http://www.seattlepi.com/business/318638_bestbuy06.html?source=rss
Summary
The article that I have chosen to base my summary blog upon revolved around the altering of documents pertaining to a lawsuit against Best Buy. The lawsuit concerned Microsoft, yes the multibillion dollar company, paying Best Buy to sign up unsuspecting customers to a trial version of MSN Internet service, and once the trial version ended customers were left with unapproved charges on their credit card bill. Timothy Block the lawyer hired by Best Buy, willingly altered two e-mails and a memo before presenting them to the plaintiffs and the judge, resulting in Best Buy losing any credibility in the eyes of the judge and the jury. Timothy Block later admitted to his mistake, resigned as Best Buy’s lawyer and now is on medical leave due to stress and depression. The lawsuit can go one of four ways, Best Buy and Microsoft losing the case, Best Buy losing, Microsoft losing, or Microsoft and Best Buy winning. But if either of the two companies or both lose, their will be tens of millions of dollars paid in damages.
Connection
This article concerning Best Buy and Microsoft connects with Chapter 12 Specialized Journals, Chapter 14 Cash Control and Banking, Chapter 15 Analyzing Financial Statements, and Chapter 16 Payroll Accounting in various ways. In accordance to Chapter 12, Best Buy and Microsoft will see an increase in the sales or income section of their synoptic journal and also an increase in their sales journal and possibly their general journal. In retrospect to Chapter 14 customers who were signed up for the trial MSN Internet service will have numerous credit card charges which will eventually lead to a decrease in their personal bank account. In accordance to Chapter 15 the plaintiffs and judge in this lawsuit, will use the financial statements to determine how much Microsoft and Best Buy benefited from the unethical practice and also victims of the unethical practice. Finally in retrospect to Chapter 16 the owners of Best Buy who agreed to the practice will probably increase their salary as the company’s gross profit increases, and the same for the Microsoft employees to implement the practice.
Reflection
Firstly after reading this article I would just like to say that Microsoft should have known better than to try to increase their sales through an unethical practice. A sale can only be defined as a sale if both or more parties agree, and what Microsoft and Best Buy were implementing can only be defined as trickery. But one surprising thing that appeared when I read the article is that a senior partner at Block’s lawyer firm, is also a director at Best Buy, which could insinuate inside influence. The accounting firm for Best Buy should have noticed money coming in from side deals with Microsoft, which should have alerted them to realize an unethical practice was taking place, and thus they should have immediately consulted a higher power. And by that I mean the police or owner(s) and not God.
Monday, April 6, 2009
Thursday, March 12, 2009
Chapter 16 Blog: Payroll Accounting
http://www.cv-library.co.uk/news/1527/Jobseekers-warned-of-employers-‘cheating’-minimum-wage-rules-.html
Summary
The article that I have chosen to base my blog upon, dealt with employers cheating employees in terms of wages. In 2009 research was conducted by TUC (Trades Union Congress) which discovered that around 1.5 million Britons above the age of 21 were being paid under the countries national wage which is 5.73 pounds an hour. The exploitation of employees can be mainly seen within retail, construction and engineering jobs. Like in the case of a 32-year old construction worker, name unknown, who was only paid a very low 4.10 pounds an hour. Currently organizations like HM Revenue and Customs are doing all they can to crack down on employers employing an ethical practice, but according to Brendan Barber general secretary at TUC they could always implement a special hotline to inform workers of their rights. Although currently the situation seems dim for these workers, for every cloud there is a silver lining, and for these employees they will only have to wait as the national wage is expected to be increased.
Connection
This article concerning the underpayment of employees by employers connects with Chapter 16 Payroll Accounting in one main way, gross pay or in greater detail wages. From the perspective of the employee he will constantly see a low payment figure on his wages, while from the perspective of an employer he will probably see an increase on the payment figure on his wages. Employees don’t have to only worry about the amount given to them by the employer, their gross profit, but they will also have to worry about the tax deductions that are inevitable.
