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Accepted Accounting Principles

2. State two generally accepted accounting principles that relate to adjusting the accounts. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marshâ?? law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?

Effectiveness of On-line trading platforms

Do you think online trading platforms have helped investors make money? Does it help to have access to your 401k or brokerage statement all the time? How does this compare to when people in the 1940's, 50's and maybe into the early 60's would keep stocks they bought in a safe deposit box in the bank and maybe hold those stock

Comprehensive Income and Tax Liability

A person has earnings of $50,000 this year. The market value value of her condominium that she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate of inflation is 3 percent, and that she has neither capital losses nor earnings, and receives no transfers, calculate her comprehensive income. If she

Differences in the Remeasurement Method and Translation Method

The balance in Newsprint Corp.'s foreign exchange loss account was $10,000 on December 31, 2008, before any necessary year-end adjustment relating to the following: (1) Newsprint had a $15,000 debit resulting from the restatement in dollars of the accounts of its wholly owned foreign subsidiary for the year ended December 31,

Sale of Assets Received as a Gift and Inherited

Daniel receives 400 shares of A&M Corporation stock from his aunt on May 20, 2009, as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2002 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2009 and used the annual exclusion. She paid a gift tax of $9,300 on the gift

Maintaining CPA License, Auditor Reports

6-After individuals become licensed in accounting, type typically must do what? A. Work for an auditing firm for 120 hours. B. Continue their education by acquiring CPE's. C. Become an Enrolled Agent with the IRS. D. Open a public practice in accounting. 9-If a company has changed accounting principles, the auditor will i

Plant assets/asset is being depreciated at a rate of $500

1.Plant assets are: tangible assets used in the operation of a business that have a useful life of more than one accounting period. current assets. held for sale. intangible assets used in the operations of a business that have a useful life of more than one accounting period. 2. An asset's book value is $36,000 on Ja

Transaction recorded incorrectly

An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction? credit another asset account for $1,500 credit another liability account for $1,500 debit another asset account for $1,50

Tillman Company owns a machine that was bought on January 2,

Tillman Company owns a machine that was bought on January 2, 2005, for $376,000. The machine was estimated to have a useful life of five years and a salvage value of $24,000. Tillman uses the sum-of-the-years'-digits method of depreciation. At the beginning of 2008, Tillman determined that the useful life of the machine shou

What is your ATR when your annual income is $110,000?

Suppose you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50%. Currently, your ATR is 35%. Calculate your annual tax. Calculate the extra tax you would pay per year if your annual income increased to $110,000. What is your ATR when your annual income is $110,000?

Lump-Sum Taxes

Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes do not result in substitution effects, but they do affect prices. Is this a contradiction?

Missing amounts - process costing

See the attached file for the tables. Using the data presented below, determine which figures should be inserted in the blank spaces Beginning Units in Process Units Started in production Units transferred to finished goods Ending units in process Equivalent units a) 600 8,000 8,600 ? ? b) 900 6,500 ? 400-

Companies that are likely to need additional cash inflows

Lee wants to know if he will have to keep putting cash into companies after he purchases them. Here are three companies Lee has identified as potential acquisitions along with the information from the most recent cash flow statements (see attached excel sheet). All of these companies have a very small current cash balance. Which

Income from operations and net income

Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows: Net cash provided by operations...$98,000 Cost of goods sold.........................$310,000 Selling, general, and administrative expenses...$124,000 Accounts Payable....$90,000 Extraordinary loss from

Internal Control Accounting Periods

Define what it is meant by internal control. Provide a minimum of three examples. It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company's balance sheet. Explain which physical quantities of inventory that you will include, and which you will exclude.

Accounting Problems

1. The FASB's standard-setting process includes, in the correct order: Exposure draft, research, discussion memorandum, SFAS. Research, exposure draft, discussion memorandum, SFAS. Research, discussion memorandum, exposure draft, SFAS. Discussion memorandum, research, exposure draft, SFAS.

Characterized Political Processes

1. Accounting standard setting has been characterized as a political process. Discuss this proposition giving an example. 2. Explain how management's discussion and analysis of its operations and liquidity may be helpful to investors. 3. In a recent press release, Foot Locker Inc. reported that its fiscal first-quarter net

Managerial Accounting. Cost Accounting. Standard costing. Variances.

Sacks manufactures embroidered jackets. The company prepares flexible budgets and uses a standar cost system to control manufacturing costs. The following standar unit cost of a jacket is based on the static budget volume of 14,000 jackets per month. -Direct Materials (3.0 sq. ft x $4.00 per sq.ft)

Impact of Activity on the Accounting Equation

What is the impact on the accounting equation of receiving a check from customers for work to be performed over the next three periods (none in this period)? A. Assets: increase Liabilities: increase Equity: no change B. Assets: increase Liabilities: no change Equity: increase C. Assets: increase Liabilities:

Capital structures in different countries

Scenario You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility

Double taxation avoidance, benefits to small business

From the Internal Revenue Service website ( Click on the "Business" tab, then the "Corporations" link. Find the link to "S Corporations" and read the information provided by the IRS. Answer the following question: Explain the reasoning behind the need for the S Corporation provisions in the IRS Tax Code and

Lawford Company's Proceeds from sale of equipment

Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were a. $210,

Accounting for and presentation of owner's equity

As of March 11, 2007, Swanson Group, Ltd. had 300,000 shares of 10$ par value common stock authorized and 185,000 shares issued. There were 6,000 shares of treasury stock that had been purchased by the firm at an average cost of 12$. The market value of the stock on March 11, 2007, was 22$ a. how many shares of common stock

Accounting for and Presentation of Liabilities

On January 1, 2007, Simon Inc issued $500,000 of 9%, 10 year bonds at 101. Interest is payable every June 30 and December 31. Premium is amortized on a straight-line basis. a. Was the market interest rate on Jan. 1, 2007 equal to, more than, or less than the stated interest rate of the bonds? explain your answer. b. how mu

Investment Analysis

A) Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years? b) Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the