What is the ETL process? What are its steps?
> The management of Warren Corporation, concerned over a decrease in cash, provides you with the comparative analysis of changes in account balances between June 30, 2013, and June 30, 2014, appearing in Exhibit 16.8. During the year ended June 30, 2014,
> Exhibit 16.7 presents a statement of cash flows from Ingers Company for 2013. Give the entry made on the T-account work sheet for each of the numbered line items. For example, the work sheet entry for line (1) is as follows (amounts in millions of US$):
> Refer to the data in Exhibit 16.6 for Metals Company for 2014 (based on financial statements of Alcoa). Derive a presentation of cash flow from operations using the direct method. Exhibit 16.6: Metals Company (all amounts in millions of US$) (Probl
> Exhibit 16.6 presents an income statement and a statement of cash flows for Metals Company for 2014 (based on financial statements of Alcoa). Give the entry made on the T-account work sheet for each of the numbered line items. For example, the work sheet
> Exhibit 6.12 in Chapter 6 provides a simplified statement of cash flows. For each of the transactions that follow, indicate the number(s) of the line(s) in Exhibit 6.12 affected by the transaction and the amount and direction (increase or decrease) of th
> For each of the items a to d below, describe the accounting treatment using one of the following four approaches, assuming that the firm does not elect the fair value option: (1) Measured at fair value with changes recognized in net income. (2) Measured
> On December 7, 2008, Alpharm issued shares of convertible preferred stock and warrants to purchase additional shares of preferred stock for an aggregate issue price of $46,180,000 in a private placement of securities. Investment bankers estimated the fai
> Kiersten Corporation sells 60,000 common stock warrants for $4 each on February 26, 2013. Each warrant permits its holder to purchase a share of the firm’s $10 par value common stock for $30 per share at any time during the next two years. The market pri
> Symantec has convertible bonds outstanding with a face value of $10,000,000 and a carrying value of $10,255,000. Holders of the bonds convert them into 100,000 shares of $10 par value common stock. The common stock sells for $105 per share on the market.
> Higgins Corporation issues $1 million of 20-year, $1,000 face value, 10% semiannual coupon bonds at par on January 2, 2013. Each $1,000 bond is convertible into 40 shares of $1 par value common stock. Assume that Higgins Corporation’s credit rating is su
> Watson Corporation grants 20,000 stock options to its managerial employees on December 31, 2013, to purchase 20,000 shares of its $10 par value common stock for $25 per share. The market price of a share of common stock on this date is $25 per share. Emp
> Morrissey Corporation grants 50,000 stock options to its managerial employees on December 31, 2013, to purchase 50,000 shares of its $1 par value common stock for $60 per share. The market price of a share of common stock on this date is $60 per share. E
> Prepare journal entries under the cost method to record the following treasury stock transactions of Melissa Corporation. a. Purchases 10,000 shares of its own $5 par value common stock for $12 per share. b. Issues 6,000 treasury shares upon the conversi
> Prepare journal entries under the cost method to record the following treasury stock transactions of Danos Corporation. a. Purchases 10,000 shares of its own $10 par value common stock for $30 per share. b. Issues 6,000 treasury shares to employees under
> Prepare journal entries for the following transactions of Watt Corporation. Watt has 20,000 shares of $15 par value common stock outstanding on January 1, 2013. The balance in the Additional Paid-In Capital account on this date is $200,000. a. Declares a
> Give journal entries, if required, for the following transactions pertaining to Grable: a. Grable declares the regular quarterly dividend of $1.50 per share on its $100 par value preferred stock. There are 30,000 shares authorized and 15,000 shares issue
> Carter, Inc., issued 100,000 shares of $1 par value common stock on December 1, 2013. On that date, the market price of the shares was $18 per share. What journal entry did Carter record to reflect this transaction?
> On September 30, 2014, Homing Corporation issued 500,000 shares of $0.10 par value common stock. The market price of the shares on this date was $30 per share. What journal entry did Homing record to reflect this transaction?
