prepare a correct income statement for august 2014 607889

Aug 29, 2021 | Uncategorized

Ortiz Company is a manufacturer of toys. Its controller resigned in August 2014. An inexperienced assistant accountant has prepared the following income statement for the month of August 2014.

Prior to August 2014, the company had been profitable every month. The company”s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of August were:

1. Only 60% of the utilities expense and 70% of the insurance expense apply to factory operations; the remaining amounts should be charged to selling and administrative activities.

Instructions

(a)Prepare a cost of goods manufactured schedule for August 2014.

(b)Prepare a correct income statement for August 2014.

based on the information given construct an organizational chart of waterways corpor 607890

Aug 29, 2021 | Uncategorized

Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial projects,and private lawns. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas.

The mission of Waterways is to manufacture quality parts that can be used for effective irrigation projects that also conserve water. By that effort, the company hopes to satisfy its customers, provide rapid and responsible service, and serve the community and the employees who represent them in each community.

The company has been growing rapidly, so management is considering new ideas to help the company continue its growth and maintain the high quality of its products.

Waterways was founded by Will Winkman, who is the company president and chief executive officer (CEO). Working with him from the company”s inception is Will”s brother, Ben, whose sprinkler designs and ideas about the installation of proper systems have been a major basis of the company”s success. Ben is the vice president who oversees all aspects of design and production in the company.

The factory itself is managed by Todd Senter who hires his line managers to supervise the factory employees. The factory makes all of the parts for the irrigation systems. The purchasing department is managed by Hector Hines.

The installation and training division is overseen by vice president Henry Writer, who supervises the managers of the six local installation operations. Each of these local managers hires his or her own local service people. These service employees are trained by the home office under Henry Writer”s direction because of the uniqueness of the company”s products.

There is a small human resources department under the direction of Sally Fenton, a vice president who handles the employee paperwork, though hiring is actually performed by the separate departments. Sam Totter is the vice president who heads the sales and marketing area; he oversees 10 well-trained salespeople.

The accounting and finance division of the company is run by Abe Headman, who is the chief financial officer (CFO) and a company vice president. He is a member of the Institute of Management Accountants and holds a certificate in management accounting. He has a small staff of certified public accountants, including a controller and a treasurer, and a staff of accounting input operators who maintain the financial records.

A partial list of Waterways’ accounts and their balances for the month of November follows.

Instructions

(a) Based on the information given, construct an organizational chart of Waterways Corporation.

(b) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, an income statement, and a partial balance sheet for Waterways Corporation for the month of November.

when diane buswell controller for current designs reviewed the accounting records fo 607891

Aug 29, 2021 | Uncategorized

Mike Cichanowski foundedWenonah Canoeand later purchasedCurrent Designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes from the canoe company”s headquarters in Winona, Minnesota.

Current Designs makes kayaks using two different processes. The rotational molding process uses high temperature to melt polyethylene powder in a closed rotating metal mold to produce a complete kayak hull and deck in a single piece. These kayaks are less labor-intensive and less expensive for the company to produce and sell.

Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as the composite process). Layers of fiberglass or Kevlar^®are carefully placed by hand in a mold and are bonded with resin. Then, a high-pressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of skilled labor as each boat is individually finished. The exquisite finish of the vacuum-bagged composite kayaks gave rise to Current Designs’ tag line, “A work of art, made for life.”

Current Designs has the following managers:

Mike Cichanowski, CEO

Diane Buswell, Controller

Deb Welch, Purchasing Manager

Bill Johnson, Sales Manager

Dave Thill, Kayak Plant Manager

Rick Thrune, Production Manager for Composite Kayaks

Instructions

(a)What are the primary information needs of each manager?

(b)Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued.

(c)When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the following items. Classify each item as a product cost or a period cost. If an item is a product cost, note if it is a direct materials, direct labor, or manufacturing overhead item.

with the class divided into groups determine the amount of cost in the raw materials 607892

Aug 29, 2021 | Uncategorized

Wendall Company specializes in producing fashion outfits. On July 31, 2014, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were completely destroyed as was the general office nearby. Next morning, through a careful search of the disaster site, however, Bill Francis, the company”s controller, and Elizabeth Walton, the cost accountant, were able to recover a small part of manufacturing cost data for the current month.

“What a horrible experience,” sighed Bill “And the worst part is that we may not have enough records to use in filing an insurance claim.”

“It was terrible,” replied Elizabeth. “However, I managed to recover some of the manufacturing cost data that I was working on yesterday afternoon. The data indicate that our direct labor cost in July totaled $250,000 and that we had purchased $365,000 of raw materials. Also, I recall that the amount of raw materials used for July was $350,000. But I”m not sure this information will help. The rest of our records are blown away.”

“Well, not exactly,” said Bill. “I was working on the year-to-date income statement when the tornado warning was announced. My recollection is that our sales in July were $1,240,000 and our gross profit ratio has been 40% of sales. Also, I can remember that our cost of goods available for sale was $770,000 for July.”

“Maybe we can work something out from this information!” exclaimed Elizabeth. “My experience tells me that our manufacturing overhead is usually 60% of direct labor.”

“Hey, look what I just found,” cried Elizabeth. “It”s a copy of this June”s balance sheet, and it shows that our inventories as of June 30 are Finished goods $38,000, Work in process $25,000, and Raw materials $19,000.”

“Super,” yelled Bill. “Let”s go work something out.”

In order to file an insurance claim, Wendall Company must determine the amount of its inventories as of July 31, 2014, the date of the tornado touchdown.

Instructions

With the class divided into groups, determine the amount of cost in the Raw Materials, Work in Process, and Finished Goods inventory accounts as of the date of the tornado touchdown.

which if any financial accounting report s is each likely to use 607893

Aug 29, 2021 | Uncategorized

Tenrack is a fairly large manufacturing company located in the southern United States. The company manufactures tennis rackets, tennis balls, tennis clothing, and tennis shoes, all bearing the company”s distinctive logo, a large green question mark on a white flocked tennis ball. The company”s sales have been increasing over the past 10 years.

The tennis racket division has recently implemented several advanced manufacturing techniques. Robot arms hold the tennis rackets in place while glue dries, and machine vision systems check for defects. The engineering and design team uses computerized drafting and testing of new products. The following managers work in the tennis racket division:

Jason Dennis, Sales Manager (supervises all sales representatives)

Peggy Groneman, Technical Specialist (supervises computer programmers)

Dave Marley, Cost Accounting Manager (supervises cost accountants)

Kevin Carson, Production Supervisor (supervises all manufacturing employees)

Sally Renner, Engineer (supervises all new-product design teams)

Instructions

(a)What are the primary information needs of each manager?

(b)Which, if any, financial accounting report(s) is each likely to use?

(c)Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued.

prepare a letter to the president of the company shelly phillips describing the chan 607896

Aug 29, 2021 | Uncategorized

Prepare a letter to the president of the company, Shelly Phillips, describing the changes you made. Explain clearly why net income is different after the changes. Keep the following points in mind as you compose your letter.

1. This is a letter to the president of a company, who is your friend. The style should be generally formal, but you may relax some requirements. For example, you may call the president by her first name.
2. Executives are very busy. Your letter should tell the president your main results first (for example, the amount of net income).
3. You should include brief explanations so that the president can understand the changes you made in the calculations.

what are the ethical issues involved in this situation 607897

Aug 29, 2021 | Uncategorized

Steve Morgan, controller for Newton Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him—advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful.

There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production, just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. Morgan believed that this cost should be reported as an expense of the current period, so as not to overstate net income. Others argued that it should be reported as prepaid advertising and reported as a current asset.

The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community.

Instructions

(a)Who are the stakeholders in this situation?

(b)What are the ethical issues involved in this situation?

(c)What would you do if you were Steve Morgan?

write a response indicating your position regarding this situation provide support f 607899

Aug 29, 2021 | Uncategorized

As noted in this chapter, because of global competition, companies have become increasingly focused on reducing costs. To reduce costs and remain competitive, many companies are turning to outsourcing. Outsourcing means hiring an outside supplier to provide elements of a product or service rather than producing them internally.

Suppose you are the managing partner in a CPA firm with 30 full-time staff. Larger firms in your community have begun to outsource basic tax-return preparation work to India. Should you outsource your basic tax-return work to India as well? You estimate that you would have to lay off six staff members if you outsource the work. The basic arguments for and against are as follows.

YES:The wages paid to Indian accountants are very low relative to U.S. wages. You will not be able to compete unless you outsource.

NO:Tax-return data is highly sensitive. Many customers will be upset to learn that their data is being emailed around the world.

Instructions

Write a response indicating your position regarding this situation. Provide support for your view.

in accumulating manufacturing costs debit at least one of three accounts raw materia 607901

Aug 29, 2021 | Uncategorized

During the current month, Ringling Company incurs the following manufacturing costs:

(a)Raw material purchases of $4,200 on account.

(b)Incurs factory labor of $18,000. Of that amount, $15,000 relates to wages payable and $3,000 relates to payroll taxes payable.

(c)Factory utilities of $2,200 are payable, prepaid factory insurance of $1,800 has expired, and depreciation on the factory building is $3,500.

Prepare journal entries for each type of manufacturing cost.

In accumulating manufacturing costs, debit at least one of three accounts: Raw Materials Inventory, Factory Labor, and Manufacturing Overhead.

Manufacturing overhead costs may be recognized daily. Or manufacturing overhead may be recorded periodically through a summary entry.

calculate the amount of overhead applied by multiplying the predetermined overhead r 607904

Aug 29, 2021 | Uncategorized

For Karr Company, the predetermined overhead rate is 140% of direct labor cost. During the month, Karr incurred $90,000 of factory labor costs, of which $80,000 is direct labor and $10,000 is indirect labor. Actual overhead incurred was $119,000.

Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or over applied manufacturing overhead.

Calculate the amount of overhead applied by multiplying the predetermined overhead rate by actual activity.

If actual manufacturing overhead is greater than applied, manufacturing overhead is under applied.

If actual manufacturing overhead is less than applied, manufacturing overhead is over applied.

what was the amount of under or overapplied manufacturing overhead 607905

Aug 29, 2021 | Uncategorized

Cardella Company applies overhead on the basis of direct labor costs. The company estimates annual overhead costs will be $760,000, and annual direct labor costs will be $950,000. During February, Cardella works on two jobs: A16 and B17. Summary data concerning these jobs are as follows.

Manufacturing Costs Incurred

Purchased $54,000 of raw materials on account.

Factory labor $76,000, plus $4,000 employer payroll taxes.

Manufacturing overhead exclusive of indirect materials and indirect labor $59,800.

Assignment of Costs

The company completed Job A16 and sold it on account for $150,000. Job B17 was only partially completed.

Instructions

(a)Compute the predetermined overhead rate.

(b)Journalize the February transactions in the sequence followed in the chapter.

(c)What was the amount of under- or overapplied manufacturing overhead?

ikerd company is a manufacturer of personal computers various costs and expenses ass 607866

Aug 29, 2021 | Uncategorized

Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows.

1. Property taxes on the factory building.
2. Production superintendents’ salaries.
3. Memory boards and chips used in assembling computers.
4. Depreciation on the factory equipment.
5. Salaries for assembly-line quality control inspectors.
6. Sales commissions paid to sell personal computers.
7. Electrical components used in assembling computers.
8. Wages of workers assembling personal computers.
9. Soldering materials used on factory assembly lines.
10. Salaries for the night security guards for the factory building.

The company intends to classify these costs and expenses into the following categories:

(a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.

Instructions

List the items (1) through (10). For each item, indicate the cost category to which it belongs.

determine the total amount of a delivery service product costs and b period costs 607868

Aug 29, 2021 | Uncategorized

Kwik Delivery Service reports the following costs and expenses in June 2014.

Instructions

Determine the total amount of (a) delivery service (product) costs and (b) period costs.

compute cost of goods manufactured compute cost of goods sold 607869

Aug 29, 2021 | Uncategorized

Lopez Corporation incurred the following costs while manufacturing its product.

Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.

Instructions

(a)Compute cost of goods manufactured.

(b)Compute cost of goods sold.

complete the cost of goods manufactured schedule for molina company 607870

Aug 29, 2021 | Uncategorized

An incomplete cost of goods manufactured schedule is presented below.

Instructions

Complete the cost of goods manufactured schedule for Molina Company.

indicate the missing amount for each letter a through i 607871

Aug 29, 2021 | Uncategorized

Manufacturing cost data for Copa Company are presented below.

Instructions

Indicate the missing amount for each letter (a) through (i).

prepare a condensed cost of goods manufactured schedule for situation 1 for the year 607872

Aug 29, 2021 | Uncategorized

Incomplete manufacturing cost data for Colaw Company for 2014 are presented as follows for four different situations.

Instructions

(a)Indicate the missing amount for each letter.

(b)Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2014.

prepare an income statement through gross profit for june 2014 assuming sales revenu 607873

Aug 29, 2021 | Uncategorized

Cepeda Corporation has the following cost records for June 2014.

Instructions

(a)Prepare a cost of goods manufactured schedule for June 2014.

(b)Prepare an income statement through gross profit for June 2014 assuming sales revenue is $92,100.

for those costs not included in a explain how they would be classified and reported 607874

Aug 29, 2021 | Uncategorized

Joyce Tombert, the bookkeeper for Marks Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Joyce wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no work in process inventory to consider.

Listed below are the costs her firm incurred for the month ended August 31, 2014.

Instructions

(a)Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.

(b)For those costs not included in (a), explain how they would be classified and reported in the financial statements.

how would the income statement and balance sheet of a merchandising company be diffe 607875

Aug 29, 2021 | Uncategorized

The following information is available for Aikman Company.

Instructions

(a)Compute cost of goods manufactured.

(b)Prepare an income statement through gross profit.

(c)Show the presentation of the ending inventories on the December 31, 2014, balance sheet.

(d)How would the income statement and balance sheet of a merchandising company be different from Aikman”s financial statements?

list the items 1 ndash 16 for each item indicate by using the appropriate letter or 607876

Aug 29, 2021 | Uncategorized

Chambers Company produces blankets. From its accounting records, it prepares the following schedule and financial statements on a yearly basis.

(a)Cost of goods manufactured schedule.

(b)Income statement.

(c)Balance sheet.

The following items are found in its ledger and accompanying data.

1.Direct labor

2.Raw materials inventory, 1/1

3.Work in process inventory, 12/31

4.Finished goods inventory, 1/1

5.Indirect labor

6.Depreciation on factory machinery

7.Work in process, 1/1

8.Finished goods inventory, 12/31

9.Factory maintenance salaries

1. Cost of goods manufactured
2. Depreciation on delivery equipment
3. Cost of goods available for sale
4. Direct materials used
5. Heat and electricity for factory
6. Repairs to roof of factory building
7. Cost of raw materials purchases

Instructions

List the items (1)–(16). For each item, indicate by using the appropriate letter or letters, the schedule and/or financial statement(s) in which the item will appear.

show the presentation of the ending inventories on the june 30 2014 balance sheet 607877

Aug 29, 2021 | Uncategorized

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2014.

Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific overhead costs were: indirect labor $5,500, factory insurance $4,000, machinery depreciation $4,000, machinery repairs $1,800, factory utilities $3,100, miscellaneous factory costs $1,500. Assume that all raw materials used were direct materials.

Instructions

(a)Prepare the cost of goods manufactured schedule for the month ended June 30, 2014.

(b)Show the presentation of the ending inventories on the June 30, 2014, balance sheet.

determine the cost of head lamps that would appear in each of the following accounts 607878

Aug 29, 2021 | Uncategorized

Buhler Motor Company manufactures automobiles. During September 2014, the company purchased 5,000 head lamps at a cost of $10 per lamp. Buhler withdrew 4,650 lamps from the warehouse during the month. Fifty of these lamps were used to replace the head lamps in autos used by traveling sales staff. The remaining 4,600 lamps were put in autos manufactured during the month.

Of the autos put into production during September 2014, 90% were completed and transferred to the company”s storage lot. Of the cars completed during the month, 70% were sold by September 30.

Instructions

(a)Determine the cost of head lamps that would appear in each of the following accounts at September 30, 2014: Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses.

(b)Write a short memo to the chief accountant, indicating whether and where each of the accounts in (a) would appear on the income statement or on the balance sheet at September 30, 2014.

match each of the terms with the statement below that best describes the term 607879

Aug 29, 2021 | Uncategorized

The following is a list of terms related to managerial accounting practices.

1. Activity-based costing.
2. Just-in-time inventory.
3. Balanced scorecard.
4. Value chain.

Instructions

Match each of the terms with the statement below that best describes the term.

(a) A performance-measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion.

(b) The group of activities associated with providing a product or performing a service.

(c) An approach used to reduce the cost associated with handling and holding inventory by reducing the amount of inventory on hand.

(d) A method used to allocate overhead to products based on each product”s use of the activities that cause the incurrence of the overhead cost.

enter each cost item on your answer sheet placing the dollar amount under the approp 607880

Aug 29, 2021 | Uncategorized

Lott Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Lott”s monthly manufacturing cost and other expense data are as follows.

Instructions

(a)Prepare an answer sheet with the following column headings.

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.

(b)Compute the cost to produce one helmet.

compute the cost to produce one audio system 607881

Aug 29, 2021 | Uncategorized

Bell Company, a manufacturer of audio systems, started its production in October 2014. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory.

Raw materials cost for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000.

Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year. Property taxes on the factory building will be $9,000 per year.

Instructions

(a)Prepare an answer sheet with the following column headings.

Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.

(b)Compute the cost to produce one audio system.

prepare a condensed cost of goods manufactured schedule for case 1 607882

Aug 29, 2021 | Uncategorized

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

Instructions

(a)Indicate the missing amount for each letter.

(b)Prepare a condensed cost of goods manufactured schedule for Case 1.

