Anton blair is the manager of a medium-size company. a few years ago, blair persuaded the owner to base a part of his compensation on the net income the company earns each year. each december he estimates year-end financial figures in anticipation of the bonus he will receive. if the bonus is not as high as he would like, he offers several recommendation to the accountant for year-end adjustments. one of his favorite recommentdations is for the controller to reduce the estimate of doubtful accounts.

1. what effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?

2. do you believe blair's recommendation to adjust the allowance for doubtful accounts is within his right as manager, or do you believe this action is an ethics violation? justify you response.

3. what type of internal controls might be useful for this company in overseeing the managers recommendations for accounting changes?

Select the correct answer a research organization conducts certain chemical tests on samples. they have data available on the standard results. some of the samples give results outside the boundary of the standard results. which data mining method follows a similar approach? o a. data cleansing ob. network intrusion o c. fraud detection od. customer classification o e. deviation detection

Select the correct answer. sarah works in a coffee house where she is responsible for keying in customer orders. a customer orders snacks and coffee, but later, cancels th snacks, saying she wants only coffee. at the end of the day, sarah finds that there is a mismatch in the snack items ordered. which term suggest data has been violated? a. security b. integrity c. adding d. reliability e. reporting

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?