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Internal Accountant's Report to Management

You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting info

Economic versus accounting income

Economists and accountants agree that the concept of income is vitally important. However, the two disciplines disagree on what income is and how it should be measured. A. Present an argument in favor of the economist's view of the concept of income. B. Present an argument in favor of the accountant's view of the concept of

Recording Petty Cash Transactions

On July 1, Acton Company established an Imprest (petty cash) fund in the amount of $400.00 in cash from a check drawn for the purpose of establishing the fund. On July 31, the petty cash fund has cash of $31.42 and the following receipts on hand: for merchandise received $204.30; freight-in, $65.74; laundry service, $84.00; and

Another explanation needs

17.) On June 30, 2009, Sampras Company reported the following account balances: Receivables $ 80,000 Current liabilities $ (10,000) Inventory 70,000 Long-term liabilities (50,000). Buildings (net) 75,000 Common stock (90,000)' Equipment (net) 25,000 Retained earnings (100,000) Total assets $250,000 Total li

Prepaid and Regular Expenses

How does prepaid expenses differ from regular expenses? What are the seven objectives of internal controls for various business cycles, such as, revenue, purchasing, and payroll cycles?

Return on investment and residual income

Can you please assist me with this problem? It is the same problem that has already been answered on Posting ID: 258518 (Compute the return on investment and residual income for the current situation). I just want you to verify if the answer is correct. I trust your judgment. The answer given in Posting ID: 258518 is in th

Multiple Choice Accounting Questions

1. Which of the following terms best describes the assumption made in applying the four inventory methods? Cost flow Goods flow Asset flow Physical flow 2. An understatement of year 1's beginning inventory will: Cause year 2's margin to be overstated Cause year 1's cost of goods sold to be understated Cause year

Analyze the business use of insurance for various risks

Please help answer the following questions. Include references in the solution. Why might an issuer seek to perfect his or her security interest in a piece of collateral? Is this a guarantee of payment? May the issuer take the collateral under any circumstance, and why might the issuer do this?

Negotiable instruments

Week 4 DQ 1 - Due NLT 1-21 Describe various types of negotiable instruments. Why might a person choose one over the other? What are the financial and regulatory limitations of each negotiable instrument and who can issue negotiable instruments? Country: USA Approx. 250-300 words

True/False Accounting

True or False: 1. In order for a taxpayer to deduct a medical expense, the amount must be paid to a certified medical doctor (M.D.). 2. Generally, tax legislation is introduced first in the Senate and referred to the Senate Finance Committee. 3. Medical expenses incurred on behalf of children of divorced parents are d

Real Estate Taxation

1. 1.1 Uncle Bill made a gift to nephew Bob of real estate having a fair market value of $500,000. Uncle Bill had purchased the property for $100,000 cash a year earlier. On the date of the gift of the real estate, Uncle Bill paid a gift tax of $100,000 on the $500,000 gift. The gift tax on $400,000 appreciation was $95,

Fundamentals of Overhead Variances

The Durant Company is installing an absorption standard-cost system and a flexible-overhead budget. Standard costs have recently been developed for its only product and are as follows: Direct materials 3 pounds @ $20 $60 Direct labor 2 hours @ $14 28 Variable

Comparisons of Production-Volume Variance with Other Variances

Appendix 13: Comparisons of Production-Volume Variance with Other Variances The only new variance introduced in this chapter is the production-volume variance, which arises because fixed-overhead accounting must serve two masters: the control-budget purpose and the product-costing purpose. Underapplied or overapplied overhead

Underapplied and Overapplied Overhead

Underapplied and Overapplied Overhead Wosepka Welding Company applies factory overhead at a rate of $8.50 per direct-labor hour. Selected data for 20X7 operations are (in thousands): Case 1 Case 2 Direct-labor hours 30 36 Direct-labor cost $220 $245 Indirect-labor cost 32 40 Sales commissions 20 1

Intermediate Accounting - Sample Financing Quiz

Need some help with questions and the reason behind it each question? Thanks - see below... 1. What is the market price of a bond issued at a discount? a. The present value of the principle amount at the market (effective) rate of interest plus the present value of all future interest payments at the market (effective) rat

Accounting: Assumptions, Principles, and Constraints matching

(Assumptions, Principles, and Constraints) Presented below are the assumptions, principles, and constraints. 1. Economic Entity Assumption 2. Going concern assumption 3. Monetary unit assumption 4. Periodicity assumption 5. Historical cost principle 6. Fair value principle 7. Expense recognition principle 8. Full di

Solomon Company: Diagram Job costing system; compute budgeted overhead rate

4-31 The Solomon Company uses a job-costing system at its Dover, Delaware, plant. The plant has a Machining Department and a Finishing Department. Solomon uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Machining Department, w

Service standards for commercial account servicing

Looking for some ideas for the following question. Commercial account servicing. Setting benchmarks / service standards for how accounts are handled. Monitoring quality control. Devising benchmarks for efficiency and effective use of IT systems in the "backroom" activities.

Compute predetermined overhead rate for each department; apply it

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the compan

Compute company's predetermined overhead rate

Estimated cost and operating data for three companies for the upcoming year follow: Company X Company Y Company Z Direct labor-hours 80,000 45,000 60,000 Machine-hours 30,000 70,000 21,000 Direct materials cost $400,000 $290,000 $300,000 Manu

Mortgage interest & donations in Japan, basis of accounting

Research guestions For questions #1 - #3, you should consider yourself as the tax professional. A client has come to you with the situation described. You should then advise the client on how best to proceed. For questions #1 - #3, I anticipate that you should be able to successfully complete the research by referring to r

Tax Issues to Consider in the Corporation

Can you help me get started with this assignment? P&J Corporation is to be owned equally by Pete and Joe. The corporation will be formed by exchanging the assets and liabilities of the P & J Manufacturing Partnership for all of the corporation's stock on September 1 of the current year. Both shareholders use the calendar year

Material and Labor Variance Computations

Material and Labor Variances Consider the following data: Costs incurred: actual inputs × actual prices incurred Direct Materials $154,000 Direct Labor $77,800 Actual inputs × expected prices

Artisans Shirtcraft Annual and Monthly Financial Statements

I need step by step in solving these problems because I don't understand it. I'm doing problems of Managerial accounting but I can't solve these problems, I don't understand, so I need you to explain to me the solution. Cases 6-1: Artisans Shirtcraft Background Artisans Shirtcraft manufactures and sells hand-painted shirts

Excel in action

As part of an effort to increase sales and profit margin. Music Makers' management is adopting a transfer pricing plan. The copying and packaging departments have been placed under divisional managers. As an incentive to cut costs, each division is expected to earn a gross margin of 10% on its divisional costs. The copying divis

Management accounting

"The best management accounting system provides managers with all the information they would like to have." Do you agree with this statement? Why or why not.

Cost Function and operating income:

Expedia provides travel services on the Internet. 2002 was an important year for Expedia as it reported positive operating income after three years of operating losses. In the first quarter of 2001, Expedia reported an operating loss of $19 million on sales revenue of $57 million. In the first quarter of 2002, sales revenue had

Changes in costs, effects on variance - Tempro, Inc.

Tempro, inc, uses a standard cost accounting system. Variances for the year ended December 31, 2005 were as follows: Material Price Variance Unfavorable Material usage variance favorable labor rate variance favorable labor efficiency variance unfavorable Managers at Tempro are consideri