Academic Excellence Master Fall Accounting Modules Help

Published: 11 months ago

Academic Excellence Master Fall Accounting Modules Help

10. 1. Companies that outsource research and development and design jobs:

1. Companies that outsource research and development and design jobs:

A. have always made a wise decision.

B. will be more profitable in the long run.

C. run the risk of overseas companies using the information to produce competitive products.

D. always invest in the overseas companies that take on these jobs.

2. For-profit businesses and nonprofit organizations are similar in that they both:

A. contribute to the welfare of society.

B. seek to earn a profit.

C. have a limited life.

D. must be controlled by a board of directors.

3. Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the __________.

A. kinked demand theory.

B. invisible hand.

C. spending multiplier.

D. demand accelerator.

4. Jake considers himself to be a follower of Thomas Malthus. Which of the following statements would Jake be most likely to make?

A. The key to economic growth is to keep taxes and government regulations to a minimum.

B. Command economies are more likely to encourage economic growth than free market economies.

C. Allowing people to follow their self-interest is the best way to generate economic growth and prosperity.

D. A society will not experience sustainable economic progress unless it accepts the need to limit population growth.

5. Which of the following statements best describes the theory of comparative advantage?

A. The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services.

B. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations.

C. The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships.

D. A nation should produce those goods for which domestic demand is comparatively strong, and should import those goods for which domestic demand is comparatively weak.

6. Free trade between nations generally results in:

A. industrialized nations gaining at the expense of developing nations.

B. an increase of jobs in developed nations.

C. mutually beneficial exchange relationships.

D. higher prices for imported goods.

7. Given the ethical lapses that are prevalent today in our businesses, which of the following can be done to restore trust in the free-market system and leaders in general?

A. Business leaders that have broken the law should be given another chance.

B. New laws making accounting records transparent may help restore trust.

C. Making the government accountable for business leader behavior will restore trust.

D. It's up to the government to pass laws requiring ethical behavior of all leaders, business and otherwise.

8. Laws represent the standards of ________ behavior.

A. ethical

B. legal

C. moral

D. socially responsible

9. A ___________ is a form of business that is owned, and usually managed, by one person.

A. closed corporation

B. subchapter S corporation

C. sole proprietorship

D. limited partnership

10. ____________ comprise about 20% of all businesses but account for about 81% of U.S. business receipts.

A. Corporations

B. Partnerships

C. Sole proprietorships

D. Limited liability companies

11. The U.S. government's Immigration Act of 1990: A. encouraged entrepreneurs to come to the U.S. through "investor visas". B. established a government program to teach American workers displaced by immigration how to start their own businesses. C. established guidelines to help entrepreneurs recruit legal aliens as a source of low cost labor. D. proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.

12. Which of the following statements is characteristic of entrepreneurs A. They like certainty B. They have the ability to visualize a clear path C. They look at problems and see opportunities D. They prefer to be inventive rather than worry about whether the invention solves a customer need

13. A vision for a company is: A. an explanation of why the company exists and where it wants to go. B. the same thing as an objective. C. a detailed plan that outlines the major organizational structure of the firm. D. very relevant for the short-term, but less useful for the long-term.

14. _________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment. A. Crisis B. Tactical C. Operational D. SWOT

15. Fayol's ____________ principle says that workers' attitudes would create an environment of pride and loyalty within an organization. A. esprit de corps B. hierarchy of loyalty C. unity of command D. equity

16. __________ believed that managers were trustworthy and companies would do well if employees simply did what they were told. A. John Keynes B. Adam Smith C. Peter Drucker D. Max Weber

17. One strategy U.S. manufacturers have employed in order to become more competitive is:

A. focusing on providing the lowest priced products.

B. relying on advanced technology and the Internet to unite companies.

C. maintaining a distance relationship with suppliers in an effort to guard trade secrets.

D. increasing advertising budgets.

18. To strengthen its manufacturing base in the future, U.S. will have to:

A. uncover lower wage workers in the U.S. to compete with China.

B. continue to innovate.

C. support students in high school and college interested in studying the arts.

D. cut the amount of benefits offered to workers.

19. The concept that a hierarchy of human needs could be used to explain motivation was developed by:

A. Abraham Maslow.

B. Frederick Taylor.

C. Douglas McGregor.

D. Frederick Herzberg.

20. Abraham Maslow thought that once needs at one level of his hierarchy were met:

A. motivation would diminish.

B. another, higher order need would emerge to motivate that person.

C. that type of need would never again be an effective motivator.

D. he or she would become more interested in lower-level needs.

TRUE OR FALSE

21. The sense of satisfaction you get when you achieve an important goal is an intrinsic reward.

T______ F_______

22. Extrinsic rewards are those that are given to a person by someone else.

T______ F________

23. Since motivation comes from within an individual, there is little that managers can do to help motivate employees.



T_______ F________



24. When unhappy employees leave a company, the firm normally ends up benefiting financially.



T________ F________



25. A key element of Frederick Taylor's approach was the time-motion study, which examined the tasks performed to complete a job and the time needed to complete each task.



