Research Paper Roadmap: Accounting Topics That Impress
30. HOW DOES PAST TRANSACTIONS ENSURE EFFECTIVE AND RELIABLE FORECASTING
HOW DOES PAST TRANSACTIONS ENSURE EFFECTIVE AND RELIABLE FORECASTING
31. A tax consultant wonders whether he should be more selective about the class of clients he serves...
A tax consultant wonders whether he should be more selective about the class of clients he serves so as to maximize his income. He usually deals with four categories of clients: the very rich, rich, upper middle class, and middle class. He has information on each and every client served, the taxes paid by them, and how much he has charged them. Since many factors relating to the clients vary (number of dependents, business deductibles, etc.), irrespective of the category they belong to, he would like an appropriate analysis to be done to see which among the four categories of clientele he should choose to serve in the future.
What kind of analysis should be done in the above case and why?
32. “Roma” is a leading manufacturer of footwear in the City. The Company ships their products to...
“Roma” is a leading manufacturer of footwear in the City. The Company ships their products to various dealers across the world through Gaaty Shipments, the trusted brand in the logistics industry. It is customary for the footwear Company to prepare a list of their products to be shipped for that week, in a text file and send a copy of it across to Gaaty Shipments?
33. An annual report of Crestwood Industries states, “The company and its subsidiaries have long-
An annual report of Crestwood Industries states, “The company and its subsidiaries have long- term leases expiring on various dates after December 31, 2014. Amounts payable under such commitments, without reduction for related rental income, are expected to average approximately $5,711,000 annually for the next 3 years. Related rental income from certain subleases to others is estimated to average $3,094,000 annually for the next 3 years.” What information is provided by this note?
On March 1, 2010, Newton Company purchased land for an office site by paying $540,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction:
Date Expenditures
March 1, 2010 $ 360,000
April 1, 2010 504,000
May 1, 2010 900,000
June 1, 2010 1,440,000
The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2010 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2010 was a $300,000, 12%, 6-year note payable dated January 1, 2010.
78. The weighted-average accumulated expenditures on the construction project during 2010 were
a. $384,000.
b. $2,934,000.
c. $312,000.
d. $696,000.
79. The actual interest cost incurred during 2010 was
a. $90,000.
b. $100,800.
c. $50,400.
d. $84,000.
80. Assume the weighted-average accumulated expenditures for the construction project are $870,000. The amount of interest cost to be capitalized during 2010 is
a. $78,300.
b. $82,800.
c. $90,000.
d. $100,800.
THis will be a big problem on my test! Steps on all how to solve all this would save my great alot! thanks
35. What is the price of a perpetuity that has a coupon of $50 per year and a yield to maturity of 2.5%?...
1. What is the price of a perpetuity that has a coupon of $50 per year and a yield to maturity of 2.5%? If the yield to maturity doubles, what will happen to its price?
2. Property taxes in DeKalb County are roughly 2.66% of the purchase price every year. If you just bought a $100,000 home, what is the PV of all the future property tax payments? Assume that the house remains worth $100,000 forever, property tax rates never change, and that a 9% interest rate is used for discounting
36. [A]Surplus capital method is suitable when all the partners are A solvent B insolvent C none of...
[A]Surplus capital method is suitable when all the partners are
A solvent
B insolvent
C none of these.
[B] Under maximum loss method, every instalment realised is considered as
A first realisation
B final realisation
C none of these.
[C] Garner vs. Murray is applicable only when
A there is an agreement among the partners for sharing the deficiency in capital account of insolvent partner
B there is no agreement among the partners for sharing the deficiency in capital account of insolvenet partner.
37. Red, White and Blue are partners sharing profits as 4:3:2. For any change in partnership, goodwill..
Red, White and Blue are partners sharing profits as 4:3:2. For any change in partnership, goodwill is to be valued at 2.5 times the average profits for 4 years ---- but no Goodwill Account is to be raised. The profits are: 2011 ~ 50,000; 2012
---- ~ 60,000; 2013 ---- ~ 56,000; 2014 ---- ~ 86,000. On 31.12.2014, White and Blue acquire from Red an additional one-ninth share in the firm. On 1.1.2015, Red’s son Pink is admitted. His share is to be 1/7th, of which a proportion calculated to produce ~ 5,500 p.a. on the basis of the past profits, is ceded to him by his father; balance is to be purchased from White and Blue in proportion to their shares immediately prior to Pink’s admission.
