.6 million; however, only $2.2 million of services were actually performed

> R.J. Reynolds Tobacco Company (RJR) operated a customer rewards program, called Camel Cash, from 1991 to 2007. Under the terms of the program, RJR urged consumers to purchase Camel cigarettes, to save Camel Cash certificates included in packages of Camel

> What must a party prove to recover under the theory of quasi-contract?

> This chapter distinguishes between private and public law. Why are the interests of the public identified with the behavior of the government? Why would public law not be a term referring to the interests of corporations, for example?

> Nike and Michael Jordan created the Air Jordan line in the 1980s. Jordan fi led suit against a Chinese sportswear company, Qiaodan Sports, in China. Jordan is known in China as Qiaodan, and Qiaodan Sports uses a logo of a silhouette of a tall man holding

> Securities brokerage firm Charles Schwab filed suit against a former employee who left the company and started his own wealth management firm. Charles Schwab claimed that the names of its clients, along with information regarding their accounts and asset

> The Stop & Shop Supermarket and Big Y Foods are supermarkets offering the same services and competing for the same customers. In an advertisement introducing its new, easy-to-use scan saver cards, Stop & Shop Supermarket used the slogan, “It’s That Simpl

> Travis Scheible was riding his bicycle and started to cross the street from behind a mature tree that overhung the sidewalk and obscured his view of oncoming traffic. As he rode into the street, Travis was struck by an oncoming car and was killed. The tr

> Defendant Tubbs met her fiancé, Church, over the Internet. After several years of correspondence and visits, they became engaged in February 2000. Church and Tubbs planned to be married in Las Vegas in July 2000. Two months before the engagement, Church

> Thomas A. Carella filed for Chapter 7 bankruptcy. At the time, HSBC Bank USA held the sum of $16,540.94 on deposit in a joint bank account in the names of Carella and his father, Thomas J. Carella. The son sought to protect the money in the bank account,

> Plaintiff homeowners purchased a parcel of land in the homeowners association’s (HOA’s) subdivision. Their real estate agent requested the attached-garage requirement to be waived, and when the owners did not receive a response from the HOA, they worked

> How are trademarks and patents different?

> Explain the bundle-of-sticks idea as it relates to intellectual property.

> Explain the five possessory interests in land.

> Missouri was International Shoe Corporation’s principal place of business, but the company employed between 11 and 13 salespersons in the state of Washington, who exhibited samples and solicited orders for shoes from prospective buyers in Washington. The

> Explain the bundle-of-sticks idea as it relates to real property.

> In 2008, Wayne Singleton and his eight-year-old son, Jaron, were traveling on a bus for a school field trip to Six Flags. Wayne fell asleep on the way, and while he was asleep, the bus became airborne and drove off the road into a wooded area. The bus ev

> The Bank of New York (BONY) sued the defendant insurance company, Fremont General Corporation, for intentional interference with contract and conversion. BONY sought to recover damages from the defendant’s withdrawal of $14 million from BONY, which BONY

> At 2:08 a.m., on Friday, December 29, 2006, the defendant received by e-mail the Lake in the Hills police department Daily Bulletin, and it reported that Carolene Eubanks had been charged with theft and obstruction of justice. As it normally does, the ne

> Vernon Hendrickson, an inmate at an Indiana correctional facility, sued correctional officer Scott Cooper for violation of the Eighth Amendment protections against cruel and unusual punishment after Cooper threw Hendrickson against a wall, slammed him on

> Former Major League Baseball player and radio game announcer Bob Uecker sought an injunction against Ann Ladd, alleging a six- or seven-year pattern of harassment. Ladd, who claimed to be a devoted fan, was charged with felony stalking. An injunction was

> Kerns, a home owner, sued defendant contractor Sealy for negligence, breach of contract, wantonness, and res ipsa loquitur in connection with a fire that occurred during the contractor’s application of foam installation in the plaintiff’s attic. The cont

> Explain the relationship between negligence per se and res ipsa loquitur.

> Explain the differences between contributory and comparative negligence.

> List and define the elements that are necessary to prove a case of negligence.

> Most business managers know they need to consult a lawyer when they make important business decisions. If that assumption is correct, why would a manager or entrepreneur need to have any knowledge of business law? Couldn’t she or he just ask the lawyer?

> List five intentional torts and explain the elements needed to prove each.

> Explain why some people see punitive damages as a necessary aspect of our tort system, whereas others want to restrict their availability.

> Distinguish the three types of damages available in tort cases.

> Toby Scammel’s girlfriend was briefly involved in Disney’s acquisition of Marvel in 2009. Scammel bought 659 Marvel options for $5,465 in the days prior to the announcement of the acquisition. Within the nine days following the announcement, Scammel sold

> The defendant, Raul Pol-Flores, referred two investors to Luis Herrero-Rovira. The two investors were then defrauded of their entire $290,000 investment, and Pol received nearly $20,000 of the funds. When the two investors had deposited the $290,000 in t

> Defendants driver Holland and Kelley, his passenger, were charged with drug possession with the intent to sell. Officers had arrested the driver on a misdemeanor, for changing lanes without signaling, after the officers had been advised by High-Intensity