(c)Prepare an income statement and the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600, and Prepaid Expenses $400.

prepare a schedule of cost of goods manufactured for october 2014 607884

Aug 29, 2021 | Uncategorized

Phillips Company is a manufacturer of computers. Its controller resigned in October 2014. An inexperienced assistant accountant has prepared the following income statement for the month of October 2014.

Prior to October 2014, the company had been profitable every month. The company”s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. Afterexamining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

1. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

Instructions

(a)Prepare a schedule of cost of goods manufactured for October 2014.

(b)Prepare a correct income statement for October 2014.

enter each cost item on your answer sheet placing the dollar amount under the approp 607885

Aug 29, 2021 | Uncategorized

Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Agler”s monthly manufacturing cost and other expense data are shown below.

Instructions

(a)Prepare an answer sheet with the following column headings.

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.

(b)Compute the cost to produce one motorcycle helmet.

compute the cost to produce one racket 607886

Aug 29, 2021 | Uncategorized

Elliott Company, a manufacturer of tennis rackets, started production in November 2013. For the preceding 5 years, Elliott had been a retailer of sports equipment. After a thorough survey of tennis racket markets, Elliott decided to turn its retail store into a tennis racket factory.

Raw materials cost for a tennis racket will total $23 per racket. Workers on the production lines are paid on average $15 per hour. A racket usually takes 2 hours to complete. In addition, the rent on the equipment used to produce rackets amounts to $1,300 per month. Indirect materials cost $3 per racket. A supervisor was hired to oversee production; her monthly salary is $3,500.

Janitorial costs are $1,400 monthly. Advertising costs for the rackets will be $8,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $9,600 per year.

Instructions

(a)Prepare an answer sheet with the following column headings.

Assuming that Elliott manufactures, on average, 2,500 tennis rackets per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.

(b)Compute the cost to produce one racket.

prepare an income statement and the current assets section of the balance sheet for 607887

Aug 29, 2021 | Uncategorized

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

Instructions

(a)Indicate the missing amount for each letter.

(b)Prepare a condensed cost of goods manufactured schedule for Case A.

(c)Prepare an income statement and the current assets section of the balance sheet for Case A. Assume that in Case A the other items in the current assets section are as follows: Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.

analyze which users require which different types of information 607817

Aug 29, 2021 | Uncategorized

Indicate whether the following statements are true or false.

1. Managerial accountants have a single role within an organization, collecting and reporting costs to management.
2. Financial accounting reports are general-purpose and intended for external users.
3. Managerial accounting reports are special-purpose and issued as frequently as needed.
4. Managers’ activities and responsibilities can be classified into three broad functions: cost accounting, budgeting, and internal control.
5. As a result of the Sarbanes-Oxley Act, managerial accounting reports must now comply with generally accepted accounting principles (GAAP).
6. Top managers must certify that a company maintains an adequate system of internal controls.

Understand that managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users.

Understand that financial accounting provides information for external users.

Analyze which users require which different types of information.

classify as manufacturing overhead any costs that are indirectly associated with the 607819

Aug 29, 2021 | Uncategorized

A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, lubricants, spokes, salary of factory manager, handlebars, and salaries of factory maintenance employees. Classify each cost as direct materials, direct labor, or manufacturing overhead.

Classify as direct materials any raw materials that can be physically and directly associated with the finished product.

Classify as direct labor the work of factory employees that can be physically and directly associated with the finished product.

Classify as manufacturing overhead any costs that are indirectly associated with the finished product.

prepare the cost of goods manufactured schedule for the month of march 607820

Aug 29, 2021 | Uncategorized

The following information is available for Keystone Company.

Prepare the cost of goods manufactured schedule for the month of March.

Start with beginning work in process as the first item in the cost of goods manufactured schedule.

Sum direct materials used, direct labor, and manufacturing overhead to determine total manufacturing costs.

Sum beginning work in process and total manufacturing costs to determine total cost of work in process.

Cost of goods manufactured is the total cost of work in process less ending work in process.

develop a forward looking view in order to advise and provide information to various 607822

Aug 29, 2021 | Uncategorized

Match the descriptions that follow with the corresponding terms.

Descriptions:

1. All activities associated with providing a product or performing a service.

2. A method of allocating overhead based on each product”s use of activities in making the product.

3. Systems implemented to reduce defects in finished products with the goal of achieving zero defects.

4. A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company”s operations in an integrated fashion.

5. Inventory system in which goods are manufactured or purchased just as they are needed for use.

Terms:

a. Activity-based costing

b. Balanced scorecard

c. Just-in-time (JIT) inventory

d. Total quality management (TQM)

e. Value chain

Develop a forward-looking view, in order to advise and provide information to various members of the organization.

Understand current business trends and issues.

compute total manufacturing costs for the month 607823

Aug 29, 2021 | Uncategorized

Giant Bike Co. Ltd.produces many different models of bicycles. Assume that the market has responded enthusiastically to a new model, the Jaguar. As a result, the company has established a separate manufacturing facility to produce these bicycles. The company produces 1,000 bicycles per month. Giant”s monthly manufacturing costs and other data are as follows.

Instructions

Compute total manufacturing costs for the month.

prepare the current assets section of the balance sheet for superior company as of d 607824

Aug 29, 2021 | Uncategorized

Superior Company has the following cost and expense data for the year ending December 31, 2014.

Instructions

(a)Prepare a cost of goods manufactured schedule for Superior Company for 2014.

(b)Prepare an income statement for Superior Company for 2014.

(c)Assume that Superior Company”s accounting records show the balances of the following current asset accounts: Cash $17,000, Accounts Receivable (net) $120,000, Prepaid Expenses $13,000, and Debt Investments (short-term) $26,000. Prepare the current assets section of the balance sheet for Superior Company as of December 31, 2014.

direct materials are a 607828

Aug 29, 2021 | Uncategorized

Direct materials are a:

identify which of the following statements best describes each of the above function 607849

Aug 29, 2021 | Uncategorized

Listed below are the three functions of the management of an organization.

1. Planning

2. Directing

3. Controlling

Identify which of the following statements best describes each of the above functions.

(a)requires management to look ahead and to establish objectives. A key objective of management is to add value to the business.
(b)involves coordinating the diverse activities and human resources of a company to produce a smooth-running operation. This function relates to the implementation of planned objectives.
(c)is the process of keeping the activities on track. Management must determine whether goals are being met and what changes are necessary when there are deviations.

presented below are dieker company s monthly manufacturing cost data related to its 607853

Aug 29, 2021 | Uncategorized

Presented below are Dieker Company”s monthly manufacturing cost data related to its personal computer products.

Enter each cost item in the following table, placing an “X” under the appropriate headings.

in alphabetical order below are current asset items for ruiz company s balance sheet 607855

Aug 29, 2021 | Uncategorized

In alphabetical order below are current asset items for Ruiz Company”s balance sheet at December 31, 2014. Prepare the current assets section (including a complete heading).

presented below are incomplete manufacturing cost data determine the missing amounts 607856

Aug 29, 2021 | Uncategorized

Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations.

use the data ndash 10 below determine the missing amounts 607857

Aug 29, 2021 | Uncategorized

Use the data –10 below. Determine the missing amounts.

indicate whether the following statements are true or false 607858

Aug 29, 2021 | Uncategorized

Indicate whether the following statements are true or false.

1. Managerial accountants explain and report manufacturing and nonmanufacturing costs, determine cost behaviors, and perform cost-volume-profit analysis, but are not involved in the budget process.
2. Financial accounting reports pertain to subunits of the business and are very detailed.
3. Managerial accounting reports must follow GAAP and are audited by CPAs.
4. Managers’ activities and responsibilities can be classified into three broad functions: planning, directing, and controlling.
5. As a result of the Sarbanes-Oxley Act (SOX), top managers must certify that the company maintains an adequate system of internal control.
6. Management accountants follow a code of ethics developed by the Institute of Management Accountants.

classify each cost as a period or a product cost within the product cost category in 607859

Aug 29, 2021 | Uncategorized

A music company has these costs:

Classify each cost as a period or a product cost. Within the product cost category, indicate if the cost is part of direct materials (DM), direct labor (DL), or manufacturing overhead (MO).

prepare the cost of goods manufactured schedule for the month of april 607860

Aug 29, 2021 | Uncategorized

The following information is available for Fishel Company.

Prepare the cost of goods manufactured schedule for the month of April.

match the descriptions that follow with the corresponding terms descriptions 607861

Aug 29, 2021 | Uncategorized

Match the descriptions that follow with the corresponding terms. Descriptions:

1. Inventory system in which goods are manufactured or purchased just as they are needed for sale.
2. A method of allocating overhead based on each product”s use of activities in making the product.
3. Systems that are especially important to firms adopting just-in-time inventory methods.
4. One part of the value chain for a manufacturing company.
5. The U.S. economy is trending toward this.
6. A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company”s operations in an integrated fashion.

Terms:

(a)Activity-based costing

(b)Balanced scorecard

(c)Total quality management (TQM)

(d)Research and development, and product design

(e)Service industries

(f)Just-in-time (JIT) inventory

identify each statement as true or false if false indicate how to correct the statem 607862

Aug 29, 2021 | Uncategorized

Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting.

1. Financial accounting focuses on providing information to internal users.
2. Analyzing cost-volume-profit relationships is part of managerial accounting.
3. Preparation of budgets is part of financial accounting.
4. Managerial accounting applies only to merchandising and manufacturing companies.
5. Both managerial accounting and financial accounting deal with many of the same economic events.
6. Managerial accounting reports are prepared only quarterly and annually.
7. Financial accounting reports are general-purpose reports.
8. Managerial accounting reports pertain to subunits of the business.
9. Managerial accounting reports must comply with generally accepted accounting principles.
10. Although managerial accountants are expected to behave ethically, there is no code of ethical standards for managerial accountants.

Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

classify the above items into the following categories a direct materials b direct l 607863

Aug 29, 2021 | Uncategorized

Presented below and on the next page is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.

1. Salaries for assembly line inspectors.
2. Insurance on factory machines.
3. Property taxes on the factory building.
4. Factory repairs.
5. Upholstery used in manufacturing furniture.
6. Wages paid to assembly line workers.
7. Factory machinery depreciation.
8. Glue, nails, paint, and other small parts used in production.
9. Factory supervisors’ salaries.
10. Wood used in manufacturing furniture.

Instructions

Classify the above items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead.

identify each of the above costs as direct materials direct labor manufacturing over 607864

Aug 29, 2021 | Uncategorized

Ryan Corporation incurred the following costs while manufacturing its product.

Instructions

(a)Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.

(b)Explain the basic difference in accounting for product costs and period costs.

knight company reports the following costs and expenses in may 607865

Aug 29, 2021 | Uncategorized

Knight Company reports the following costs and expenses in May.

Instructions

From the information, determine the total amount of:

(a)Manufacturing overhead.

(b)Product costs.

(c)Period costs.

under the securities act of 1933 which of the following statements most accurately r 607340

Aug 29, 2021 | Uncategorized

Under the Securities Act of 1933, which of the following statements most accurately reflects how securities registration affects an investor?

1. The investor is provided with information on the stockholders of the offering corporation.
2. The investor is provided with information on the principal purposes for which the offering’s proceeds will be used.
3. The investor is guaranteed by the SEC that the facts contained in the registration statement are accurate.
4. The investor is assured by the SEC against loss resulting from purchasing the security.

which of the above notes is are exempt securities and need not be registered under t 607342

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following facts:

Sandy Corporation is considering the following issuances:

1. I. Notes with maturities of three months to be used for commercial purposes and having a total aggregate value of $500,000.
2. II. Notes with maturities of two years to be used for investment purposes and having a total aggregate value of $300,000.
3. III. Notes with maturities of two years to be used for commercial purposes and having a total aggregate value of $200,000.

Which of the above notes is(are) exempt securities and need not be registered under the Securities Act of 1933?

1. I only.
2. II only.
3. I and III only.
4. I, II, and III.

Which of the above notes is(are) subject to the antifraud provisions of the Securities Act of 1933?

1. I only.
2. II only.
3. I and III only.
4. I, II, and III.

universal rsquo s filing of a registration statement with the sec does not automatic 607347

Aug 29, 2021 | Uncategorized

Universal Corp. intends to sell its common stock to the public in an interstate offering that will be registered under the Securities Act of 1933. Under the Act,

1. Universal can make offers to sell its stock before filing a registration statement, provided that it does not actually issue stock certificates until after the registration is effective.
2. Universal’s registration statement becomes effective at the time it is filed, assuming the SEC does not object within twenty days thereafter.
3. A prospectus must be delivered to each purchaser of Universal’s common stock unless the purchaser qualifies as an accredited investor.
4. Universal’s filing of a registration statement with the SEC does not automatically result in compliance with the “blue-sky” laws of the states in which the offering will be made.

issuers of securities are normally required under the securities act of 1933 to file 607349

Aug 29, 2021 | Uncategorized

Issuers of securities are normally required under the Securities Act of 1933 to file a registration statement with the Securities Exchange Commission before these securities are either offered or sold to the general public. Which of the following is a reason why the SEC adopted the registration statement forms called Form S-2 and Form S-3?

1. To require more extensive reporting.
2. To be filed along with Form S-1.
3. To reduce the burden that issuers have under the securities laws.
4. To reduce the burden of disclosure that issuers have for intrastate issues of securities.

regulation d provides for important exemptions to registration of securities under t 607350

Aug 29, 2021 | Uncategorized

Regulation D provides for important exemptions to registration of securities under the Securities Act of 1933. Which of the following would be exempt?

1. I. Issuance of $500,000 of securities sold in a twelve-month period to forty investors.
2. II. Issuance of $2,000,000 of securities sold in a twelve-month period to ten investors. The issuer restricts the right of the purchasers to resell for two years.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

eldridge corporation is seeking to offer 7 000 000 of securities under regulation d 607352

Aug 29, 2021 | Uncategorized

Eldridge Corporation is seeking to offer $7,000,000 of securities under Regulation D of the Securities Act of 1933. Which of the following is(are) true if Eldridge wants an exemption from registration under the Securities Act of 1933?

1. I. Eldridge must comply with Rule 506 of Regulation D.
2. II. These securities could be debentures.
3. III. These securities could be investment contracts.
   1. a. I only.
   2. b. I and II only.
   3. c. II and III only.
   4. d. I, II, and III.

the securities exchange commission promulgated rule 10b 5 under section 10 b of the 607363

Aug 29, 2021 | Uncategorized

The Securities Exchange Commission promulgated Rule 10b-5 under Section 10(b) of the Securities Exchange Act of 1934. Which of the following is(are) purpose(s) of the Act?

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integral did not notify the sec of stockholder ldquo short swing rdquo profits did n 607364

Aug 29, 2021 | Uncategorized

Integral Corp. has assets in excess of $4 million, has 350 stockholders, and has issued common and preferred stock. Integral is subject to the reporting provisions of the Securities Exchange Act of 1934. For its 2001 fiscal year, Integral filed the following with the SEC: quarterly reports, an annual report, and a periodic report listing newly appointed officers of the corporation. Integral did not notify the SEC of stockholder “short swing” profits; did not report that a competitor made a tender offer to Integral’s stockholders; and did not report changes in the price of its stock as sold on the New York Stock Exchange. Under SEC reporting requirements, which of the following was Integral required to do?

1. Report the tender offer to the SEC.
2. Notify the SEC of stockholder “short swing” profits.
3. File the periodic report listing newly appointed officers.
4. Report the changes in the market price of its stock.

link corp is subject to the reporting provisions of the securities exchange act of 1 607371

Aug 29, 2021 | Uncategorized

Items 1 through 3 are based on the following:

Link Corp. is subject to the reporting provisions of the Securities Exchange Act of 1934.

Which of the following situations would require Link to be subject to the reporting provisions of the 1934 Act?

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Which of the following documents must Link file with the SEC?

align=”left”>

Which of the following reports must also be submitted to the SEC?

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burk corporation has issued securities that must be registered with the securities e 607375

Aug 29, 2021 | Uncategorized

Burk Corporation has issued securities that must be registered with the Securities Exchange Commission under the Securities Exchange Act of 1934. A material event took place a week ago, that is, there was a change in the control of Burk Corporation. Which of the following statements is correct?

1. Because of this material event, Burk Corporation is required to file with the SEC, Forms 10-K and 10-Q.
2. Because of this material event, Burk Corporation is required to file Form 8-K.
3. Burk Corporation need not file any forms with the SEC concerning this material event if the relevant facts are fully disclosed in the audited financial statements.
4. Burk Corporation need not file any form concerning the material event if Burk Corporation has an exemption under Rules 504, 505, or 506 of Regulation D.

robinson rsquo s pricing policies have come under attack by several of its retailers 607377

Aug 29, 2021 | Uncategorized

Robinson’s pricing policies have come under attack by several of its retailers. In fact, one of those retailers, Patman, has instigated legal action against Robinson alleging that Robinson charges other favored retailers prices for its products which are lower than those charged to it. Patman’s legal action against Robinson

1. Will fail unless Patman can show that there has been an injury to competition.
2. Will be sufficient if the complaint alleges that Robinson charged different prices to different customers and there is a reasonable possibility that competition may be adversely affected.
3. Is groundless since one has the legal right to sell at whatever price one wishes as long as the price is determined unilaterally.
4. Is to be tested under the Rule of Reason and if the different prices charged are found to be reasonable, the complaint will be dismissed.

there are likely to be unanswered questions and the reflection process will continue 607384

Aug 29, 2021 | Uncategorized

Follow-Up

1. There are likely to be unanswered questions, and the reflection process will continue over the next week. Make sure that you set aside some time for reflection and discussions with key individuals to help the clarification process.
2. Thank your rating team and give them some feedback.
3. Involve your manager in your development plan.
4. Revisit your feedback report and action/development plan at regular intervals during the year.

