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Financial Accounting & Bookkeeping

Helpful Accounting and Financial Study Questions

11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%? A. $3,000,000 B. $90,000 C. $300,000 D. $210,000 12) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 201

Financial Accounting Effective Interest Rates

1) Why do we use the effective interest rate rather than the stated rate when discounting the loan? 2) Why do we expense organization costs when they will benefit future periods? 3) Why you can either expense or treat advertising costs as a prepaid item?

Cost Accounting System

What is cost accounting? Why do companies use cost accounting system? When did it started and the reason/s behind it? What are the Pros and Cons of utilizing the cost accounting system? Research a company that utilizes the cost accounting system for financial management, how has that company improved since using cost account

Financial/Managerial Accounting Improving working Capital

Improving working Capital: In Essentials of Healthcare Finance, What is working capital and how would you calculated it? How they can improve their working capital? What are the great approaches for cash management? If you are the controller who is in charge of managing cash, what methods would you take and why?

Financial accounting for Pepsi Co

Unit 3 Assignment Questions Problem 6-5 pg 318 Internal Control At Morris Mart Inc., all sales are on account. Mary Morris-Manning is responsible for mailing invoices to customers, recording the amount billed, opening mail, and recording the payment. Mary is very devoted to the family business and never takes off more than on

Records manufacturing activities

A ______________ records manufacturing activities using a perpetual inventory system, which continuously updates records for costs and materials, goods in process, and finished goods inventory. Answer A. none of the other answers B. job cost sheet C. job lot D. cost accounting system

Cost Accounting Special Orders

Question #2 The following per unit information is based on expected production and sales of 1,200 units: Selling price $25 Var COGS $8 Fixed COGS $6 Gross Profit $11 Var S&A $2 Fixed S&A $4 Operating Income $5 The firm's tax rate is 40%. a) How many units need to be sold to break-even? b) How many units n

Financial Information and Rational Irrationality

Abstract: The Financial Accounting Standards Board and the International Accounting Standards Board are scheduled to release a joint exposure draft proposing significant changes to how businesses present their financial statements. Two major objectives of the proposed financial statements are "disaggregation" and "cohesi

Financial Accounting

Income Statement, Corrections, The Matching Principle Explained.Please see attachment.

financial accounting practice questions

1. By definition, which of the following represents the owners of a corporation? a Customers b Creditors c Stockholders c Employees 2. An individual asset has increased. Which of the following is possible? a There is an equal decrease in another asset. b There is an equal decr

This post addresses successful cost and full cost accounting

During 2013 oil company engaged in 86 different exploratory projects only 20 successful costs was 24 million 5.6 million was associated withe success end of 2013 production not started. Using success method how much would be shown on income statement 2013? How much will be capitalized and shown as an asset on balance sheet? Sam

Allocation of Cost in Auto Industry

On December 31, 1990, you find that the company had incurred costs of $2,700,000 on this contract, that 160 cars had been delivered to the purchaser, that 25 were in the process of construction, and 25 were yet to be built. The 25 cars in process were estimated by management to be about 80 percent complete. At what value shou

Accounting II

1. Define variable cost, fixed cost, and mixed cost. 2. What is a scatter diagram? How is a scatter diagram used to estimate cost behavior?

Accounting Vs. Financial Break-Even Points

Please help answer the following question. A finance manager considers the accounting break-even point more important than the financial break-even point. Do you agree with the manager? Give reasons.

Cost Accounting for Beginning Inventory

Consider the following information: Q1 Q2 Q3 Beginning inventory (units) 0 300 300 Actual units produced 1,000 800 1,250 Budgeted units to be produced 1,000 1,000 1,

Intermediate Accounting

1. On January 1, 2011, an investor paid $306,000 for bonds with a face amount of $360,000. The stated rate of interest is 11% while the current market rate of interest is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2011 (assume annual interest payments and amortization)?

Allocating Joint Cost!

Keiffer Production manufactures three joint products in a single process. The following information is available for August 2010: Product Gallons SalesValueatSlit-OffperGallon CostafterSplit-Off Final Selling Price JP-4539 4,500 $14 $4 $24 JP-4587 18,000 8 5 15 JP-4591 13,500 18 2 22 Allocate the joint cost of $558,

Examples of Key Take Aways Applicable to Life

Please reflect upon one of your key take-aways from the learning of the following chapters and describe how you may apply it to your work or life. Chapters:- Accounting for receivables and Plant assets, natural resources and intangible assets.

Accounting Questions - Cost Volume Profit

Explain and write out your calculations for each firm. Firm A: Units Sold = 5,600 Revenue = $12.00 Variable Costs per Unit (VC) = ? Contribution Margin Total = $25,200 Fixed Costs (FC) = $20,300 Operating Income (OI)=$ ? CM unit= ? CM unit%= ? VC unit %= ? Firm B: Units Sold = 16,800 Revenue = $? Variable Cost

Madelone's cost formula for its supplies cost is $1,120 per month plus $11 per frame. For the month of June, the company planned for activity of 611 frames, but the actual level of activity was 607 frames. The actual supplies cost for the month was $8,150. The spending variance for supplies cost in June would be closest to:

6. Madelone's cost formula for its supplies cost is $1,120 per month plus $11 per frame. For the month of June, the company planned for activity of 611 frames, but the actual level of activity was 607 frames. The actual supplies cost for the month was $8,150. The spending variance for supplies cost in June would be closest to:

Financial accounting transactions

I have read the chapter several times and I am not sure on how I am supposed to respond to the questions. Thanks for the help! ************************ Presented below are two independent situations. 1. On January 6, Arneson Co. sells merchandise on account to Cortez Inc. for $9,000, terms 2/10, n/30. On January 16, Corte

FINANCIAL ACCOUNTING

1) Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system? 2) The accuracy of accounting records is enhanced by the integrity of internal controls. Comment on this statement and

Jo Company: Prime cost of boat, normal cost, actual cost, difference

1. Jo Company builds boats, including the "Ark Royal", a fishing boat which required $100,000 of materials and 450 hours of direct labor at $20 per hour. During the period the boat was built, Jo paid $400,000 to rent the shipyard where the boats, and others, were built and paid or incurred $100,000 in other production cost. At

Cost of Goods Manufactured Schedule; Cost Behavior

Case 1, Assignment 1 Schedule of Cost of Goods Manufactured Dalton Brothers Manufacturing, Inc. began business in July 2011. The firm makes mud boats for retail sale. Following are data taken from the firm's accounting records that pertain to its first month in operation. Direct material purchased on account - $900,0

How to Journalize Basic Accounting Transactions

Show how the transactions in E2-3 are journalized. The selected transactions for D. Reyes, Inc. an interior decorating firm, in its first month of business, are as follows. June 2 Invested $10,000 cash in the business in exchange for common stock. 3 Purchased used car for $4,000 cash for use in business. 9 Pur