Question 1
The process to record revenues properly has been defined by specific guidelines and principles of which you will learn in this class. There are business types and individuals that will test the limits of hiding monies from the IRS, local or state authorities.
Please research your states auditor's office, local taxing authorities or the IRS website to present a case that depicts fraudulent activities as it relates to revenues. Please state your reasoning as to why you choose the case; how you would have gone about investigating the case and controls you would put in place to prevent any future frauds of this type.
Question 2
There are various virtues and detriments that are debatable about the steady rise of business combinations worldwide. Some of these issues deal with value chain control, diversification, risk dilution, monopolism, tax loss to the US, etc.
Conduct Internet research to locate an issue relating to business combinations. Post your findings. Discuss whether you feel this is a virtue or detriment. Explain.
Question 3
There are many types of business organizations. They may be service, merchandising, or a combination of these. How would the company's line of business affect the design of its accounting information system? Give an example of at least two different types of companies and identify the basic activities and transaction cycles in each. What differences and similarities do you see between the companies?