The power of feedback cannot be underestimated. In most cases, new employees are concerned about proving themselves and doing well, so they very often are not aware if they are exhibiting behaviors that aren’t fitting into the culture unless someone tells them. Too often, people do talk about these behaviors, just not directly to the new employee!

boomers are the dominant generational group in the workforce but not necessarily the 607385

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Baby Boomers

Boomers are the dominant generational group in the workforce, but not necessarily the dominant group that is onboarding. They are, however, the largest group in the workforce today. The boomers were expected to be leaving their jobs in droves by now and retiring, but the recent economic changes have kept them in place. They will find themselves in the minority, however, with Gen Xers and Gen Ys in orientation and onboarding, and will respond differently based on their backgrounds and experiences. Because baby boomers embrace the corporate structure, are comfortable with formality, want to be in charge, and love to win, they have very different needs as it relates to supporting their successful orientation and onboarding.

1. Welcome! We are lucky to have you with your knowledge and experience.
2. It’s great to have someone on board who knows (understands) the industry.
3. The reason we hired you for this role is ___________________.
4. Our organization is probably similar to what you know in these ways: __________________________.
5. Our organization is somewhat different from what you may be used to in these ways: _________________________________.
6. You will participate in a half-day orientation program on your first day, then move into a formal onboarding period for 90 days.
7. Here is how you are doing compared to your onboarding plan: ___________________________________.
8. What I see you have delivered versus what I have expected from you in your first 90 days is _____________________________.
9. Let’s talk about your progress on your onboarding objectives.
10. Tell me about some of your “early wins” or “quick hits” that you have accomplished to establish some early credibility.
11. Now that you have been successful with ______________________________, let’s add this next piece: ________________________________________.
12. Communication in our organization is mostly (face-to-face, e-mail, voice mail, whichever apply).
13. The ways in which you were successful in your previous role may not always happen for you here. Let’s talk about the differences.
14. We have a collaborative culture, so it is important that you communicate with the team throughout the whole process. For example, meeting notes, pre-meeting conversations, and post-meeting debriefings are expected.
15. One thing to consider as you work on that project is to be inclusive and be clear about each person’s role and responsibilities.
16. We have a very lean organization, and here is what that means for your role:.

perfect phrases for onboarding generation xers 607386

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Generation Xers

What we know about the Xers is that they feel rather “squeezed” between the baby boomers and the Gen Ys. There are fewer of them, by sheer numbers, than in either of the other two groups, so they are always in the minority. They also are now of the age when they are often responsible for younger children at home and may not be as mobile, and so may be less able to take promotions that require relocations, or less willing to work late hours or participate in social after-work activities. This can lead to some type of additional separation among the groups. Gen X also grew up in a world where downsizing and mismanagement were common, and so they don’t often trust the “corporate-speak.” Gen X highly values having options, and options often trump money or status. They tend to resent the boomers who see their way as the only way, and the fact that the boomers are hanging around in the workplace a lot longer than anyone thought they would, especially in leadership roles. However, Gen X brings strong relationships into the workplace and teaches others how to leverage them for powerful results. They also embrace technology as they have practically grown up with the personal computer and the cell phone. They are also not afraid of change as it relates to the work world, because it has done nothing but change since they entered it. They appreciate diversity and understand its value; they are instinctively collaborative, are usually quite flexible, and tend to ask questions instead of making statements as their boomer counterparts do.

1. Welcome! We are so glad to have you as part of our team!
2. The reason that we see you fitting in here so well is ____________.
3. Some of the strengths that you bring to our organization are __________________________.
4. A couple of the things that may be a challenge for you here are______________________________.
5. We have a plan to make your first months on the job successful, and you will drive it.
6. Our onboarding program will allow you to set objectives and learn the organization at the same time you build relationships along the way.
7. Your onboarding experience will allow for learning not only your particular role and function, but also our organization’s culture, core processes, and customer experience.
8. Relationships are key here. Let’s talk about the ones you have started already and how to grow them, and then build a plan for the ones that you will need to develop.
9. We strive for a structured, yet flexible onboarding experience tailored to meet you where you are, where you’ve been, and where you are going in the future.
10. We have the ability to work flexible hours in our organization. Here is where you can find some additional information about that: _____________________________.
11. If you are interested in meeting with some of the other newer employees, here is how you can connect with them: __________________.
12. We are committed to your career development, and your onboarding plan is the first piece. We will start with your onboarding plan and work with you to implement it.
13. What’s your cell number? Here is mine ______________________ if you need anything.
14. Communication in our organization is mostly (face-to-face, e-mail, voice mail, whichever apply).
15. Feedback is an important part of our process too. Here’s how you will get it:.
16. Your onboarding plan will serve as a springboard for your development plan, and this is how they will fit together:.
17. As you start to meet people, here are some suggested topics to engage them:
18. How our teams work together
19. What the biggest opportunities are
20. What the barriers are

perfect phrases for onboarding generation y or the millennials 607387

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Generation Y, or the Millennials

Generation Y, or the Millennials, are technology kids and the ones who are the most comfortable with a global, multicultural world. They also have a reputation of being high maintenance, requiring instant gratification, and being skeptical. They have also, like their Gen X cousins, seen their parents and grandparents down-sized and laid off, so their loyalties to corporate entities are few. On the other hand, they have high expectations of themselves for work output and usually put their families and personal lives over their work lives. They can be effective multitaskers and are extremely flexible. They do, however, demand flexibility from their employers because for them it is all about the work and not about how many hours it takes to get it done. Organizations can benefit from these hard workers but must manage them carefully and appropriately. Red flags for onboarding Generation Y include their “helicopter parents” inserting themselves into the process that may not be appropriate and entitlement signals that should be addressed immediately.

1. Welcome! So glad you are joining us!
2. It’s great to have you as part of our team!
3. So glad you’re here!
4. We really appreciate your energy and enthusiasm.
5. It can be a big transition from campus to the corporate world. There is a group that meets every week to talk through some common issues, and there are some additional resources available on our intranet.
6. We have clear policies about travel, expenses, temporary housing, compensation and benefits, attendance, etc. I can help direct you to the information. Do you have specific questions?
7. HR can give you some more information on how to interpret our dress code—sometimes it is tricky to understand what “business casual” actually means.
8. There is more info about our organization at www. ____________________ (or I will send you a link).
9. Our intranet, learning management system (LMS), or video library might be of interest to you. Here is a link to get you started: ________________________________________.
10. What’s your cell number? Here is mine ______________________________ if you need anything.
11. The best way to meet people in our organization is through _______________________________.
12. Onboarding is an important part of your career development, and you will lead the way with our support.
13. Your manager will help you build a plan that will guide your first 90 days and outline your onboarding objectives.
14. We are committed to your career development and want you to drive the process. We have started your plan, but we expect you to drive it.
15. We want you to be able to learn and work at the same time.
16. Promotions will come as you develop and when they are appropriate. We can always have a conversation about what you want to accomplish next.
17. Communication in our organization is mostly (face-to-face, e-mail, voice mail, whichever apply).
18. The way we use social media in our organization is pretty formal, and it looks like _____________________________.
19. The way we use social media in our organization is pretty informal, and it looks like ____________________________.
20. We have not yet started to use social media in our organization, but if you have some suggestions, you can talk with ___________________.
21. Your manager will meet with you regularly to let you know how you are tracking against your objectives and to give you feedback.
22. Our culture is pretty formal (informal), so you will want to check out ______________________ and talk with __________________ to get more insight.
23. It’s great to ask a lot of questions, and that will help you understand not only your role, but also the department and our organization’s culture.
24. Identify people who can help you get up to speed with your specific job tasks, those who have a broader view of your department or function, and those who have been in the organization longer or have a leadership role and can introduce you to our culture.
25. Be patient and make sure you take the time to learn from those around you.
26. It’s normal to have highs and lows as you onboard, and it might take up to a year or so to really get integrated into the culture.
27. Listen, listen, and listen some more.
28. Go slow to go fast.

perfect phrases for onboarding experienced hires 607388

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Experienced Hires

Many organizations will continue to onboard those employees who have been in the workforce for a while and are experienced in their particular fields. They obviously have different needs from an onboarding perspective, but it cannot be assumed that they do not have any transitioning issues to address. Experienced hires want their knowledge to be valued and recognized. They want to be able to leverage what they know and be able to build on it, adding to their skill sets and enabling them to go to the next levels. They also expect a clear plan with well-thought out expectations and measurements. They value an organization that can transfer their knowledge and experience into a new culture. Because they have “been around the block,” experienced hires will want to have a say in their onboarding plan, but they also accept that they will be held accountable for its results.

1. Welcome! You are a great addition to our team!
2. Let’s get together for coffee or lunch. I would like to hear more about your background and how we will be working together.
3. You have a really strong background and will fit in well here.
4. Some of the ways we see you using your strengths here are ______________________________.
5. You were chosen for this role because ______________________.
6. The overall direction of your function is _________________, and your role supports it like this: ______________________________.
7. We have brought you in to make some changes, and it’s important to build relationships first.
8. Some of the key people you will get to know first are.
9. Your key internal customers are ______________________________.
10. Your predecessor left because ______________________________, and this is the status of the role now: ____________________.
11. We have started an onboarding plan with objectives for the next 90 days. With your input, we will finalize these and create measurements for them.
12. Here is the beginning of a list of your key stakeholders. We need to talk about how each of them will support your onboarding objectives, and there will be others whom you identify and add to the list as you attend your other networking meetings.
13. I have started a list of key stakeholders (people with whom you will meet over the next 90 days). Let’s discuss how each will support your onboarding objectives.
14. Let’s talk about your calendar and make sure you are comfortable with the pace and expectations.
15. Listen, listen, and listen some more!
16. I know that you are anxious to jump in and start delivering results, but we want you to really understand our culture and take the time to build strong relationships with the people with whom you will need to work on your objectives.
17. It is important for you to know that ____________________ also applied for but did not get your position. Some of the reasons that he did not get the position are ___________________________________________, and we have explained this to him so he understands. It is important that you build a good relationship with him. I would suggest that you start with a conversation.
18. Let’s have a conversation about how relationships are important in our organization.
19. There are probably some differences that you have noticed about our organization from your previous one. What has been what you expected? What has been different from what you expected it to be? Are there gaps that are affecting your job?
20. Give priority to your manager’s priorities.
21. Go slow to go fast.

perfect phrases for onboarding promotions or internal moves 607389

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Promotions or Internal Moves

One of the most neglected transitions is the promotion or internal move. This is particularly interesting because a promotion is usually a reward for outstanding work and great delivery of business results of an individual and his or her team. It is also often a move of a technical expert from an individual contributor or lower-level supervisory role to that of a management or leadership role. These are the roles that need the most support in their transition. They have the greatest chance for failure and often do fail. The crash-and-burn is blamed on the individual’s inability to do the job or “lack of fit,” not usually on the lack of support or resources from the organization or the inordinate number of inaccurate assumptions that were made by both the newly promoted manager and the organization. What’s the solution? A well-planned, well-executed onboarding experience!

1. Forty percent of new leaders fail within the first 18 months on the job, and half of these are leaders who are promoted from within.
2. Only about 18% of organizations include promotions and internal transitions in their formal onboarding processes. We think it’s important to include them to ensure success.
3. Transitioning from the field to the home office is sometimes more difficult than people think. We will make sure that your plan includes the right onboarding objectives to ensure your success.
4. Many assumptions are made about you when you get promoted. Let’s talk about what some of those assumptions might be and strategies to address them.
5. People will forget that you are “new” in your role and expect you to know more than you do. Don’t forget to ask questions and listen before making decisions and suggestions for changes.
6. Let’s talk about your role. How do you define it? How does your manager define it? What are the gaps?
7. You might want to take advantage of some of our internal (or external) learning and development opportunities. Here is where you can find some additional resources to decide what works best for you.
8. As a new manager, you will have some unique challenges. Your manager can be a valuable resource, as well as your HR partner or another trusted leader in the organization, to guide you in the leadership style and culture of our company.
9. Getting good feedback will be another important component of your onboarding experience. We have a structured process that looks like this: ________________________________________.
10. Other ways that you can get up to speed quickly are by observing others in meetings and daily interactions, asking questions, and soliciting feedback about your behaviors and your work outputs from people you trust.
11. The relationships that you had in your former role are different from the ones you will have in your new role. There will be new people to get to know, and there will be some people that you will need to create a different type of relationship with.
12. Some of your former peers are now your direct reports. This will require a shift in thinking and beginning a new type of relationship.
13. There are new expectations for this role, and it is critical that you understand what they are and how they will be measured.
14. What are your key two or three deliverables in the first 90 days? How will these deliverables be measured?
15. You may have experienced the culture “from a distance” or from a different perspective, and people may still assume that you understand it. Do not assume that you do, and do not let others assume that you understand it.

perfect phrases for onboarding rising stars 607390

Aug 29, 2021 | Uncategorized

Perfect Phrases for Onboarding Rising Stars

The high-potential employees in your organization will also be a part of at least one of the other groups that have been identified and described, for example a Gen Xer, new leader, external hire, or internal promotion. So it is important to note that a blending of approaches based on the individual needs of that particular employee is the most effective. There are some aspects of onboarding that can be highlighted to those employees who have been identified early as high potentials and who the organization wants to make sure are retained and groomed for future key leadership roles.

1. We are committed to your career development, and your onboarding plan is the first piece. We will start with your onboarding plan and work with you to implement it.
2. We understand where you’ve been and where you want to go, so we have drafted your onboarding plan to reflect and support both.
3. It is really important to identify people who can help you get up to speed with your specific job tasks, and also those who have a broader view of your department or function and those who have been in the organization longer or have a leadership role and can introduce you to our culture.
4. Be patient and make sure you take the time to learn from those around you.
5. The reason we hired you for this role is ____________________.
6. The short-term plan (define “short-term,” if possible) for you in this role is ________________________, and we will continue to develop the long-term one. I am always interested in your thoughts about how you want to grow and contribute to the organization.

for employees who know they have been identified as ldquo high potential rdquo 607391

Aug 29, 2021 | Uncategorized

For Employees Who Know They Have Been Identified as “High Potential”

1. Be committed to this role and this function—don’t give the impression that this is just “another stop along the way” on your career path.
2. Quickly build relationships with your manager and peers so that you are ready if and when the next move becomes available and they support you.
3. Take advantage of every learning opportunity.
4. Do not take relationships for granted.
5. Be patient.

The workplace has become a complex mix of people from different generations, cultures, and educational, socioeconomic, and experience backgrounds. We are challenged with integrating these diverse employees into our organizations seamlessly and for the ultimate success and profitability of the organization—no small task! However, by leveraging the onboarding process and doing a few simple things consistently well, HR partners and managers can have great results with highly engaged new employees at the 100-day mark.

perfect phrases to use while integrating technology into your onboarding process 607393

Aug 29, 2021 | Uncategorized

Perfect Phrases to Use While Integrating Technology into Your Onboarding Process

The use of technology with orientation and onboarding is growing. More and more technology-based solutions are becoming available in the marketplace, and they vary greatly. Many of these solutions are focused on the “paperwork” of orientation and onboarding by processing the forms needed to get a new employee into the systems and databases of an organization. This is important work and efficient, but it doesn’t get the new hire acclimated or integrated into her role or the organization.

1. Create a Web-based and branded “landing page” for all new employees that gives them information on what to expect their first day or first week on the job. This page could build from the Careers/Jobs page on company website.
2. E-mail new employees after the job offer is accepted to stay in touch and send updates, company information, links, etc.
3. Use social media (LinkedIn, Facebook, Twitter, and mobile device apps) to connect and send messages to new employees during prestart.
4. Leverage your organization’s intranet to create a new employee or onboarding portal to centralize access to information that is important to them during the first 90 days.
5. Create a library of onboarding resources (talking points, meeting agendas, articles, etc.) for HR partners and hiring managers to use as they coach their new employees through the onboarding process.
6. Share onboarding plans via the intranet so that hiring managers or HR partners can share best practices (and don’t have to reinvent the wheel!)
7. Create Web-based “road maps” for HR partners and hiring managers to follow as they onboard their new hires.
8. Post onboarding plans on your intranet for new employees to manage.

which of the following is correct regarding the single audit act 607298

Aug 29, 2021 | Uncategorized

Which of the following is correct regarding the Single Audit Act?

1. I. The Act mandates that local and state governments receiving $300,000 or more in federal funds in a fiscal year are to be audited under this Act.
2. II. The purpose of this Act is to reduce duplication in organization-wide governmental audits.
3. III. For government entities covered under this Act, only one audit every five years is required.
   1. a. I only.
   2. b. II only.
   3. c. I and II only.
   4. d. II and III only.

cable corp orally engaged drake amp co cpas to audit its financial statements cable 607299

Aug 29, 2021 | Uncategorized

Cable Corp. orally engaged Drake & Co., CPAs, to audit its financial statements. Cable’s management informed Drake that it suspected the accounts receivable were materially overstated. Though the financial statements Drake audited included a materially overstated accounts receivable balance, Drake issued an unqualified opinion. Cable used the financial statements to obtain a loan to expand its operations. Cable defaulted on the loan and incurred a substantial loss.

If Cable sues Drake for negligence in failing to discover the overstatement, Drake’s best defense would be that Drake did not

1. Have privity of contract with Cable.
2. Sign an engagement letter.
3. Perform the audit recklessly or with an intent to deceive.
4. Violate generally accepted auditing standards in performing the audit.

which of the following statements best describes whether a cpa has met the required 607300

Aug 29, 2021 | Uncategorized

Which of the following statements best describes whether a CPA has met the required standard of care in conducting an audit of a client’s financial statements?

