3. Article: Control Cash-Register Thievery

Based on this article what fraud is the most easiest to detect?    Most difficult?

https://www.journalofaccountancy.com/issues/2002/jun/controlcashregisterthievery.html

4. Article: Ghost Goods: How to Spot Phantom Inventory

Why does the client most likely resort to creating a phantom inventory?

https://www.journalofaccountancy.com/issues/2001/jun/ghostgoodshowtospotphantominventory.html

5. Article: Ghost Goods: How to Spot Phantom Inventory

Should the auditor consider both motive and opportunity when investigating an inventory fraud?

https://www.journalofaccountancy.com/issues/2001/jun/ghostgoodshowtospotphantominventory.html

7. The Crazy Eddie Antar fraud is discussed in the article So Thats Why Its Called a Pyramid Scheme and in Chapter 12.   What are the lessons learned by fraud examiners from this fraud?

https://www.journalofaccountancy.com/issues/2000/oct/sothatswhyitscalledapyramidscheme.html

8. When a fictitious refund is made for merchandise returned what is the problem that the fraudster must solve in order for the fraud to be undetected?

The addition of a common ion has been shown to disturb a system at equilibrium. Naturally, the same effect works on solubility equilibria. a) The Ksp for Ag2SO3 = 1.50 X 10-14. What is the molar solubility of Ag2SO3 in a 3.8 M solution of lithium sulfite?

The La Casa division of Peters Ltd produces an intricate component used in Peter’s major product line. Recently, the divisional manager has been concerned by a lack of coordination between purchasing and production personnel and believes that a monthly budgeting system should be introduced to manage these interdependencies.

As an experiment, La Casa’s divisional manager has decided to develop budget information for the third quarter of the current year to test the system, before the full budget system is implemented for the following year. In response to the divisional manager’s request, the divisional accountant has accumulated the following data:

Sales:

Sales to 30 June, the first six months of the current year, are 24 000 units. Actual sales in units for May and June, and estimated unit sales for the next four months, are as follows:

The La Casa division expects to sell 60 000 units during the year ending 31 December.

Direct material:

Data regarding the materials used in the component are shown in the following schedule. The desired monthly ending inventory for all direct materials is an amount sufficient to produce the next month’s estimated sales.

Direct labour:

Each component must pass through three different processes to be completed. Data regarding direct labour follows:

Page 470

Manufacturing overhead:

The division produced 27 000 components during the six-month period ending 30 June. The actual variable overhead costs incurred during this six-month period are given in the following schedule. The divisional accountant believes that the variable overhead costs will be incurred at the same rate per unit of output during the last six months of the year:

The fixed overhead costs incurred during the first six months amounted to $93 500. Fixed overhead costs are budgeted for the full year as follows:

Finished goods:

The desired monthly ending inventory of completed components is 80 per cent of the next month’s estimated sales. There are 5 000 finished units in inventory on 30 June.

Required:

1. Prepare a production budget in units for the La Casa division for the third quarter, ending 30 September.
2. Independent of your answer to requirement 1, assume that the La Casa division plans to produce 18 000 units during the third quarter, ending 30 September, and 60 000 units for the year ending 31 December.
   1. (a)Prepare a direct material purchases budget, in units and dollars, for the third quarter.
   2. (b)Prepare a direct labour budget, in hours and dollars, for the third quarter.
   3. (c)Prepare a manufacturing overhead budget for the six-month period ending 31 December.

1. Does the US Government have a spending problem, a revenue problem or both? Why or Why not?
2. Let's look at spending...what is the breakdown of the federal budget (where does the money go)? What proportion is discretionary vs. non-discretionary? Where is the majority of the spending growth taken place?

Graphically illustrate and explain

- what happens to consumer spending when consumers become more optimistic about the future, i.e., consumer expectations rise

- how an increase in the interest rate would affect consumer spending

- what happens to consumer spending in response to an increase in consumer income

(a)What was the dollar size of the US total spending for 2018? (ii) What were its major components? (iii) Which component was largest?