T_______ F______

11. The Unadjusted Trial Balance columns of a work sheet total $85,500. The Adjustments columns...

The Unadjusted Trial Balance columns of a work sheet total $85,500. The Adjustments columns contain entries for the following:



Office supplies used during the period, $1,350.

Expiration of prepaid rent, $850.

Accrued salaries expense, $650.

Depreciation expense, $950.

Accrued service fees receivable, $550.



The Adjusted Trial Balance columns total is:

12. 1. Which is NOT an accountant’s primary role information system? a. System user b. System auditor c.

1. Which is NOT an accountant’s primary role information system? a. System user b. System auditor c. System designer d. System programmer 2. Which of the following is NOT an objective information system? a. Support for the stewardship function of management b. Support for management decision making c. Support for the day-today operations of the firm d. All the above are objectives 3. Which of the following best describes activities of the materials management function? a. Purchasing, receiving, and inventory control b. Receiving sales, distribution, and purchasing c. Receiving storage, purchasing, and accounts payable d. Purchasing, receiving, and storage e. Purchasing, storage, and distribution 4. Which of the following best describes the activities of the production function? a. Maintenance, inventory control, and production planning b. Production planning quality control, manufacturing and cost accounting c. Quality control, production planning, manufacturing, and payroll d. Maintenance, production planning, storage, and quality control e. Manufacturing, quality control, and maintenance 5. Which of the following best describes the activities of the accounting function? a. Inventory control, accounts payable, fixed assets payroll b. Fixed assets, accounts payable, cash disbursement, and cost accounting C. Purchasing, cash receipts, accounts payable, cash disbursements, and payroll d. Inventory control, cash receipts, accounts payable, cash

13. PROBLEM 12–27 Make or Buy Analysis [LO2] “That old equipment for producing carburetors is worn...

PROBLEM 12–27 Make or Buy Analysis [LO2]

“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an out- side supplier. The alternatives follow:

Alternative 1: Rent new equipment for producing the carburetors for $120,000 per year.

Alternative 2: Purchase carburetors from an outside supplier for $16 each.

Hondrich Company’s costs per unit of producing the carburetors internally (with the old equipment) are given below. These costs are based on a current activity level of 40,000 units per year:

The new equipment would be more efficient and, according to the manufacturer, would reduce direct labour costs and variable overhead costs by 25%. Supervision cost ($60,000 per year) and direct materials cost per unit would not be affected by the new equipment. The new equipment’s capacity would be 60,000 carburetors per year.

The total general company overhead would be unaffected by this decision.

Required:

1.               Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above. Assume that 40,000 carburetors are needed each year. Which course of action would you recommend to Seebach?

2.               Would your recommendation in (1) above be the same if the company’s needs were (a) 50,000 carburetors per year, or (b) 60,000 carburetors per year? Show computations in good form.

3.               What other factors would you recommend that Seebach consider before making a decision?

14. Regis Clothiers can borrow from its bank at 17 percent to take a cash discount. The terms of the...

Regis Clothiers can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 3/19, net 45. Should the firm borrow the funds?

15. 177.The cost of successfully defending a patent in an infringement suit should be a.charged to Legal

177.The cost of successfully defending a patent in an infringement suit should be

a.charged to Legal Expenses.

b.deducted from the book value of the patent.

c.added to the cost of the patent.

d.recognized as a loss in the current period.

178.An asset that cannot be sold individually in the market place is

a.a patent.

b.goodwill.

c.a copyright.

d.a trade name.

179.Goodwill can be recorded

a.when customers keep returning because they are satisfied with the company's products.

b.when the company acquires a good location for its business.

c.when the company has exceptional management.

d.only when there is an exchange transaction involving the purchase of an entire business.

180.On July 1, 2017, Jenks Company purchased the copyright to Jackson Computer tutorials for $324,000. It is estimated that the copyright will have a useful life of 5 years with an estimated salvage value of $24,000. The amount of Amortization Expense recognized for the year 2017 would be

a.$64,800.

b.$30,000.

c.$60,000.

d.$32,400.