1. The client’s expectations with regard to the accuracy of audited financial statements.
2. The accuracy of the financial statements and whether the statements conform to generally accepted accounting principles.
3. Whether the CPA conducted the audit with the same skill and care expected of an ordinarily prudent CPA under the circumstances.
4. Whether the audit was conducted to investigate and discover all acts of fraud.

relying on these financial statements century bank lent owens 750 000 ford was unawa 607301

Aug 29, 2021 | Uncategorized

Ford & Co., CPAs, issued an unqualified opinion on Owens Corp.’s financial statements. Relying on these financial statements, Century Bank lent Owens $750,000. Ford was unaware that Century would receive a copy of the financial statements or that Owens would use them to obtain a loan. Owens defaulted on the loan.

To succeed in a common law fraud action against Ford, Century must prove, in addition to other elements, that Century was

1. Free from contributory negligence.
2. In privity of contract with Ford.
3. Justified in relying on the financial statements.
4. In privity of contract with Owens.

under the ultramares rule to which of the following parties will an accountant be li 607309

Aug 29, 2021 | Uncategorized

Under the Ultramares rule, to which of the following parties will an accountant be liable for negligence?

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while conducting an audit larson associates cpas failed to detect material misstatem 607310

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

While conducting an audit, Larson Associates, CPAs, failed to detect material misstatements included in its client’s financial statements. Larson’s unqualified opinion was included with the financial statements in a registration statement and prospectus for a public offering of securities made by the client. Larson knew that its opinion and the financial statements would be used for this purpose.

In a suit by a purchaser against Larson for common law negligence, Larson’s best defense would be that the

1. Audit was conducted in accordance with generally accepted auditing standards.
2. Client was aware of the misstatements.
3. Purchaser was not in privity of contract with Larson.
4. Identity of the purchaser was not known to Larson at the time of the audit.

In a suit by a purchaser against Larson for common law fraud, Larson’s best defense would be that

1. Larson did not have actual or constructive knowledge of the misstatements.
2. Larson’s client knew or should have known of the misstatements.
3. Larson did not have actual knowledge that the purchaser was an intended beneficiary of the audit.
4. Larson was not in privity of contract with its client.

quincy bought teal corp common stock in an offering registered under the securities 607311

Aug 29, 2021 | Uncategorized

Quincy bought Teal Corp. common stock in an offering registered under the Securities Act of 1933. Worth & Co., CPAs, gave an unqualified opinion on Teal’s financial statements that were included in the registration statement filed with the SEC. Quincy sued Worth under the provisions of the 1933 Act that deal with omission of facts required to be in the registration statement. Quincy must prove that

1. There was fraudulent activity by Worth.
2. There was a material misstatement in the financial statements.
3. Quincy relied on Worth’s opinion.
4. Quincy was in privity with Worth.

beckler knew that the financial statements would be provided to mac queen defaulted 607312

Aug 29, 2021 | Uncategorized

Beckler & Associates, CPAs, audited and gave an unqualified opinion on the financial statements of Queen Co. The financial statements contained misstatements that resulted in a material overstatement of Queen’s net worth. Queen provided the audited financial statements to Mac Bank in connection with a loan made by Mac to Queen. Beckler knew that the financial statements would be provided to Mac. Queen defaulted on the loan. Mac sued Beckler to recover for its losses associated with Queen’s default. Which of the following must Mac prove in order to recover?

1. I. Beckler was negligent in conducting the audit.
2. II. Mac relied on the financial statements.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

dart corp engaged jay associates cpas to assist in a public stock offering jay audit 607313

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Dart Corp. engaged Jay Associates, CPAs, to assist in a public stock offering. Jay audited Dart’s financial statements and gave an unqualified opinion, despite knowing that the financial statements contained misstatements. Jay’s opinion was included in Dart’s registration statement. Larson purchased shares in the offering and suffered a loss when the stock declined in value after the misstatements became known.

In a suit against Jay and Dart under the Section 11 liability provisions of the Securities Act of 1933, Larson must prove that

1. Jay knew of the misstatements.
2. Jay was negligent.
3. The misstatements contained in Dart’s financial statements were material.
4. The unqualified opinion contained in the registration statement was relied on by Larson.

If Larson succeeds in the Section 11 suit against Dart, Larson would be entitled to

1. Damages of three times the original public offering price.
2. Rescind the transaction.
3. Monetary damages only.
4. Damages, but only if the shares were resold before the suit was started.

under the liability provisions of section 11 of the securities act of 1933 a cpa may 607314

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Under the liability provisions of Section 11 of the Securities Act of 1933, a CPA may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the security’s registration statement.

Under Section 11, a CPA usually will not be liable to the purchaser

1. If the purchaser is contributorily negligent.
2. If the CPA can prove due diligence.
3. Unless the purchaser can prove privity with the CPA.
4. Unless the purchaser can prove scienter on the part of the CPA.

Under Section 11, which of the following must be proven by a purchaser of the security?

align=”left”>

sharp purchased shares in the offering sharp received a copy of the prospectus prior 607315

Aug 29, 2021 | Uncategorized

Ocean and Associates, CPAs, audited the financial statements of Drain Corporation. As a result of Ocean’s negligence in conducting the audit, the financial statements included material misstatements. Ocean was unaware of this fact. The financial statements and Ocean’s unqualified opinion were included in a registration statement and prospectus for an original public offering of stock by Drain.

Sharp purchased shares in the offering. Sharp received a copy of the prospectus prior to the purchase but did not read it. The shares declined in value as a result of the misstatements in Drain’s financial statements becoming known. Under which of the following Acts is Sharp most likely to prevail in a lawsuit against Ocean?

align=”left”>

in a suit against jay under the antifraud provisions of section 10 b and rule 10b 5 607317

Aug 29, 2021 | Uncategorized

Dart Corp. engaged Jay Associates, CPAs, to assist in a public stock offering. Jay audited Dart’s financial statements and gave an unqualified opinion, despite knowing that the financial statements contained misstatements. Jay’s opinion was included in Dart’s registration statement. Larson purchased shares in the offering and suffered a loss when the stock declined in value after the misstatements became known.

In a suit against Jay under the antifraud provisions of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, Larson must prove all of the following except

1. Larson was an intended user of the false registration statement.
2. Larson relied on the false registration statement.
3. The transaction involved some form of interstate commerce.
4. Jay acted with intentional disregard of the truth.

under section 11 of the securities act of 1933 which of the following standards may 607319

Aug 29, 2021 | Uncategorized

Under Section 11 of the Securities Act of 1933, which of the following standards may a CPA use as a defense?

align=”left”>

dart corp engaged jay associates cpas to assist in a public stock offering jay audit 607320

Aug 29, 2021 | Uncategorized

Dart Corp. engaged Jay Associates, CPAs, to assist in a public stock offering. Jay audited Dart’s financial statements and gave an unqualified opinion, despite knowing that the financial statements contained misstatements. Jay’s opinion was included in Dart’s registration statement. Larson purchased shares in the offering and suffered a loss when the stock declined in value after the misstatements became known.

If Larson succeeds in the Section 10(b) and Rule 10b-5 suit, Larson would be entitled to

1. Only recover the original public offering price.
2. Only rescind the transaction.
3. The amount of any loss caused by the fraud.
4. Punitive damages.

working papers are subject to the privileged communication rule which in most jurisd 607321

Aug 29, 2021 | Uncategorized

Which of the following statements is correct with respect to ownership, possession, or access to a CPA firm’s audit working papers?

1. Working papers may never be obtained by third parties unless the client consents.
2. Working papers are not transferable to a purchaser of a CPA practice unless the client consents.
3. Working papers are subject to the privileged communication rule which, in most jurisdictions, prevents any third-party access to the working papers.
4. Working papers are the client’s exclusive property.

to which of the following parties may a cpa partnership orvide its working papers wi 607324

Aug 29, 2021 | Uncategorized

To which of the following parties may a CPA partnership orvide its working papers without either the client’s consent or a lawful subpoena?

align=”left”>

ivor was indicted and thorp was subpoenaed to testify at the criminal trial ivor cla 607326

Aug 29, 2021 | Uncategorized

Thorp, CPA, was engaged to audit Ivor Co.’s financial statements. During the audit, Thorp discovered that Ivor’s inventory contained stolen goods. Ivor was indicted and Thorp was subpoenaed to testify at the criminal trial. Ivor claimed accountant-client privilege to prevent Thorp from testifying. Which of the following statements is correct regarding Ivor’s claim?

1. Ivor can claim an accountant-client privilege only in states that have enacted a statute creating such a privilege.
2. Ivor can claim an accountant-client privilege only in federal courts.
3. The accountant-client privilege can be claimed only in civil suits.
4. The accountant-client privilege can be claimed only to limit testimony to audit subject matter.

made arrangements with a financial institution to collect notes issued by a client i 607327

Aug 29, 2021 | Uncategorized

A violation of the profession’s ethical standards most likely would have occurred when a CPA

1. Issued an unqualified opinion on the 2002 financial statements when fees for the 2001 audit were unpaid.
2. Recommended a controller’s position description with candidate specifications to an audit client.
3. Purchased a CPA firm’s practice of monthly write-ups for a percentage of fees to be received over a three-year period.
4. Made arrangements with a financial institution to collect notes issued by a client in payment of fees due for the current year’s audit.

mcgee is auditing nevus corporation and detects probable criminal activity by one of 607329

Aug 29, 2021 | Uncategorized

McGee is auditing Nevus Corporation and detects probable criminal activity by one of the employees. McGee believes this will have a material impact on the financial statements. The financial statements of Nevus Corporation are under the Securities Exchange Act of 1934. Which of the following is correct?

1. McGee should report this to the Securities Exchange Commission.
2. McGee should report this to the Justice Department.
3. McGee should report this to Nevus Corporation’s audit committee or board of directors.
4. McGee will discharge his duty by requiring that a note of this be included in the financial statements.

lin cpa is auditing the financial statements of exchange corporation under the feder 607332

Aug 29, 2021 | Uncategorized

Lin, CPA, is auditing the financial statements of Exchange Corporation under the Federal Securities Exchange Act of 1934. He detects what he believes are probable material illegal acts. What is his duty under the Private Securities Litigation Reform Act?

1. He must inform the principal shareholders within ten days.
2. He must inform the audit committee or the board of directors.
3. He need not inform anyone, beyond requiring that the financial statements are presented fairly.
4. He should not inform anyone since he owes a duty of confidentiality to the client.

under which of the following cases should joint costs be allocated between fund rais 607246

Aug 29, 2021 | Uncategorized

Under which of the following cases should joint costs be allocated between fund-raising and the appropriate program or management and general function?

1. An appeal for funds accompanied by a statement of the mission of the not-for-profit entity.
2. An appeal for funds accompanied by a brochure explaining why funds are needed and how they will be used.
3. An organization seeks the involvement of the public in the attainment of their missions by telling people what they should do about particular issues in addition to fund-raising appeals.
4. An appeal for funds and education materials sent to a person based on his/her presumed ability to provide financial support.

which of the following are considered to be capital additions in the statement of ac 607247

Aug 29, 2021 | Uncategorized

Which of the following are considered to be capital additions in the statement of activity of a not-for-profit organization?

1. I. Nonexpendable gifts, grants, and bequests restricted by donors to endowment funds.
2. II. Legally restricted investment income on investments held in endowment funds that must be added to the principal.
3. III. Donor-restricted gifts for program or supporting services.
   1. a. I, II, and III.
   2. b. I and III only.
   3. c. I and II only.
   4. d. III only.

elizabeth hospital a nonprofit hospital affiliated with a religious group should pre 607250

Aug 29, 2021 | Uncategorized

Elizabeth Hospital, a nonprofit hospital affiliated with a religious group, should prepare which of the following financial statements?

on the hospital rsquo s statement of operations for the year ended december 31 2005 607251

Aug 29, 2021 | Uncategorized

Williams Hospital, a nonprofit hospital affiliated with a religious group, reported the following information for the year ended December 31, 2005:

On the hospital’s statement of operations for the year ended December 31, 2005, what amount should be reported as net patient service revenue?

1. $865,000
2. $880,000
3. $855,000
4. $955,000

james hospital a nonprofit hospital affiliated with a private university provided 20 607261

Aug 29, 2021 | Uncategorized

James Hospital, a nonprofit hospital affiliated with a private university, provided $200,000 of charity care for patients during the year ended December 31, 2005. The hospital should report this charity care

1. As net patient service revenue of $200,000 on the statement of operations.
2. As net patient service revenue of $200,000 and as an operating expense of $200,000 on the statement of operations.
3. As accounts receivable of $200,000 on the balance sheet at December 31, 2005.
4. Only in the notes to the financial statements for 2005.

using the information provided what amount should be reported as ldquo other revenue 607262

Aug 29, 2021 | Uncategorized

Michael Hospital, a nonprofit hospital affiliated with a private university, reported the following information for the year ended December 31, 2005:

Using the information provided, what amount should be reported as “other revenue and gains” on the hospital’s statement of operations for the year ended December 31, 2005?

1. $ 25,000
2. $ 75,000
3. $100,000
4. $250,000

the governing board acquired the bmi bonds with cash which was unrestricted and it c 607264

Aug 29, 2021 | Uncategorized

The governing board of Smithson Hospital, a nonprofit hospital affiliated with a religious organization, acquired 100 BMI Company bonds for $103,000 on June 30, 2005. The bonds pay interest on June 30 and December 30. On December 31, 2005, interest of $3,000 was received from BMI, and the fair value of the BMI bonds was $105,000. The governing board acquired the BMI bonds with cash which was unrestricted, and it classified the bonds as trading securities at December 31, 2005, since it intends to sell all of the bonds in January 2006. As a result of the investment in BMI bonds, what amount should be included in revenue, gains, and other support on the statement of operations for the year ended December 31, 2005?

1. $0
2. $3,000
3. $2,000
4. $5,000

on the statement of operations for a nonprofit nongovernmental hospital which of the 607265

Aug 29, 2021 | Uncategorized

On the statement of operations for a nonprofit, nongovernmental hospital, which of the items below is included in the amount reported for “revenue and gains over expenses and losses” (the performance indicator)?

1. I. Unrealized loss on other than trading securities. The securities are included in unrestricted net assets.
2. II. Contribution received from a donor that cannot be used until next year.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

during 2005 all of the donated medical supplies were used on the hospital rsquo s st 607266

Aug 29, 2021 | Uncategorized

Tucker Hospital, a nonprofit hospital affiliated with Tucker University, received a donation of medical supplies during the year ended December 31, 2005. The supplies cost the vendor $10,000 and had a selling price of $15,000 on the date they were donated. The vendor did not place any restrictions on how the supplies were to be used. During 2005, all of the donated medical supplies were used. On the hospital’s statement of operations for the year ended December 31, 2005, how should the donation be reported?

1. The donation should be included in both revenue and operating expenses in the amount of $10,000.
2. The donation should be excluded from the statement of operations.
3. The donation should be included in both revenue and operating expenses in the amount of $15,000.
4. The donation should be included in revenue in the amount of $15,000 and in operating expenses in the amount of $10,000.

on the hospital rsquo s statement of cash flows for the year ended december 31 2005 607267

Aug 29, 2021 | Uncategorized

Wilson Hospital, a nonprofit hospital affiliated with Wilson College, had the following cash receipts for the year ended December 31, 2005:

The dividends received are restricted by the donor for hospital building improvements. No improvements were made during 2005. On the hospital’s statement of cash flows for the year ended December 31, 2005, what amount of these cash receipts would be included in the amount reported for net cash provided (used) by operating activities?

1. $ 880,000
2. $ 800,000
3. $1,050,000
4. $ 750,000

which of the following financial statements of a private nonprofit hospital reports 607268

Aug 29, 2021 | Uncategorized

Which of the following financial statements of a private, nonprofit hospital reports the changes in unrestricted, temporarily restricted, and permanently restricted net assets for a time period?

the statement of operations for a private nonprofit hospital should include a perfor 607270

Aug 29, 2021 | Uncategorized

The statement of operations for a private, nonprofit hospital should include a performance indicator that indicates the results of operations for a period. Which of the following items would be included in a hospital’s performance indicator reported on the statement of operations?

1. I. Proceeds from sales of cafeteria meals and guest trays to employees, medical staff, and visitors.
2. II. Net assets released from restrictions used for operating expenses.
   1. a. I only.
   2. b. Both I and II.
   3. c. II only.
   4. d. Neither I nor II.

according to the profession rsquo s ethical standards which of the following events 607278

Aug 29, 2021 | Uncategorized

According to the profession’s ethical standards, which of the following events may justify a departure from a Statement of Financial Accounting Standards?

align=”left”>

stephanie seals is a cpa who is working as a controller for brentwood corporation sh 607280

Aug 29, 2021 | Uncategorized

Stephanie Seals is a CPA who is working as a controller for Brentwood Corporation. She is not in public practice. Which statement is true?

1. She may use the CPA designation on her business cards if she also puts her employment title on them.
2. She may use the CPA designation on her business cards as long as she does not mention Brentwood Corporation or her title as controller.
3. She may use the CPA designation on company transmittals but not on her business cards.
4. She may not use the CPA designation because she is not in public practice.

larry sampson is a cpa and is serving as an expert witness in a trial concerning a c 607284

Aug 29, 2021 | Uncategorized

Larry Sampson is a CPA and is serving as an expert witness in a trial concerning a corporation’s financial statements. Which of the following is(are) true?

1. I. Sampson’s status as an expert witness is based upon his specialized knowledge, experience, and training.
2. II. Sampson is required by AICPA ruling to present his position objectively.
3. III. Sampson may regard himself as acting as an advocate.
   1. a. I only.
   2. b. I and II only.
   3. c. I and III only.
   4. d. III only.

on april 3 2004 the client asked the cpa to audit the client rsquo s financial state 607288

Aug 29, 2021 | Uncategorized

On June 1, 2003, a CPA obtained a $100,000 personal loan from a financial institution client for whom the CPA provided compilation services. The loan was fully secured and considered material to the CPA’s net worth. The CPA paid the loan in full on December 31, 2004. On April 3, 2004, the client asked the CPA to audit the client’s financial statements for the year ended December 31, 2004. Is the CPA considered independent with respect to the audit of the client’s December 31, 2004 financial statements?

