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Accounting standards and theories

1. Accounting standards could be established using descriptive theory, which explains practice, or normative theory, which leads practice. Which theory is currently being used in setting standards? Which do you think should be used? Justify your response. 2. Accounting standards are very complex and require expertise in the

Angela Company: How Should Angela Report the Safety Hazard?

Please help with the following: Angela Company is a manufacturer of toys. During the year, the following situations arose: -- A safety hazard related to one of its toy products was discovered. It is considered probable that liabilities have been incurred. Based on past experience, a reasonable estimate of the amount of los

Intangible Asset Account: Reichenbach Company

Can you help me get started with this assignment? Correct Intangible Asset Account Question Details: Reichenbach Co., organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. Intangible Assets: 7/1/09--8 year

Diluted EPS: Given data, calculate diluted earnings per share

Net profit for the year $18,160,000 Ordinary shares of $1: $40,000,000 Number of ordinary shares in issure : 40,000,000 Average fair value of one ordinary share during the year : $1.5 Number of shares under options during the year : 2,000,000 Exercise price for shares under options during the year : $1.2 Calculatio

Accountants' primary responsibilities: Relevant and Reliable

An Accountant's primary responsibility is to provide information which is: Useful - Relevant (forecasting/predicting - feedback and timely), Reliable (verifiable - faithful representation) and consistent (comparable). Assuming that you concur with the foregoing commentary - how does the accountant carry out their responsibil

Contemporary Accounting Issues: United States

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

Tax effect of exchange of taxi business for limo service

T has arranged to exchange his taxi business for a limo service (U's) in order to move to a new city because if T sells his business he will have substantial gain. In order to strike the deal, U insists that T sign a covenant-not-to-compete that U and T value at $25,000. Balance sheets are: T's Autos - $700,000 Computers -

Probabilities in the game of Keno

1) At the casino you can play the game of Keno (similar to the "lottery" problem); where 80 balls are in an urn, 20 balls are required for the jackpot, and 20 balls are drawn overall. Additionally there are "winning" payouts if you pick: 0,1,2,7,8,9,10,11,12,13,14,15,16,17,18,19, or 20 correct. You receive no payout for 3,4,5,

Assembly Dept of Webster Manufacturing cost report

Problem 1 Study guide The Assembly Department of Webster Manufacturing uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $135

Heart Ltd Cost & Revenue Variances: Volume variance, over- under-applied overhead

Use the following information to answer questions 1 and 2 Heart Ltd. applies overhead on the basis of machine hours. One and one�half (1.5) machine hours are required for each unit of product. The master budget showed planned production of 6,000 units for the upcoming period, with manufacturing overhead budgeted at $205,2

Predetermined overhead rate: Over-applied or under-applied

PLEASE USE MS EXCEL. Indigo Inc. assigns overhead to specific jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $2,150,000 & estimated machine hours were 500,000. By the end of the year, actual overhead costs were calculated to be $1,900,000 & actual machine hours were 475,000.

Calculate diluted EPS involving convertible debentures

Would anyone help me to answer the diluted EPS using the following information - year ended 31 Mar 2008: Profit after tax: $1,812,000, ordinary shares of $1 (fully paid) $40,000,000 the average market price for year of ordinary shares $1.5 i) The company issued $20m of 6% convertible loan stock on 1 Mar 2007. The t

CPA exam sample question: Best Avaition Associates partnership issues

Following is a sample writing (essay) question for the CPA exam. The answers are to be a paragraph each (in essay form) explaining your reasoning. Best Aviation Associates is a general partnership engaged in the business of buying, selling, and servicing used airplanes. Best's original partners were Martin and Kent. They

FASB Codification System Eight Data Bases

FASB Codification System contains eight different data bases. When providing guidance and direction to management concerning business decisions and how accounting treatment of these decisions will impact the financial treatment of these decisions, which data base would you rely upon to give management the proper advice.

Marshall Corp Future Tax Asset - Amounts to be Realized

Marshall Corp. had a future tax asset account with a balance of $101,500 at the end of 2007 due to a single temporary difference of $290,000 related to warranty liability accruals. At the end of 2008, this same temporary difference has increased to $315,000. Taxable income for 2008 is $887,000. The tax rate is 35% for all yea

Forensic Accounting: Compare internal to external auditor; examples of fraud

Please include your opinions and personal experience if you can. You may also do some Internet and library research to add to your response. 1. Contrast and compare the role of the following: a. The internal auditor. b. The external auditor. c. The external forensic accounting consultant in an external audit 2. List the

Diluted EPS including effects of options granted to directors

Calculate the diluted EPS by using the following information for the year ended 31 May 2008: Profit after tax: $1,812,000, Ordinary shares of $1 (fully paid) $40,000,000 The average market price for year of ordinary shares $1.5 Share options have been granted to directors giving them the righ to subscribe for ordinary

Make or Buy decision at Nantucket Nectars

Assume that Nantucket Nectars reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: Nantucket Nectars Company Cost of Making 17.5-Ounce Bottles Total Cost for 1,000,000 Bottles Cost per Bottle Direct materials $80,000 $0.08 Direct labor 30,000

Analyse distribution of IQ scores in Americans

From a population of 25,000 Americans in 1969; it was discovered that their collective IQ Score mean was 105 with a standard deviation of 12. a. how many IQ scores exceeded 115? b. what is the probability of IQ scores that fell between 68 and 75? c. how many IQ scores fell above 3 standard deviations? d. what is t

Flexible Budgets: Connor Company

I am completely lost. Can you help me?? ------------- 7-17 Flexible budget. Connor Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, $12, respectively. The president is pleased with the following performance report.

Prepare a schedule showing corrected income before taxes

Error Analysis The before-tax income for Lonnie Holdiman Co. for 2007 was $101,000 and $77,400 for 2008. However, the accountant noted that the following errors had been made: 1 Sales for 2007 included amounts of $38,200 which had been received in cash during 2007, but for which the related products were del

As an experiment, a self-confessed connoisseur of cheap popcorn carefully counted 773 kernels and put them in a popper. After popping, the unpopped kernels were counted. There were 86.

As an experiment, a self-confessed connoisseur of cheap popcorn carefully counted 773 kernels and put them in a popper. After popping, the unpopped kernels were counted. There were 86. (a) Construct a 90 percent confidence interval for the proportion of all kernels that would not pop. (b) Check the normality assumption.

Managerial and cost accounting problems for manufacturing and process costing

The following data (in thousands of dollars) have been taken from the accounting records of Larsen Corporation for the year completed. Sales.......................................................$860 Purchases of raw materials.......................$150 Direct labor.............................................$110 Manufact

Determine the cost driver rate

Use the information below to answer the following question(s). Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: Department A Department B Direct materials $700,000

Mason Engineering Company Equipment Purchase

On October 10, 2005, Mason Engineering Company completed negotiations on a contract for the purchase of new equipment. Under the terms of the agreement, the equipment may be purchased now or Mason may wait until January 10, 2006, to make the purchase. The cost of the equipment is $400,000. It will be financed by a note bearing i

Review the Comprehensive Annual Financial Report

Review the Comprehensive Annual Financial Report (CAFR) from 1. How many capital projects funds does the government maintain? How can you tell? Are any of these major funds? If so, for what purposes are they maintained? 2. How many debt service funds does the government