...Perpetual Mercy Hospital Perpetual Mercy is a successful, nonprofit hospital located in the southern periphery of a major western city. It is extremely financially stable, debt free and holds the highest occupancy rate in amongst all hospitals located in its metro location. Perpetual Mercy has become extremely dependent on older, inner city occupants that are covered by Medicaid. More business is becoming minor, short stayed visits which have begun to jeopardize the financial stability of the hospital. Other major threats that Perpetual Mercy faces are the demographic shifts in the community, in which northern suburban areas are becoming more heavily occupied, placing potential business farther away from the hospital. Downtown Healthcare Clinic In 1998 Perpetual Mercy Hospital’s Board of Trustee’s did a study to find out if it would be worthwhile to open a clinic up north in a new construction area downtown. The clinic would offer specific services like: Preventive health care Minor emergency care Referral for acute and chronic health care conditions Specialized employer services Primary health care services Basic x-ray and lab test The clinic would not only service the local community but also serve as a preferred provider organization (PPO), holding a contractual arrangement with employment groups located near the new clinics area. These services will allow the hospital to expand their referral base, increase referrals of privately insured patients and establish...
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...the present time, Heyman is beginning to analyze the transactions that occur in the client's merchandise procurement system. Within this testing, he is especially interested in determining the extent to which employees comply with control procedures while carrying out various required activities. This evaluation will influence the assessment of control risk and therefore, the nature, timing, and extent of substantive tests to be performed by the firm in this area. Lakeside leases a perpetual inventory record accounting system from DATA Processing System of Richmond, an outside service organization. The initial entries are made by the Controller's division of Lakeside, and on a weekly basis the transactions are uploaded through DATA Processing Systems' website. Reports are then generated, and one copy of the current inventory balances goes to Edward Thomas, who is responsible for acquiring merchandise, while a second list is conveyed to Benjamin Rogers, president of the company. All inventory screens are also updated immediately. Thomas analyzes the perpetual records each week, noting computerized recommendations for reorder points and noting other inventory items that appear to be nearing a low level. Based on this review, he prepares a purchase requisition to replenish Lakeside's...
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...CLASSIFICATION OF COMPANIES AND SEPARATE LEGAL ENTITY 1) Types / form of business organization Sole Proprietor -operated by individual -unlimited liability -not complex organizational structure -all decision regards to business is done by the individual - Capital for venture is from the individual -all the profits made belong to him exclusively but he also bear all the risk -no separation between the business and his personal assets Advantages: -only minimal legal requirements for him to comply - Easy to start -minimum capital is required -all assets & profits belong to the owner -owner can exercise his entrepreneurial skill to the full -owner makes all decision & operates the business the way he wishes - No need to disclose accounts to the public Disadvantages: -unlimited liabilities -inadequate funds -limited skill or expertise -personally accountable for all business decisions -responsible for all the work. No one to share the workload. -no income if owner is incapacitated. Eg. Sickness -no continuity. ( perpetual succession) Business ceases once owner dies Partnership – Partnership Act 1961 * Unlimited liability * Terminate if there is death, bankruptcy * The partners can be sue or be sued * Member –min 20 , max 20 * X own any property under its firm name. * X take any loans from creditors on its firm name * X loan any money on its firm name * X sue or be sued on the firm name Advantages ...
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...Perpetual Mercy Hospital Internal Analysis: Overall objective: Expand the hospitals referral base, increase referrals of privately insured patients, establish a liaison with the business community, become self-supporting three years after opening. Overall strategy: Preventive health care, minor emergency care, referral for acute and chronic health care problems, specialized employer services. Market penetration. Target market: The potential users of DHC consist of 11,663 office workers, Young people or upwardly mobile families from the cities. Inner city residents who have a higher median age and higher incidence of Medicare coverage. Product objective: to offer service to patients that needs treatment (physical exams, minor-emergency care, specialized employer services, primary health care services, basic X-ray and laboratory tests, and referral for acute and chronic health care problems). Product strategy: by having enough people on duty to take care of all the patients that need their help on a given day. Product tactics: being open 260 days of the year; Monday-Friday from 8:00 a.m.-5:00pm, and having a trained physician on hand. Channel objective: Locate the DHC within a 5 block walking radius of office workers; Greater west office and shopping complex Channel strategy: Direct-customers would come into the DHC to get service Channel tactics: use location of DHC to attract customers, Greater West Office and Shopping Complex, situated on the corner of Main and...