Reflection
Firstly I would just like to say, that after reading this article I strongly hope that any of my future employers will not try to underpay me. Employers should not have the right to underpay employees, especially in this economic crisis where money is the most covenanted object. Money runs this world, and by employer’s underpaying employees they are only furthering homelessness and the likelihood of another depression as less money is being circulated throughout the economy. The blame should not be entirely put upon the employer and his unethical practice, as an accountant should be intelligent enough to notice a small wages figure and be ethical enough to report this to various wage dealing agencies. An accountant needs not only the skills taught within a classroom, but also the ethical practices taught throughout life.
http://www.cv-library.co.uk/news/1527/Jobseekers-warned-of-employers-‘cheating’-minimum-wage-rules-.html
Summary
The article that I have chosen to base my blog upon, dealt with employers cheating employees in terms of wages. In 2009 research was conducted by TUC (Trades Union Congress) which discovered that around 1.5 million Britons above the age of 21 were being paid under the countries national wage which is 5.73 pounds an hour. The exploitation of employees can be mainly seen within retail, construction and engineering jobs. Like in the case of a 32-year old construction worker, name unknown, who was only paid a very low 4.10 pounds an hour. Currently organizations like HM Revenue and Customs are doing all they can to crack down on employers employing an ethical practice, but according to Brendan Barber general secretary at TUC they could always implement a special hotline to inform workers of their rights. Although currently the situation seems dim for these workers, for every cloud there is a silver lining, and for these employees they will only have to wait as the national wage is expected to be increased.
Connection
This article concerning the underpayment of employees by employers connects with Chapter 16 Payroll Accounting in one main way, gross pay or in greater detail wages. From the perspective of the employee he will constantly see a low payment figure on his wages, while from the perspective of an employer he will probably see an increase on the payment figure on his wages. Employees don’t have to only worry about the amount given to them by the employer, their gross profit, but they will also have to worry about the tax deductions that are inevitable.
Reflection
Firstly I would just like to say, that after reading this article I strongly hope that any of my future employers will not try to underpay me. Employers should not have the right to underpay employees, especially in this economic crisis where money is the most covenanted object. Money runs this world, and by employer’s underpaying employees they are only furthering homelessness and the likelihood of another depression as less money is being circulated throughout the economy. The blame should not be entirely put upon the employer and his unethical practice, as an accountant should be intelligent enough to notice a small wages figure and be ethical enough to report this to various wage dealing agencies. An accountant needs not only the skills taught within a classroom, but also the ethical practices taught throughout life.
Tuesday, March 3, 2009
Chapter 15 Blog
Well Care Revises Past Financial Statements To Include Refunds Owed to Florida, Illinois Medicaid Programs
http://www.medicalnewstoday.com/articles/115887.php
Summary
The article that I have chosen to base my blog upon concerns the huge overstatements and understands on the financial statements of Well Care (medical insurance company). During the time period of 2004-2007 Well Care neglected to include refunds owed to Florida and Illinois Medicaid programs and the Florida Healthy Kids programs, amounting to earning being overstated by 28 million and liabilities being understated by 46 million. Since 2007 Well Care had not audited their statements, leading to huge discrepancies and thus ultimately leading to a raid by the FBI. Well Care claims that the incident was caused by the charging of certain ineligible expenses, thus supposedly reducing the amount owed. But what is surprising is that after the incident occurred the current CEO, CFO and general counsel resigned, leaving people to think if the incident was just a mere accident.
Connection
This articles concerning Well Care connects to chapter 15, Analyzing Financial Statements, in two ways. The first connection simply being that both this chapter and this article revolve around financial statements. In retrospect to the users of the financial statements this article can be related to both the insiders and the outsiders. In the case of the “insiders” the owners and management group followed an unethical practice, by not having the statements audited and having ineligible medical expenses recorded in the books, thus leading to their resignations and immense accounting errors. And in the case of the “outsiders” (FBI), by them using the financial statements, they were able to determine the sources of error and now the “victoms” of this error face reimbursement.
Reflection
Firstly after reading this article, it left me thinking about how many well known companies out there have supposed “accounting errors.” Well Care could have avoided this entire incident only if the owners and executives didn’t make the decision to stop auditing their records. For a business to thrive and for the owners and executives to keep their jobs, it’s always key to employ a strong accounting department and to always, always, always audit. If a business ever decides to veer away from an audit, then it is time for employees to question the legality of the operations and the following of the generally accepted accounting principles.
http://www.medicalnewstoday.com/articles/115887.php
Summary
The article that I have chosen to base my blog upon concerns the huge overstatements and understands on the financial statements of Well Care (medical insurance company). During the time period of 2004-2007 Well Care neglected to include refunds owed to Florida and Illinois Medicaid programs and the Florida Healthy Kids programs, amounting to earning being overstated by 28 million and liabilities being understated by 46 million. Since 2007 Well Care had not audited their statements, leading to huge discrepancies and thus ultimately leading to a raid by the FBI. Well Care claims that the incident was caused by the charging of certain ineligible expenses, thus supposedly reducing the amount owed. But what is surprising is that after the incident occurred the current CEO, CFO and general counsel resigned, leaving people to think if the incident was just a mere accident.