> Exhibit 14.11 presents a spreadsheet that we use to compare the effects of using the equity method with using consolidated financial statements. The Web site for this book contains an Excel spreadsheet that duplicates the one in Exhibit 14.11. Download t
> On May 1, 2013, Homer acquired the assets and agreed to take on and pay off the liabilities of Tonga in exchange for 10,000 of Homer’s common shares. Homer accounted for the acquisition of the net assets of Tonga using the purchase method. On the date of
> Alpha owns 100% of Omega and consolidates Omega in an entity called Alpha/Omega. Beginning in 2013, Alpha sold merchandise to Omega at a price 50% larger than Alpha’s costs. Omega sold some, but not all, of these goods to customers at a
> Vogel Company is a subsidiary of Joyce Company. Joyce Company accounts for its investment in Vogel Company using the equity method on its single- company books. Present journal entries for the following selected transactions and other information. Record
> CAR Corporation manufactures computers in the United States. It owns 75% of the voting stock of Charles Electronics, 80% of the voting stock of Alexandre du France Software Systems (in France), and 90% of the voting stock of R Credit Corporation (a finan
> The following information summarizes data about the minority, active investments of Stebbins Corporation. Company R owns a building with 10 years of remaining life and with a fair value exceeding its carrying value by $160,000. $40,000 of this amount a
> Corporation made three long-term inter corporate investments on January 2. Data relating to these investments for the year appear next. Give the journal entries to record the acquisition of these investments and to apply the equity method during the ye
> Weber Corporation acquired significant influence over Albee Computer Company on January 2 by purchasing 20% of its outstanding stock for $100 million. Weber Corporation attributes the entire excess of acquisition cost over the carrying value of Albee Com
> Cayman Company purchased 100% of the common stock of Denver Company on January 2 for $550,000. The common stock of Denver at this date was $200,000, and the retained earnings balance was $350,000. During the year, net income of Denver was $120,000 and di
> Exhibit 16.13 presents the comparative balance sheets for Plainview Corporation for 2013 and 2014. The following additional information relates to 2014 activities: (1) The Retained Earnings account changed as follows: (2) On January 2, 2014, Plainview
> Indicate the accounting principle or method described in each of the following statements. a. This inventory cost-flow assumption results in reporting the largest net income during periods of rising acquisition costs and non-decreasing inventory levels.
> In this chapter, we discussed many data inputs to an organization’s production process. What are the specific data items to input into a system when adding a new raw materials inventory item? What specific data items need to be input when a worker records
> Why are accounting transactions associated with payroll processing so repetitive in nature? Why do some companies choose to have payroll processed by external service companies rather than do it themselves?
> Discuss specific steps you would take as a manager to ensure that a business process reengineering effort is successful.
> Assume for the moment that you are the controller for Dr. Lazik & Associates, which is a full-service ophthalmology practice with 10 locations in a large metropolitan area. The president of the company just asked you to take charge of the task of automat
> The resource management process includes events associated with both personnel and payroll functions. Describe four data items that could be used by both functions. Describe two data items for each function that would not necessarily be needed by the oth
> Explain the term “business-without boundaries.” How is this changing the nature of organizations?
> How are the inputs and outputs of the purchasing process likely to be different for a restaurant versus an automobile manufacturer?
> How does a data flow diagram for the sales process differ from a system flowchart describing that process?
> This chapter discussed many inputs to an organization’s sales process. What are the specific data items needed to add a new customer and record a sales order?
> What are some criteria that systems designers should consider when developing managerial reports for an AIS? How do system designers know what to include on reports?
> What is a data warehouse? Why do companies use them?
> What are some typical outputs of an AIS? Why do systems analysts concentrate on managerial reports when they start to design an effective AIS? Why not start with the inputs to the system instead?
> What are the purposes of accounting codes? How are they used? Bring to class some examples of codes used by manufacturing firms, accounting firms, and merchandising firms.
> Since the accounting and finance function is a target for outsourcing for some firms, how does that make you feel about your choice of accounting as a major? How can you protect your future job security?
> When companies think about outsourcing a function, many questions need to be answered. Search the Internet for answers to the following questions: a. What are some of the “pros” associated with outsourcing? b. What are some of the “cons” associated with
> Discuss the privacy issues created by the use of RFID tags. Do you support the use of RFID tags for personal ID, customer relationship management, and inventory tracking? Why or why not?
> What do we mean when we say companies are off shoring business processes?
> The chart of accounts for a manufacturing firm would be different from that of a service firm. Not surprisingly, service firms differ so much that software now exists for almost any type of firm that you could name. Think of yourself as an entrepreneur who i
> What is Hadoop? Why do organizations use it?
> What is online analytical processing? What are examples of OLAP software?
> What is Hadoop’s Map Reduce? How does it help Hadoop process data? Why is Map Reduce’s system sometimes superior to the data transmissions of older systems?
> How is big data growing? What new data are now available that were not traditionally used by accounting systems in the past? How is this data growth challenging the way accountants perform their jobs?
> What do we mean by “unstructured data?” Do you believe that this term is accurate, or would you prefer some other term for it?
