Expensify This

When you live the life of a baller like 2 Chainz, you've got better things to do than collect receipts and fill out spreadsheets. Cue Expensify. Just snap a photo of your receipts and done. Then get back to chillin in your ice-sculpted, seafood-powered Italian sports car.

1.      In your own words (not copied directly from the book or another resource), describe the  following terms

a.      asset

b.      expense

c.      internal controls (over financial reporting)

d.      asset misappropriation

e.      (financial) misstatement

2.      Make a list of the all of the “assets” discussed in the lyrics.

3.      The management team (of companies) needs to ensure that their financial statements are correctly stated. Are any of the assets subject to a higher risk of misappropriation or financial misstatement? If so, please explain.

4.      Do any of the assets pose greater difficulty for the management team or an auditor to verify? If so, please explain.

5.      When evaluating transactions, it is important for the various financial statement users to understand their “business case.” In other words, it is important to understand what the company took a particular action. Do any of the purchases seem especially impractical (given the context)? If so, please explain.

6.      Are there any examples of purchases that would be immediately expensed (instead of being recorded as an asset)? If so, please explain.

7.      Are there any examples of internal controls discussed in the lyrics? If so, please explain.

8.      What was the genesis of this song and video?

9.      What does it tell us about the use of accounting information by companies?