ABC Company uses the gross method to record sales made on credit.

Using the T-account template below, prepare the entries to recognize the following transactions.

6/1/17 Sold $50,000 of inventory, terms 3/15, n/45

6/3/17 Accepted a return from the customer of merchandise that was sold on 6/1/17 in the amount of $2,500

6/12/17 Received full payment for the 6/1/17 sale 50,000

Tokyo AFM immediately expensed incremental insurance contract acquisition costs related directly to the signing of the contract. The company’s accountants argued that this treatment was required in order to be consistent with the company’s premium revenue recognition policy. For example, on June 30, 2001, a policyholder paid an up-front ¥210,000 premium for a two-year property insurance contract for her Tokyo apartment. The contract was based on a product called “Home Umbrella.” It covered a variety of casualty losses, and the company sold it exclusively to individual residential customers.

The principal incremental contract acquisition costs were:
a. A ¥50,000 commission fee paid to the agent who had worked directly with the policyholder.  The fee was due to the agent when the policyholder signed the contract and was paid immediately upon signing.
b. A ¥20,000 cost of marketing efforts incurred over the past six months to promote Home Umbrella through broad-based advertising (50%) and targeted phone calls (50%) to existing Tokyo AFM customers as part of a cross-selling strategy. The policyholder, who had just bought her apartment, was already using Tokyo AFM for her car liability insurance.

Question Would you capitalize any of the above acquisition costs, or would you expense them immediately? If you were to capitalize the costs, over what period would you amortize them?

1. The mean of all the sample means is _______.

Multiple Choice

• α

• σ

• µ

• X

4. According to the central limit theorem, ____________.

Multiple Choice

• increasing the sample size decreases the dispersion of the sampling distribution

• the sampling distribution of the sample means will be skewed

• the sampling distribution of the sample means is uniform

• sample size is important when the population is not normally distributed

5. The Office of Student Services at a large western state university maintains information on the study habits of its full-time students. Their studies indicate that the mean amount of time undergraduate students study per week is 20 hours. The hours studied follows the normal distribution with a population standard deviation of six hours. Suppose we select a random sample of 144 current students. What is the probability that the mean of this sample is between 19 hours and 20 hours?

Multiple Choice

• Cannot be calculated based on the given information.

• −2.00

• 0.4772

• 2.00

9. Bones Brothers & Associates prepare individual tax returns. Over prior years, Bones Brothers has maintained careful records regarding the time to prepare a return. The mean time to prepare a return is 90 minutes, and the population standard deviation of this distribution is 14 minutes. Suppose 100 returns from this year are selected and analyzed regarding the preparation time. What is the probability that the mean time for the sample of 100 returns is between 88 minutes and 92 minutes?

Multiple Choice

• 0.1664

• 0.8472

• 0.8336

• Approximately 1

11. Suppose we select every fifth invoice in a file. What type of sampling is this?

Multiple Choice

• Cluster

• Systematic

• Stratified

• Random

15. The Office of Student Services at a large western state university maintains information on the study habits of its full-time students. Their studies indicate that the mean amount of time undergraduate students study per week is 20 hours. The hours studied follows the normal distribution with a population standard deviation of six hours. Suppose we select a random sample of 144 current students. What is the standard error of the mean?

Multiple Choice

• 0.50

• 6.00

• 0.25

• 2.00

Founded in April 1996, Antheus Tecnologia develops and distributes Automated Fingerprint Identification Systems (AFIS), automated fingerprinting, and other systems such as iris recognition devices. Antheus Tecnologia also claims that it is the first Brazilian company to be certified by the US Federal Bureau of Investigation (FBI) and develops biometric solutions for domestic and overseas clients.

In March 2020, the security research team at SafetyDetectives discovered a significant data leak in addition to other security flaws (such as lack of password protection) relating to fingerprint data on an Antheus log server in Brazil. The research team discovered almost 2.3 million data points in total and estimated that 76,000 unique fingerprints were found on the database. Approximately 16 gigabytes of data were found on the Elasticsearch server including highly sensitive information related to identification and biometric details.

The Antheus server investigated by the security team is an identity server, which means it gives users access to the system or the ability to register as a new user. It also had fingerprint information in at least two “indices” from a total of 91. The Antheus server stored server and API access logs but also contained fingerprint data comprising of Ridge Bifurcation and Ridge ending – essential components for identifying and verifying fingerprints. In addition to fingerprint information, there were also instances of biometric data vulnerabilities, such as face recognition data being accessible and retrievable from the database.

In parallel to the biometric data breach, Antheus Tecnologia also had another related vulnerability which was noticed during the investigation. The company provides services to a national Civil Identification System in Brazil used to issue driving licenses although the access portal used for on-boarding new users was also not secure because of the lack of password protection. Furthermore, user data, administrator login information, several employee email addresses and phone numbers were also found.