> What are the four V’s that describe big data? What does each “V” mean?
> What are Halo and Helix? How do they help auditors perform their jobs better?
> How are data analytics helping auditors with assurance and compliance testing? How is this different from what they did a few years ago?
> How does Hadoop’s data storage system differ from those of traditional system? In what ways are such a system of data storage superior to storing data on a centralized database?
> Recall from Cases 15-17 and 15-18 in Chapter 15 that the Furry Friends Foundation is a nonprofit organization that finds homes for abandoned animals. The foundation has created a relational database to help it store data mor
> Some employees only need to retrieve database information—not edit it or enter new data. Because forms are convenient for displaying the data for an entire record in a single screen, organizations also use forms for outputs rather than
> Create the form in Figure 16-16 and then add a sub form to it that shows purchase orders for each vendor. Figure 16-17 provides a suggested format. To accomplish this task, follow these steps: (1) start with the Vendor form in design mode, (2) click on t
> The BSN Company requires a form with which to view its existing suppliers conveniently and also to create records for new suppliers. Figure 16-16 contains a suggested format for this form. Requirements: 1. Using the Vendors table in the BSN database tha
> Discuss the historical drivers for the development of IT auditing as a profession. What factors do you foresee influencing the field of IT auditing in the next decade? What do you feel are the greatest challenges facing IT auditors?
> North Beach College was founded as a small, liberal arts school just 3 years ago. Since that time, the institution has grown to the point where parking on campus is difficult and parking in illegal areas is common. Accordingly, the Board of Directors has
> The payroll department at the Benjamin Department Store has defined the following record structure for employee records. All fields are required. The employee number serves as the primary key. Work phone extensions are alw
> Recall from Case 15-17 that the Furry Friends Foundation is a nonprofit organization that finds homes for abandoned animals. The foundation has recently computerized some of its operations by storing its accounting data in a
> The Furry Friends Foundation (FFF) is a non profit organization that finds homes for abandoned animals that are suitable for adoption. FFF began operations with a bequest from a wealthy gentleman who lived his life taking ca
> Business has been growing at BSN Bicycles, and the store owners have been using their Access database to store information about their customers. Now that the store is a little more established, the owners are thinking more about how best to attract more
> Kick and Swing Inc. is a wholesaler of sporting goods equipment for retailers in a local metropolitan area. The company buys sporting goods equipment direct from manufacturers and then resells them to individual retail stores in the regional area. The ra
> Quick Jolt Electronics manufactures and sells specialized electronic components to customers across the country. The tables in Figure 14-19 illustrate some of the records in its accounting databases. Thus, for example, the “Sales by Inv
> Clooney and Bullock is large manufacturer of trophies that is headquartered in Boston, Massachusetts. The Entity–Relationship diagram in Figure 14-18 shows a simplified version of the company’s process for purchasing and paying for equipment and supplies.
> Ian’s Place sells pet supplies to dog and cat owners. To sell its products, the marketing department requires sales personnel to call on the pet store retailers within their assigned geographic territories. Salespeople have an application on their mobile
> Kerr Cosmetics distributes cosmetic products to large retailers across the country. The firm was started in 1975 by its first president, Stephen Kerr, who still serves as chairman of the board. Over the years, the company has grown in size and complexity.
> Jose Rodriguez was the only internal auditor of a medium-sized communications firm. The company used a computer for most of its accounting applications, and recently, several new software packages had been implemented to handle the increased volume of the
> Viva Vacations operates in Tampa, Florida. The company sells time shares and also manages residential properties that it rents to vacationers. Due to the large dip in the real-estate market the last few years, most of its recent income has come from its
> Wright Company employs a computer-based data processing system for maintaining all company records. The current system was developed in stages over the past 5 years and has been fully operational for the last 24 months. When the system was being designed
> Prado Roberts Manufacturing is a medium-sized company with regional offices in several western states and manufacturing facilities in both California and Nevada. The company performs most of its important data processing tasks, such as payroll, accounting
> The Dinteman Company is an industrial machinery and equipment manufacturer with several production departments. The company employs automated and heavy equipment in its production departments. Consequently, Dinteman has a large repair and maintenance dep
> The approval rules for reimbursing those faculty members at Upstate University who attend professional conferences are somewhat complicated and, in the opinion of most, “hardly generous.” For example, the maximum allowed for breakfast, lunch, or dinner i
> The Filzen Company sells construction supplies to building contractors, mostly on a wholesale basis. The company has been in business for over 30 years. The current owner is Joshua Filzen, although the company was originally founded by his father, James
> Jenny Smith owns Classic Photography Inc., a company that restores photos for its clients and creates electronic images from the restored photos. The company also frames restored photos and creates sophisticated custom artworks. Artworks include material
> The Berridge Company is a discount tire dealer that operates 25 retail stores in a metropolitan area. The company maintains a centralized purchasing and warehousing facility and employs a perpetual inventory system. All purchases of tires and related sup
> Big Fun Toys is a retailer of children’s toys. The accounts-payable department is located at the company headquarters in Boston, Massachusetts. The department consists of two full-time clerks and one supervisor. They are responsible for processing and pa
> The Department of Taxation of one state is developing a new computer system for processing state income tax returns of individuals and corporations. The new system features direct data input and inquiry capabilities. Identification of taxpayers is provide
> Describe how an auditor might use through the-computer techniques such as test data, an integrated test facility, parallel simulation, or validation of computer programs to accomplish audit objectives relative to accounts payable.