Show the present ratio and also pass Journal entries
38. The accompanying chart shows the qualitative characteristics of useful accounting information....
The accompanying chart shows the qualitative characteristics of useful accounting information. Fill in the blanks.
39. A band of normal activity or volume in which specific cost-volume relationships are maintained is...
Multiple Choice
A band of normal activity or volume in which specific cost-volume relationships are maintained is referred to as
a. the average range.
b. the cost-allocation range
c. the cost driver range
d. the relevant range
41) Compared to traditional markets, digital markets have
A) lower distributed delivery costs.
B) higher marginal costs per unit.
C) equivalent copying costs.
D) similar inventory costs.
42) eBay is an example of
A) C2C e-commerce.
B) B2B e-commerce.
C) B2C e-commerce.
D) M-commerce.
43) Selling products and services directly to individual consumers via the Internet best describes
A) B2B e-commerce.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
44) Consumers selling goods and services electronically to other consumers best describes
A) disintermediation.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
45) Which of the following businesses utilizes the content provider Internet business model?
A) Amazon.com
B) eBay.com
C) CNN.com
D) Motocross.com
46) Which of the following Internet business models does Amazon.com use?
A) content provider
B) portal
C) market creator
D) e-tailer
47) Transaction brokers
A) generate revenue from advertising or from directing buyers to sellers.
B) save users money and time by processing online sales transactions.
C) provide a digital environment where buyers and sellers can establish prices for products.
D) sell physical products directly to consumers or individual businesses.
48) Market creators
A) save users money and time by processing online sales transactions.
B) provide a digital environment where buyers and sellers can establish prices for products.
C) create revenue by providing digital content over the Web.
D) sell physical products directly to consumers or individual businesses.
49) Which of the following best describes why small world theory is important to e-commerce?
A) The products bought online by one individual will influence purchases by others.
B) The greater the number of people using your product, the more valuable it becomes.
C) You do not need to attract a large consumer base to become profitable.
D) Global products create a global community.
50) Which of the following best illustrates the sales revenue model?
A) eBay receives a small fee from a seller if a seller is successful in selling an item.
B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
C) Flickr provides basic services for free, but charges a premium for advanced services.
D) Apple accepts micropayments for single music track downloads.
A) subscription
B) free/freemium
C) transaction fee
D) sales
41. Megley Cheese Company is a small manufacturer of several different cheese products.x
Megley Cheese Company is a small manufacturer of several different cheese products. One of the products is a cheese spread that is sold to retail outlets. Jason Megley must decide how many cases of
Cheese spread to manufacture each month. The probability that the demand will be six cases is
, for
Cases are
, for
cases is
, and for
cases is .The cost of every case is
, and the price that Jason gets for each case is 
. Unfortunately, any cases not sold by the end of the month are of no value, due to spoilage. How many cases of cheese should Jason manufacture each month?
42. Summarized operations for Bayles Co. for the month of July are as follows Revenues recognized: for...
Summarized operations for Bayles Co. for the month of July are as follows.
Revenues recognized: for cash $20,000; on account $70,000.
Expenses incurred: for cash $26,000; on account $40,000.
Indicate for Bayles Co. (a) the total revenues, (b) the total expenses, and (c) net income for the month of July.
Exercise 2-6 Suppose the following items were taken from the 2017 financial statements of Texas Instruments, Inc.. (All dollars are in millions 826 Accumulated depreciation- Common stock Prepaid rent Equipment Stock investments (long- $3,547 1,459 2,210 810 equipment 164 Accounts payable 6,705 Patents 637 Notes payable (long-term) term) Debt investments (short- 1,743 Retained earnings term Income taxes payable Cash 6,896 1,823 1,202 128 Accounts receivable 1,182 Inventory Prepare a classified balance sheet in good form as of December 31, 2017. (List current assets in order of liquidity.) Texas Instruments, Inc. Balance Sheet December 31, 2017 n millions Assets Current Assets
44. The following information was abstracted from the accounts of the General Fund of the City of...
The following information was abstracted from the accounts of the General Fund of the City of Rome after the books had been closed for the fiscal year ended June 30, 2012. During the year, purchase orders were placed in the amount of $1,070,000. These purchase orders were filled in the amount of $1,000,000 leaving $70,000 open at year-end. There were no transfers into the General Fund, but one transfer out. Prepare journal entries to record the budgeted and actual transactions for the fiscal year ended June 30, 2012. Include closing entries.
