Homework Help for Accounting

The Course is Introduction to Healthcare Insurance Coding, Billing, and Reimbursement

List at least six types of coverage organization from single-payer to universal coverage. Describe their main features. Contrast them from the standpoint of billing. Distinguish the public-financed types from the commercial-type coverage in terms of regulations.

For each of the following three (3) scenarios, state two (2) violation of the Rules of Professional Conduct:

a) Bill Williams, CPA, began a telephone campaign to grow his client base. He began calling companies listed in the telephone directly within twenty (20) kilometres advising them of his accounting services. After making several phone calls, Bill finally landed a new audit client, Big Bob Autos. In order to secure this new business, Bill entered into an agreement with Bob whereby Bill would receive a flat fee every time he referred one of his clients to Bob. Bill would also earn a 1% percent commission on any vehicle sale or lease that resulted from the referral. As their business relationship grew overtime, Bill asked Bob for a loan claiming he wanted to expand his accounting practice.

b) Paul Lee, CPA, was the CFO of ABC Incorporated. In his role as CFO, he became aware of a material error in the company’s inventory for the annual financial statements in the amount of approximately $1.5 million. Paul brought the matters to the attention of senior management, who casually indicated that year end was already completed and thus they did not want to harm investor confidence by reissuing the financial statements. Paul did not seek assistance or guidance from either the professional body or the securities commission.

c) David Collier, CPA, obtained his designation in 2000. Since that time, he has built up a significant tax practice. In late 2015, a new client approached David and asked him to perform an audit engagement. Believing this could lead to a substantial amount of tax work in the future, David agreed, even though he had not taken any accounting or assurance courses for many years. In performing the audit engagement, David obtained an engagement letter, put the financial statements together based on the client’s trial balance, and attached a review engagement report. The financial statements contained a material error.

Freeman has been a partner in a commercial constructin companyfor over 25 years and has finally decided to dispose of theirinterest in the partnership. Of the other two partners, Thierfelderand Pape, only Pape has expressed an interest in acquiringFreeman's interest. However, neither of the remaining partners wantFreeman to sell their interest to an outside party. The partnershave always allocated profits and losses based on theirproportionate average capital balances. Therefore, Thierfelder andPape are both interested in what impact a sale by Freeman wouldhave on their capital balance and in turn their interest in profitsand losses.

Assume that prior to a sale by Freeman, the capital balances are$80,000, $40,000, and $40,000 for Freeman, Thierfelder, and Pape,respectively, and the recorded net assets of the partnership have acurrent value of $200,000. Pape has sought out your advise and hasposed the following questions:ld

1. What would be Pape's capital balance if Freeman sold theirinterest for $125,000 to either Thierfelder or an outsideparty?

2. What would be Pape's capital balance if Freeman sold theirinterest to the partnership for $125,000 and the bonus method wasused to record the transaction?

3. What would be Pape's capital balance if Freeman sold theirinterest to the partnership for $125,000 and the goodwill method,which only recognizes goodwill traceable to Freeman, was used torecord the transaction?

4. What would be Pape's capital balance if Freeman sold theirinterest to the partnership for $125,000 and the goodwill method,which recognizes goodwill traceable to the entire partnership, wasused to record the transaction?

5. If one of the above goodwill methods were used, which onewould be preferable?

6. What constructive comments would you have regarding themethod by which profits and losses are allocated by thepartnership?

Provide a response to each of Pape's questions and assume that,based on average capital balances, profits and losses are allocated50%, 25%, and 25% to Freeman, Thierfelder, and Pape,respectively.

Sampson Lighting is faced with a decline in demand due to thedownsizing of its major customer. Lindsey Rhodes, the company'scontroller, is considering a number of changes which may affect thecompany's profitability. Explain how Sampson Lighting's break-evenpoint would change if:

The selling price per unit decrease.

Fixed costs increased throughout the entire range ofactivity.

Sales people were now compensated on 75% commission and 25%salary and opposed to 75% salary and 25% commission as they wereprior.

The Greek shipping company Ionia Management managed a 600-foot oil tanker that delivered oil to ports along the eastern seaboard of the United States. During these deliveries, Ionia's engine room crew, at the direction of their ship supervisors, regularly dumped oily waste into the ocean. To conceal the wrongdoing, the ship's crew falsified entries in its oil record book and lied to Coast Guard officials regarding the waste. The top executives and officials at Ionia did not know that employees were violating company policy and falsifying ship records to cover up their wrongdoing. A jury convicted Ionia of conspiracy, pollution, and obstruction of justice, and the company was fined $4.9 million in addition to probation and assessments. The corporation appealed. Should the corporation be found criminally liable for the illegal actions of its lower-level employees under the doctrine of respondeat superior? Why or why not? [United States v. Ionia Mgmt, 555 F.3d 303 (2009).]

7) The nominal yield on 10 year treasury bonds is currently ~4.9%.If an investor wishes to earn at least a 3.5% real before tax rateof return on her capital, what expectations about future inflationlevels must she hold in order to willingly hold 10 year treasurybonds at existing prices?

ZHOU CORPORATION

The ZHOU CORPORATION manufactures two types of chairs, Alpha and Beta. Alpha has a complex design. Beta is simpler to manufacture. Last year ZHOU had the following revenues and costs:

ZHOU currently uses direct labor costs to allocate all indirect costs, but management is considering implementing an ABC system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining costs:

REQUIRED:

Develop a complete income statement using ABC and the given cost drivers.

Write a report indicating how management could use activity based management (ABM) to reduce costs.

Restate the income statement for ZHOU using direct labor costs as the only indirect cost allocation base.

Write a report to management stating why product line profits differ using ABC costing compared to the traditional approach. Indicate whether ABC provides more helpful information and why. Indicate in your report how the use of labor based overhead allocation could result in ZHOU management making suboptimal decisions.

Kisler Incorporated makes a single product—a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

26. Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment will be $1,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
a. Debit Depreciation Expense, $1,800; Credit Accumulated Depreciation, $1,800.
b. Debit Depreciation Expense, $150; Credit Accumulated Depreciation, $150.
c. Debit Depreciation Expense, $5,400; Credit Accumulated Depreciation, $5,400.
d. Debit Equipment, $7,200; Credit Accumulated Depreciation, $7,200.

27. At December 31, 2015, before any year-end adjustments, Murmur Company's Insurance Expense account had a balance of $2,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,800 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be
a. $2,450.
b. $3,450.
c. $2,800.
d. $5,250.

28. Fugazi City College sold season tickets for the 2015 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30
a. is not required. No adjusting entries will be made until the end of the season in November.
b. will include a debit to Cash and a credit to Ticket Revenue for $60,000.
c. will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000.
d. will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000.

Right/Responsibilities, result, reputation, relationship lens.Each of the ethical lenses has both vices (deliberate actionsmaking an unethical choice) and risks (unexpected consequences).These vices and risks occur when other viewpoints are notconsidered in our decisions. Can you describe examples of people inthe news who wound up in trouble because they weren't payingattention to their ethical vices or risks?

Discuss why it is important for the IT governance committee tobeing comprised of top level managers. What problems are likely toarise with regard to IT systems if the top level managers are notinvolved in IT governance committees?

ABC systems use the concept of a ________ to identify the costdrivers that best demonstrate the cause-and-effect relationshipbetween each activity and the costs in the related cost pool.
a)cost hierarchy
b) variance analysis
c) cost allocation
d) customer-cost analysis