Discuss the impact of this event on Wells Fargo’s financial statements. Specifically, discuss how the alleged inappropriate sales practices would have been reflected in Wells Fargo’s financial statements in the 2011 through 2014 time period. Also, discuss how the $185 million fines might be reflected in Wells Fargo’s 2016 financial statements.
What will be an ideal response?
The alleged sales practices resulted in the recording of unauthorized revenues (about $3 million)
for fees and services in the 2011 – 2014 financial statements. The $185 million fine announced in
September 2016 would have been reflected in the 2016 financial statements as an expense and liability
(if not paid by year end). Most likely the fine would need to be disclosed in the accounting footnotes
regarding legal matters.
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For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship
This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________. A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) consumer capitalism E) consumer ethnocentrism
Licensing refers to a contractual agreement in which the licensor grants access to its patents, trade secrets, or technology for a fee paid by the licensee.
Answer the following statement true (T) or false (F)
A company produces two boat models, Flyer and Skimmer. Both products are being considered for major investment projects next year. Relevant data follow: Flyer SkimmerNew investment $424,000$380,000Expected net cash flows:Year 1 150,000 130,000Year 2 160,000 130,000Year 3 170,000 130,000Required:Use the payback period to evaluate these two investment projects.
What will be an ideal response?
A company accidentally recorded revenue of $1,310 as $1,130. What effect would this have on net income?
A) Net income would be overstated by $180. B) Net income would not be affected. C) Net income would be understated by $180. D) Net income would be overstated by $1,130.