1. Yes, because the loan was fully secured.
2. Yes, because the CPA was not required to be independent at the time the loan was granted.
3. No, because the CPA had a loan with the client during the period of a professional engagement.
4. No, because the CPA had a loan with the client during the period covered by the financial statements.

which of the following statements is are correct regarding a cpa employee of a cpa f 607289

Aug 29, 2021 | Uncategorized

Which of the following statements is(are) correct regarding a CPA employee of a CPA firm taking copies of information contained in client files when the CPA leaves the firm?

1. I. A CPA leaving a firm may take copies of information contained in client files to assist another firm in serving that client.
2. II. A CPA leaving a firm may take copies of information contained in client files as a method of gaining technical expertise.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

which of the following statements is correct regarding an accountant rsquo s working 607290

Aug 29, 2021 | Uncategorized

Which of the following statements is correct regarding an accountant’s working papers?

1. The accountant owns the working papers and generally may disclose them as the accountant sees fit.
2. The client owns the working papers but the accountant has custody of them until the accountant’s bill is paid in full.
3. The accountant owns the working papers but generally may not disclose them without the client’s consent or a court order.
4. The client owns the working papers but, in the absence of the accountant’s consent, may not disclose them without a court order.

according to the profession rsquo s standards which of the following would be consid 607291

Aug 29, 2021 | Uncategorized

According to the profession’s standards, which of the following would be considered consulting services?

align=”left”>

according to the standards of the profession which of the following events would req 607292

Aug 29, 2021 | Uncategorized

According to the standards of the profession, which of the following events would require a CPA performing a consulting services engagement for a nonaudit client to withdraw from the engagement?

1. I. The CPA has a conflict of interest that is disclosed to the client and the client consents to the CPA continuing the engagement.
2. II. The CPA fails to obtain a written understanding from the client concerning the scope of the engagement.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

for the year ended december 31 2005 what amount of these contributions should be rep 607204

Aug 29, 2021 | Uncategorized

Catherine College, a private not-for-profit college, received the following contributions during 2005:

1. I. $5,000,000 from alumni for construction of a new wing on the science building to be constructed in 2005.
2. II. $1,000,000 from a donor who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. As of December 31, 2005, earnings from investments amounted to $50,000.

For the year ended December 31, 2005, what amount of these contributions should be reported as temporarily restricted revenues on the statement of activities?

1. $ 50,000
2. $5,050,000
3. $5,000,000
4. $6,050,000

on december 31 2005 hope haven a private not for profit voluntary health and welfare 607205

Aug 29, 2021 | Uncategorized

On December 31, 2005, Hope Haven, a private not-for-profit voluntary health and welfare organization, received a pledge from a donor who stipulated that $1,000 would be given to the organization each year for the next five years, starting on December 31, 2006. Present value factors at 6% for five periods are presented below.

align=”left”>

For the year ended December 31, 2005, Hope Haven should report, on its statement of activities,

1. Unrestricted revenues of $5,000.
2. Temporarily restricted revenues of $4,465.
3. Unrestricted revenues of $4,465.
4. Temporarily restricted revenues of $4,212.

which of the above events increased temporarily restricted net assets for the year e 607208

Aug 29, 2021 | Uncategorized

United Hope, a private not-for-profit voluntary health and welfare organization, received the following contributions in 2005:

1. I. $500 from donors who stipulated that the money not be spent until 2006.
2. II. $1,000 from donors who stipulated that the contributions be used for the acquisition of equipment, none of which was acquired in 2005.

Which of the above events increased temporarily restricted net assets for the year ending December 31, 2005?

1. I only.
2. Both I and II.
3. II only.
4. Neither I nor II.

on december 30 2005 leigh museum a not for profit organization received a 7 000 000 607212

Aug 29, 2021 | Uncategorized

On December 30, 2005, Leigh Museum, a not-for-profit organization, received a $7,000,000 donation of Day Co. shares with donor-stipulated requirements as follows:

Shares valued at $5,000,000 are to be sold, with the proceeds used to erect a public viewing building.

Shares valued at $2,000,000 are to be retained, with the dividends used to support current operations.

As a consequence of the receipt of the Day shares, how much should Leigh report as temporarily restricted net assets on its 2005 statement of financial position (balance sheet)?

1. $0
2. $2,000,000
3. $5,000,000
4. $7,000,000

during 2005 an alumnus of smith college a private not for profit college transferred 607218

Aug 29, 2021 | Uncategorized

During 2005, an alumnus of Smith College, a private not-for-profit college, transferred $100,000 to the college with the stipulation that it be spent for library acquisitions. However, the alumnus specified that none of the cash transferred could be spent until the college had matched the entire amount transferred with donations from other alumni by December 31, 2006. As of December 31, 2005, the college had received matching cash donations of only $5,000 from other alumni, and the college estimated that it was reasonably possible that it would not reach the goal of $100,000 by December 31, 2006. If the funds are not matched by December 31, 2006, the cash will be returned to the alumnus. On the college’s statement of financial position at December 31, 2005, the cash transfer of $100,000 would be included in the amount reported for

1. Liabilities.
2. Unrestricted net assets.
3. Temporarily restricted net assets.
4. Permanently restricted net assets.

on december 30 2005 jones notified good hope that the invoice was canceled and that 607221

Aug 29, 2021 | Uncategorized

On December 5, 2005, Jones Heating and Air Conditioning Service repaired the heating system in the building occupied by Good Hope, a private not-for-profit voluntary health and welfare organization. An invoice for $1,500 was received by Good Hope for the repairs on December 15, 2005. On December 30, 2005, Jones notified Good Hope that the invoice was canceled and that the repairs were being donated without charge. For the year ended December 31, 2005, how should Good Hope report these contributed services?

1. Only in the notes to the financial statements.
2. No disclosure is required either in the financial statements or in the notes.
3. As an increase in unrestricted revenues and as an increase in expenses on the statements of activities.
4. As an increase in temporarily restricted net assets on the statement of activities.

which of these contributed services should be included in unrestricted revenues gain 607222

Aug 29, 2021 | Uncategorized

During the year ended December 31, 2005, the James Community Foundation, a private not-for-profit organization, received the following contributed services:

1. I. Anderson & Anderson, attorneys-at-law, contributed their services which involved advice related to the foundation’s regular endowments.
2. II. Senior citizens participated in a telethon to raise money for a new music building.

Which of these contributed services should be included in unrestricted revenues, gains, and other support on James Community Foundation’s statement of activities for the year ended December 31, 2005?

1. Both I and II.
2. Neither I nor II.
3. II only.
4. I only.

what amount should child care centers record as contribution revenue in its 2005 sta 607223

Aug 29, 2021 | Uncategorized

Child Care Centers, Inc., a not-for-profit organization, receives revenue from various sources during the year to support its day care centers. The following cash amounts were received during 2005:

$2,000 restricted by the donor to be used for meals for the children.

$1,500 received for subscriptions to a monthly child-care magazine with a fair market value to subscribers of $1,000.

$10,000 to be used only upon completion of a new playroom that was only 50% complete at December 31, 2005.

What amount should Child Care Centers record as contribution revenue in its 2005 Statement of Activities?

1. $ 2,000
2. $ 2,500
3. $10,000
4. $11,000

darlin hospital a private not for profit hospital had the following cash receipts fo 607226

Aug 29, 2021 | Uncategorized

Darlin Hospital, a private not-for-profit hospital, had the following cash receipts for the year ended December 31, 2005:

align=”left”>

As a result of these cash receipts, the hospital’s statement of cash flows for the year ended December 31, 2005, would report an increase in operating activities of

1. $325,000
2. $375,000
3. $350,000
4. $300,000

during 2005 murry spent all of the donation in accordance with mr barlow rsquo s wis 607229

Aug 29, 2021 | Uncategorized

On November 30, 2004, Justin Barlow, an alumnus of Murry School, a private, not-for-profit high school, contributed $15,000, with the stipulation that the donation be used for faculty travel expenses during 2005. During 2005, Murry spent all of the donation in accordance with Mr. Barlow’s wishes. For the year ended December 31, 2005, what was the effect of the donation on unrestricted and temporarily restricted net assets?

align=”left”>

which of the following transactions would result in an increase in unrestricted net 607232

Aug 29, 2021 | Uncategorized

Which of the following transactions would result in an increase in unrestricted net assets for the year ended December 31, 2005?

1. I. A private, not-for-profit hospital earned interest on investments that were board-designated.
2. II. A private, not-for-profit voluntary health and welfare organization received unconditional promises to give (pledges) which will not be received until the beginning of 2006. The donors placed no restrictions on their donations.
   1. a. Both I and II.
   2. b. I only.
   3. c. II only.
   4. d. Neither I nor II.

benevolent society a private not for profit organization should recognize contribute 607233

Aug 29, 2021 | Uncategorized

Benevolent Society, a private not-for-profit organization, should recognize contributed services on its statement of activities if which of the following conditions is(are) met?

1. I. The contributed services create or enhance nonfinancial assets.
2. II. The contributed services require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation.
   1. a. Both I and II.
   2. b. Neither I nor II.
   3. c. I only.
   4. d. Either I or II.

reclassifications caused a simultaneous increase in permanently restricted net asset 607234

Aug 29, 2021 | Uncategorized

During 2005, Margaret Billingsley, a prominent art collector, donated several items in her collection to the Darrwin Museum, a private, not-for-profit organization. Ms. Billingsley stipulated that her contribution be shown to the public, that it should be preserved, and not be sold. Darrwin’s accounting policy is to capitalize all donations of art, historical treasures, and similar items. On the date of donation, what was the effect of Ms. Billingsley’s donation on Darrwin’s financial statements?

1. Temporarily restricted net assets increased.
2. Reclassifications caused a simultaneous increase in permanently restricted net assets and a decrease in temporarily restricted net assets.
3. There was no effect on any class of Darrwin’s net assets.
4. Permanently restricted net assets increased.

which of the following transactions or events would cause an increase in unrestricte 607235

Aug 29, 2021 | Uncategorized

Which of the following transactions or events would cause an increase in unrestricted net assets for the year ended December 31, 2005?

1. I. A private not-for-profit voluntary health and welfare organization spent a restricted donation that was received in 2004. In accordance with the donor’s wishes, the donation was spent on public health education during 2005.
2. II. During 2005, a private, not-for-profit college earned dividends and interest on term endowments. Donors placed no restrictions on the earnings of term endowments. The governing board of the college intends to use this investment income to fund undergraduate scholarships for 2006.
   1. a. II only.
   2. b. I only.
   3. c. Neither I nor II.
   4. d. Both I and II.

mary egbart promised columbus college a private not for profit college that she woul 607236

Aug 29, 2021 | Uncategorized

Mary Egbart promised Columbus College, a private, not-for-profit college, that she would provide 80% of the funds needed to construct a new performing arts center, if the college could get the remaining 20% of the funds needed from other donors by July 1, 2006. The promise was made in 2005. At December 31, 2005, the governing board of the college had received donations from other donors for approximately 15% of the cost of the new center and believed that the probability of not getting the remaining 5% of the necessary funds was remote. For the year ended December 31, 2005, Ms. Egbart’s promise would

1. Be reported as an increase in permanently restricted net assets on the statement of activities.
2. Not be reported on the statement of activities.
3. Be reported as an increase in deferred support on the statement of financial position.
4. Be reported as an increase in temporarily restricted net assets on the statement of activities.

for the year ended december 31 2005 how should the hospital report its investments i 607237

Aug 29, 2021 | Uncategorized

A private, not-for-profit hospital adopted SFAS 124, Accounting for Certain Investments Held by Not-for-Profit Organizations. For the year ended December 31, 2005, how should the hospital report its investments in debt securities that are classified as current assets and noncurrent assets on its statement of financial position (balance sheet)?

worldwide helpers and its foundation have adopted sfas 136 transfer of assets to a n 607241

Aug 29, 2021 | Uncategorized

World-Wide Helpers Foundation, a nonprofit entity, received a cash donation in 2005 from Herold Smith. World-Wide Helpers Foundation is controlled by WorldWide Helpers, a nonprofit entity that raises resources for others. The resources of World-Wide Helpers Foundation are used for the benefit of World-Wide Helpers. WorldWide Helpers and its foundation have adopted SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others, for its 2005 financial statements. How should World-Wide Helpers Foundation account for the cash donation?

1. As an increase in contribution revenues.
2. As an increase in liabilities.
3. As either an increase in contribution revenue or liabilities.
4. As neither an increase in contribution revenue or liabilities.

in accordance with sfas 136 transfer of assets to a not for profit organization or c 607242

Aug 29, 2021 | Uncategorized

In accordance with SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others, a cash donation from a resource provider should be reported as contribution revenue by a recipient organization when which of the following exists?

1. The recipient organization and beneficiary are not financially interrelated.
2. The resource provider does not allow the recipient organization to use the donation for beneficiaries other than those specified by the resource provider.
3. The resource provider does not grant variance power to the recipient organization to redirect the donation to other beneficiaries.
4. The resource provider grants variance power to the recipient organization to redirect the donation to other beneficiaries.

according to sfas 136 transfer of assets to a not for profit organization or charita 607243

Aug 29, 2021 | Uncategorized

Peter Smith made a cash donation in January 2005, to World-Wide Helpers, a nongovernmental, nonprofit organization that raises contributions for others. Peter specified the beneficiaries for his contribution, but provided variance power to World-Wide Helpers to use the donation for beneficiaries not specified by Peter. According to SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others, how should World-Wide Helpers account for Peter’s cash donation?

1. As an increase in contribution revenue.
2. As an increase in liabilities.
3. As either an increase in contribution revenue or liabilities.
4. As neither an increase in contribution revenue nor liabilities.

goodbody has adopted sfas 136 transfer of assets to a not for profit organization or 607244

Aug 29, 2021 | Uncategorized

The Taft family lost its home in a flood in October 2005. In November of 2005, Mary Wilson donated cash to Goodbody Benevolent Society to purchase furniture for the Taft family. In December 2005, Goodbody purchased this furniture for the Taft family. Goodbody has adopted SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others. How should Goodbody report the receipt of the cash donation in its 2005 financial statements?

1. As an unrestricted contribution.
2. As a temporarily restricted contribution.
3. As a liability.
4. As either a liability or as a temporarily restricted contribution.

going concern value aggie motors is a chain of used car dealerships that has publicl 606930

Aug 29, 2021 | Uncategorized

Going-concern value: Aggie Motors is a chain of used car dealerships that has publicly traded stock. Using the adjusted book value approach, you have estimated the value of Aggie Motors to be $45,646,000. The company has $40.5 million of debt outstanding. Its stock price is $5.5 per share, and there are 1,378,000 shares outstanding. What is the going concern value of Aggie Motors?

Johnson”s income statement from the fiscal year that ended this past December is:

All dollar values are in millions. Depreciation and amortization expenses last year were $42 million, and the company has $533 million of debt outstanding.

using the p e multiple what is the per share value of johnson s stock what is the to 606931

Aug 29, 2021 | Uncategorized

Multiples analysis: You are an analyst at a private equity firm that buys private companies, improves their operating performance, and sells them for a profit. Your boss has asked you to estimate the fair market value of the Johnson Machine Tool Company. Billy”s Tools is a public company with business operations that are virtually identical to those at Johnson. The most recent income statement for Billy”s Tools is as follows:

All dollar values are in millions. Billy”s had depreciation and amortization expenses of $71 million last year and had 200 million shares and $600 million of debt outstanding as of the end of the year. Its stock is currently trading at $12.25 per share.

Using the P/E multiple, what is the per share value of Johnson”s stock? What is the total value of Johnson Machine Tool Company?

compensation for other employees 200 000 in total appears to be consistent with the 606934

Aug 29, 2021 | Uncategorized

Valuing a private business: You want to estimate the value of a privately owned restaurant that is financed entirely with equity. Its most recent income statement is as follows:

You note that the profitability of this restaurant is significantly lower than that of comparable restaurants, primarily due to high salary and wage expenses. Further investigation reveals that the annual salaries for the owner and his wife, the firm”s accountant, are $900,000 and $300,000, respectively. These salaries are much higher than the industry median salaries for these two positions of $100,000 and $50,000, respectively. Compensation for other employees ($200,000 in total) appears to be consistent with the market rates. The median P/E ratio of comparable restaurants with no debt is 10. What is the total value of this restaurant?

if not how much more do you need to invest up front how much do you need to invest u 606935

Aug 29, 2021 | Uncategorized

You plan to start a business that sells waterproof sun block with a unique formula that reduces the damage of UVA radiation 30 percent more effectively than similar products on the market.
You expect to invest $50,000 in plant and equipment to begin the business. The targeted price of the sun block is $15 per bottle. You forecast that unit sales will total 1,500 bottles in the first month and will increase by 20 percent in each of the following months during the first year. You expect the cost of raw materials to be $3 per bottle. In addition, monthly gross wages and payroll are expected to be $13,000, rent is expected to be $3,000, and other expenses are expected to total $1,000. Advertising costs are estimated to be $35,000 in the first month, but to remain constant at $5,000 per month during the following eleven months.
You have decided to finance the entire business at one time using your own savings. Is an initial investment of $75,000 adequate to avoid a negative cash balance in any given month? If not, how much more do you need to invest up front? How much do you need to invest up front to keep a minimum cash balance of $5,000? What is the break-even point for the business?

if the proceeds from the loan go directly into the business on the first day and are 606936

Aug 29, 2021 | Uncategorized

For the previous question, assume that you do not have sufficient savings to cover the entire amount required to start your sun-block business. You are going to have to get external financing. A local banker whom you know has offered you a six-month loan of $20,000 at an APR of 12 percent. You will pay interest each month and repay the entire principal at the end of six months.
Assume that instead of making a single up-front investment, you are going to finance the business by making monthly investments as cash is needed in the business. If the proceeds from the loan go directly into the business on the first day and are therefore available to pay for some of the capital expenditures, how much money do you need to pull out of your savings account every month to run the business and keep the cash balances positive?

valuing a private business a few years ago a friend of yours started a small busines 606937

Aug 29, 2021 | Uncategorized

Valuing a private business: A few years ago, a friend of yours started a small business that develops gaming software. The company is doing well and is valued at $1.5 million based on multiples for comparable public companies after adjustments for their lack of marketability. With 300,000 shares outstanding, each share is estimated to be worth $5. Your friend, who has been serving as CEO and CTO (chief technology officer), has decided that he lacks sufficient managerial skills to continue to build the company. He wants to sell his 160,000 shares and invest the money in an MBA education. You believe you have the appropriate managerial skills to run the company. Would you pay $5 each for these shares? What are some of the factors you should consider in making this decision?

cy city rsquo s municipal solid waste landfill enterprise fund was established when 607168

Aug 29, 2021 | Uncategorized

Cy City’s Municipal Solid Waste Landfill Enterprise Fund was established when a new landfill was opened January 3, 2005. The landfill is expected to reach capacity and close December 31, 2025. Cy’s 2005 expenses would include a portion of which of the year 2026 expected disbursements?

