Score High in Accounting Ethics Assignments

Published: 8 months ago

Score High in Accounting Ethics Assignments

20. 71. The expected average rate of return for a proposed investment of $600,000 in a fixed asset,...

71. The expected average rate of return for a proposed investment of $600,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is: 

A. 40%

B. 20%

C. 60%

D. 24%

72. The amount of the average investment for a proposed investment of $90,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $21,600 for the 4 years, is: 

A. $10,800

B. $21,600

C. $ 5,400

D. $45,000

73. The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of four years, no residual value, and an expected total income yield of $21,600, is: 

A. $10,800

B. $21,600

C. $ 5,400

D. $45,000

74. An anticipated purchase of equipment for $580,000, with a useful life of 8 years and no residual value, is expected to yield the following annual net incomes and net cash flows:

 

What is the cash payback period? 

A. 5 years

B. 4 years

C. 6 years

D. 3 years

75. Which method for evaluating capital investment proposals reduces the expected future net cash flows originating from the proposals to their present values and computes a net present value? 

A. Net present value

B. Average rate of return

C. Internal rate of return

D. Cash payback

76. Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis? 

A. Price-level index

B. Future value index

C. Rate of investment index

D. Present value index

77. An analysis of a proposal by the net present value method indicated that the present value of future cash inflows exceeded the amount to be invested. Which of the following statements best describes the results of this analysis? 

A. The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.

B. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.

C. The proposal is undesirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.

D. The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.

78. Which method of evaluating capital investment proposals uses the concept of present value to compute a rate of return? 

A. Average rate of return

B. Accounting rate of return

C. Cash payback period

D. Internal rate of return

79. Which of the following is a method of analyzing capital investment proposals that ignores present value? 

A. Internal rate of return

B. Net present value

C. Discounted cash flow

D. Average rate of return

80. The methods of evaluating capital investment proposals can be separated into two general groups--present value methods and: 

A. past value methods

B. straight-line methods

C. reducing value methods

D. methods that ignore present value

21. Dorsey Company manufactures three products from a common input in a joint processing operation....

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product ________________ Selling Price _______ Quarterly Output A . . . . . . . . . . . . . . . . . . . $16 per pound . . . . . . . . 15,000 pounds B . . . . . . . . . . . . . . . . . . . . $8 per pound . . . . . . . . 20,000 pounds C . . . . . . . . . . . . . . . . . . . $25 per gallon . . . . . . . . . . 4,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product ___________ Additional Processing Costs ____________ Selling Price A . . . . . . . . . . . . . . . . . . . . . $63,000 . . . . . . . . . . . . . . . . . . . . $20 per pound B . . . . . . . . . . . . . . . . . . . . . $80,000 . . . . . . . . . . . . . . . . . . . . $13 per pound C . . . . . . . . . . . . . . . . . . . . . $36,000 . . . . . . . . . . . . . . . . . . . . $32 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the sp

22. The presence of transaction costs in financial markets explains, in part, why (a)financial...

The presence of transaction costs in financial markets explains, in part, why

(a)financial intermediaries and indirect finance play such an important role in financial markets.

(b)equity and bond financing play such an important role in financial markets.

(c)corporations get more funds through equity financing than they get from financial intermediaries.

(d)direct financing is more important than indirect financing as a source of funds.

23. Upon completion of this chapter, you should be able to:...

Learning Objectives: Upon completion of this chapter, you should be able to: 1. apply statutory withholdings to regular and irregular commission payments 2. identify when a Record of Employment must be completed for a commissioned employee 3. complete the Blocks on the Record of Employment Communication Objective: Upon completion of this chapter, you should be able to explain to commissioned employees when a new Statement of Commission Income and Expenses for Payroll Tax Deductions – TD1X must be comple

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Chapter Commission Payments Learning Objectives: Upon completion of this chapter, you should be able to: 1. apply statutory withholdings to regular and irregular commission payments 2. identify when a Record of Employment must be completed for a commissioned employee 3. complete the Blocks on the Record of Employment Communication Objective: Upon completion of this chapter, you should be able to explain to commissioned employees when a new Statement of Commission Income and Expenses for Payroll Tax Deductions – TD1X must be completed. © The Canadian Payroll Association – Payroll Fundamentals 1 8-1 Vs 11.0Chapter 8 Commission Payments Chapter Contents Introduction ........................................................................................................................ 8-3 Commission Payments ....................................................................................................... 8-3 Calculation of Commissions .......................................................................................... 8-3 Payment of Commissions .............................................................................................. 8-5 Content Review .............................................................................................................. 8-7 Review Questions .......................................................................................................... 8-8 Calculation of Statutory Withholdings ............................................................................ 8-11 Canada/Québec Pension Plan ...................................................................................... 8-11 Employment Insurance and Québec Parental Insurance Plan ...................................... 8-14 Federal and Provincial Income Tax ............................................................................. 8-15 Northwest Territories/Nunavut Payroll Tax...

