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Accounting

What is the full disclosure principle in accounting?

Chapter 24, question 2, Intermediate Accounting What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years? Explain the need for full disclosure in financial reporting. Identify possible consequences of failing to properly disclose certain items in financial stateme

performance assessment systems

What are the benefits and disadvantages to performance assessment systems in organizations? Why should management accountants be involved in the establishment and use of those measures? To what extent are these measures and assessments reliable and accurate?

contribution margin, break even analysis

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

Indirect Overhead Cost and Cost of a Product

http://www.middlecity.com/ch18.shtml In 50 words discuss: Why might the inclusion of indirect overhead costs in the calculation of the cost of a product provide us with a number that is very useful? For what purposes is such a calculation possibly useful?

Hotels: Best Rate Guarantee

Using the GDS or OTA's costs the hotels companies money to use the service. How have hotel companies tried to reduce these costs? How are hotel companies using the best rate guarantee to compete with the OTA's?

Marguerite, Inc. Shimon Corporation -- manufacturing overhead, budgets

THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 20 THROUGH 22. Marguerite, Inc., expects to manufacture and sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 20x4: Beginning

Entries for Bond Transactions Aumont Company

E14-10 (Entries for Bond Transactions) On January 1, 2007, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2007, and mature January 1, 2012, with interest payable December 31 of each year. Aumont Company allocates

Benefits of being able to record expenses

1. You stated a good comparison between cash basis accounting and accrual basis. Many accountants believe that the cash basis of accounting fails to match efforts and accomplishments of a company in a manner that measures economic performance and true financial position. For instance, if a bill is received in January for Decembe

accounting questions for managers

Which is a characteristic of management accounting? - It must follow generally accepted accounting principles -It is used primarily by internal users. - it is concerned primarily with reporting past performances. - it uses historical costs as the sole measurement unit. An example of a period cost is? - Advertising cost.

JJim and Mary's Inc stock: What is book value, over or under

Jim and Mary's Inc. stock currently sells for $75 per share. The firm has total assets of $1,000,000 and total liabilities, including preferred stock, of $350,000. If the firm has 10,000 shares of common stock outstanding. a) What is the book value of each share of common stock? b) Is the stock overvalued or undervalued? c)

Arrow Company: Calculate interest, net income, cash flow

Use the following information to answer the next two questions. On May 1, 2011, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. Arrow reported cash revenue of $3,400 and $800 in 2011 and 2012, respectively. 1. What is Arrow's net income for 20

Reengineer the Process or Use Continuous Improvement?

4. An equipment manufacturer has the following steps in its order entry process: a. Take the order and fax it to order entry. b. Enter the order into the system (10 percent unclear or incorrect). c. Check stock availability (stock not available for 15 percent of orders). d.

Pricing Decisions and DCF Methods for Investments

Managers should base pricing decisions on both cost and market factors. 1. Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions. 2. "It is impossible to use DCF methods for evaluating investmen

Tax planning for a calendar year

Mona, a calendar-year taxpayer, uses the cash-basis method of accounting for her whole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Mona can pay the $20,000 bill any time before January 30 of next year without penalty. Assume her margin

Tax Expense and Deferred Tax (Roosterfish Case Study)

ROOSTERFISH CORPORATION Roosterfish had a tax liability for 20X7 of $20,000 based on a tax rate of 40%. The accounting staff of Roosterfish is having trouble putting together the 20X7 financials. They need your help in determining the tax expense and deferred tax amounts for 20X7. The enacted tax rates for the future peri

Price Considerations and the Internet

How has the Internet affected price considerations? Analyze several different industries, such as airlines, sales, hotel reservations, and book sales.

Smithton, Inc.- Calculate the Budgeted Profit

Smithton, Inc. makes and sells one product, the standard costs of which are as follows: Direct materials (2 kg at 3.00/kg) = 6.00 Direct labour (30 minutes at 10.00/hr) = 5.00 Fixed overheads = 2.50 Total = 13.50 Selling price = 20.00 Standard profit margin = 6.50 The monthly production and sales are planned to be

Cash Outflow Irregularities: Check tamper in, suspect list

Client Consultation: The internal auditor from a Fortune 500 company would like to have a consultation with your forensic accounting firm. The internal auditor and members of the staff suspect irregularities in cash outflows, specifically in the areas of check tampering and employee reimbursements. Question 1: What is ch

Explorer Corporation: Calculate the equivalent units

Explorer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: Materials costs $10,500 -- 75% complete Conversion costs $6,400 --

Absorption Costing: Calculating the Unit Product Cost

Billy Bing Ping Pong Corporation manufactures a single product, premium pink ping pong balls. Each premium pink ping pong ball sells for $500.00 each. Selected operating information from last month is as follows: Variable costs per unit: Direct materials $17.50 Direct labor $5.33 Manufacturing overhead $2.50 Selling &

Units Needed to Achieve a Target Net Operating Income

The small table of figures has been provided by a semi-new company called Prodigy Corp. that has requested your assistance as a financial analysts. Please read the data below and answer the question beneath it.: Sales per period 5,000 units Selling price $60 per un