> The Mountain Top Resort Community is an elegant, thriving four-season resort and community of over 1,200 single family homes, 1,000 time-share units, and a multimillion-dollar ski business. Guests visiting the resort can enjoy the indoor/outdoor water pa
> Download the following Excel spreadsheet from the textbook website: www.Findafraud.xls. These data include sales transactions and credits for a retail store. You are concerned that the store is attempting to manipulate its revenue. Use your spreadsheet s
> HMC continues to be profitable. Although Denise and Lloyd Rowland mapped several business processes 5 years ago to determine whether HMC should work on process improvements or consider business process reengineering, they never really finished that effort
> Mount Pleasant Community College (MPCC) is a medium-sized academic institution that employs about 200 full-time faculty and 250 staff personnel. There are 11,439 students enrolled at the college for the 2017–2018 school year. The Purchase Process. The co
> The Caribbean Club is one of the Virgin Island’s hottest night spots. It’s a great place for locals to meet after work and relax with friends, it’s a popular destination for tourists who stay on the island, and it’s always on the list of fun entertainmen
> Food Court Inc. (FCI) is a business in Boston, Massachusetts, that offers meal plans to college students. Students, or their families, buy debit cards with fixed amounts that they can use to purchase food at more than 50 local restaurants. FCI sells the c
> Brazos Valley, Inc. (BVI), a medical device manufacturing firm, has a small systems staff that designs and writes BVI’s customized software. Until recently, BVI’s transaction data were transmitted to an outside organization for processing on its hardware.
> Recall, in Chapter 11, the first case was about Hammaker Manufacturing (HM), a company that decided to work with a consultant to computerize much of their operations. HM has grown substantially and must upgrade its information systems. The company is deve
> In the early twentieth century, there was an ambitious young man named Arthur, who started working at a company in Chicago as a mailroom clerk. He was a hard worker and very smart, eventually ending up as the president of the company, the James H. Rhodes
> The Chesapeake Grocery Store is a small local grocery that only carries fresh produce, poultry, and meat that are grown or raised in the 50-mile radius of the grocery. The store also carries other typical grocery items (such as packaged and canned goods)
> IT auditors need people skills as well as technical skills. One such skill is the ability to interview effectively. Discuss some techniques or tools that might help an interviewer get the best information from an interviewee, including sensitive informat
> The West End Boutiques company was founded by Libbie Williams in 1990 with a single store in College Station, Texas, and the company now has 21 shops located in the triangle of Dallas, San Antonio, and Austin, Texas. Libbie was an accounting major in col
> Morrigan Department Stores is a chain of department stores in Australia, New Zealand, Canada, and the United States that sells clothing, shoes, and similar consumer items in a retail setting. The top managers and their staff members meet once a year at t
> The Accounting Technology website at https:// www.accountingtoday.com/technology contains articles on information technology of interest or use to accountants. Examples include “New chatbot uses AI to answer tax inquiries,” “The hidden figures behind auto
> Examine the data encryption technique illustrated in Figure 2-11. Use a displacement value of “8” to encrypt the following message. Hint: This task becomes easy if you use an Excel spreadsheet and V Look Up formulas that reference a table of letters and
> Go to the AICPA website at http://www.aicpa .org. What are the top 10 information technologies for the current year? How do these items compare with the list in Figure 3-1? Is it common for new items to appear, or do you think this list is “stable” from
> Design tables to store the following attributes (make sure that all tables are in third normal form). Student name, student phone, classes taken by student, student address, class number, class time, class room, students’ grades for each class.