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...CHAPTER 13 THE EXPENDITURE CYCLE: PURCHASING AND CASH DISBURSEMENTS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 13.1 In this chapter and in Chapter 12 the controller of AOE played a major role in evaluating and recommending ways to use IT to improve efficiency and effectiveness. Should the company’s chief information officer make these decisions instead? Should the controller be involved in making these types of decisions? Why or why not? There are several reasons why accountants should be involved in decisions about investing in IT and not leave such decisions solely to IS professionals. First, the economic merits of proposed IT investments need to be subjected to the same kind of detailed analysis as any other major capital investment (e.g., plant expansions). Accountants are skilled in making such analyses. Second, the operational feasibility of IT investments must also be evaluated. How will the investment affect daily operating procedures? Will the system be able to adapt as the company changes the nature of its operations? As one of the major users of the information system, accountants need to participate in these analyses. Third, what is the long-run viability of the proposed supplier? Here again accountants...
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...one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation This is one of three forms of business organization discussed in the chapter. 3. Which is an advantage of corporations relative to partnerships and sole proprietorships? A. Increased difficulty of raising funds B. Harder to transfer ownership C. Reduced legal liability for investors D. Most common form of organization Ownership is easier to transfer in a corporation than in a partnership or proprietorship. 4. Easy transfer of ownership is a characteristic of which form of business organization? A. Sole proprietorship B. Partnership C. Corporation higheredbcs.wiley.com/legacy/college/kimmel/1118162285/self_test/ch01.html?newwindow=true 1/8 8/4/13 Chapter 1 Results D. All of the answer choices are correct Partnerships are effectively dissolved when any portion of the partnership is sold, closed, boughtout by the other partners, or bought by a new partner or partners. 5. In which forms of business organization are the owners personally liable for all the debts of the business? A. Sole proprietorships and corporations B. Sole proprietorships and partnerships C. Partnership and corporation D. All of the answer choices are correct Correct! Owners are personally liable for all debts of the business in both sole proprietorships and partnerships. 6. The sole proprietorship form of business organization A. must have at least two owners in...
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...Selection Tools As jobs have became more competitive in today’s job market, hiring the best and brightest candidates is crucial for the success of an organization. The process of recruiting and selection of staff is very complex with most organizations and its integration into an organizational approach means that a successful outcome of this process is essential for job performance and success of an organization. Matching the right individual to the proper job is a complex and perpetual activity for a Human Resource Management Department. Organizations that use the proper selection tools available will reduce applicant numbers and will single out the best matching candidates, thus allowing an organization to choose the best and most qualified person for the position (Bohlander, Snell, 2007). Selection Tools for a Super market Employers now realize that the use and implementation of a selection process that is well designed may lead to enhanced employee performance, increased productivity, higher employee morale, and lower turnover rates (Bohlander, Snell, 2007). A recruitment and selection process is very important and crucial for an organization to be competitive in a national and global economy. Organizations and businesses use various was to obtain background information about their applicants (Bohlander, Snell, 2007). Employment at a supermarket consists of many different duties and responsibilities for its employees. Job duties range from stocking, inventory, cashier...
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...Introduction: Companies are the dominant form of business association. The fundamental concept of company law was developed based on a case decided more than 100 years ago in the UK’s House of Lords. The case of Salomon established a maxim that a company is a separate legal entity distinct from its members. When a company is formed, it is said to have become “incorporated”. Thus it is a separate legal entity or a legal ‘person’ it has features that have given a company certain capabilities under the realm of law. The capabilities would include employing personnel, making contract, owning property, paying taxes and so on. A company can also sue and can be sued. Under the eye of the law, anything that is capable of rights and duties is a person and thus has a personality. Persons can be of two types under the eye of law (i) natural persons and (ii) artificial persons. Natural persons are human beings and artificial persons are those created for the purpose of laws known as corporations or companies. As soon as a company is registered under the company act, it attains the status of a person that can buy, lend money, file and defend suit, sell goods and hold property. One of the major features of a corporation from the very beginning is that the owners/shareholders enjoyed limited liability, which means, the owners were not liable for the debts of the company. Before the industrial Revolution it was only the persons who could be sued or sue. Thus, when a corporation breached a...