45. X Ltd. supplies spare parts to an air craft company Y Ltd. The production capacity of X Ltd....
X Ltd. supplies spare parts to an air craft company Y Ltd. The production capacity of X Ltd. facilitates production of any one spare part for a particular period of time. The following are the cost and other information for the production of the two different spare parts A and B: Per unit Part A Part B Alloy usage……………………………………… 1.6 kgs. 1.6 kgs. Machine Time: Machine A……………………..0.6 hrs. 0.25 hrs. Machine Time: Machine B……………………..0.5 hrs. 0.55 hrs. Target Price (` )……………………………….. 145 115 Total hours available:…………………........... Machine A 4,000 hours Machine B 4,500 hours Alloy available is 13,000 kg. @ ` 12.50 per kg. Variable overheads per machine hours:……. Machine A: ` 80 Machine B: ` 100 Required (i) Identify the spare part which will optimize contribution at the offered price. (ii) If Y Ltd. reduces target price by 10% and offers ` 60 per hour of un utilized machine hour, what will be the total contribution from the spare part identified above?
46. For each of the following examples of data, determine the type. a. The weekly closing price of the..
For each of the following examples of data, determine the type. a. The weekly closing price of the stock of Amazon.com b. The month of highest vacancy rate at a La Quinta motel c. The size of soft drink (small, medium, or large) ordered by a sample of McDonald’s customers d. The number of Toyotas imported monthly by the United States over the last 5 years e. The marks achieved by the students in a statistics course final exam marked out of 100
47. Compared to financial accounting, managerial accounting places more emphasis on
Compared to financial accounting, managerial accounting places more emphasis on:
A) the flexibility of information.
B) the precision of information.
C) the timeliness of information.
D) both A and C above.
48. On October 10, the stockholders’ equity of Sherman Systems appears as follows. ...
On October 10, the stockholders’ equity of Sherman Systems appears as follows. |
Common stock–$10 par value, 90,000 shares authorized, issued, and outstanding | $ | 900,000 |
Paid-in capital in excess of par value, common stock | 306,000 | |
Retained earnings | 1,008,000 | |
Total stockholders’ equity | $ | 2,214,000 |
1. | Prepare journal entries to record the following transactions for Sherman Systems. |
a. | Purchased 6,800 shares of its own common stock at $43 per share on October 11. | |
b. | Sold 1,450 treasury shares on November 1 for $49 cash per share. | |
c. | Sold all remaining treasury shares on November 25 for $38 cash per share. |
1.Record the purchase of 6,800 shares of its own common stock for $43 cash per share.
2.Record the reissue of 1,450 shares of the treasury stock for $49 cash per share.
3.Record the reissue of the remaining shares of the treasury stock for $38 cash per share.
2. | Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase. |
X Ltd made a profit of Rs 1,00,000 after charging depreciation of Rs 20,000 on assets and a transfer for General Reserve of Rs 30,000. The Goodwill retain off was Rs 7,000 and the gain on sale of machineries was Rs 3,000. The other information available: (charges in the value of current assets and current liabilities). At the end of the year, debtors show an increase of Rs 6,000; creditors an increase of Rs 10,000; prepaid expenses an increase of Rs 200; bills receivable a decrease of Rs 3,000; bills payable a decrease of Rs 4,000 and outstanding expenses a decrease of Rs 2,000. Ascertain cash flow from operating activities.
Stiner Company has 20 employees who work 8-hour days and are paid hourly. On January 1, 2010, the company began a program of granting its employees 10 days' paid vacation each year. Vacation days earned in 2010 may first be taken on January 1, 2011. Information relative to these employees is as follows:
Hourly Vacation Days Earned Vacation Days Used
Year Wages by Each Employee by Each Employee
2010 $12.90 10 0
2011 13.50 10 6
2012 14.20 10 12
Stiner has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned.
• What is the amount of the accrued liability for compensated absences that should be reported at
December 31, 2010, December 31, 2011, and December 31, 2012?
• What is the amount of the expense for compensated absences that should be reported for 2010,
2011 and 2012?
• Prepare journal entries for 2012