Connection
This articles concerning Well Care connects to chapter 15, Analyzing Financial Statements, in two ways. The first connection simply being that both this chapter and this article revolve around financial statements. In retrospect to the users of the financial statements this article can be related to both the insiders and the outsiders. In the case of the “insiders” the owners and management group followed an unethical practice, by not having the statements audited and having ineligible medical expenses recorded in the books, thus leading to their resignations and immense accounting errors. And in the case of the “outsiders” (FBI), by them using the financial statements, they were able to determine the sources of error and now the “victoms” of this error face reimbursement.
Reflection
Firstly after reading this article, it left me thinking about how many well known companies out there have supposed “accounting errors.” Well Care could have avoided this entire incident only if the owners and executives didn’t make the decision to stop auditing their records. For a business to thrive and for the owners and executives to keep their jobs, it’s always key to employ a strong accounting department and to always, always, always audit. If a business ever decides to veer away from an audit, then it is time for employees to question the legality of the operations and the following of the generally accepted accounting principles.
Sunday, November 23, 2008
Chapter 14 Blog
European Bank Customers, Information Unknowingly Sold on EBay
http://www.dailymail.co.uk/news/article-1049121/Government-probe-launched-details-million-bank-customers-sold-eBay.html
Summary
The article that I have chosen to base my blog upon, was written by Dan Newling, and revolves around a mistaken but highly serious and expensive error. Andrew Chapman aka the hero of this story, purchased a seemingly outdated computer off of eBay for £35, but to his surprise, he discovered that the hard drive contained the personal data of over one million bank customers. (Computer later returned to rightful owner). The personal data consisted of clients from the following banks: The Royal Bank of Scotland, NatWest and American Express. The computer had belonged to Graphic Data (owned by Mail Source), which stores financial information for organizations and this incident was called an isolated but honest mistake. But not everyone agreed with that statement. Christopher Tomlins (NatWest client) when informed about the incident, said: “It is like they have given my house keys to a stranger and then said, “Help yourself”,” and also that if they wanted to get rid of the computer they should have just destroyed it. This incident is currently under investigation from The Information Commissioner’s Office as this is a case of a breach of the Data Protection Act. And is also being investigated by the government, RBS, NatWest and American Express to determine and fix the extent of the damage.
Connection
This news article connects with chapter 14, Cash Control and Banking, in two ways: the first being personal banking and the second being bank credit cards. From the perspective of the bank client, the bank is not fulfilling one of its principal services, the safekeeping of money. With new bank accounts being created on a daily bases ranging from basic banking to personal chequing accounts customers assume that their money is 100% safe, and banks can’t always do that. It also connects with bank credit cards as the personal information, on the computer provided the basis for creating thousands or even millions of counterfeit credit cards. With thousands or even millions of counterfeit credit cards out there, banks would see giant discrepancies in client’s accounts, possible bankruptcies, closing of accounts, loss of clients, and the highly unlikely scenario of the bank closing down.
Reflection
Firstly as a current bank account holder this news article makes me question the simple fact, just how safe is my personal information and ultimately my money. Something that I didn’t mention in the article was that personal data like account numbers, phone numbers, signatures, etc were not believed to be handled by third parties (Graphic Data), and this makes me question it even more. Although a bank can lure you into a false sense of security, there will always be the downside that they never reveal. That people and technology are and will never be 100% trustworthy or efficient. But this case can also be applied to the accounting world. For an accountant to reign over his competitors and be hired by a firm, they need to be reassured that he is worth the money. Or in other terms highly trustworthy and highly efficient, and not like Elton John`s former personal accountant.
http://www.dailymail.co.uk/news/article-1049121/Government-probe-launched-details-million-bank-customers-sold-eBay.html
Summary
The article that I have chosen to base my blog upon, was written by Dan Newling, and revolves around a mistaken but highly serious and expensive error. Andrew Chapman aka the hero of this story, purchased a seemingly outdated computer off of eBay for £35, but to his surprise, he discovered that the hard drive contained the personal data of over one million bank customers. (Computer later returned to rightful owner). The personal data consisted of clients from the following banks: The Royal Bank of Scotland, NatWest and American Express. The computer had belonged to Graphic Data (owned by Mail Source), which stores financial information for organizations and this incident was called an isolated but honest mistake. But not everyone agreed with that statement. Christopher Tomlins (NatWest client) when informed about the incident, said: “It is like they have given my house keys to a stranger and then said, “Help yourself”,” and also that if they wanted to get rid of the computer they should have just destroyed it. This incident is currently under investigation from The Information Commissioner’s Office as this is a case of a breach of the Data Protection Act. And is also being investigated by the government, RBS, NatWest and American Express to determine and fix the extent of the damage.