1. I. Cost of a final cover to be applied to the landfill.
2. II. Cost of equipment to be installed to monitor methane gas buildup.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

for governmental units depreciation expense on assets acquired with capital grants e 607173

Aug 29, 2021 | Uncategorized

For governmental units, depreciation expense on assets acquired with capital grants externally restricted for capital acquisitions should be reported in which type of fund?

align=”left”>

in the water and sewer enterprise fund rsquo s statement of cash flows for the year 607175

Aug 29, 2021 | Uncategorized

The following transactions were among those reported by Cliff County’s water and sewer enterprise fund for 2005:

align=”left”>

In the water and sewer enterprise fund’s statement of cash flows for the year ended December 31, 2005, what amount should be reported as cash flows from capital and related financing activities?

1. $9,000,000
2. $8,000,000
3. $6,000,000
4. $5,000,000

rock county has acquired equipment through a noncancelable lease purchase agreement 607177

Aug 29, 2021 | Uncategorized

Items 1 through 3 are based on the following:

Rock County has acquired equipment through a noncancelable lease-purchase agreement dated December 31, 2005. This agreement requires no down payment and the following minimum lease payments:

align=”left”>

What account should be debited for $150,000 in the general fund at inception of the lease if the equipment is a general fixed asset and Rock does not use a capital projects fund?

1. Other Financing Uses Control.
2. Equipment.
3. Expenditures Control.
4. Memorandum entry only.

If the equipment is used in enterprise fund operations and the lease payments are to be financed with enterprise fund revenues, what account should be debited for $150,000 in the enterprise fund at the inception of the lease?

1. Expenses Control.
2. Expenditures Control.
3. Other Financing Sources Control.
4. Equipment.

If the equipment is used in internal service fund operations and the lease payments are financed with internal service fund revenues, what account or accounts should be debited in the internal service fund for the December 31, 2005 lease payment of $65,000?

align=”left”>

to record the 2005 pension contribution of 11 000 what debit is required in the gove 607180

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Elm City contributes to and administers a single-employer defined benefit pension plan on behalf of its covered employees. The plan is accounted for in a pension trust fund. For the year ended December 31, 2005, employer contributions to the pension trust fund amounted to $11,000.

What account should be credited in the pension trust fund to record the 2005 employer contribution of $11,000?

1. Additions.
2. Other Financing Sources Control.
3. Due from Special Revenue Fund.
4. Pension Benefit Obligation.

To record the 2005 pension contribution of $11,000, what debit is required in the governmental-type fund used in connection with employer pension contributions?

1. Other Financing Uses Control.
2. Expenditures Control.
3. Expenses Control.
4. Due to Pension Trust Fund.

jamestown adopted the provisions of gasb 34 basic financial statements mdash and man 607182

Aug 29, 2021 | Uncategorized

Jamestown adopted the provisions of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for the year ended December 31, 2005. During the year ended December 31, 2005, Jamestown had the following selected transactions:

• The general fund made a $100,000 advance to an internal service fund. The internal service fund will repay the advance in 2006.
• The water utility enterprise fund billed the general fund $25,000 for water usage.
• The general fund transferred $30,000 to a debt service fund to pay interest on general obligation bonds.

On Jamestown’s government-wide statement of activities for the year ended December 31, 2005, what amount should be reported for transfers?

1. $125,000
2. $ 55,000
3. $0
4. $130,000

on harrisville rsquo s government wide statement of activities for the year ended de 607183

Aug 29, 2021 | Uncategorized

The town of Harrisville adopted the provisions of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for the year ended December 31, 2005. During the year ended December 31, 2005, Harrisville had the following selected transactions:

• The general fund made a permanent transfer of $100,000 to an enterprise fund. The enterprise fund used the amount transferred to acquire capital assets.
• The general fund transferred $1,000,000 to a capital projects fund for the town’s portion of the cost for the renovation of the town hall.
• The general fund was reimbursed $5,000 by an enterprise fund for expenses paid by the general fund that were properly charged as operating expenses of the enterprise fund.

On Harrisville’s government-wide statement of activities for the year ended December 31, 2005, what amount should be reported as transfers?

1. $ 100,000
2. $1,100,000
3. $1,005,000
4. $ 105,000

in accordance with gasb 35 a public college or university that chooses to report bot 607185

Aug 29, 2021 | Uncategorized

In accordance with GASB 35, a public college or university that chooses to report both governmental and business-type activities should report

align=”left”>

good hope a private not for profit voluntary health and welfare organization receive 607192

Aug 29, 2021 | Uncategorized

Good Hope, a private not-for-profit voluntary health and welfare organization, received a cash donation of $500,000 from Mr. Charles Peobody on November 15, 2005. Mr. Peobody directed that his donation be used to acquire equipment for the organization. Good Hope used the donation to acquire equipment costing $500,000 in January of 2006. For the year ended December 31, 2005, Good Hope should report the $500,000 contribution on its

1. Statement of activities as unrestricted revenue.
2. Statement of financial position as temporarily restricted deferred revenue.
3. Statement of financial position as unrestricted deferred revenue.
4. Statement of activities as temporarily restricted revenue.

on albert university rsquo s statement of cash flows for the year ended june 30 2005 607194

Aug 29, 2021 | Uncategorized

Albert University, a private not-for-profit university, had the following cash inflows during the year ended June 30, 2005:

1. I. $500,000 from students for tuition.
2. II. $300,000 from a donor who stipulated that the money be invested indefinitely.
3. III. $100,000 from a donor who stipulated that the money be spent in accordance with the wishes of Albert’s governing board.

On Albert University’s statement of cash flows for the year ended June 30, 2005, what amount of these cash flows should be reported as operating activities?

1. $900,000
2. $400,000
3. $800,000
4. $600,000

save the planet a private nonprofit research organization received a 500 000 contrib 607196

Aug 29, 2021 | Uncategorized

Save the Planet, a private nonprofit research organization, received a $500,000 contribution from Ms. Susan Clark. Ms. Clark stipulated that her donation be used to purchase new computer equipment for Save the Planet’s research staff. The contribution was received in August of 2005, and the computers were acquired in January of 2006. For the year ended December 31, 2005, the $500,000 contribution should be reported by Save the Planet on its

1. Statement of activities as unrestricted revenue.
2. Statement of activities as deferred revenue.
3. Statement of activities as temporarily restricted revenue.
4. Statement of financial position as deferred revenue.

united ways a private not for profit voluntary health and welfare organization recei 607197

Aug 29, 2021 | Uncategorized

United Ways, a private not-for-profit voluntary health and welfare organization, received a contribution of $10,000 from a donor in 2005. The donor did not specify any use restrictions on the contribution; however, the donor specified that the donation should not be used until 2006. The governing board of United Ways spent the contribution in 2006 for fund-raising expenses. For the year ended December 31, 2005, United Ways should report the contribution on its

1. Statement of financial position as deferred revenue.
2. Statement of activities as unrestricted revenue.
3. Statement of financial position as an increase in fund balance.
4. Statement of activities as temporarily restricted revenue.

sea lion park a private not for profit zoological society received contributions res 607201

Aug 29, 2021 | Uncategorized

Sea Lion Park, a private not-for-profit zoological society, received contributions restricted for research totaling $50,000 in 2005. None of the contributions were spent on research in 2005. In 2006, $35,000 of the contributions were used to support the research activities of the society. The net effect on the statement of activities for the year ended December 31, 2006, for Sea Lion Park would be a

1. $15,000 increase in temporarily restricted net assets.
2. $35,000 decrease in temporarily restricted net assets.
3. $35,000 increase in unrestricted net assets.
4. $35,000 decrease in unrestricted net assets.

which of the following transactions of a private not for profit voluntary health and 607203

Aug 29, 2021 | Uncategorized

Which of the following transactions of a private not-for-profit voluntary health and welfare organization would increase temporarily restricted net assets on the statement of activities for the year ended June 30, 2005?

1. I. Received a contribution of $10,000 from a donor on May 15, 2005, who stipulated that the donation not be spent until August of 2005.
2. II. Spent $25,000 for fund-raising on June 20, 2005. The amount expended came from a $25,000 contribution on March 12, 2005. The donor stipulated that the contribution be used for fund-raising activities.
   1. a. Both I and II.
   2. b. Neither I nor II.
   3. c. I only.
   4. d. II only.

what amount should oak city report for 2005 property tax revenues in the statement o 606535

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following information for Oak City for the calendar year 2005:

align=”left”>

What amount should Oak City report for 2005 property tax revenues in the Statement of Revenues, Expenditures, and Changes in Fund Balances prepared for governmental funds?

1. $700,000
2. $690,000
3. $600,000
4. $500,000

What amount should Oak City report for 2005 property tax revenues in the government-wide Statement of Activities?

1. $700,000
2. $690,000
3. $600,000
4. $500,000

what amount of the foregoing revenues should be accounted for in ariba rsquo s gover 606539

Aug 29, 2021 | Uncategorized

The following revenues were among those reported by Ariba Township in 2005:

align=”left”>

What amount of the foregoing revenues should be accounted for in Ariba’s governmental-type funds?

1. $6,140,000
2. $6,100,000
3. $6,040,000
4. $6,000,000

the general fund of cliff township acquired two police cars at the beginning of janu 606540

Aug 29, 2021 | Uncategorized

Items 1 through 3 are based on the following:

The general fund of Cliff Township acquired two police cars at the beginning of January 2005, at a total cost of $40,000. The cars are expected to last for four years and have a $10,000 residual value. Straight-line depreciation is used. Cliff adopted the provisions of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for 2005.

On the balance sheet for the governmental funds at December 31, 2005, the police cars will be reported under assets in the general fund column at which of the following amounts?

1. $40,000
2. $32,500
3. $0
4. $22,500

On the government-wide statement of net assets at December 31, 2005, the police cars will be reported under assets in the governmental activities column at which of the following amounts?

1. $40,000
2. $32,500
3. $0
4. $22,500

On the statement of revenues, expenditures, and changes in fund balances prepared for the governmental funds for the year ended December 31, 2005, the police cars will be reported as

1. Expenditures of $40,000.
2. Expense of $7,500.
3. Expenditures of $7,500.
4. Expense of $40,000.

the city of vicksburg adopted the provisions of gasb 34 basic financial statements m 606541

Aug 29, 2021 | Uncategorized

Items 1 through 4 are based on the following:

The City of Vicksburg adopted the provisions of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for the year ended December 31, 2005. During the year ended December 31, 2005, the general fund of Vicksburg has the following selected transactions:

• Acquired police cars for $75,000 in January 2005. The cars have an estimated five-year useful life and a $15,000 salvage value. The City uses the straight-line method to depreciate all of its capital assets.
• Transferred $30,000 to the pension trust fund. The amount represented the employer’s contribution.
• Levied property taxes in the amount of $800,000. Two percent of the levy was not expected to be collected. At December 31, 2005, $750,000 of the property taxes were collected, but the remainder was not expected to be collected within sixty days after the end of 2005.
• Received $100,000 of sales tax revenues from the state and was owed another $25,000 by the state for sales taxes collected in 2005 that will not be remitted to Vicksburg until mid-March 2006. The sales taxes expected to be received in March will be used to pay for expenditures incurred in 2006.

On the statement of revenues, expenditures, and changes in fund balances prepared for the governmental funds for the year ended December 31, 2005, what amount should be reported for expenditures in Vicksburg’s general fund related to the acquisition of police cars and to the pension transfer?

1. $ 42,000
2. $105,000
3. $ 75,000
4. $ 30,000

On the statement of revenues, expenditures, and changes in fund balances prepared for the governmental funds for the year ended December 31, 2005, what amount should be reported for revenues in Vicksburg’s general fund related to property taxes and sales taxes?

1. $884,000
2. $909,000
3. $850,000
4. $875,000

On the government-wide statement of activities prepared for the year ended December 31, 2005, what amount should be reported for expenses for governmental activities related to the acquisition of the police cars and to the pension transfer?

1. $ 42,000
2. $105,000
3. $ 75,000
4. $ 30,000

On the government-wide statement of activities prepared for the year ended December 31, 2005, what amount should be reported for revenues from governmental activities related to the property taxes and the sales taxes?

1. $884,000
2. $909,000
3. $850,000
4. $875,000

maple rsquo s school bus system is appropriately accounted for in a special revenue 606542

Aug 29, 2021 | Uncategorized

In November 2005, Maple Township received an unexpected state grant of $100,000 to finance the purchase of school buses, and an additional grant of $5,000 was received for bus maintenance and operations. According to the terms of the grant, the State reimbursed Maple Township for $60,000 for the purchase of school buses and an additional $5,000 for bus maintenance during the year ended June 30, 2006. The remaining $40,000 of the capital grant is expected to be spent during the next fiscal year June 30, 2007. Maple’s school bus system is appropriately accounted for in a special revenue fund. In connection with the grants for the purchase of school buses and bus maintenance, what amount should be reported as grant revenues for the year ending June 30, 2006, when using modified accrual accounting?

1. $ 5,000
2. $ 60,000
3. $ 65,000
4. $100,000

what amount should be accounted for in lake rsquo s special revenue funds 606543

Aug 29, 2021 | Uncategorized

Lake County received the following proceeds that are legally restricted to expenditure for specified purposes:

align=”left”>

What amount should be accounted for in Lake’s special revenue funds?

1. $1,400,000
2. $ 900,000
3. $ 500,000
4. $0

should a major special revenue fund with a legally adopted budget maintain its accou 606544

Aug 29, 2021 | Uncategorized

Should a major special revenue fund with a legally adopted budget maintain its accounts on an accrual basis and integrate budgetary accounts into its accounting system?

align=”left”>

financing for the renovation of fir city rsquo s municipal park begun and completed 606546

Aug 29, 2021 | Uncategorized

Financing for the renovation of Fir City’s municipal park, begun and completed during 2005, came from the following sources:

align=”left”>

In its 2005 capital projects fund operating statement, Fir should report these amounts as

align=”left”>

dale city is accumulating financial resources that are legally restricted to payment 606551

Aug 29, 2021 | Uncategorized

Dale City is accumulating financial resources that are legally restricted to payments of general long-term debt principal and interest maturing in future years. At December 31, 2005, $5,000,000 has been accumulated for principal payments and $300,000 has been accumulated for interest payments. These restricted funds should be accounted for in the

align=”left”>

assuming oak county rsquo s fiscal year ends of june 30 what amount of issue costs a 606552

Aug 29, 2021 | Uncategorized

On April 1, 2005, Oak County incurred the following expenditures in issuing long-term bonds:

align=”left”>

Oak County has established a debt service fund for the payment of interest and principal of its long-term bonds. Assuming Oak County’s fiscal year ends of June 30, what amount of issue costs and debt insurance costs should be reported as an asset on the governmental funds’ balance sheet at June 30, 2005?

1. $0
2. $ 90,000
3. $400,000
4. $490,000

interest is payable january 1 and july 1 what amount of bond premium should be amort 606554

Aug 29, 2021 | Uncategorized

Wood City, which is legally obligated to maintain a debt service fund, issued the following general obligation bonds on July 1, 2005:

align=”left”>

Interest is payable January 1 and July 1. What amount of bond premium should be amortized in Wood’s debt service fund for the year ended December 31, 2005?

1. $1,000
2. $ 500
3. $ 250
4. $0

the debt service fund of a governmental unit is used to account for the accumulation 606555

Aug 29, 2021 | Uncategorized

The debt service fund of a governmental unit is used to account for the accumulation of resources for, and the payment of, principal and interest in connection with a

align=”left”>

the proceeds were to be used to finance the construction of a civic center over the 606557

Aug 29, 2021 | Uncategorized

On March 2, 2005, Finch City issued ten-year general obligation bonds at face amount, with interest payable March 1 and September 1. The proceeds were to be used to finance the construction of a civic center over the period April 1, 2005, to March 31, 2006. During the fiscal year ended June 30, 2005, no resources had been provided to the debt service fund for the payment of principal and interest.