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...efficiently forecasting seasonal items. Walonick (2003) claims that proper and timely planning can minimized shortage of inventory in peak season and surpluses of seasonal item, in off season (Walonick, 2003). In this paper the subject to address is inventory management problem experienced by Wal-Mart and analyzed the expected outcome and motivational benefits to the organization of implementing a solution for this inventory challenge. Using the University of Phoenix Summer Historical Inventory data will aid in both project proposal and forecasting future inventory cost. Inventory Management Problem Wal-Mart was founded by Sam Walton in 1962; the retailing giant has grown to over 8000 stores in 15 countries and employs 2.1 million associates that serve more than 176 million customers a year (Wal-Mart). A retail store of this magnitude must have a reliable and accurate inventory system to be -successful. McClure (n.d) states that “Companies stay efficient and competitive by keeping inventory levels down and speeding up collection of what they are owed” (Mc Clure, para. 1). Like many other retail organization Wal-Mart had to analyze their inventories because they were experiencing shortage of inventory, misplacement of items and Inventory in hand of unqualified employees. Shortage of a seasonal item can result in lost sales during...
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...the present time, Heyman is beginning to analyze the transactions that occur in the client's merchandise procurement system. Within this testing, he is especially interested in determining the extent to which employees comply with control procedures while carrying out various required activities. This evaluation will influence the assessment of control risk and therefore, the nature, timing, and extent of substantive tests to be performed by the firm in this area. Lakeside leases a perpetual inventory record accounting system from DATA Processing System of Richmond, an outside service organization. The initial entries are made by the Controller's division of Lakeside, and on a weekly basis the transactions are uploaded through DATA Processing Systems' website. Reports are then generated, and one copy of the current inventory balances goes to Edward Thomas, who is responsible for acquiring merchandise, while a second list is conveyed to Benjamin Rogers, president of the company. All inventory screens are also updated immediately. Thomas analyzes the perpetual records each week, noting computerized recommendations for reorder points and noting other inventory items that appear to be nearing a low level. Based on this review, he prepares a purchase requisition to replenish Lakeside's depleted...
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...CHAPTER 7 AUDITING INTERNAL CONTROL OVER FINANCIAL REPORTING Answers to Review Questions 7-1 Following are management’s and the auditor’s responsibilities under Section 404 of the Sarbanes-Oxley Act of 2002: Management’s Responsibilities • Accept responsibility for the effectiveness of the entity's ICFR. • Evaluate the effectiveness of the entity's ICFR using suitable control criteria. • Support its evaluation with sufficient evidence, including documentation. • Present a written assessment of the effectiveness of the entity’s ICFR as of the end of the entity’s most recent fiscal year. Auditor’s Responsibilities • The auditor must plan and perform the audit to obtain reasonable assurance about whether the entity maintained, in all material respects, effective internal control as of the date specified in management's assessment. • The audit of internal control should be “integrated” with the financial statement audit, and should express an opinion on the effectiveness of the entity’s ICFR. 7-2 “Likelihood” refers to the probability that a misstatement will not be prevented or detected. For a significant deficiency or a material weakness to exist, the likelihood of such an occurrence must be either “reasonably possible” or “probable.” “Magnitude” refers to the significance that the control deficiency could have on the financial statements according to the judgment of a prudent...