Connection
This news article connects with chapter 14, Cash Control and Banking, in two ways: the first being personal banking and the second being bank credit cards. From the perspective of the bank client, the bank is not fulfilling one of its principal services, the safekeeping of money. With new bank accounts being created on a daily bases ranging from basic banking to personal chequing accounts customers assume that their money is 100% safe, and banks can’t always do that. It also connects with bank credit cards as the personal information, on the computer provided the basis for creating thousands or even millions of counterfeit credit cards. With thousands or even millions of counterfeit credit cards out there, banks would see giant discrepancies in client’s accounts, possible bankruptcies, closing of accounts, loss of clients, and the highly unlikely scenario of the bank closing down.
Reflection
Firstly as a current bank account holder this news article makes me question the simple fact, just how safe is my personal information and ultimately my money. Something that I didn’t mention in the article was that personal data like account numbers, phone numbers, signatures, etc were not believed to be handled by third parties (Graphic Data), and this makes me question it even more. Although a bank can lure you into a false sense of security, there will always be the downside that they never reveal. That people and technology are and will never be 100% trustworthy or efficient. But this case can also be applied to the accounting world. For an accountant to reign over his competitors and be hired by a firm, they need to be reassured that he is worth the money. Or in other terms highly trustworthy and highly efficient, and not like Elton John`s former personal accountant.
Thursday, October 30, 2008
Chapter 12 Blog: Specialized Journals
The Canadian Dollar and World Strike a New Low
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b102715A#adskip
Summary
The article that I have chosen to base my blog upon, is mainly about the devastation of the Canadian dollar, softening of oil prices, and what this means for the global economy. As of Monday October 27, 2008 the various stock markets are continuing to plunge into the unknown, and its wraith is being felt all over the world. The Hong Kong stock market dropped 12.7 percent while the Tokyo stock market dropped 6.4 percent. The Wall Street index pointed to early losses for investors, a huge plunge in commodity prices, and while we are in the mist of a depression. In retrospect to Canada the loonie is trading 77.74 cents to the Us dollar, down 16 cents since the start of October. Crude oil fell $1.87 a barrel, and slid 35 percent since the beginning of the month, even with the Organization of Petroleum Exporting Countries to cut production quotas by 1.5 million barrels a day. Also gold is down $9.00 US an once and copper is down 5.5 cents US a pound. Overseas investors are slowly withering away as they had invested yen in the higher-yielding US dollar assets, causing the US dollar to fall to 92 yen. The worlds future at this point is uncertain and action will emerge. But according to Simon Derrick, currency strategist at the Bank of New York Mellon, this action should be lead by the U.S. Treasury. At this point there is no action and stocks are quickly being sold away, so investors can cover their loans and prevent a depression.
Connection
This article connects to synoptic jounals, cash discounts and Ch.12 in a whole, in many ways. Firstly if the Canadian dollar and the other global currences continue to fall at their current rate, there will be a huge discrepency on the synoptic journal of various companies (wholesaler, merchandising and service businesses). For example, an accoutant and a company will see a drop in sales, less money in the bank, and a lower number of account recievables on the synoptic journal. This will lead to a company purchasing less, to try to stay in business. With a huge discrepency on a companies synoptic journal, the company say a wholesaler would have to give merchandising businesses a larger cash discount for early payments, to build customer loyalty and thus stay in business.
Reflection
Firstly I would just like to say it must really suck to be a stock broker, at this current time period. This article also builds upon the simple fact that an accountant needs to know about events that happen outside his/her company. If an accountant, working for an American wholesaler business for example, did not know about the global economic concerns their international sales would go down, and they would possibly go out of business, even though this could be a fixable problem. If the stock markets crash completely, then we will have another depression meaning that there will probably be a low need for accountants where it will then be survival of the most efficient. But if what I read today (Oct. 29/08) is to come true then the economic concerns would be forgotten.
