Accounting Theory and Analysis
Case Studies
Case 15-10:
Stock Splits and Stock Dividends
A corporation may use stock splits and stock dividends to change the number of shares of its stock outstanding.
Required:
a. What is meant by a stock split effected in the form of a dividend?
b. From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
c. How should a stock dividend that has been declared but not yet issued be classified in a statement of financial position? Why?
Case 17-8:
Code of Professional Conduct
Certified public accountants have imposed on themselves a rigorous code of professional conduct.
Required:
a. Discuss the reasons that the accounting profession adopted a code of professional conduct.
b. One rule of professional ethics adopted by CPAs is that a CPA cannot be an officer, director, stockholder, representative, or agent of any corporation engaged in the practice of public accounting, except for the professional corporation form expressly permitted by the AICPA. List the arguments supporting the rule that a CPA’s firm cannot be a corporation.
Respond to the required questions (about 200 words per case = 400 Total), double-spaced, APA format (source citations and reference insertions) essay.In each Case Study, you must use at least three (3) references, including the textbook (included below).
Text book reference:
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2017). Financial accounting theory and analysis: Text and cases (12th ed.). Hoboken, NJ: Wiley
(This Assignment Box maybe linked to Turnitin.)
Please use attached template(See cover letter attachment, and use as template)