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Accounting Debate Questions for Standards and Implementation

Provide a two or three sentence response that argues for or against (indicate which) each of these statements: a. Accounting is an exact science b. Mangers choose accounting procedures that produce the most accurate picture of the company's operating performance and financial condition. c. Accounting standards in the Un

Solve equations by grafting, substitution, addition method

Solve by graphing, indicate whether each system is independent, inconsistent, or dependent. 1. x + y = 5 x - y = -1 2. y = -x y = -x + 3 Solve by substitution, indicate whether each system is independent, inconsistent, or dependent. 3. x - y = 3 3x - 2y = 3 4. 2x - y = 3 6x - 9 = 3y Solve by the addition metho

Accounting multiple choice questions explained in this solution

Definitional 1. A (n) __________ is a legal entity created by a state, and it is separated from its owners and managers. 2. The ________ _____ lists the firm's assets as well as claims against those assets. 3. The debt ratio, which is the ratio of ______ ___ to ________ ________, measures proportion of funds supplied b

Capital stock transactions

On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.


Cardinals Co purchased some equipment on 12/31/05 by issuing a $525,000, 3%, 5-year note calling for 5 equal annual payments, the first of which to be made on 12/31/06. The appropriate rate of interest for this type of activity is 10%. Since this is a below market interest note, the net method of recording is utilized. Co

Calculating Collection Float

Lock Boxes. Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day.

Should the company invest money in one or two of these projects? Which ones?

Here is the project: Spend $200,000 to increase plant capacity for Product B. The new capacity will cause profits to increase by $200,000 per year in the first year. The sales forecast is estimated to be 80% accurate. The other project is Upgrade the MIS system for the company. There is a 100% certainty I will have manpower s

Variance Analysis

Spacely Sprockets 2001 Budget Executive Summary File: SGMU M:MSMFin642Spacely-Budget.xls Last Revised: 12/17/01 Prepared by: Tom Gruber General Budget calls for reasonable increases in sales, prices and expenses except for labor. We have to keep overtime under control to return to profitability. Sales Set re

Variance Analysis

Westport Furniture 2001 Budget Executive Summary General To hit Mr. Westports profit goal of $70000, our 2001 budget is very aggressive in expense reductions (especially in direct labor) and somewhat optimistic on revenue given the pressure from plastic tables. Margin widens 5% points from 28% to 33%. Sales We have fo

Choosing Performance Measures

The president of the Canby Insurance Company has just read an article on the balanced scorecard. A company has a balanced scorecard when there is a set of performance measures that reflect the diverse interests and goals of all the stakeholders (shareholders, customers, employees, and society) of the organization. Presently, Can

Cost allocation

14-19 Fruit juice, inc. processes orange juice as its East Miami plant and grapefruit juice at its West Miami plant. It purchases oranges and grapefruit from growers' cooperatives in the Orlando area. It owns its own trucking fleet. It takes the same mileage to go to each Miami plant from Orlando. The trucking fleet is run as a

Walters Company: incremental monthly revenue, accounting for joint costs

This problem is titled Processing Further. # 2 Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and Grade B wiring. The following are the expenditures to date: Jan 1 $100,000 Bulk steel purchase Jan 2 - Feb 15 $150,0

Chart CA, LtA, CL, LtL, EQ

The balance sheet at 12/31/04 and 12/31/05 show the following: Current Assets Long Term Assets C Liabilities LT Liabilities Owners Equity 04 ? ? $360,000 ? ? 05 ? $750,000 ? ?

Liabliity of Accounting firms that go bottm up in 1 yr after clean audit.

Due to frequency of corporate scandals in the US, there have been many efforts toward restructuring. Evaluate proposal of: Accounting firms should be liable to pay stock holders if they give a company a clean audit and it goes bankrupt in one year. Opinion with refrences to back up stated opinion if possible.

Capitalization Vs. Expensing

What are the fundamental issues surrounding capitalization vs expensing? What approach does management seem to prefer and why? Which approach do you think auditors seem to prefer?

Accounting Information Systems

The Financial Accounting Standards Board (FASB) indicated that the traditional accounting information system design actually constrained standard setting in FASB Statement 95, "A Statement of Cash Flows." The Board received 450 comment letters, most from bank lending officers-accounting information users-who favored requiring th

Overhead under Job-Order Costing in a Service Organization

PPGV provides auditing services to midmarket clients. PPGV developed the following estimates for the current year. A. Compute the predetermined overhead rate based on: 1. direct labor hours 2. direct labor cost B. Compute the amount of overhead that would have been applied to each of these jobs using various overhead rate

Make or Buy

Using Excel goal seek and solver please help me with this problem The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable

Overhead Problems

Equations and theories behind solving for overhead for companies Tortolla Company is a manufacturing firm that uses a job-order costing system. The company uses machine hours to apply overhead to work in process. On January 1, Tortolla's management estimated that it would incur $700,000 in manufacturing overhead costs an

Journalizing with discounts

On January 1, 2002, Case Western Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $4,700. Case Western Company prepares financial statements annually. During the year the following selected transactions occurred.Jan. 5 Sold $7,000 of merchandise to Garth Brooks Company, terms n/30. Feb. 2 Acc

Please review

Please review my computations. I need help with part D, please. --- AFN produces plastic that is used for injection molding applications such as gears for small motors. In 2002, the first year of operations, AFN produced 4,000 tons of plastic and sold 3,000 tons. In 2003, the productin and sales results were exactly reversed