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b102715A#adskip
Summary
The article that I have chosen to base my blog upon, is mainly about the devastation of the Canadian dollar, softening of oil prices, and what this means for the global economy. As of Monday October 27, 2008 the various stock markets are continuing to plunge into the unknown, and its wraith is being felt all over the world. The Hong Kong stock market dropped 12.7 percent while the Tokyo stock market dropped 6.4 percent. The Wall Street index pointed to early losses for investors, a huge plunge in commodity prices, and while we are in the mist of a depression. In retrospect to Canada the loonie is trading 77.74 cents to the Us dollar, down 16 cents since the start of October. Crude oil fell $1.87 a barrel, and slid 35 percent since the beginning of the month, even with the Organization of Petroleum Exporting Countries to cut production quotas by 1.5 million barrels a day. Also gold is down $9.00 US an once and copper is down 5.5 cents US a pound. Overseas investors are slowly withering away as they had invested yen in the higher-yielding US dollar assets, causing the US dollar to fall to 92 yen. The worlds future at this point is uncertain and action will emerge. But according to Simon Derrick, currency strategist at the Bank of New York Mellon, this action should be lead by the U.S. Treasury. At this point there is no action and stocks are quickly being sold away, so investors can cover their loans and prevent a depression.
Connection
This article connects to synoptic jounals, cash discounts and Ch.12 in a whole, in many ways. Firstly if the Canadian dollar and the other global currences continue to fall at their current rate, there will be a huge discrepency on the synoptic journal of various companies (wholesaler, merchandising and service businesses). For example, an accoutant and a company will see a drop in sales, less money in the bank, and a lower number of account recievables on the synoptic journal. This will lead to a company purchasing less, to try to stay in business. With a huge discrepency on a companies synoptic journal, the company say a wholesaler would have to give merchandising businesses a larger cash discount for early payments, to build customer loyalty and thus stay in business.
Reflection
Firstly I would just like to say it must really suck to be a stock broker, at this current time period. This article also builds upon the simple fact that an accountant needs to know about events that happen outside his/her company. If an accountant, working for an American wholesaler business for example, did not know about the global economic concerns their international sales would go down, and they would possibly go out of business, even though this could be a fixable problem. If the stock markets crash completely, then we will have another depression meaning that there will probably be a low need for accountants where it will then be survival of the most efficient. But if what I read today (Oct. 29/08) is to come true then the economic concerns would be forgotten.
Wednesday, October 8, 2008
Ch.11 Article for AC12
Summary
The news article that I have chosen to do my blog on was written by blog Dave Hall of the Canwest News Service, and deals with the inventory change for Canadian and American car dealerships. Across Canada the sting of rising gas costs can be felt, but especially in the Auto Industry. With the recent highs in gas prices dealerships have noticed less interest in gas guzzling trucks and a larger interest in smaller vehicles, which has forced dealerships to buy less trucks and buy more smaller cars. This 'sting' can mainly be felt in the U.S. according to auto analyst Dennis DesRosiers as he stated "that 60% of Canadians drive fuel efficient cars while only 30% of Americans drive fuel efficient cars. This shift from expensive to less expensive has been evident in U.S. auto manufactures and also in the Canadian auto manufactures. For instance the closing of the Oshawa truck plant. Unless dealorships change their ways they will be destined to fail. (http://autos.canada.com/news/story.html?id=a218e082-d7e7-4e07-bb7f-041548a87efc)
Connection
This news article connects with inventory in two ways, first by COGS and secondly by expenses. Mainly less inventory, purchases and depreciation. Car dealerships that keep their gas guzzling trucks will see a decrease in purchases, an increase in less inventory and an increase in deprecation expense. But on the other hand if car dealerships listen to consumer demands they will see an increase in purchases, a decrease in less inventory and a decrease in deprecation expense. In conclusion if the dealership stays with the old ways Gross Profit and net earnings will decrease but if they go with the new way Gross Profit and net earnings will increase.
This news article connects with inventory in two ways, first by COGS and secondly by expenses. Mainly less inventory, purchases and depreciation. Car dealerships that keep their gas guzzling trucks will see a decrease in purchases, an increase in less inventory and an increase in deprecation expense. But on the other hand if car dealerships listen to consumer demands they will see an increase in purchases, a decrease in less inventory and a decrease in deprecation expense. In conclusion if the dealership stays with the old ways Gross Profit and net earnings will decrease but if they go with the new way Gross Profit and net earnings will increase.
Reflection
Firstly this article is a great stepping stone in the demolishing humanities exploitation of non-renewable and thus global warming. Now back to business this article shows us how a business and an accountant need to keep up with the times (global issues) and also consumer demands. If a business or accountant doesn't keep with times and consumers there will be tons of problems with no solutions. But if a business or accountant does the opposite of what I mentioned in the last sentence they will have fewer problems and solutions. Or in other words in with the new and out with the old.
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