In One of the Case Studies in the Textbook, Ernie

question 16

Multiple Choice

In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personally. He eventually got a job as a controller for a friend who had just been named as the receiver for a financial services company. Within a short period of time Phillips began writing checks to himself that had nothing to do with payroll. What happened to Phillips?

• A) He quit his job and moved to another state.
• B) He pleaded guilty to fraud and grand theft and spent 24 months in prison.
• C) He paid the money back by mortgaging his home.
• D) He was charged criminally, and while out on bail, he fled with his family.

Grasp the calculation and significance of earnings per share (EPS).

Understand adjustments for prior period errors and changes in retained earnings.

Understand the components and presentation of stockholders' equity in financial statements.

Identify and explain the impact of changes in accounting estimates and errors on financial statements.

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Definitions:

Plasticity

The brain’s ability to change, especially during childhood, by reorganizing after damage or by building new pathways based on experience.

Experience

Refers to the knowledge or skill that one gains over time through involvement in or exposure to activities.

Frontal Lobes

This region of the brain, situated at the forefront of each cerebral hemisphere, is accountable for voluntary movements, the production of speech, and the oversight of advanced executive tasks.

Temporal Lobes

Regions of the brain located on either side of the head above the ears, involved in processing auditory information and encoding memory.