On June 30, 2005, Finch’s debt service fund should include interest payable on the general obligation bonds for

1. 0 months.
2. Three months.
3. Four months.
4. Six months.

how would you recommend doing this if you want to complete the adjustment as soon as 606907

Aug 29, 2021 | Uncategorized

You are the CFO of a public company that advises distressed companies about how to manage their businesses in a recessionary environment. Your company has been performing extremely well since the recession began in 2008. During this period, your company has earned so much money that the increase in its retained earnings has resulted in a decline in the firm”s debt to total capital ratio from 30 percent to 15 percent. Much of the retained earnings is sitting in a cash account because your firm does not need the money fund investments. You would like to increase the debt-to-total capital ratio to 30 percent, which you view as optimal for your firm. How would you recommend doing this if you want to complete the adjustment as soon as possible?

you want to help your sister by providing the additional money that she needs how mu 606912

Aug 29, 2021 | Uncategorized

Your sister wants to open a store that sells antique-style jewelry and accessories. She has $15,000 of savings to invest, but opening the store will require an initial investment of $20,000. Net cash inflows will be -$2,000, -$1,000, and $0 in the first three months. As the store becomes better known, net cash inflows will become +$500 in the fourth month and grow at a constant rate of 5 percent in the following months. You want to help your sister by providing the additional money that she needs. How much money do you have to invest each month to start and to keep the store operating with a minimum cash balance of $1,000?

estimate the enterprise value of the company you are evaluating using the p e and en 606913

Aug 29, 2021 | Uncategorized

You have the following information for a company you are valuing and for a comparable company:

Estimate the enterprise value of the company you are evaluating using the P/E and enterprise value/EBITDA multiples.

you expect that mr smith will have sufficient time to work with his junior partners 606914

Aug 29, 2021 | Uncategorized

You want to estimate the value of a local advertising firm. The earnings of the firm are expected to be $2 million next year. Based on expected earnings next year, the average price-to-earnings ratio of similar firms in the same industry is 48. Therefore, you estimate the value of the firm you are valuing to be $96 million.
Further investigation shows that a large portion of the firm”s business is obtained through connections that John Smith, a senior partner of the firm, has with various advertising executives at customer firms. Mr. Smith only recently started working with his junior partners to establish similar relationships with these customers.
Mr. Smith is approaching 65 years of age and might announce his retirement at the next board meeting. If he does retire, revenues will drop significantly and earnings are estimated to shrink by 30 percent. You estimate that the probability that Mr. Smith will retire this year is 50 percent. If he does not retire this year, you expect that Mr. Smith will have sufficient time to work with his junior partners so his departure will not affect earnings when he departs. How does this information affect your estimate of the value of the firm?

chrysler s revenue in 2010 was 50 0 billion based on the enterprise value revenue ra 606923

Aug 29, 2021 | Uncategorized

Multiples analysis: It is April 4, 2011, and your company is considering the possibility of purchasing the Chrysler automobile manufacturing business. The private equity investors who own Chrysler have hinted that they might be interested in selling the firm. Since Chrysler does not have publicly traded shares of its own, you have decided to use Ford Motor Company as a comparable company to help you determine the market value of Chrysler. This morning, Ford”s common stock was trading at $16.69 per share, and the company had 3.47 billion shares outstanding. You estimated that the market value of all of the company”s other outstanding securities (excluding the common stock but including special shares owned by the Ford family) is $100 billion and that its revenues from auto sales were $133.4 billion last year. Chrysler”s revenue in 2010 was $50.0 billion. Based on the enterprise value/revenue ratio, what is the total value of Chrysler that is implied by the Ford market values?

in addition you know that the company has 46 million shares outstanding and that the 606925

Aug 29, 2021 | Uncategorized

Dividend discount approach: You want to estimate the total intrinsic value of a large gas and electric utility company. This company has publicly traded stock and has been paying a regular dividend for many years. You decide that, due to the predictability of the dividend that this company pays, you can use the dividend discount valuation approach. The company is expected to pay a dividend of $1.25 per share next year, and the dividend is expected to grow at a rate of 3 percent per year thereafter. You estimate that the appropriate rate for discounting future dividends is 12 percent. In addition, you know that the company has 46 million shares outstanding and that the market value of its debt is $350 million. What is the total enterprise value of the company?

assume that the production capacity is not limited and that the marketing cost is th 606929

Aug 29, 2021 | Uncategorized

Break-even: You have started a business that sells a home gardening system that allows people to grow vegetables on the countertop in their kitchens. You are considering two options for marketing your product. The first is to advertise on local TV. The second is to distribute flyers in the local community. The TV option, which costs $50,000 annually, will promote the product more effectively and create a demand for 1,200 units per year. The flyer advertisement option costs only $6,000 annually but will create a demand for only 250 units per year. The price per unit of the indoor gardening system is $100, and the variable cost is $60 per unit. Assume that the production capacity is not limited and that the marketing cost is the only fixed cost involved in your business. What are the break-even points for both marketing options? Which one should you choose?

in the electric utility enterprise fund rsquo s statement of cash flows for the year 606495

Aug 29, 2021 | Uncategorized

The following transactions were among those reported by Corfe City’s electric utility enterprise fund for 2005:

align=”left”>

In the electric utility enterprise fund’s statement of cash flows for the year ended December 31, 2005, what amount should be reported as cash flows from capital and related financing activities?

1. $4,500,000
2. $5,400,000
3. $7,200,000
4. $8,100,000

for which of the following governmental entities that use proprietary fund accountin 606496

Aug 29, 2021 | Uncategorized

For which of the following governmental entities that use proprietary fund accounting should a statement of cash flows be presented?

align=”left”>

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606498

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is correct about the information reported on the balance sheet prepared for the governmental funds?

1. I. The focus is on reporting major funds, with all nonmajor funds aggregated and reported in a single column.
2. II. Fund balances are reported in two amounts—restricted and unrestricted.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

which of the following statements is correct about the information reported on the s 606499

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is correct about the information reported on the statement of net assets for the proprietary funds?

1. I. Assets and liabilities are classified into current and noncurrent classifications.
2. II. All activities of internal service funds are aggregated and reported in a single column.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606500

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following financial statements is prepared using the accrual basis of accounting and the economic resources measurement focus?

1. I. The statement of net assets for proprietary funds.
2. II. The statement of revenues, expenditures, and changes in fund balances for the governmental funds.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606504

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is(are) true regarding the statement of cash flows?

1. I. The statement of cash flows is a government-wide financial statement.
2. II. The statement of cash flows reports cash flows from three activities—operating, investing, and financing.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606505

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, a reconciliation must be shown of the items that cause the difference between (1) the total of the fund balances that appears on the balance sheet for the governmental funds and (2) the total net assets that are disclosed for governmental activities on the government-wide statement of net assets. Which of the following items would be disclosed in this reconciliation?

1. I. Capital assets used in governmental activities.
2. II. The assets and liabilities of internal service funds included in governmental activities.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606506

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, a reconciliation must be shown of the items that cause the difference between (1) the net change in fund balances for the governmental funds on the statement of revenues, expenditures, and changes in fund balances, and (2) the change in net assets of governmental activities on the statement of activities. Which of the following items would be disclosed in this reconciliation?

1. I. Revenues and expenses of internal service funds that were reported in proprietary funds.
2. II. The amount by which capital outlays exceeded depreciation expense for the period.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606507

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, what measurement focus should be used for the preparation of the following financial statements?

align=”left”>

cash flows from capital financing activities are reported separately from cash flows 606509

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is correct concerning the statement of cash flows prepared for proprietary funds?

1. The statement format is the same as that of a business enterprise’s statement of cash flows.
2. Cash flows from capital financing activities are reported separately from cash flows from noncapital financing activities.
3. Cash flows from operating activities may not be reported using the direct method.
4. Cash received from interest revenue and cash paid for interest expense are both reported as operating activities.

which of the following funds of a governmental unit recognizes revenues in the accou 606511

Aug 29, 2021 | Uncategorized

Which of the following funds of a governmental unit recognizes revenues in the accounting period in which they become available and measurable?

align=”left”>

the general fund of elizabeth city received a 100 000 grant from the state to be use 606514

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

The general fund of Elizabeth City received a $100,000 grant from the state to be used for retraining its police force in modern crime-fighting methods. The state recently passed legislation that requires retraining for all police departments in the state. The grant was received in cash on June 15, 2005, and was used for retraining seminars during July 2005. The state mandated that the grant be spent in the fiscal year ending June 30, 2006. Elizabeth’s fiscal year ends on June 30. Answer each of the questions below based upon the guidance provided by GASB 33, Accounting and Financial Reporting for Nonexchange Transactions.

What account should be credited in the general fund on the date the grant was received?

1. Restricted revenue.
2. Deferred revenue.
3. Revenue.
4. Unreserved fund balance.

The grant from the state is an example of what type of nonexchange transaction?

1. Government-mandated.
2. Imposed.
3. Voluntary.
4. Derived.

however eldorado estimated that its share of the sales taxes would be received in ea 606515

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

The merchants of Eldorado City collect a sales tax of 5% on retail sales. The sales taxes are remitted by retailers to the state and distributed by the state to the various governmental units that are within the boundaries of Eldorado City. During the month of June 2005, the state received $50,000 of sales taxes from merchants in Eldorado. As of June 30, 2005, none of the sales taxes had been remitted to Eldorado or to any of the other governments that were within the boundaries of Eldorado. However, Eldorado estimated that its share of the sales taxes would be received in early July 2005, and would be used to pay for expenditures incurred during the year ended June 30, 2005. Eldorado’s fiscal year ends on June 30. Answer both of the questions below using the guidance provided in GASB 33, Accounting and Financial Reporting for Nonexchange Transactions.

From the perspective of Eldorado City, the sales taxes are an example of what type of nonexchange transaction?

1. Imposed.
2. Voluntary.
3. Derived.
4. Government-mandated

On the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2005, how should the general fund of Eldorado report its share of the sales taxes that will be received in July 2005?

1. Deferred revenue.
2. Restricted revenue.
3. Revenue.
4. Unreserved fund balance.

in accordance with gasb 33 accounting and reporting for nonexchange transactions how 606517

Aug 29, 2021 | Uncategorized

For the year ended December 31, 2005, the general fund of Karsten City levied property taxes of $1,000,000.

The city estimated that $10,000 of the levy would not be collectible. By December 31, 2005, the city had collected $850,0000 of property taxes and expected to collect the remainder of the taxes as follows:

• $100,000 by March 1, 2006
• $ 40,000 during the remainder of 2006

In accordance with GASB 33, Accounting and Reporting for Nonexchange Transactions, how much property tax revenue should be reported by the general fund on the statement of revenues, expenditures, and changes in fund balances prepared for the year ended December 31, 2005?

1. $ 850,000
2. $ 950,000
3. $ 990,000
4. $1,000,000

in accordance with gasb 33 accounting and reporting for nonexchange transactions wha 606518

Aug 29, 2021 | Uncategorized

For the year ended December 31, 2005, the general fund of Ward Village reported revenues from the following sources on the statement of revenues, expenditures, and changes in fund balances:

align=”left”>

In accordance with GASB 33, Accounting and Reporting for Nonexchange Transactions, what is the amount of revenues that came from imposed nonexchange transactions?

1. $175,000
2. $150,000
3. $140,000
4. $135,000

ridge township rsquo s governing body adopted its general fund budget for the year e 606522

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Ridge Township’s governing body adopted its general fund budget for the year ended July 31, 2005, comprised of Estimated Revenues of $100,000 and Appropriations of $80,000. Ridge formally integrates its budget into the accounting records.

To record the appropriations of $80,000, Ridge should

1. Credit Appropriations Control.
2. Debit Appropriations Control.
3. Credit Estimated Expenditures Control.
4. Debit Estimated Expenditures Control.

To record the $20,000 budgeted excess of estimated revenues over appropriations, Ridge should

1. Credit Estimated Excess Revenues Control.
2. Debit Estimated Excess Revenues Control.
3. Credit Budgetary Fund Balance.
4. Debit Budgetary Fund Balance.

in the budgetary entry what amount should maple record for estimated revenues 606523

Aug 29, 2021 | Uncategorized

For the budgetary year ending December 31, 2005, Maple City’s general fund expects the following inflows of resources:

align=”left”>

In the budgetary entry, what amount should Maple record for estimated revenues?

1. $ 9,000,000
2. $10,000,000
3. $14,000,000
4. $15,000,000

during the year expenditures and encumbrances were less than appropriations whereas 606530

Aug 29, 2021 | Uncategorized

The budget of a governmental unit, for which the appropriations exceed the estimated revenues, was adopted and recorded in the general ledger at the beginning of the year. During the year, expenditures and encumbrances were less than appropriations, whereas revenues equaled estimated revenues. The Budgetary Fund Balance account is

1. Credited at the beginning of the year and debited at the end of the year.
2. Credited at the beginning of the year and not changed at the end of the year.
3. Debited at the beginning of the year and credited at the end of the year.
4. Debited at the beginning of the year and not changed at the end of the year.

appropriations do not lapse at year end at december 31 2005 what amount should park 606531

Aug 29, 2021 | Uncategorized

The following information pertains to Park Township’s general fund at December 31, 2005:

align=”left”>

Appropriations do not lapse at year-end. At December 31, 2005, what amount should Park report as unreserved fund balance in its general fund balance sheet?

1. $200,000
2. $300,000
3. $400,000
4. $500,000

the following information pertains to pine city rsquo s general fund for 2005 606532

Aug 29, 2021 | Uncategorized

The following information pertains to Pine City’s general fund for 2005:

align=”left”>

After Pine’s general fund accounts were closed at the end of 2005, the fund balance increased by

1. $3,000,000
2. $2,500,000
3. $1,500,000
4. $1,000,000

in 2006 the partnership sustained a 33 000 loss before interest and salaries to part 606454

Aug 29, 2021 | Uncategorized

Fox, Greg, and Howe are partners with average capital balances during 2005 of $120,000, $60,000, and $40,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to Howe, the residual profit or loss is divided equally. In 2006 the partnership sustained a $33,000 loss before interest and salaries to partners. By what amount should Fox’s capital account change?

1. $ 7,000 increase.
2. $11,000 decrease.
3. $35,000 decrease.
4. $42,000 increase.

what amount of interest should be credited to simm rsquo s capital account for 2006 606456

Aug 29, 2021 | Uncategorized

The partnership agreement of Reid and Simm provides that interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. A summary of Simm’s capital account for the year ended December 31, 2006, is as follows:

align=”left”>

What amount of interest should be credited to Simm’s capital account for 2006?

1. $15,250
2. $15,375
3. $16,500
4. $17,250

which partner has a greater advantage when the partnership has a profit or when it h 606457

Aug 29, 2021 | Uncategorized

The Flat and Iron partnership agreement provides for Flat to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between Flat and Iron in the ratio of 2:3, respectively. Which partner has a greater advantage when the partnership has a profit or when it has a loss?

align=”left”>

on that date lind was admitted as a partner with a one third interest in capital and 606458

Aug 29, 2021 | Uncategorized

Blau and Rubi are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, 2006, their respective capital accounts were as follows:

align=”left”>

On that date, Lind was admitted as a partner with a one-third interest in capital and profits for an investment of $40,000. The new partnership began with total capital of $150,000. Immediately after Lind’s admission, Blau’s capital should be

1. $50,000
2. $54,000
3. $56,667
4. $60,000

kern and pate are partners with capital balances of 60 000 and 20 000 respectively p 606459

Aug 29, 2021 | Uncategorized

Kern and Pate are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kern and Pate decided to form a new partnership with Grant, who invested land valued at $15,000 for a 20% capital interest in the new partnership. Grant’s cost of the land was $12,000. The partnership elected to use the bonus method to record the admission of Grant into the partnership. Grant’s capital account should be credited for

1. $12,000
2. $15,000
3. $16,000
4. $19,000

the following condensed balance sheet is presented for the partnership of alfa and b 606461

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

The following condensed balance sheet is presented for the partnership of Alfa and Beda, who share profits and losses in the ratio of 60:40, respectively:

align=”left”>

The assets and liabilities are fairly valued on the balance sheet. Alfa and Beda decide to admit Capp as a new partner with 20% interest. No goodwill or bonus is to be recorded. What amount should Capp contribute in cash or other assets?

1. $110,000
2. $116,000
3. $140,000
4. $145,000

Instead of admitting a new partner, Alfa and Beda decide to liquidate the partnership. If the other assets are sold for $500,000, what amount of the available cash should be distributed to Alfa?

1. $255,000
2. $273,000
3. $327,000
4. $348,000

what ratio would be used to allocate to adel and brick the excess of colter rsquo s 606462

Aug 29, 2021 | Uncategorized

In the Adel-Brick partnership, Adel and Brick had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Colter’s admittance as a new partner. What ratio would be used to allocate, to Adel and Brick, the excess of Colter’s contribution over the amount credited to Colter’s capital account?

1. Adel and Brick’s new relative capital ratio.
2. Adel and Brick’s new relative profit and loss ratio.
3. Adel and Brick’s old capital ratio.
4. Adel and Brick’s old profit and loss ratio.

on june 30 2006 the condensed balance sheet for the partnership of eddy fox and grim 606463

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

On June 30, 2006, the condensed balance sheet for the partnership of Eddy, Fox, and Grimm, together with their respective profit and loss sharing percentages were as follows:

align=”left”>

Eddy decided to retire from the partnership and by mutual agreement is to be paid $180,000 out of partnership funds for his interest. Total goodwill implicit in the agreement is to be recorded. After Eddy’s retirement, what are the capital balances of the other partners?

align=”left”>

Assume instead that Eddy remains in the partnership and that Hamm is admitted as a new partner with a 25% interest in the capital of the new partnership for a cash payment of $140,000. Total goodwill implicit in the transaction is to be recorded. Immediately after admission of Hamm, Eddy’s capital account balance should be

1. $280,000
2. $210,000
3. $160,000
4. $140,000

it was agreed that the partnership would pay coll 61 200 cash for coll rsquo s partn 606464

Aug 29, 2021 | Uncategorized

On June 30, 2006, the balance sheet for the partnership of Coll, Maduro, and Prieto, together with their respective profit and loss ratios, were as follows:

align=”left”>

Coll has decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of $216,000 at June 30, 2006. It was agreed that the partnership would pay Coll $61,200 cash for Coll’s partnership interest, including Coll’s loan which is to be repaid in full. No goodwill is to be recorded. After Coll’s retirement, what is the balance of Maduro’s capital account?

