You have just joined a CPA firm. Your manager is impressed with the recommendations that you provided on the reporting of securities for the client. He comes in and says "You did a great job! The client was thrilled with the recommendations." Your manager has another consulting assignment. He asked you to prepare for him the en
How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds? Summarize the reasons both for and against accounting for enterprises funds differently than governmental funds and include an example of an enterprise with regards to this.
In the past, TTTH Inc. allocated indirect manufacturing costs based on direct labor hours. Recently, management has decided to pilot a system of time-driven activity-based costing (TDABC) to allocate these costs. The division produces three engine models: Basic, Sport, and Heavy Duty. Acme employs 300 employees to perform indire
Machine hours and electricity costs for Wells Industries for 2011 were as follows: Machine Electricity Month Hours Costs January 2,000 $ 9,200 February 2,320 10,500 March 1,520 6,750 April 2,480 11,500
10-A1 ROI and Economic Profit Calculations Consider the following data (in thousands) : (see the attached table) 1)For each division, compute the return on sales, the capital turnover, and the return on investment (ROI) 2)Which division is the best performer if evaluation is based on ROI? Explain. 3)Suppose each division
Zipper Company has identified the following overhead activities, costs, and activity drivers for the coming year: (see attached table) Zipper produces two models of sewing machines with the following expected prime costs and activity demands: (see attached table) The company's normal activity is 4,000 direct labor hours.
Address the following: Define the term business combination and differentiate across various forms of business combinations. Discuss the motives for business combinations. Describe when consolidation of financial information into a single set of statements is necessary.
The MedView brochure said, "Only 45 scans per month to cover the monthly equipment rental of $18000." *The footnote at the bottom of the brochure read: *"Assumes a reimbursable fee of $475 per scan." The MedView brochure refers to a new radiology imaging system that MedView rents for $18000 per month. A "scan" refers to one i
Auditors found out that a company was delaying payments to creditors at year-end and selling inventories as huge discounts in order to improve cash flows. Are there any ethical issues involved in this practice? What are they if any?
Using a Governmental Agency or Not-for-Profit organization identify what are considered to be its major funds? In what key ways are major funds reported differently than non-major funds?
1. Describe two business sectors you might want to work in if you were an accountant and explain why in 150 to 200 words. 2. Research a specific company in one of the business sectors that interests you and describe how you imagine it might be to work there.
9-48 In early 20X1, United Communications, a U.S.-based international telephone communications company, purchased the controlling interest in Bucharest Telecom, Ltd. (BTL) in Romania. A key productivity measure monitored by United is the number of customer telephone lines per employee. Consider the following data for United:
8-A1 Burton Transportation Company's general manager reports quarterly to the company president on the firm's operating performance. The company uses a budget based on detailed expectations for the forthcoming quarter. The general manager has just received the condensed quarterly performance report shown in Exhibit 8-10.
Instructions Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be su
Question 9-B2: The president of North Shore Railroad wants to obtain an overview of the company's operations, particularly with respect to comparing freight and passenger business. He has heard about "contribution" approaches to cost allocations that emphasize cost behavior patterns and contribution margins, contributions cont
Data for month ending 1/31/200X Direct labor expended on jobs completed in month 1 $100,000 Direct material used up $500,000 Budgeted manufacturing overhead $2,000,000 Budgeted production volume 4,000 units Actual production volume 4,500 units Supplies, indirect labor, maintenance repair costs totaled $2,200,000 Beginning
What is the difference between using the percentage of sales and percentage of receivables method for calculating doubtful accounts? Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculating? Do generally accepted accounting principles allow for using both methods at th
Olter, Inc. is starting its risk management program for the company and has asked for your help in determining critical risk measurements for the firm. The company has identified several factors in the market that they believe are critical for your tasks: •The risk-free rate is 6% •The required return on the average stoc
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000 per unit; variable costs = $600 per unit; fixed costs = $1.8 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within ±20 percent. What values should the company use for
Using the 2012 annual report for NIKON: 1. Analyse the major areas of the report. 2. Discuss the key factors that determined the company's financial performance during the year. 3. Discuss what the primary assets held by the company are. 4. Demonstrate how management portrays the internal control environment of NIKON.
C3. On January 1, 2010, Mace Co. acquired 75% of Lance Co.'s outstanding common stock. On the same date, Lance acquired an 80% interest in Curle Co. Both of these investments were acquired when book value was equal to fair value of identifiable net assets acquired. Both of these investments were accounted using the initial value
Depreciation of general capital assets is not recorded in the accounts of any of the governmental funds. If a building is transferred from the General Fund to an internal service fund because the character of its use changes, should the internal service fund record building depreciation expense each year after the transfer? Expl
See the attached file. Objectives To be able to compute the revenue and cost variances and interpret whether the variances signal favourable or unfavourable performance. Mr Doctor is the brand name of a therapeutic pillow produced by the Streussles Company. For 2013, the operating budget is based on an estimated sale
At a dinner party you hosted, a friend of yours who is a college accounting professor—upon hearing you had started your own business—told you to make sure to properly categorize product versus period costs and fixed versus variable costs. The friend did not have time to explain the difference or the importance of proper cate
Sapling, Inc. is a 95%-owned subsidiary of Fir Enterprises. Fir Enterprises sells Sapling an industrial wood chipper for $10,000 on January 1, 20x8. Fir Enterprises paid $17,000 for the wood chipper and the asset currently has a book value of $8,000. The asset has a remaining useful life of 4 years, with no salvage value.
A rehabilitation tax credit amounts to: a. 20% of the qualified rehabilitation costs b. 10% of the qualified rehabilitation costs c. either 10% or 20% of the certified rehabilitation costs d. either 10% or 20% of the total project costs
Can you please assist me with this question. Question: Costs of improvements to land: a. must be added to the basis in the land and recovered through depreciation b. are deductible immediately c. must be added to the basis in the land and recovered through amortization d. must be added to the basis in the land and recove
Discuss the differences between temporary and permanent accounts. What will happen if the temporary accounts like revenue, expense and dividend accounts are not closed in the ledger? Should the permanent accounts like all asset, Stockholders' equity and liability accounts be closed as well?
Allison is the sole shareholder of Destiny Corporation, which operates a travel agency for business travelers. Allison would like the corporation to donate some used computers to a local private school dedicated to the education of young ladies. The private school is a tax-exempt organization that qualifies donors for the charit
You want to have $25,000 saved 6 years from now to buy a house. How much less do you have to deposit today to reach this goal if you can earn 5.5 percent rather than 5 percent on your savings? Today's deposit is the only deposit you will make to this savings account.