What do you view as the biggest differences between governmental accounting and for-profit financial accounting? Explain your rationale.
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Please help me to answer this question. What role did the accounting profession play in the recent sub prime mortgage crisis? What could they have done differently?
1 Crabtree Inc. produces two types of products -Ã? Gizmos and Gadgets. The following information is available related to each product: Gizmos Gadgets Sales price per unit $80 $50 Variable costs per unit 36 22 Three-fourths of the products sold are Gizmo
Assuming the following ratios are constant, what is the sustainable growth rate? Total Assets/sales 1.0 Net income/sales .1 Debt/equity .3 Dividends/net income .4
The expected return for the asset shown in the following table is 18.75%. If the return distribution for the asset is described as below, what is the standard deviation for the asset's returns? Return Probability .10 .25 .20
Why are research and development costs expensed? Is this consistent with how other similar costs are handled? Explain why or why not. Should research and development costs be expensed? Explain why or why not.
If a company's net income is increasing, but its cash flows from operating activities are decreasing, a possible cause is that the company is 1. making substantial expenditures on new equipment 2. using substantial amounts of cash to pay off its loans 3. increasing its inventory at a faster rate than its sales revenu
Depreciation, as the term is used in accounting, means: 1. The accumulation of cash to replace equipment when it wears out. 2. The physical deterioration of an asset. 3. The allocation of the cost of equipment to expense in the periods in which services are received from the asset. 4. The journal entry used to adj
A company's adjusting entry for uncollectibles at year-end would include 1. Debit to bad debts expense. 2. Credit to accounts receivable. 3. Debit to accounts receivable. 4. Debit to allowance for uncollectible accounts.
As of December 31, International Galleries, Ltd.'s general ledger account for Prepaid Advertising Expense had a balance of $10,000. However, an analysis of the account showed that $6,000 of that amount was for ads in the Daily Tribune newspaper that had been published during December. As of December 31, Tribune Newspaper Publishing, Inc.'s general ledger account for Unearned Advertising Revenue had a balance of $8,000. However, an analysis of the account showed that $6,000 of that amount was for International Galleries' ads that had been published during December. Which of the following adjusting entries would be appropriate on Daily Tribune's books? 1. Debit Advertising Revenue for $6,000. 2. Debit Unearned Advertising Revenue for $6,000. 3. Credit Unearned Advertising Revenue for $2,000. 4. None of the above.
As of December 31, International Galleries, Ltd.'s general ledger account for Prepaid Advertising Expense had a balance of $10,000. However, an analysis of the account showed that $6,000 of that amount was for ads in the Daily Tribune newspaper that had been published during December. As of December 31, Tribune Newspaper Publish
See the attached file. 1. Prepare the December 31, 2009, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,000 for the year. Paid-in capital 8% Preferred stock, $29 par value, 50,000 shares authorized, 5,000 shares issued and outstanding $ Common stock, $5 p
During the year, Olsen Company traded an automobile plus $8,400 in cash to Barry Company for another automobile. The car Olsen used as a trade-in originally had cost $16,000, of which $14,500 has been depreciated. Olsen also purchased new office furniture during the year. The list price of the furniture was $9,600. Olsen p
McMullen Co. manufactures automatic door openers. The company uses 15,000 electronic hinges per year as a component in the assembly of the openers. You have been engaged by McMullen to assist with an evaluation of whether the company should continue producing the hinges or purchase them from an outside vendor. The Accountin
Identify and explain at least 3 accounting frauds that are commonly perpetrated by health care providers. Explain the financial and nonfinancial cost of the types of fraud that you identified above. Show how health care organizations can use the fraud triangle (situational pressures, opportunity, and rationalization) to pr
When activity based costing is used, why do manufacturing overhead costs often shift from high-volume products to low-volume products? What type of costs should not be assigned to products in an ABC system?
AHDI Corporation uses a job-costing system at its plant. The plant has a machining department and a finishing department. The machining department allocates overhead to the jobs based on machine hours and the finishing department allocates overhead to the jobs based on direct labor costs. The budget for the plant is as follo
Spreadsheet Assignment Karman Company has two different bonds currently outstanding. Both bonds have a par value of $26,500 and a maturity of 19 years. The required return on both bonds is 10 percent, compounded semiannually. Bond M makes no payments for the first 7 years, then pays $1,600 every six months over the su
Forensic Accounting and Fraud Examination Case Study 1: And the Fraud Continues 1. Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud. 2. Identify and justify the approach you would take if you suspected fraudulent activity within an organization where you work. 3
Can someone summarize some basics about proprietary funds? Just a few basic comments like what they are, what accounting method applies, what are some characteristics of them, why do governments have them?
13-2A Contex Corporation reports the following components of stockholders' equity on December 31, 2011. Common stock - $10 par value, 50,000 shares authorized, 20,000 shares issued and outstanding..................................$200,000 Paid-in capital in excess of par value, common stock................ 30,000 R
1. Compare and contrast the deductive, inductive and pragmatic research methods. 2. Discuss human information processing research and the consequences of its findings on accounting. 3. Describe all sources of accounting information that could contribute to an investor's decision to buy, hold or sell a stock. 4. Eva
7-2 Brookwood Medical Center - What motivated the managers to build a new cost system? How does the reciprocal method allocate indirect costs to revenue-producing departments?
See attached 7-2 Brookwood Medical Center "In 1990, a major insurer asked us to bid on performing all of their open-heart surgeries in the Southeast United States. We prepared a bid by puiling charges on all (not just Medicare) patients we had treated in the four diagnostic related groups (DRGs) and applying the hospit
How important is it that an organization have an exclusive right to exercise a real option? That is, can we really say that an option being considered has value if competitors may exercise it also?
Briefly explain how companies can reduce waste and increase profits, that is, closing the marginal gap and reducing costs (use the health care industry to explain this).
Peggy has a 1/3 ownership in Kash partnership. She paid $50,000 for the 1/3 interest. In the first year of operation, the partnership had $30,000 of non-separately stated income and borrowed $6,000. What is Peggy's basis?
GASB Statement 34 is a pretty big deal in government accounting. It mandates that governments' basic financial statements include two separate but related sets of statements. 1. What are these two separate but related sets of statements? What are their different purposes? What is the fundamental difference between the two? 2
1. Jan. 2 Invested $10,000 cash in business in exchange for common stock. 3 Purchased used car for $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11 Billed customers $1,800 for services performed. 16 Paid $200 cash for advertising. 20 Received $700 cash from customers bill
Buddy's Baseball Bat Manufacturing produced 80,000 baseball bats in 2005. The company sold 60,000 bats at a selling price of $50 a bat. The company had the following costs related to the production of 80,000 bats. Direct Materials $800,000 Direct Labor $400,000 Variable Overhead $250,000 Fixed Ove
How would applying a flat tax decrease errors, when the progressive tax rates is just a simple formula? How would you measure gross income? Do you think that deductions should be eliminated? Which ones and why?
1. Sentilles, Inc., a calendar year S corporation, incurred the following items this year. a. Calculate Sentilles's nonseparately computed income. b. How much ordinary income or loss is reported by Brittany Nelson, a 25% shareholder? § 1231 gain $ 11,000 Tax-exempt interes