(b) What was the average growth rate of federal spending as a share of US GDP during the 1960-2018 years?

(c) In dollar terms for 2014, how big was, and how fast increased, the state and local government spending in during the years 1960-2015?

(d) What was the largest component of state and local government spending?

The interest rate effect suggests that

A. an increase in the price level increases the money supply, which causes businesses and consumers to increase desired spending.

B. a decrease in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending.

C. an increase in the price level increases the interest rate, which causes businesses and consumers to reduce desired spending.

D. an increase in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending.

A current account surplus means

A) Canadian spending on imports from R.O.W. is greater than R.O.W. spending on Canadian exports.

B) R.O.W. spending on Canadian exports is greater than Canadian spending on imports from R.O.W.

C) Canadian investments in R.O.W. are greater than R.O.W. investments in Canada.

D) R.O.W. investments in Canada are greater than Canadian investments in R.O.W.

E) there is also a capital account surplus.

A current account deficit means

A) Canadian spending on imports from R.O.W. is greater than R.O.W. spending on Canadian exports.

B) R.O.W. spending on Canadian exports is greater than Canadian spending on imports from R.O.W.

C) Canadian investments in R.O.W. are greater than R.O.W. investments in Canada.

D) R.O.W. investments in Canada are greater than Canadian investments in R.O.W.

E) there is also a capital account deficit.

The Bank of Canada's price stability goal is keeping the

A) price level stable.

B) unemployment rate low at any cost.

C) inflation rate low at any cost.

D) inflation rate at zero so it does not significantly affect people's economic decisions.

E) inflation rate low enough so it does not significantly affect people's economic decisions.

"Durable press" cotton fabrics are treated to improve their recovery from wrinkles after washing. "Wrinkle recovery angle" measures how well a fabric recovers from wrinkles. Higher is better. Here are data on the wrinkle recovery angle (in degrees) for a random sample of fabric specimens. Assume the populations are approximately normally distributed with unequal variances. A manufacturer believes that the mean wrinkle recovery angle for Hylite is better. A random sample of 25 Permafresh (group 1) and 20 Hylite (group 2) were measured. Test the claim using a 1% level of significance.

EXPLAIN ALL STEPS ON THE TI-84

H₀: Select an answer μ σ² s² x̄₁ μ₁ x̄₂ μ₂ p  = Select an answer x̄₂ μ₂ p x̄₁ μ₁ s² μ σ²  
H₁: Select an answer σ² p μ₂ s² μ₁ μ x̄₁ x̄₂  Select an answer = ≠ ≤ < > ≥  Select an answer μ s² μ₂ x̄₂ μ₁ p σ² x̄₁  

Select the correct symbols.

Test Statistic= Give answer to 4 decimal places.

p-value=

Give answer to 4 decimal places.

1. "Durable press" cotton fabrics are treated to improve their recovery from wrinkles after washing. "Wrinkle recovery angle" measures how well a fabric recovers from wrinkles. Higher is better. Here are data on the wrinkle recovery angle (in degrees) for the same fabric specimens discussed in the previous exercise:

The mean (±0.01) and the standard deviation (±0.0001) for the Permafresh are:   
x x¯ = s = .

The mean (±0.01) and the standard deviation (±0.0001) for the Hylite are:   
x¯¯¯x¯ = s = .

The standard error and the value of the t statistic are (±0.001):   
    SE =     t =

The P-value for this two sided test is (±0.01): ⩽P⩽

2.

Do women and men differ in how they perceive their life expectancy? A researcher asked a sample of men and women to indicate their life expectancy. This was compared with values from actuarial tables, and the relative percent difference was computed (perceived life expectancy minus life expectancy from actuarial tables was divided by life expectancy from actuarial tables and converted to a percent). Here are the relative percent differences for all men and women over the age of 70 in the sample:

Use technology to approximate the t distribution for this test. Do NOT use the conservative approach.

The t test statistic (±±0.001) is

The degrees of freedom (±±0.001) of the t test statistic is