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Accounting

Collecting and Evaluating Accounting Evidence, and the Use of Sampling.

1) Explain procedures for collecting accounting evidence, 2) Explain the use of sampling in performing an examination 3) Evaluate accounting evidence using analytical and inferential tools. Taking those objectives talk about what they mean to you personally in a professional setting if applicable or maybe of the three obje

Varying and Fixed Costs

1. What issues will create variances within a company? 2. What other information can we derive from our variance analysis? 3. What expenses would you imagine to be fixed in nature?

Avoiding the gain on a Section 351 transaction

Is there another way to avoid recognizing the gain on a 351 transaction besides the one given below? There are ways to play this system. The reason that the tax on a 351 transaction is deferred until the stock is sold is because the person's basis in the stock received in a 351 transaction is the same as the basis in the pro

Correcting a Vendor Account

Vendor stated we owed last 2 months invoices. I looked in the system and showed those 2 invoices were paid and cleared the bank. I then went back and looked at the entire year and discovered the following: The February 2012 invoice was actually a voided invoice from May 2011 AND the incorrect payment ID was used so no cash w

Accounting Information Sysytem

See the attachment. Jessica, the financial manager at Chila restaurant, is checking to see if there is any relationship between newspaper advertising and sales revenues at the restaurant. She has accumulated the following data for the past 10 months: Month Revenues Advertising Costs March $150,000 $20,000 Ap

Identify variables: numerical categorical ordinal interval

Data on a sample of 1080 salespeople from a large electronics retail company is shown in the attached file. The dataset contains the following variables: Sales: Total sales (in $) by each salesperson last year Department: What department (home electronics, computers, etc) the salesperson works in. Year born: The year in wh

Business Analysis and Financial Reporting

What is shareholder's equity, how is it calculated, and where and how is it reported? What is comprehensive income and how does it influence equity? What happens to shareholder's equity when the firm issues more shares or buys back shares in the open market? What are retained earnings and how and where are they accounted? What a

Aaron Corporation, Highland Corporation

Problem 1 Aaron Corporation reported the following data in the balance sheet of its 2008 annual report: 2007 2008 Accounts Receivable .................................... $172,500 $270,000 Less: Allowance for credit losses ........................ ..8,550 12,000 a. What is the amount of accounts receivable w

Accounting for Pension Obligations

1. Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the A) shortage between the expected and actual returns on plan assets B) increase in the projected benefit obligation due to the passage of time C) increase in the fair value of plan

Shares and Stock When Acquiring Assets

Bar Corporation has been looking to expand its operations and has decided to acquire the assets of Vicker Company and Kendal Company. Bar will issue 30,000 shares of its $10 common stock to acquire the net assets of Vicker Company and will issue 15,000 shares to acquire the net assets of Kendal Company. Vicker has the follow

Causes of a High Degree of Operating Leverage

What conditions/factors cause a business to have a high degree of operating leverage as compared to others? It is a good idea to understand the percentage of margin we are creating. In this way, we can keep an eye on the amount of revenue, cost and gross profit; and compare these to prior periods so we can review the trends

Journalizing Accounting Transactions

Journalizing Accounting Transactions Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed: Date Transaction July 1 Issued 15,529 shares of common stock for $15,529 cash. July 1 Purchased used truck for $11,529, paying $2,018 cash and bal

Common Fraud and Levels of Assurance

Please comment on the text below and answer the question beneath it. --- One of the most common fraud schemes used for information assets is employees gaining access to customer data, including social security numbers and checking account numbers, and then using the info. to commit various types of fraud. H&R Block had a h

Variable, Absorption Costing, and Operating Leverage

Please help me understand: 1. Cons of using Variable Costing 2. Cons of using Absorption Costing 3. Indicate what contribution margin is and how it can be expressed. 4. What is "Operating Leverage"? How does this affect Profitability?

Hollowell Audio, Inc Variable Efficiency & Variable Overhead Rate Efficiency

Hollowell Audio, Inc., manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows: Standard Hours: 6 minutes Standard Rate per Hour: $ 24.00 Standard Cost: $ 2.40 During July, 2,125 hours of direct labor time

The overhead costs associated with companies

a) Mostly, people want to avoid "overhead" or indirect costs, but as you can see, it is important to have support systems, building and insurance, human resources, etc. Most businesses would prefer to have no overhead, but it is a necessary part of business. After all, you have to have a building to have your factory in, you m

Finding the Components of Mixed Overhead Costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: Level of Activity

An analysis of company transactions and adjustments.

Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed: July 1 Issued 15,529 shares of common stock for $15,529 cash. 1 Purchased used truck for $11,529, paying $2,018 cash and the balance on account. 3 Purchased cleaning supplies for $933 on account. 5

Calculate the present value of $100,000 in the given cases

Using the present value function in MS Excel, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of $100,000 for each of the following items (parts a-f) using these facts: a. Interest is compounded semiannually b. Int

Comprehensive Economic Order Quantity (EOQ) Calculation

15. (Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 250,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is

Calculate the Variance

The man-hour estimate for test and evaluation was based on using expert opinion to come up with optimistic, pessimistic and most likely positions. This resulted in a triangular distribution with a minimum estimate of 425 hours, a most likely estimate of 500 hours, and an expected maximum of no more than 650 hours. Calculate the

Accounting - Investments

When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because: a. the quantitive analysis indicates that it should not be made b. management assessment of qualitatitve factors overrides the quantitiv

Privacy of payroll information

The sensitivity and importance of payroll and payroll information cannot be overstated. The managing and protecting of this information deserves and has the attention of any number of managers within an organization. Most everyone has experienced or has heard of situations where either payroll information has been stolen or some

Budgeting with Incremental or Zero-based Budgets

1)What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting? Which of the two approaches is more widely used by governments? Which do you think is more beneficial in developing realistic budgets? 2)"The sole objective of budgeting in a governmental entity is to

Retained Earnings - Recording an Expense

Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense: A) retained earnings account has no effect B) the equity on b/s has no effect C) the total assets increase by 15,500 D) the capital decreases by 15,500

Tax Accounting Facts

I need help with the attached question. Thank you! Which one is not correct in the context of tax accounting: Deferred tax liability might result when tax expense on an income statement is less than tax payment based on the tax code. Corporate income tax is an expense, not a distribution of the profits to the government

Mizzou Mining Company. E16-4 Sell or process further?

1. E16-4 Sell or process further? Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 400,000 tons of Alpha were mined and processed at a cost of $742,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each produ

Accounting: Business Partnership & Consequences

1) Describe this Basic Type of Business Formation: Partnership 2) Explain the Following Consequences of the type of Business Organization: - Tax Implications - Legal Implications - Accounting Implications, such as: SOX and FASB.