BYP 1-6 COMMUNICATION ACTIVITY
To: Ashley Hirano
From: Student
2015. A number of items in this balance sheet are not properly reported.
They are:
1. The balance sheet should be dated as of a specific date, not for a period
2. Equipment should be shown as an asset and reported below Supplies
on the balance sheet.
3. Accounts receivable should be shown as an asset, not a liability, and
4. Accounts payable should be shown as a liability, not an asset. The note
5. Liabilities and stockholders’ equity should be shown on the balance
sheet. Common stock is not a liability.
6. Common stock and retained earnings are part of stockholders’ equity.
BYP 1-6 (Continued)
A correct balance sheet is as follows:
NEW YORK COMPANY
Balance Sheet
December 31, 2015
Assets
Cash ……………………………………………………………………… $ 9,000
Accounts receivable ……………………………………………….. 6,000
Liabilities and Stockholders’ Equity
Liabilities
Notes payable …………………………………………………. $10,500
Accounts payable ……………………………………………. 8,000
BYP 1-7 ETHICS CASE
(a) The students should identify all of the stakeholders in the case; that is,
all the parties that are affected, either beneficially or negatively, by the
Greg Thorpe, interviewee.
Both Baltimore firms.
Great Northern College.
(b) The students should identify the ethical issues, dilemmas, or other
Is collecting $592 as reimbursement for total costs of $296 ethical
behavior?
Did Greg deceive both firms or neither firm?
(c) Each student must answer the question for himself/herself. Would you
want to start your first job having deceived your employer before your
BYP 1-8 ALL ABOUT YOU
(1) This does not represent the hiding of assets, but rather a choice
as to the order of use of assets. This would seem to be ethical.
(2) This does not represent the hiding of assets, but rather is a change
(4) This is a difficult issue. By taking the leave, actual net income would
be reduced. The form asks the applicant to report actual net income.
the size of their bonuses.
(c) Sometimes companies want to report a lower income if they are nego-
tiating with employees. For example, professional sports teams fre-
(d) Unfortunately many times people who are otherwise very ethical will
make unethical decisions regarding financial reporting. They might be
driven to do this because of greed. Frequently it is because their
BYP 1-9 ALL ABOUT YOU
Similarly, in reporting your financial situation for financial aid there is
a lot of room for judgment. The question is, what kinds of actions are
both permissible and ethical, and what kinds of actions are illegal and
Now, consider an alternative situation. Suppose that you have
$10,000 in cash, and you have a sibling who is five years younger
When completing your FAFSA form, don’t ignore the following
warning on the front of the form: “If you get Federal student aid based
on incorrect information, you will have to pay it back; you may also
prison, or both.”
BYP 1-10 FASB CODIFICATION ACTIVITY
No solution necessary
BYP 1-11 CONSIDERING PEOPLE, PLANET, AND PROFIT
(a) The 5 aspirations relate to the company’s goals related to sustaining
(b) i. Support sustainable food and agriculture: Purchased 170 million
pounds of organic ingredients since the company’s inception.
iv. Conserve natural resources, protect wild places: Planted 40,000
trees in partnership with American Forests.
IFRS EXERCISES
IFRS1-1
Accounting Principles or GAAP.
IFRS1-2
Accounting standards have developed in different ways because the
planners.
IFRS1-3
A single set of high-quality accounting standards is needed because of
information technology, and international financial markets.
IFRS1-4
Currently the internal control standards applicable to Sarbanes-Oxley
control measures.
IFRS1-5 INTERNATIONAL FINANCIAL REPORTING PROBLEM
(a) Grant Thornton UK LLP
million.