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    Impact of Activity on the Accounting Equation

    What is the impact on the accounting equation of receiving a check from customers for work to be performed over the next three periods (none in this period)? A. Assets: increase Liabilities: increase Equity: no change B. Assets: increase Liabilities: no change Equity: increase C. Assets: increase Liabilities:

    Capital structures in different countries

    Scenario You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility

    Double taxation avoidance, benefits to small business

    From the Internal Revenue Service website (www.irs.gov). Click on the "Business" tab, then the "Corporations" link. Find the link to "S Corporations" and read the information provided by the IRS. Answer the following question: Explain the reasoning behind the need for the S Corporation provisions in the IRS Tax Code and

    Lawford Company's Proceeds from sale of equipment

    Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were a. $210,

    Accounting for and presentation of owner's equity

    As of March 11, 2007, Swanson Group, Ltd. had 300,000 shares of 10$ par value common stock authorized and 185,000 shares issued. There were 6,000 shares of treasury stock that had been purchased by the firm at an average cost of 12$. The market value of the stock on March 11, 2007, was 22$ a. how many shares of common stock

    Accounting for and Presentation of Liabilities

    On January 1, 2007, Simon Inc issued $500,000 of 9%, 10 year bonds at 101. Interest is payable every June 30 and December 31. Premium is amortized on a straight-line basis. a. Was the market interest rate on Jan. 1, 2007 equal to, more than, or less than the stated interest rate of the bonds? explain your answer. b. how mu

    Investment Analysis

    A) Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years? b) Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the

    Yarman, Inc. Deferred Tax Asset: Compute taxable income and deferred income tax

    Yarman Inc. began business on January 1, 2008. Its pretax financial income for the first 2 years was as follows: 2008 $240,000 2009 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2008, the company collected $180,000 of rent; of this amount, $60,000 was

    Stacy's stock purchase, sale and dividend; Far Side current share price

    Question 1 Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She received a total of $0.75 in dividends. Which one of the following statements is correct in relation to this investment? A. The dividend yield is expressed as a percentage of the selling price. B. The capital gai

    Which will not result in an increase in ROI?

    Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? a. A reduction in expenses. b. An increase in net operating income. c. An increase in operating assets. d. An increase in sales.

    Which are product cost under the variable costing method

    Which of the following costs at a manufacturing company would be treated as a product cost under the variable costing method? a) direct material cost b) property taxes on the factory bldg c) sales manager's salary d) all of the above

    Common fixed expense not traceable to divisions

    Verkamp Corporation has two divisions: the YDI Division and the QCC Division. The corporation's net operating income is $31,800. The YDI Division's divisional segment margin is $111,800 and the QCC Division's divisional segment margin is $152,800. What is the amount of the common fixed expense not traceable to the individual div

    Calculate the material price and material quantity variance

    In October, 5,000 meters of raw material were purchased at an actual cost of $4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material i

    Overhead costs to activity cost pools; activity rates

    Imai Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools. Overhead costs: Production overhead . . . . $240,000 Office expense . . . .

    Overhead cost to be allocated to unframed, steel and wood frames

    How much total overhead cost is expected to be allocated to unframed, steel, and wood frames? Unframed prints 80,000 units direct material print $12. Steel framed 15,000 units direct material print $16. Frame $4. Wood frame 7,000 units direct material print $20 frame $6 Matt Direct labor Unfra

    ABC Corp: Compute depreciation and sale of asset. Aaron Co: Bond issue, interest

    ABC Corporation purchased new machinery for $600,000. It paid $60,000 down and financed the balance for 3 years at 10% interest. The equipment was put into service on January 1st, 2001. At that time, the useful life was estimated as 10 years with a $90,000 salvage value. Straight line depreciation method was selected for bot

    During the next ten years, the major threat to the dominance

    During the next ten years, the major threat to the dominance of the U.S. money and capital markets will come from: a. Russia's difficulty in transforming its economy into a capitalistic one. b. Japan's prolonged recession and banking crisis. c. the Euro-zone countries comprising the European Monetary

    Contribution margin and break-even

    The following data pertain to service offered in a fee-for service setting: Fixed Cost = $9000 Variable Cost = $300 Charge $450 Target profit = $6000 1. Determine the contribution margin for this service 2. Determine the accounting break-even point in terms of volume. 3. Determine the economic break-even point in

    Managerial accounting: practice exam

    1. Wages paid to the factory maintenance supervisor are considered an example of: Direct Labor - yes, Period Cost - yes Direct Labor - yes, Period Cost - No Direct Labor - no , Period Cost - yes Direct Labor - no , Period Cost - no 2. Machinery Depreciation on a manufacturi

    Change in Cash to Investing Activities

    Please determine the change in cash to the Investing activities based upon the following cash flow statement. Please explain your answer. I only noticed the fixed assets, but not sure about the securities. Assets 12/31/2012 12/31/2011 Cash $87,000 $79,000 $8,000 Inventory $30,000 $44,000 $(14,000) Secu

    Return on Investment (ROI) and Residual Income (RI)

    Financial data for Joal de Paris Inc for last year is as follows (see attachment) The company paid dividends of $15,000 last year. The "Investment in Buisson, SA on the balance sheet represents an investment in stock of another company. 1. Compute the company's margin, turnover, and ROI for last year. 2. The board of direc

    Change in Cash due to Operating activities.

    Please determine the change in cash to Operating activities: Please explain your answer. Please review my attached answer for correctness. The net income is $19000. Assets 12/31/2009 12/31/2008 Cash $26,000 $19,000 $7,000 increase Accounts Receivable $9,000 $12,000 $(3,000) decrease Inventory $16,000

    Effects of Change in Sales, Expenses and Assets ROI

    CommercialServices.com Corporation provides business-to-business services on the internet. See data in excel spreadsheet. 1. Compute the company's return on investment. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with n

    Equivalent internal designation to CPA

    The certification of being a CPA means that they have been tested and met certain industry criteria (education and experience) to qualify as "experts" in the field of accounting. But, the CPA designation is primarily used to verify the accounting records for external parties. What would be the equivalent internal designation a

    Accounting study guide: depreciation

    Exercise 1 You have a mine with the following characteristics: 2010 depletion expense: Cost of natural resources less residual value $ 9,000,000 Land improvementsâ?"roads 975,000 Total cost to be depleted $ 9,975,000 Estimated tons of ore 3,000,000 Depletion cost per tonâ?"$9,975,000/3,000,000=

    Calculate book value per share

    Common Share ($2.00 par value) $350,000 Capital in Excess of Par 0 Retained Earnings $7,800,000 A. From the information above calculate the corporation's book value per share. B. Rework the shareholder's equity as it appears on the books if the corporation

    Difference between Evaluating and Reporting

    Explain the difference between evaluating, reporting, and testing internal controls for public and nonpublic companies. Under what circumstances would you attempt or not attempt to apply the standards for public companies to nonpublic companies and why?