According to the SafetyDetectives research team, the practice of allowing access to server data in such a way is rather unusual. This methodology generally leaves the server, but this could have been done purposefully. If so, it’s a rather strange option to take when it comes to ensuring security. SafetyDetectives security team found two indices, potentially referring to two different companies using the Antheus server to store personal information including fingerprint data. Moreover, the investigation team found data logs relating to precise fingerprint scans that could be reconstructed from the index numbers stored on the Antheus server. Moreover, it could be possible to recreate (or reverse-engineer) a biometric image map for a particular fingerprint from strings of data found on the server. According to the research finding of the SafetyDetectives security team, nefarious users can access the Antheus server and after extracting the available data, could use the data stream of ones and zeros to recreate the full biometric image of someone’s fingerprint.

a) After analysing the case study, discuss the importance of biometric credentials, and report the impact of the data breach associated with biometric data.

b) Identify and discuss the vulnerability associated with fingerprint data stored on the Antheus Tecnologia server. Recommend a possible solution to patch this vulnerability.

THREE FINANCE for BUSINESS QUESTIONS, ~all unrelated to each other

1. Alpha Company invests $15,600 at an interest rate of 14% for five years. What is the difference between simple and compound interests? Assume that in case the interest rate compounds semiannually.

2. Let’s assume there is a firm that wants to invest $34,000 in a project with an interest rate of 9% annually, and that the project will last for twelve years. What will be the interests coming from the project if the firm chooses not to reinvest any of its earnings? Assume the interest rate compounds annually.

3. Let us assume there is a project that will bring in $38,509.42 six years from now, assuming the interest rate of 9.6% that will compound monthly. What is the project’s present value?

1-Assume that a currency’s spot and futures price are the same, and the currency’s interest rate is higher than the U.S. rate. If US investors wish to lock in the higher foreign return (and limit risk), what effect will the actions of U.S. investors have on the currency’s spot rate? the currency’s futures price?

2- Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $.0095. You expect the spot rate in 60 days to be $.0090. How many dollars will you receive for the 5,000,000 yen 60 days from now?

Suppose that

The Elasticity of Imports in the USA in the short Run is 0.5

The Elasticity of Imports in Japan in the short Run is -0.3

The Elasticity of Imports in the USA in the long Run is 1.2

According to the Elasticities approach to the Current Account Balance, if the Exchange Rate goes from Yen=$1/100 to Yen=$1/50 ...

Horizon Corporation manufactures personal computers. The company began operation in 2013 and reported profits for the years 2015 through 2018. Due primarily to increased competition and price slashing in the industry, 2019's income statement reported a loss of $20 million. Just before the end of the 2020 fiscal year, a memo from the company's chief financial officer to Jim Fielding, the company controller, included the following comments:

"If we don't do something about the large amount of unsold computers already manufactured, our auditors will require us to write them off. The resulting loss for 2020 will cause a violation of our debt covenants and force the company into bankruptcy. I suggest that you ship half of our inventory to J.B. Sales Inc., in Oklahoma City. I know the company's president and he will accept the merchandise and acknowledge the shipment as a purchase. We can record the sale in 2018 which will boost profits to an acceptable level. Then J.B. Sales will simply return the merchandise in 2019 after the financial statements have been issued.

Comment on the appropriateness of the suggestion made by the controller to fulfill financial reporting objectives, Consider relevant ethical issues in your response. A basic framework to address ethical decision-making is provided:

Ethics Discussion in Accounting:

There are many frameworks for the analysis of ethical dilemmas in Accounting. The basic steps include:

1. Identify the facts--who, what, where, when, and how.

2. Identify the ethical issue and the stakeholders such as shareholders, creditors, management, employees, potential investors, and the community.

3. Identify the values relevant to the situation such as confidentiality verses the right to know.

4. Specify the alternative courses of action.

5. Identify a course of action and the consequences of that action.¹

^{1. Adapted from Harold Q. Langenderfer and Joanne W. Rockness, "Integrating Ethics into the Accounting Curriculum:Issues, Problems, and Solutions," Issues in Accounting Education (Spring 1989)}

Using the data provided, perform the steps below to complete the final project.

On December 1, 2019, SoccerBox Inc. started operations. The following transactions occurred during December 2019.

NOTE: There are no beginning balances-this is a new company.

Using this spreadsheet and the information above, complete the following:

1. Record the journal entries that occurred during the month of December.
2. Prepare an unadjusted trial balance.
3. Create adjusting journal entries at the end of the year (December 31) based on the following adjustment data:
   1. One month's insurance coverage has expired (refer to the December 10 entry).
   2. The company occupied the warehouse space for the month of December (refer to the December 2 entry).
   3. At the end of the month, $100 worth of office supplies are still available (refer to the December 3 entry).
   4. This month's depreciation on the soccer equipment is $250.
   5. Employees earned $300 of unpaid and unrecorded salaries as of month-end.
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of retained earnings, and a classified balance sheet as of December 31, 2019.

I am having issues with these two questions:

1. Prepare an adjusted trial balance.
2. Prepare an income statement, a statement of retained earnings, and a classified balance sheet as of December 31, 2019