181.All of the following intangible assets are amortized except

a.copyrights.

b.limited-life franchises.

c.patents.

d.trademarks.

182.Which of the following is not an intangible asset arising from a government grant?

a.Goodwill

b.Patent

c.Trademark

d.Trade name

183.The amortization period for a patent cannot exceed

a.50 years.

b.40 years.

c.20 years.

d.10 years.

184.Cost allocation of an intangible asset is referred to as

a.amortization.

b.depletion.

c.accretion.

d.capitalization.

185.A patent

a.has a legal life of 40 years.

b.is nonrenewable.

c.can be renewed indefinitely.

d.is rarely subject to litigation because it is an exclusive right.

186.If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting

a.Legal Expense.

b.an Intangible Loss account.

c.the Patent account.

d.a revenue expenditure account.

16. Cost of production report Bavarian Chocolate Company processes chocolate into candy bars. The...

Cost of production report

Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October 31,   2016:

ACCOUNT Work in Process—Blending Department

ACCOUNT NO.

instructions

1.     Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department.

2.     Assuming that the October 1 work in process inventory includes direct materials of

$38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and   October.

17. Eight different types of evidence were discussed. The following questions concern the reliability of...

Auditing P 7-32



Eight different types of evidence were discussed. The following questions concern the reliability of that evidence:

a. Explain why confirmations are normally more reliable evidence than inquiries of the client.

b. Describe a situation in which confirmation will be considered highly reliable and another in which it will not be reliable.

c. Under what circumstances is the physical observation of inventory considered relatively unreliable evidence

d. Explain why recalculation tests are highly reliable but of relatively limited use.

e. Give three examples of relatively reliable documentation and three examples of less reliable documentation. What characteristics distinguish the two

f. Give several examples in which the qualifications of the respondent or the qualifications of the auditor affect the reliability of the evidence.

g. Explain why analytical procedures are important evidence even though they are relatively unreliable by themselves.

18. Peyton Approved Trial Balance 2018 e Adjus Debit entriesAdjusted trial balance Debit Credit Unadj...

Peyton Approved Trial Balance 2018 e Adjus Debit entriesAdjusted trial balance Debit Credit Unadjusted trial balance Account Debit Credit 8,500 Merchandise d Insurance st Expense neurance Expense Business License E DOLL WYSE

19. The advantages and disadvantages of harmonizing accounting standards were summarized in this...

The advantages and disadvantages of harmonizing accounting standards were summarized in this chapter.

Expand on these advantages and disadvantages

20. The following transactions occurred during March 2016 for the Wainwright Corporation. The company...

The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 46,000 shares of capital stock in exchange for $460,000 in cash. Purchased equipment at a cost of $72,000. $26,000 cash was paid and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $122,000. The company uses the perpetual inventory system. Credit sales for the month totaled $136,000. The cost of the goods sold was $86,000. Paid $6, 600 in rent on the warehouse building for the month of March. Paid $7, 600 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016. Paid $86,000 on account for the merchandise purchased in 3. Collected $71,000 from customers on account. Recorded depreciation expense of $2, 600 for the month on the equipment. Required: Analyze each transaction and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity). In doing so, also indicate the cash effect of each.

21. On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings...

This is what I have so far I need help with the Income statement

On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation-Building $783,500 Administrative Expenses 524,850 Building 2,563,700 Cash 175,050 Common Stock 306,600 3,721,950 Cost of Merchandise Sold Dividends 177,100 9,550 Interest Expense Merchandise Inventory 1,005,950 Notes Payable 254,900 Office Supplies 20,800 Retained Earnings 1,324,350 Salaries Payable 8,100 Sales 6,255,450 Selling Expenses 692,550 Store Supplies 89,550

22. Dobsons Ltd. purchased a machine on the hire purchase system from Hind Machinery Ltd. The terms were

Dobsons Ltd. purchased a machine on the hire purchase system from Hind Machinery Ltd. The terms were that they would pay ~ 20,000 down on 1.1.2010 and 5 annual instalments of ~ 11,000 each commencing from 1.1.2011.

They charged depreciation on the machine at the rate of 15 per cent per annum under the diminishing balance system.

Hind Machinery Ltd. had charged interest at the rate of 10 per cent per annum.

Show the Machinery Account and Hind Machinery Ltd. Account to record the above transactions in the books of Dobsons Ltd. till the instalments are paid off.

Dobsons’ accounting year ends on 31st December in each year.