Company A, a U. ery are accepted of its top U.S. m Country Z during a. Paid the equ: new manufac b. Paid an avera area around of times they c. Company N, tract. Compa who will mal с. Company A d. The electric storms, there charge of coO of the first res Under the Foreigr would be conside considered bad ma

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
15.7A
Compute the exchange rate for the ven, stated in U.S. dollars, on November 27.
е.
exchange rate fluctuations on (1) its foreign payables and (2) its foreign receivables.
Company A, a U.S. company, has a subsidiary located in Country Z, where various forms of brib-
ery are accepted and expected. To oversee the operations of the subsidiary, Company A sent one
of fis top U.S. managers to Country Z. Manager M engaged in the following activities while in
Country Z during recent months of operation.
a.
Paid the equivalent of $200 to a government inspector to reschedule the inspection date of a
new manufacturing facility from April 15 to February 15.
b.
Paid an average of $50 each to four local police officers who are in charge of patrolling the
area around the new manufacturing facility. The officers have agreed to increase the number
of times they check the area.
c. Company N, a domestic company, is in competition with Company A for a government con-
tract. Company A has learned that Company N has given approximately $5,000 to the official
who will make the final contract decision. To remain in the running, Manager M authorized
Company A to pay an equal amount to the official.
d. The electric utilities are government owned and operated. Due to the frequency of severe
storms, there are often power outages due to downed lines. Manager M has paid the official in
charge of coordinating repair crews $200 to ensure that the manufacturing plant's power is one
of the first restored.
Under the Foreign Corrupt Practices Act, as amended, which of the above activities do
would be considered illegal? From an operations standpoint, which of these activities would be
considered bad management practice? Are there solutions other than briberv?
you
think
of Home Depot, Inc.., in Appendix A at the end
Transcribed Image Text:Compute the exchange rate for the ven, stated in U.S. dollars, on November 27. е. exchange rate fluctuations on (1) its foreign payables and (2) its foreign receivables. Company A, a U.S. company, has a subsidiary located in Country Z, where various forms of brib- ery are accepted and expected. To oversee the operations of the subsidiary, Company A sent one of fis top U.S. managers to Country Z. Manager M engaged in the following activities while in Country Z during recent months of operation. a. Paid the equivalent of $200 to a government inspector to reschedule the inspection date of a new manufacturing facility from April 15 to February 15. b. Paid an average of $50 each to four local police officers who are in charge of patrolling the area around the new manufacturing facility. The officers have agreed to increase the number of times they check the area. c. Company N, a domestic company, is in competition with Company A for a government con- tract. Company A has learned that Company N has given approximately $5,000 to the official who will make the final contract decision. To remain in the running, Manager M authorized Company A to pay an equal amount to the official. d. The electric utilities are government owned and operated. Due to the frequency of severe storms, there are often power outages due to downed lines. Manager M has paid the official in charge of coordinating repair crews $200 to ensure that the manufacturing plant's power is one of the first restored. Under the Foreign Corrupt Practices Act, as amended, which of the above activities do would be considered illegal? From an operations standpoint, which of these activities would be considered bad management practice? Are there solutions other than briberv? you think of Home Depot, Inc.., in Appendix A at the end
Expert Solution
Step 1

FCPA stands for Foreign Corrupt Practices Act, which is enacted in the year 1977, it usually prohibits the bribes payment to the foreign officials in order to assist in retaining their business.

 

 

 

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Capital Gains and Losses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education