24. Opticom, Inc. a manufacturer of fiber optic communications equipment, uses a job-order costing...

Opticom, Inc. a manufacturer of fiber optic communications equipment, uses a job-order costing sys- tem. Since the production process is heavily automated, manufacturing overhead is applied on the basis of machine hours using a predetermined overhead rate. The current annual rate of $30 per machine hour is based on budgeted manufacturing overhead costs of $2,400,000 and a budgeted activity level of 80,000 machine hours (the company’s estimated practical capacity). Operations for the year have been completed, and all of the accounting entries have been made for the year except the application of manu- facturing overhead to the jobs worked on during December, the transfer of costs from Work in Process to Finished Goods for the jobs completed in December, and the transfer of costs from Finished Goods to Cost of Goods Sold for the jobs that have been sold during December. Summarized data as of November 30 and for the month of December are presented in the following table. Jobs T11-007, N11-013, and N11-015 were completed during December. All completed jobs except Job N11-013 had been turned over to customers by the close of business on December 31.

?    

Work-in-Process                                                             December  Activity

Account Balances at Beginning of Year                                                 January 1

*Raw material purchases and raw-material inventory consist of both direct and indirect materials. The balance of the Raw-Material Inventory account as of December 31 of the year just completed is $170,000.

Required:

1.      Explain why manufacturers use a predetermined overhead rate to apply manufacturing overhead to their jobs.

2.      How much manufacturing overhead would Opticom have applied to jobs through November 30 of the year just completed?

3.      How much manufacturing overhead would have been applied to jobs during December of the year just completed?

4.      Determine the amount by which manufacturing overhead is overapplied or underapplied as of December 31 of the year just completed.

5.      Determine the balance in the Finished-Goods Inventory account on December 31 of the year just completed.

6.      Prepare a Schedule of Cost of Goods Manufactured for Opticom, Inc. for the year just completed. (Hint: In computing the cost of direct material used, remember that Opticom includes both direct and indirect material in its Raw-Material Inventory account.)

(CMA, adapted)

25. PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Moun...

PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster, and Desert Dragon from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per unit information is available for the two products:

In addition, the following sales unit volume information for the period is as follows:

Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Prepare a contribution margin by product report. Calculate the contribution margin ratio for each product as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

26. Alfarsi Industries uses the net present value method to make investment decisions and requires a ...

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,300 and will produce cash flows as follows:

$4,833.

$(19,133).

$14,800.

$7,847.

27. Stocks offer an expected rate of return of 10% with a standard deviation of 20%, and gold offers an

1. Stocks offer an expected rate of return of 10% with a standard deviation of 20%, and gold offers an expected return of 5% with a standard deviation of 25%. (LO 6-3)
   
   
   
   
   1. In light of the apparent inferiority of gold to stocks with respect to both mean return and volatility, would anyone hold gold? If so, demonstrate graphically why one would do so.
   
   
   2. How would you answer ( a ) if the correlation coefficient between gold and stocks were 1? Draw a graph illustrating why one would or would not hold gold. Could these expected returns, standard deviations, and correlation represent an equilibrium for the security market?
   
   
   
   

28. Which of the following is most closely linked to accounting conservatism?

Which of the following is most closely linked to accounting conservatism?

a. Lower-of-cost-or-market rule

b. Materiality concept

c. Disclosure principle

d. Consistency principle

29. how many ei and cogs?

Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year: March 1 10,000 boxes at $1.60 $16,000 August 15 20,000 boxes at $1.60 32,000 November 20 10,000 boxes at $1.75 17,500 At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy. A. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method. Ending inventory Cost of goods sold B. Ending inventory Cost of goods sold

30. Cost Accounting

8) For last year, Lewisburn Manufacturing reported the following:

What was Lewisburn's operating income?

A) $76,000 B) $177,000 C) $128,000 D) $280,000

___________________________________________________________________________________________________

9) For last year, Lewisburn Manufacturing reported the following:

How much of the above would be considered period costs for Lewisburn Manufacturing?

