In response to the Federal Organizational Corporate Sentencing Guidelines, Starstream Corporation wants to formulate and implement a compliance program to prevent potential legal violations by its employees and the company itself. Identify eight factors to include in the program, and discuss the effect of having an adequate program
An adequate compliance program should include: standards and procedures to prevent and detect criminal conduct; responsibility at all levels and adequate resources and authority for the program; personnel screening related to program goals; training at all levels; auditing, monitoring, and evaluating program effectiveness; nonretaliatory internal reporting systems; incentives and discipline to promote compliance; and reasonable steps to respond to and prevent further similar offenses upon detection of a violation. If Starstream successfully adopts and implements an adequate compliance program, a corporate fine for a criminal offense can be reduced to as little as 5 percent of the scheduled fine.
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Royal Company purchased a dump truck at the beginning of 2012 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2014, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2014, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. When calculating depreciation for 2014, Royal should a. add the $20,000 to the book value at December 31, 2013 and then allocate the revised basis over the remaining adjusted useful life of 5 years. b. report the effect of the change in life as an expense on the income statement in 2013. c. ignore the change in life on the original cost of $60,000 and depreciate the additional $20,000 cost separately over its useful life. d. expense the $20,000 and depreciate the original cost of $60,000 over its revised estimated total live of 7 years.
Which of the following actions can be considered a source of cash when constructing a statement of cash flows?
A. Decrease in equity B. Decrease in accounts payable C. Increase in inventory D. Increase in long-term bonds E. Increase in fixed assets
The adjusting entry to recognize uncollectible accounts expense does not affect the net realizable value of receivables.
Answer the following statement true (T) or false (F)
________ is a rehabilitation form of bankruptcy that permits a bankruptcy court to supervise the debtor's plan for the payment of unpaid debts in installments over the plan period.
A. Chapter 7 B. Chapter 9 C. Chapter 12 D. Chapter 13