1. .A decrease in warranty liabilities increases net sales. Why? a. True b. False 2. .A company with anticipated earnings-per-share growth is worth more. Why? a. True b. False 3. .A reduction in the advertising expense ratio increases return on common equity and share value. Why? a. True b. False 4. .An underestim
Lincoln Elementary school is a new school located in a suburb that is close to Big Cold Northern City. You are a teacher at the school and you are in charge of the end of day pick up of children from the school. The "end of day" pickup extends for several hours due to a child care center located at the school. The school has
FCC Ruling - determine the liabilities and consequences that a company might face if they do not comply with the ruling
Hi, I am writing a paper about a current event as it pertains to business law. The topic is the recent ruling from the Federal Communications Commission FCC 07-232. The ruling clarifies the use of automated dialers by collections agencies to contact customers on their wireless phones. I am trying to include a comprehensiv
Based on my textbook, I can not find concrete information to support questions. For me cash cycle would be most important. Auditors should not be liable, comparing the outputs against documents and inputs can identify frauds, and testing the internal controls provides opportunities to establish the validity of the processes/pro
Cooper Company issues stock to new investors, $34,000. Indicate the effect that this transaction has on individual asset accounts, individual liability accounts, Capital Stock account and Retained Earnings account.
What are the ramifications to a business of not tracking and paying sales tax? What is the difference between accounts payable and accrued expenses? Is short-term or long-term debt more stressful to your personal finances? Why? Why is it important to differentiate between short-term and long-term liabilities?
How do I determine the estimated warranty on Part B? Do I multiply by 100. Please advise. Colin Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experiences, Colin Company estimates that 3% of the units sold will become defective during the warranty period. Management e
Please fill in the spreadsheet (Spreadsheet PA2-1.xls)with the data provided. Attached in a word document is the information and data compiled (Team Problem.doc).
How would the following errors affect the account balances and the basic accounting equation, Assets, Liabilities, Owners' Equity?
How would the following errors affect the account balances and the basic accounting equation, Assets, Liabilities, Owners' Equity? How do the misstatements affect income? a. The purchase of a truck is recorded as an expense instead of an asset. b. A cash payment on accounts receivable is received but not recorded. c. Fictit
Indicate the net effect on assets, liabilities, and owners' equity resulting from each of the following transactions: 1. Capital stock was issued for $100,000 cash. 2. Bonds payable of $25,000 were refunded with capital stock. 3. Depreciation on plant and equipment equaled $8,500 for the year. 4. Inventory was purchased fo
What is an example of a situation that requires the establishment of a contingent liability? Why should a company establish a contingent liability? How does the establishment of a contingent liability impact earnings? What is an example of a potentially unethical accounting situation? Why is the situation unethical? How do e
Can you help me get started with this assignment? 1. Explain the difference in owner's liability for the general business debts of a limited liability company (LLC) and a limited liability partnership (LLP). 2. What is the difference between an interpretive regulation and a legislative regulation? 3. What is the tax b
In the course of your initial audit of the financial statements of Sylvan Company, you determine that of the substantial amount of accounts payable outstanding at the close of the period, approximately 75% is owed to six creditors. You have requested that you be permitted to confirm the balances owing to these six creditors by c
The Houston Company borrows $200,000 on August 7 with a year note at 5% interest. Prepare the journal entry to record the proceeds from the note, the accrued interest at 12/31 assuming all the interest is made at year end. The Houston Company also has a 10 year long term note at an initial value of $1,000,000, 5% interest/ye
How are deferred tax assets and deferred tax liabilities derived? How do they relate to the difference between tax expense and taxes payable? How could an organization have a tax receivable? Why is the tax expense reported on the income statement comprised of current and deferred tax?
Your help is needed. Listed below are annual balance sheets for ExxonMobil and Wal-Mart. ExxonMobil Annual Balance Sheet Assets $Mil Liabilities and Equity $Mil Cash 37,734.00 Current Liabilities 54,804.00 Other Current Assets 49.01
On Jan. 1, 2006 the ledger of Shumway software co. contains the following liability accounts. Accounts payable: $42,500 Sales Taxes payable: 5,800 Unearned service revenue: 15,000 During January the following selected transactions occurred. Jan. 1: Borrowed $15,000 in cash from Amsterdam bank on a 4 month 8%, $15,000 n
Please help with the following problem. Provide step by step calculations. Cardinal Co. has the following obligations at Dec. 31st: (a) a note payable for $100,000 due in 2 yrs., (b) a 10 yr mortgage payable of $300,000 payable in ten $30,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts
Please show work and follow GAAP unless otherwise stated The following selected transactions relate to contingencies of Eastern Products Inc. which began operations in July, 2006. Eastern's fiscal year ends on December 31. Financial statements are published in April 2007. (a) No customer accounts have been shown to be unco
_____ 17. Which of the following internal control procedure that is usually applied to accounts payable? A. Periodic confirmation of accounts payable B. Mailing statements to vendors detailing their account C. Periodic aging of accounts payable D. Reconciliation of vendor statements with accounts paya
What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassifying a liability as current or long-term? Generally accepte
Rubotics Corporation issued $1,000,000 of 6.5%, 8-year bonds dated June 30, 20X5, with semiannual interest payments on December 31 and June 30. The bonds were issued on June 30, 20X5, for $1,033,750, Rubotics Corporation's year-end is December 31. a) Were the bonds issued at a premium, a discount: or at par? b) Was the mar
If the liabilities of a company is 1/3 of the total assets- what is the amount of the liabilities (the owner's equity is $300,000)
For each of the following items, give an example of a business transaction that has the described effect on the accounting equation: Increase an asset and increase a liability. Increase one asset and decrease another asset. Decrease an asset and decrease owner's equity. Decrease an asset and decrease a liability. Incr
13. (Contingencies) Presented below are three independent situations. Answer the question at the end of each situation. 1. During 2004, Salt-n-Pepa Inc. became involved in a tax dispute with the IRS. Salt-n-Pepa's attorneys have indicated that they believe it is probable that Salt-n-Pepa will lose this dispute. They also bel
1. Chris Rock believes a current liability is a debt that can be expected to be paid in one year. Is Chris correct? Explain. 11. Describe the two major obligations incurred by a company when bonds are issued. 25. You are a newly hired accountant with Schindlebeck Company. On your first day, the controller asks you to iden
A. Determine the total liabilities as of Feb 2nd 2003 and Feb 3,2002 b. Determine the ratio of liablilities to stockholders equity for 2003 and 2002. Round in two decimal places. c What conclusions regardomg the margin of protection to the creditors can you draw from (b)
The home depot is the the Worlds largest home improvement retaier and one of the largest retailes inthe US based on net sales volume. The home depot operates over 1,100 home depot stores that sell a wide assortment of building materials and home improvement and lawn and garden products.The home depot also operates over 25 EXpo D
The amounts of the assets and liabilities of Inkjet Supply Co. as of December 31, 19X4, and the revenues and expenses of the company for the year ended on that date follow. The items are listed in alphabetical order. Accounts payable........................................................................$12, 000 Accounts r
Prepare one sheet with the column headings as below. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount, and indicating whether it is an addition, (+) or a subtraction
THE PROBLEM: Calculate the Cash Flow to Total Liabilities Ratio and the Return to Net Operating Ratio for Johnson and Johnson (2002) 1) Here are the sites with the financial statements and data: http://www.jnj.com/2002AnnualReport/financials/consolidated/index.htm http://www.jnj.com/2002AnnualReport/financial