Maurice Tutor

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Teaching Since: May 2017
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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 20 Feb 2018 My Price 8.00

Amazon ’s current liabilities

How could an auditor detect fraud of this sort?

What can a business do to prevent this kind of fraudulent activity?

What should the new accountant do to protect himself?

Q67. Give the breakdown of Amazon ’s current liabilities at December 31, 2009. Give the January 2010 entry to record the payment of accrued expenses and other current liabilities that Amazon owed at December 31, 2009. (Please assume the entire balance of this item represents accrued expenses.)

Q68. At December 31, 2009, how much did Amazon report for unearned revenue that Amazon had collected in advance? Which account on the balance sheet reports this liability?

Q69. Frequent-flyer programs have grown into significant obligations for airlines. Why should a liability be recorded for those programs? Discuss how you might calculate the amount of this liability. Can you think of other industries that offer incentives that create a similar liability?

Q70. One of S outh w est Ai r lines ’ strategies for success is shortening stops at airport gates between flights. The company’s chairman has stated, “What [you] produce is lower fares for the customers because you generate more revenue from the same fixed cost in that air- plane.” Look up fixed cost in the Glindex of this book. What are some of the “fixed costs” of an airline? How can better utilization of assets improve a company’s profits?

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Feb 2018 07:02 PM My Price 8.00

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