Strayer University, WashingtonACC 557 ACC Analytics - Week 3 HomeWork.

Week 3 1. Which of the following actions could affect a company’s amount of normal accruals? (check all that apply) Changes in the estimated percentage of uncollectible accounts Growth in cash sales Growth in sales ...

Week 3 1. Which of the following actions could affect a company’s amount of normal accruals? (check all that apply) Changes in the estimated percentage of uncollectible accounts Growth in cash sales Growth in sales on account Purchases of new pieces of equipment Cash dividends 2. Below is selected data for Swedish Vallhund AB. Calculate discretionary accruals for Swedish Vallhund using this data. 0.460 -0.060 0.260 0.100 1000.160 3. Which of the following companies is the most likely suspect for managing earnings higher This Year? None of the companies Both Spaniel Craig Co and Pinscher Brosnan Ltd Pinscher Brosnan Ltd Sean Collie Inc Spaniel Craig Co 4. Which of the following actions could affect a company’s amount of discretionary expenditures? (check all that apply) Delay a planned employee training program to the next period Cancel all top executive travel plans for the rest of the period Increase sales growth during the current period Change amortization assumptions this period Increase the expected percentage of sales this period that will be uncollectible 5. Below is selected data for Siberian Husky ZAO. Calculate normal R&D for Siberian Husky using this data. 0.060 -0.050 -0.039 1.710 0.030 6. Which of the following companies is the most likely suspect for managing earnings higher This Year to meet or beat an earnings target? David Terrier Ltd Mutt Smith Corp Tom Boxer Inc Everyone except Tom Boxer Inc Chihuahua Eccleston Co 7. For which of the following ratios would an increase in the value of the ratio lead to a decrease in the Beneish M-score? (check all that apply) Leverage index (LVGI) Total accruals to total assets (TATA) Days sales receivable index (DSRI)) Gross margin index (GMI) SG&A index (SGAI) 8. Which of the following companies are potential manipulators according to the Beneish M-Score? (check all that apply) Smeargle Pty Growlithe Ltd Houndoom Co Arcanine Inc Lillipup Corp 9. Who first discovered Benford’s Law? Zahn Bozanic Ethan Rouen Frank Benford Dan Amiram Simon Newcomb 10. Below is data from five companies’ financial statements. Which of the following companies are potential manipulators according to Benford’s Law? (check all that apply) (Hint: get a calculator so you can do square roots!) Briard Childress Ltd Bulldog Grant Corp Dachshund Green Inc Lhasa Apso Frazier Co Mi-Ki Tice Cie Attempt 2 2. Below is selected data for Swedish Vallhund AB. Calculate normal accruals for Swedish Vallhund using this data. -0.160 0.100 0.260 -0.070 0.550 3. Which of the following companies is the most likely suspect for managing earnings lower This Year? None of the companies Pinscher Brosnan Ltd Both Sean Collie Inc and Pinscher Brosnan Ltd Sean Collie Inc Spaniel Craig C 4. Which of the following actions could affect a company’s amount of discretionary expenditures? (check all that apply) Delay a planned R&D program to the next period Change depreciation assumptions this period Increase sales growth during the current period Increase the expected percentage of sales this period that will have future warranty claims Spend more on advertising than budgeted in the current period 5. Below is selected data for Siberian Husky ZAO. Calculate discretionary R&D for Siberian Husky using this data. -0.050 0.007 -0.053 99.940 0.070 6. Which of the following companies is the most likely suspect for managing earnings lower This Year for “big bath” motives? David Terrier Ltd Chihuahua Eccleston Co Tom Boxer Inc Mutt Smith Corp Everyone except Mutt Smith Corp 7. For which of the following ratios would an increase in the value of the ratio lead to an increase in the Beneish M-score? (check all that apply) Asset quality index (AQI) Sales growth index (SGI) Total accruals to total assets (TATA) SG&A index (SGAI) Leverage index (LVGI) SGI+ TATA AQI + TATA