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...Assignment 2: Project Motorcycles BUS 375 Project Management May 8, 2015 Select one (1) of the types of project organization that would suit the development of the larger touring class motorcycles. Outline the process steps that your company would take in order to develop the motorcycle. Provide a rationale for the response. The type of project organization that would suit the development of the larger touring class motorcycles would be the project driven organization. According to Kerzner (2013)a project driven organization is a formally operated in its decision making along with highly specialized and disciplined team efforts in marketing, technical, operating personnel and customer involvement. According to Rider Magazine (2015) most cruisers are classically styled motorcycles that highlight the exposed engine–usually air-cooled V–twin–and metalwork such as chrome exhaust pipes or heavy fenders. They typically offer a relaxed, feet-forward riding position. Touring motorcycles, which includes some cruisers as well as other types of bikes, are designed for long-distance travel. Touring motorcycles have windshields (and sometimes a fairing) to protect the rider from wind, a comfortable seat and attached luggage, such as hard or soft saddlebags and possibly a trunk. This outline of the process steps in developing the touring motorcycle as follows: I. Generating Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance...
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...Generational Comparisons and Contrasts Chart by, Anne K. Robey-Graham, Ed.D. Birth dates Size (in 2005) Defining ideas Style Childrearing Significant goal Boomers 1948 – 1961 ~78 million Individuality Self-absorbed Permissive child Personal growth Gen X’ers 1962 – 1979 ~46 million Cynicism Entrepreneur Private child Self-reliance Millennials 1980 – 1999 ~70 million Entitlement Confident achiever Pampered child Being happy and safe Generational attitudes that may surface in multigenerational classrooms: Boomers Gen X’ers Millennials Generational experience brought into the classroom: Academic K-12 Overcrowded Smaller classrooms; Self-esteem curriculum; experiences classrooms; had to introduction of new focus on standardized test compete to be heard; technologies; more scores; entitled to good worked in groups individual focus and grades; want to feel special; creative projects everyone gets rewards Experience with Strong nuclear family; High rates of divorce; Believe key to happiness is family in many families “latchkey kids” came in close family relationships, mother was home; home from school alone although 50% came from played with because both parents divorced families; close neighborhood children; worked or lived in single relationships to their parents, when teens rebelled parent family; step viewed as “partners”; Soccer against parents and families and living in two Moms; highly structured social structures places; spent more time activities such as sports, alone than...
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...Smackey Dog Foods, Inc. was started by three sisters in their home in the suburbs of Chicago. They built a company based on an idea of making exceptional natural dog food not only for their dogs but also for their community. Its popularity grew and they expanded their business to opening a boutique division named Best Boy Gourmet, with food that must be consumed no later than 3 days after its production. This was the beginning of some issues that as the company grew, these issues grew also. Major Issues. There is a lack of solid internal controls in Smackey Foods based on the trust that is being put into certain employees to complete their positions. Some indicators were present that would have indicated that the internal controls should have been appropriately applied. These indicators are waste issues, sales projections being off 11%, and accounts receivable. The first issue that is found with Smackey Foods, is the fact that there is a lot of waste and it is mentioned a couple times within the narrative. It is odd that even though demand seems to be high that the waste is also high. Since they rely on fresh ingredients they are putting themselves in a precarious position that would put them in a stance to fail in the winter months. If one ingredient is unattainable or late, it can spoil the rest of the materials, which is one indicator why waste is so high. They should have invested in equipment such as refrigeration storage, to keep the materials fresh. Then...
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...gain or loss on asset disposal. 4. Adjusting goodwill for impairment. Adjusting lower cost or market inventory on valuation The term “inventory” applied to all the goods/materials that are acquired with the intention to resale to make profits, which includes: * “Are held for sale in ordinary course of business. * Are in process of production for such sales, or * Are to be currently consumed in the production of goods or services to be available for sale” (Schroeder, Clark, & Cathey, 2011, p. 264). Inventory physical count can be determined by using periodic or perpetual inventory system. The valuation of inventory is of significant importance for multiple reasons. First ending inventory constitutes major part in current assets and have substantial impact on working capital of the organization. Second, inventory value has direct impact on the net profits of the organization. There are several methods available in US Generally Accepted Accounting Principle (GAAP) for valuation of inventories, such as FIFO, LIFO, Average inventory and Lower of cost or market. Lower of cost or market (LCM) valuation method based on the accounting constraint of conservatism, which means that best choice among accounting alternative is the method that would least likely to overstate assets and net income. LCM defined as “As used in the phrase lower of cost or market, the term market means current replacement cost (by purchase or reproduction, as the case may be) except that: ...
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