1. $36,450
2. $39,000
3. $45,450
4. $46,200

allen retired from the partnership of allen beck and chale allen rsquo s cash settle 606465

Aug 29, 2021 | Uncategorized

Allen retired from the partnership of Allen, Beck, and Chale. Allen’s cash settlement from the partnership was based on new goodwill determined at the date of retirement plus the carrying amount of the other net assets. As a consequence of the settlement, the capital accounts of Beck and Chale were decreased. In accounting for Allen’s withdrawal, the partnership could have used the

align=”left”>

the partners have decided to liquidate the partnership if the other assets are sold 606467

Aug 29, 2021 | Uncategorized

The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively:

align=”left”>

The partners have decided to liquidate the partnership. If the other assets are sold for $385,000, what amount of the available cash should be distributed to Smith?

1. $136,000
2. $156,000
3. $159,000
4. $195,000

on january 15 2006 the first cash sale of other assets with a carrying amount of 150 606468

Aug 29, 2021 | Uncategorized

On January 1, 2006, the partners of Cobb, Davis, and Eddy, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:

align=”left”>

On January 15, 2006, the first cash sale of other assets with a carrying amount of $150,000 realized $120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?

align=”left”>

assume that the lcu is the subsidiary rsquo s functional currency and that the charg 606471

Aug 29, 2021 | Uncategorized

A wholly owned subsidiary of Ward, Inc. has certain expense accounts for the year ended December 31, 2006, stated in local currency units (LCU) as follows:

align=”left”>

The exchange rates at various dates are as follows:

align=”left”>

Assume that the LCU is the subsidiary’s functional currency and that the charges to the expense accounts occurred approximately evenly during the year. What total dollar amount should be included in Ward’s 2006 consolidated income statement to reflect these expenses?

1. $160,000
2. $168,000
3. $176,000
4. $183,200

a foreign subsidiary rsquo s functional currency is its local currency which has not 606473

Aug 29, 2021 | Uncategorized

A foreign subsidiary’s functional currency is its local currency, which has not experienced significant inflation. The weighted-average exchange rate for the current year would be the appropriate exchange rate for translating

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the translation loss is reported in net income and the exchange gain is reported as 606474

Aug 29, 2021 | Uncategorized

The functional currency of Nash, Inc.’s subsidiary is the French franc. Nash borrowed French francs as a partial hedge of its investment in the subsidiary. In preparing consolidated financial statements, Nash’s translation loss on its investment in the subsidiary exceeded its exchange gain on the borrowing. How should the effects of the loss and gain be reported in Nash’s consolidated financial statements?

1. The translation loss less the exchange gain is reported as other comprehensive income.
2. The translation loss less the exchange gain is reported in net income.
3. The translation loss is reported as other comprehensive income and the exchange gain is reported in net income.
4. The translation loss is reported in net income and the exchange gain is reported as other comprehensive income.

a balance arising from the translation or remeasurement of a subsidiary rsquo s fore 606475

Aug 29, 2021 | Uncategorized

A balance arising from the translation or remeasurement of a subsidiary’s foreign currency financial statements is reported in the consolidated income statement when the subsidiary’s functional currency is the

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remeasurement of schnell rsquo s 2006 financial statements resulted in a 7 600 gain 606477

Aug 29, 2021 | Uncategorized

Park Co.’s wholly owned subsidiary, Schnell Corp., maintains its accounting records in German marks. Because all of Schnell’s branch offices are in Switzerland, its functional currency is the Swiss franc. Remeasurement of Schnell’s 2006 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain as net income in its income statement for the year ended December 31, 2006?

1. $0
2. $ 7,600
3. $ 8,100
4. $15,700

during 2005 darien spent 250 000 maintaining and preserving its roads and bridges an 606483

Aug 29, 2021 | Uncategorized

Darien Village adopted the provision of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for 2005. As of December 31, 2005, Darien determined that it had spent $5,000,000 on infrastructure assets since the village was incorporated in 1980, and that infrastructure had an expected life of fifty years. These infrastructure assets consist primarily of roads and bridges that were financed with general long-term debt. Darien decided to use the modified approach for reporting its infrastructure assets on its government-wide financial statements for 2005. During 2005, Darien spent $250,000 maintaining and preserving its roads and bridges, and $500,000 to extend the life of existing infrastructure. On the statement of net assets at December 31, 2005, what amount should Darien report for infrastructure under the governmental activities column?

1. $5,000,000
2. $0
3. $4,900,000
4. $5,500,000

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606487

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is correct about the accounting for infrastructure assets using the modified approach?

1. I. Depreciation expense on the infrastructure assets should be reported on the government-wide statement of activities, under the governmental activities column.
2. II. Certain information about infrastructure assets reported using the modified approach is required supplementary information in the annual report.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

in accordance with gasb 34 basic financial statements mdash and management rsquo s d 606490

Aug 29, 2021 | Uncategorized

In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is true?

1. I. Infrastructure assets do not need to be reported on the government-wide statement of net assets if the government decides to use the modified approach in its accounting for infrastructure.
2. II. Component units are reported on the financial statements for governmental funds.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.

no withholdings or payments have been made towards the 2006 income tax liability in 606404

Aug 29, 2021 | Uncategorized

Green, a calendar-year taxpayer, is preparing a personal statement of financial condition as of April 30, 2006. Green’s 2005 income tax liability was paid in full on April 15, 2006. Green’s tax on income earned between January and April 2006 is estimated at $20,000. In addition, $40,000 is estimated for income tax on the differences between the estimated current values and current amounts of Green’s assets and liabilities and their tax bases at April 30, 2006. No withholdings or payments have been made towards the 2006 income tax liability. In Green’s April 30, 2006 statement of financial condition, what amount should be reported, between liabilities and net worth, as estimated income taxes?

1. $0
2. $20,000
3. $40,000
4. $60,000

the zee stock was sold in january 2007 for 10 200 in kent rsquo s personal statement 606406

Aug 29, 2021 | Uncategorized

The following information pertains to marketable equity securities owned by Kent:

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The Zee stock was sold in January 2007 for $10,200. In Kent’s personal statement of financial condition at December 31, 2007, what amount should be reported for marketable equity securities?

1. $93,300
2. $93,500
3. $94,100
4. $98,900

what amount should be reported for jen rsquo s vested interest in the 401 k plan in 606408

Aug 29, 2021 | Uncategorized

Jen has been employed by Komp, Inc. since February 1, 2004. Jen is covered by Komp’s Section 401(k) deferred compensation plan. Jen’s contributions have been 10% of salaries. Komp has made matching contributions of 5%. Jen’s salaries were $21,000 in 2004, $23,000 in 2005, and $26,000 in 2006. Employer contributions vest after an employee completes three years of continuous employment. The balance in Jen’s 401(k) account was $11,900 at December 31, 2006, which included earnings of $1,200 on Jen’s contributions. What amount should be reported for Jen’s vested interest in the 401(k) plan in Jen’s December 31, 2006 personal statement of financial condition?

1. $11,900
2. $ 8,200
3. $ 7,000
4. $ 1,200

in barton rsquo s personal statement of financial condition at december 31 2007 what 606409

Aug 29, 2021 | Uncategorized

The following information pertains to an insurance policy that Barton owns on his life:

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In Barton’s personal statement of financial condition at December 31, 2007, what amount should be reported for the investment in life insurance?

1. $97,000
2. $12,000
3. $ 9,000
4. $ 8,000

what amount should be included in liabilities in ryan rsquo s personal statement of 606411

Aug 29, 2021 | Uncategorized

At December 31, 2006, Ryan had the following noncancelable personal commitments:

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What amount should be included in liabilities in Ryan’s personal statement of financial condition at December 31, 2006?

1. $0
2. $ 5,000
3. $25,000
4. $30,000

builder accounts for this contract under the percentage of completion and estimated 606421

Aug 29, 2021 | Uncategorized

On January 1, 2006, Builder Associates entered into a $1,000,000 long-term, fixed-price contract to construct a factory building for Manufacturing Company. Builder accounts for this contract under the percentage-of-completion, and estimated costs at completion at the end of each quarter for 2006 were as follows:

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What amounts should be reported by Builder as “Income on Construction Contract” in its quarterly income statements based on the above information?

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advertising costs may be accrued or deferred to provide an appropriate expense in ea 606428

Aug 29, 2021 | Uncategorized

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for

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decrease in the first quarter by the amount of the market price decline and increase 606431

Aug 29, 2021 | Uncategorized

An inventory loss from a market price decline occurred in the first quarter. The loss was not expected to be restored in the fiscal year. However, in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter. For interim financial reporting, the dollar amount of net inventory should

1. Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the market price recovery.
2. Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of decrease in the first quarter.
3. Not be affected in the first quarter and increase in the third quarter by the amount of the market price recovery that exceeded the amount of the market price decline.
4. Not be affected in either the first quarter or the third quarter.

for external reporting purposes it is appropriate to use estimated gross profit rate 606432

Aug 29, 2021 | Uncategorized

For external reporting purposes, it is appropriate to use estimated gross profit rates to determine the cost of goods sold for

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for interim financial reporting the computation of a company rsquo s second quarter 606434

Aug 29, 2021 | Uncategorized

For interim financial reporting, the computation of a company’s second quarter provision for income taxes uses an effective tax rate expected to be applicable for the full fiscal year. The effective tax rate should reflect anticipated

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wilson rsquo s inventory did not experience any other declines in market value durin 606438

Aug 29, 2021 | Uncategorized

Wilson Corp. experienced a $50,000 decline in the market value of its inventory in the first quarter of its fiscal year. Wilson had expected this decline to reverse in the third quarter, and in fact, the third quarter recovery exceeded the previous decline by $10,000. Wilson’s inventory did not experience any other declines in market value during the fiscal year. What amounts of loss and/or gain should Wilson report in its interim financial statements for the first and third quarters?

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in its segment information for 2006 how many reportable segments does correy have 606439

Aug 29, 2021 | Uncategorized

Correy Corp. and its divisions (each is an operating segment) are engaged solely in manufacturing operations. The following data (consistent with prior years’ data) pertain to the operations conducted for the year ended December 31, 2006:

align=”left”>

In its segment information for 2006, how many reportable segments does Correy have?

1. Three.
2. Four.
3. Five.
4. Six.

aria and all of its divisions are engaged solely in manufacturing operations and eva 606440

Aug 29, 2021 | Uncategorized

The following information pertains to Aria Corp. and its operating segments for the year ended December 31, 2006:

align=”left”>

Aria and all of its divisions are engaged solely in manufacturing operations and evaluates divisional performance based on controllable contribution. Aria has a reportable segment if that segment’s revenue exceeds

1. $264,000
2. $260,000
3. $204,000
4. $200,000

grum rsquo s combined identifiable assets of all industry segments at december 31 20 606441

Aug 29, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 2006, Grum reported revenues of $50,000,000, operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll costs of $15,000,000. Grum’s combined identifiable assets of all industry segments at December 31, 2006, were $40,000,000. Reported revenues include $30,000,000 of sales to external customers.

In its 2006 financial statements, Grum should disclose major customer data if sales to any single customer amount to at least

1. $ 300,000
2. $1,500,000
3. $4,000,000
4. $5,000,000

External revenue reported by operating segments must be at least

1. $22,500,000
2. $15,000,000
3. $12,500,000
4. $37,500,000

enterprise wide disclosures include disclosures about 606442

Aug 29, 2021 | Uncategorized

Enterprise-wide disclosures include disclosures about

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enterprise wide disclosures are required by publicly held companies with 606443

Aug 29, 2021 | Uncategorized

Enterprise-wide disclosures are required by publicly held companies with

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included in the total profit and loss are intersegment profits of 6 100 in addition 606448

Aug 29, 2021 | Uncategorized

Taylor Corp., a publicly owned corporation, assesses performance and makes operating decisions using the following information for its reportable segments:

align=”left”>

Included in the total profit and loss are intersegment profits of $6,100. In addition, Taylor has $500 of common costs for its reportable segments that are not allocated in reports used internally. For purposes of segment reporting, Taylor should report segment profit of

1. $35,000
2. $34,500
3. $41,100
4. $40,600

the partnership agreement also specifies that profits and losses are to be distribut 606449

Aug 29, 2021 | Uncategorized

Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership’s formation:

align=”left”>

The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership?

align=”left”>

the partnership agreement specifies that profits and losses are to be shared equally 606450

Aug 29, 2021 | Uncategorized

On April 30, 2006, Algee, Belger, and Ceda formed a partnership by combining their separate business proprietor-ships. Algee contributed cash of $50,000. Belger contributed property with a $36,000 carrying amount, a $40,000 original cost, and $80,000 fair value. The partnership accepted responsibility for the $35,000 mortgage attached to the property. Ceda contributed equipment with a $30,000 carrying amount, a $75,000 original cost, and $55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest April 30, 2006 capital account balance?

1. Algee.
2. Belger.
3. Ceda.
4. All capital account balances are equal.

the partners share profits equally and losses in a 60 40 ratio the partnership had e 606453

Aug 29, 2021 | Uncategorized

Red and White formed a partnership in 2006. The partnership agreement provides for annual salary allowances of $55,000 for Red and $45,000 for White. The partners share profits equally and losses in a 60/40 ratio. The partnership had earnings of $80,000 for 2006 before any allowance to partners. What amount of these earnings should be credited to each partner’s capital account?

align=”left”>

assume that both bonds are default free and have the same market price which bond sh 605834

Aug 29, 2021 | Uncategorized

Nominal versus real cash flows: You are graduating in two years. You want to invest your current savings of $5,000 in bonds and use the proceeds to purchase a new car when you graduate and start to work. You can invest the money in either bond A, a two-year bond with a 3 percent annual interest rate, or bond B, an inflation-indexed two-year bond paying 1 percent real interest above the inflation rate (assume this bond makes annual interest payments). The inflation rate over the next two years is expected to be 1.5 percent. Assume that both bonds are default free and have the same market price. Which bond should you invest in?

what are the present values of the relevant investment cash flows 605836

Aug 29, 2021 | Uncategorized

Investment cash flows: Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $30,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 10 years later. Assume the appropriate discount rate is 12 percent. What are the present values of the relevant investment cash flows?

if anaconda s opportunity cost of capital is 10 percent what is the optimal time for 605844

Aug 29, 2021 | Uncategorized

When to harvest an existing asset: Anaconda Manufacturing Company currently owns a mine that is known to contain a certain amount of gold. Since Anaconda does not have any gold-mining expertise, the company plans to sell the entire mine and base the selling price on a fixed multiple of the spot price for gold at the time of the sale. Analysts at Anaconda have forecast the spot price for gold and have determined that the price will increase by 14 percent, 12 percent, 9 percent, and 6 percent during the next one, two, three, and four years, respectively. If Anaconda”s opportunity cost of capital is 10 percent, what is the optimal time for Anaconda to sell the mine?

what is the lowest possible per shovel price that merton can offer for the contract 605847

Aug 29, 2021 | Uncategorized

Merton Shovel Corporation has decided to bid for a contract to supply shovels to the Honduran Army. The Honduran Army intends to buy 1,000 shovels per year for the next three years. To supply these shovels, Merton will have to acquire manufacturing equipment at a cost of $150,000. This equipment will be depreciated on a straight-line basis over its five-year lifetime. At the end of the third year, Merton can sell the equipment for exactly its book value ($60,000). Additional fixed costs will be $36,000 per year, and variable costs will be $3.00 per shovel. An additional investment of $25,000 in net working capital will be required when the project is initiated. This investment will be recovered at the end of the third year. Merton Shovel has a 35 percent marginal tax rate and a 17 percent required rate of return on the project. What is the lowest possible per shovel price that Merton can offer for the contract and still create value for its stockholders?

assume that the marginal tax rate is 40 percent what are the expected annual increme 605849

Aug 29, 2021 | Uncategorized

A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.5 that consumers will love Happy Forever, and in this case, annual sales will be 1 million bottles; a probability of 0.4 that consumers will find the smell acceptable and annual sales will be 200,000 bottles; and a probability of 0.1 that consumers will find the smell weird and annual sales will be only 50,000 bottles. The selling price is $38, and the variable cost is $8 per bottle. Fixed production costs will be $1 million per year and depreciation will be $1.2 million. Assume that the marginal tax rate is 40 percent. What are the expected annual incremental cash flows from the new fragrance?

the tax rate is 35 percent the opportunity cost of capital is 10 percent and the ann 605851

Aug 29, 2021 | Uncategorized

ACME Manufacturing is considering replacing an existing production line with a new line that has a greater output capacity and operates with less labor than the existing line. The new line would cost $1 million, have a five-year life, and be depreciated using MACRS over three years. At the end of five years, the new line could be sold as scrap for $200,000 (in year 5 dollars). Because the new line is more automated, it would require fewer operators, resulting in a savings of $40,000 per year before tax and unadjusted for inflation (in today”s dollars). Additional sales with the new machine are expected to result in additional net cash inflows, before tax, of $60,000 per year (in today”s dollars). If ACME invests in the new line, a one-time investment of $10,000 in additional working capital will be required. The tax rate is 35 percent, the opportunity cost of capital is 10 percent, and the annual rate of inflation is 3 percent. What is the NPV of the new production line?

biotech partners llc has been farming a new strain of radioactive material eating ba 605853

Aug 29, 2021 | Uncategorized

Biotech Partners LLC has been farming a new strain of radioactive-material-eating bacteria that the electrical utility industry can use to help dispose of its nuclear waste. Two opposing factors affect Biotech”s decision of when to harvest the bacteria. The bacteria are currently growing at a 22 percent annual rate, but due to known competition from other top firms, Biotech analysts estimate that the price for the bacteria will decline according to the schedule below. If the opportunity cost of capital is 10 percent, then when should Biotech harvest the entire bacteria colony at one time?