What is the purpose of depreciation? Does the book value of a fixed asset, cost minus accumulated depreciation, communicate to a user what the asset is worth? Should the financial statements reflect the value of fixed assets? What are the different methods used to calculate depreciation? How does a company decide which metho
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here as $): Division
Yummy Candy Company offers a CD single as a premium for every five candy bar wrappers presented by customers together with $3.15. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $2.90; in addition it costs 50 cents to mail each CD. The results of the premi
Critics say that corporations (like Wal-Mart for example), which have vowed to reduce its greenhouse emissions from the products it sells to the trucks that deliver them, may have a variety of reasons to help the environment. However, there are a number of questions which require serious consideration before a corporation goes
Explain the conditions under which job order cost accounting systems and process cost accounting systems are commonly applied. Name two companies that use each system?
Generally, there will be many responses indicating that eggs do not have substitutes and that the price of eggs are not generally an issue for many consumers. Would anyone say that in this case the demand for eggs is perfectly inelastic? What is the definition of perfectly inelastic? Are there any products or services wh
1. What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements? Provide a specific example. 2. Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Explain why. What is the determining
LeeWays Consulting Company is about to enter a very competitive market and will have little influence on prices that they can charge. LeeWays objective is hoping to generate a 14 percent first-year return (profit) on the firm's investment of $15,000,000. Although the return on investment in the consulting service industry is typ
The manufacturing capacity of Ritter Rotator Company's plant facility is 60,000 rotators per quarter. Operating results for the first quarter of 2009 are as follows:Sales (36,000 units @ RM10)RM360,000Less: Variable manufacturing and selling costs: 198,000, Contribution margin RM: 162,000, Fixed costs: 99,000, Operating income R
** Please see the attached file for the complete problem description ** Hill buys Loring on 7/1 for $400,000 by issuing 10,000 of $5 par, $40 fair value shares to Loring's existing shareholders. (please see the attached file) Required: a. Calculate FVINA for this example. b. Optional: Prepare an allocation schedule.
a.) What benefit does a variable provide when developing and examining models? b.) Explain the purpose of simple linear regression and scatter diagrams. Please provide a simple linear regression model and define each variable used. c.) Describe multiple regression analysis and discuss potential uses for this model.
As a result of these accounting scandals, the AICPA recognized the need for accounting professionals to change their attitudes toward fraud detection by revising SAS 99. List at least four of the significant changes made to SAS 99 and explain.
Identify the accounting scandal at the Enron corporation that resulted in a loss of reputation to the accounting profession. Explain the crime(s) Enron committed. As a result of these accounting scandals, the AICPA recognized the need for accounting professionals to change their attitudes toward fraud detection by revising S
The media frequently uses loaded terminology, but what is the outcome when legislators use loaded terminology? I think we all can agree that the economy is a hot topic and there are many theories on what should be done. I think one of the ways that officials slant the views is by using loaded terminology. Consider the typ
Please help answer the following questions. Should management only be concerned with producing returns for their investors or do they need to consider the needs of other stakeholders? Before the financial crisis I do not think that the loan officers paid close attention to quarterly financials. Currently, it probably depe
Please help with the following problem regarding temporary employees. Provide at least 200 words in the solution. Consider temporary employees who are employed by temporary agencies. How is this addressed in reporting for a company that is using the temporary agency? Would the temporary agency be considered a miscellaneous e
Please help with the following accounting problem. Read the following ProQuest article: VanZante, N. (2007, April). Helping Students See the "Big Picture" of Variance Analysis. Management Accounting Quarterly, 8(3), 39-40, 42-47. Based on the readings for the week, discuss your opinion on the need for variance analysis in ei
Please help with the following problem. Provide at least 300 words. Need help in researching a business that uses job order costing and understanding the complete breakdown of the job order costing (i.e. the process and the documents used to accumulate product costs) that the business uses.
1. (a) Maria Stanford oversees her company's largest and most profitable investment center. She has asked you, as her staff accountant, to compute the center's ROI, residual income and EVA for the month of August, using the following information: August 2001 operating income $300,000 August 2001 sales
1. A brief description of Krispy Kreme's annual cash bonus plan for top executives follows. One way Krispy Kreme executives can achieve the revenue target is to open new stores as fast as possible. Explain why this might alarm shareholders. 2. Why might it be important for the bonus plan to use the same EBITDA definition used
Suppose you and two friends each invested $100,000 in an oil and gas partnership. The general partner, XYZ Gamble, Inc., invests no cash but makes all operating decisions for the partnership, including where and how deep to drill for oil. Drilling costs plus a management fee are charged against the $300,000 of cash you and your
a) What are the optional elements that are often included in an annual report? b) What are the elements of an annual report that are required by the SEC? c) Describe the contents of the Management Discussion. d) Describe the contents of the Auditors Report. e) Describe the contents of the Selected Financial Data.
Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year that just ended. Sales $45,000 Less: Cost of food 20,000 Gross profit 25,000
Greenville Corporation is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: Annual sales 3,000 unts Selling price per unit $309 Variable costs per unit: Production $130 Selling
#1. Flexible Budgets: Joe's Lawn Service primarily mows lawns for residential customers. Management has determined direct labor hours is the primary cost driver and has developed the following cost equations based on direct labor hours: Grooming Supplies (variable) y= $0 + $4.00x Direct Labor (variable) y= $0 + $12.00x
Beverage Products, LLC, manufactures metal beverage containers. The division that manufactures soft-drink beverage cans for the North American market has two plants that operate 24 hours a day, 365 days a year. The plants are evaluated as cost centers. Small tools and supplies are considered variable overhead. Depreciation and r
Carola Industries, Inc., manufactures discs for several of the leading recording studios in the United States and Europe. Department 60 is responsible for the electronic circuitry within each disc. Department 61 applies the plastic-like surface to the discs and packages them for shipment. Carola recently produced 4,000 discs for
The company is currently engaged in business activities both nationally and internationally. On the international side of your company, the countries you are operating in are experiencing riots, strikes by their citizens, unconfirmed violence against their people by the government, and other atrocities. Your physical facilities
As an accountant, if you had a choice of working with one of the boards, FASB, GASB, or IASB, which one would you work with?
What are the controlling accounts and subsidiary ledgers? What is the relationship between them?
How do technology-based information systems affect accounting. What impact have they had on the role of accounting in business?