Why was accounting transparency an important issue in the P&G-BT swap controversy?
What will be an ideal response?
It is highly unlikely that investors could have gleaned any information about P&G's
off-balance sheet risks and returns from studying the company's annual reports. P&G's reporting system was nebulous and gave rise to questions as to whether similar calamities could happen in the future. The accounting profession (e.g., U.S. Financial Accounting Standards Board) and regulators (e.g., Securities and Exchange Commission) rose to the challenge and implemented accounting reforms to improve derivative accounting transparency.
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Define each of the following input controls and give an example of how they may be used:
a. Missing data check b. Numeric/alphabetic data check c. Limit check d. Range check e. Reasonableness check f. Validity check
Persuasion is the process of influencing your audience to agree with your point of view, recommendation, or request
Indicate whether the statement is true or false.
Which type of M&A integration uses a high degree of change in the acquired and acquiring company?
a) Absorption b) Transformation c) Preservation d) Reverse merger
Max is manager of the local Zesty Sam's, a fast-food restaurant. His store has consistently underperformed the national average for the chain, and now word has come down from on high that he needs to make some major changes if he wants to keep his job. He has analyzed the situation and knows that the problem comes from the workforce, which is composed primarily of teenagers. Most of them tend to be blasé when it comes to following instructions, and many seem more interested in elaborate jokes and pranks than in getting the job done. The best way for Max to bring about the changes he needs is to tell his employees what needs to be done and then inform them that
A. anyone who fails to comply with his instructions will be fired within two weeks. B. he is appointing a couple of leaders from the group to the management team. C. those who do not understand what is expected of them will receive training. D. they can be involved in designing plans for the changes to take place. E. there will be a pay raise for those who comply with his instructions.