A) $140,000 B) $246,000 C) $104,000 D) $390,000

________________________________________________________________________________________________

10) Rodney Worsham is paid $10 an hour for straight-time and $15 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. Compensation would be reported as:

A) $450 of direct labor and $25 of manufacturing overhead

B) $445 of direct labor and $30 of manufacturing overhead

C) $420 of direct labor and $55 of manufacturing overhead

D) $370 of direct labor and $105 of manufacturing overhead

31. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and...

Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. $3, 250, 30 d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals. If you know two figures for the accounting equation (Assets Liabilities + Owner's Equity you can rearrange it to calculate the missing amounts.

32. 1. Describe the situation at Lehman Brothers from an ethics perspective. What’s your opinion of what

1. Describe the situation at Lehman Brothers from an ethics perspective. What’s your opinion of what happened here? 2. What was the culture at Lehman Brothers like? How did this culture contribute to the company’s downfall? 3. What role did Lehman’s executives play in the company’s collapse? Were they being responsible and ethical? Discuss. 4. Could anything have been done differently at Lehman Brothers to prevent what happened? Explain. 5. After all the public uproar over Enron and then the passage of the Sarbanes-Oxley Act to protect shareholders, why do you think we still continue to see these types of situations? Is it unreasonable to expect that businesses can and should act ethically? On September 15, 2008, financial services firm Lehman Brothers filed for bankruptcy with the U.S. Bankruptcy Court in the Southern District of New York.95 That action—the largest Chapter 11 filing in financial history—unleashed a “crisis of confidence that threw financial markets worldwide into turmoil, sparking the worst crisis since the Great Depression.” The fall of this Wall Street icon is, unfortunately, not a new one, as we’ve seen in the stories of Enron, WorldCom, and others. In a report released by bankruptcy court-appointed examiner Anton Valukas, Lehman executives and the firm’s auditor, Ernst & Young, were lambasted for actions that led to the firm’s collapse. He said, “Lehman repeatedly exceeded its own internal risk limits and controls, and a wide range of bad calls by

33. OPERATING BUDGET, COMPREHENSIVE ANALYSIS Leitner Manufacturing, Inc., produces control valves used...

OPERATING BUDGET, COMPREHENSIVE ANALYSIS Leitner Manufacturing, Inc., produces control valves used in the production of oil field equipment. The control valves are sold to various gas and oil engineering companies throughout the United States. Projected sales in units for the coming four months are as follows:

The following data pertain to production policies and manufacturing specifications followed by Leitner:

a. Finished goods inventory on January 1 is 13,000 units. The desired ending inventory for each month is 70 percent of the next month’s sales.

b. The data on materials used are as follows:

Inventory policy dictates that sufficient materials be on hand at the beginning of the month to produce 50 percent of that month’s estimated sales. This is exactly the amount of material on hand on January 1.

c. The direct labor used per unit of output is two hours. The average direct labor cost per hour is $15.

d. Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.)

e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Activity is measured in units sold.)

f. The unit selling price of the control valve is $90.

g. In February, the company plans to purchase land for future expansion. The land costs $90,000.

h. All sales and purchases are for cash. Cash balance on January 1 equals $162,900. If the firm develops cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid one month later, as is the interest due. The interest rate is 12 percent per annum.

Required:

Prepare a monthly operating budget for the first quarter with the following schedules:

1. Sales budget

2. Production budget

3. Direct materials purchases budget

4. Direct labor budget

5. Overhead budget

6. Selling and administrative expense budget

7. Ending finished goods inventory budget

8. Cost of goods sold budget

9. Budgeted income statement (ignore income taxes)

10. Cash budget

34. DID THE COST METHOD INVITE EARNINGS MANIPULATION? Prior to GAAP for equity method investments,...

DID THE COST METHOD INVITE EARNINGS MANIPULATION? Prior to GAAP for equity method investments, firms often used the cost method to account for their unconsolidated investments in common stock regardless of the presence of significant influence. The cost method employed the cash basis of income recognition. When the investee declared a dividend, the investor recorded "dividend income." The investment account typically remained at its original cost ' hence the term cost method. Many firms' compensation plans reward managers based on reported annual income. How might the cost method of accounting for significant investments have resulted in unintended wealth transfers from owners to managers? Do the equity or fair-value methods provide similar incentives? Explain. In your own words please.