\"Liabilities\" Please respond to the following: For this week\'s eActivity, res
ID: 2790966 • Letter: #
Question
"Liabilities" Please respond to the following:For this week's eActivity, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Website and focus on the types of bonds the company issues. Be prepared to discuss.
Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response. Imagine that you are advising an investor who is considering purchasing bonds from the selected company. Analyze the types of bonds the chosen company issues, and make a recommendation to the investor as to which type of bond would provide the most value. Justify your response. "Liabilities" Please respond to the following:
For this week's eActivity, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Website and focus on the types of bonds the company issues. Be prepared to discuss.
Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response. Imagine that you are advising an investor who is considering purchasing bonds from the selected company. Analyze the types of bonds the chosen company issues, and make a recommendation to the investor as to which type of bond would provide the most value. Justify your response. "Liabilities" Please respond to the following:
For this week's eActivity, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Website and focus on the types of bonds the company issues. Be prepared to discuss.
Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response. Imagine that you are advising an investor who is considering purchasing bonds from the selected company. Analyze the types of bonds the chosen company issues, and make a recommendation to the investor as to which type of bond would provide the most value. Justify your response.
Explanation / Answer
Answer 1)There are several ways that one could intentionally misstate liabilities for his or her personal financial gain. A few ways this can be done is by: overstating revenues, understating expenses, understating liabilities, overstating assets, or improper disclosures. One scenario in which this could occur would be a company recording fictitious revenues and accounts receivable. For example, a cleaning/repair company that helps to restore homes and buildings after natural disasters decides to lie about the revenue they receive to inflate stock price. One way to prevent this type of situation from occurring would be to make sure someone is in place to verify the sites that are being repaired to make sure there is an actual service being provided. The second suggestion I would make is to do random audits.
2) Our text tells us that bonds are a form of interest bearing note payable issued by corporations, universities, and governmental agencies. When a corporation issues bonds, it is borrowing money. The person who buys the bonds is investing in bonds.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.