Understanding Basic Accounting Principles for College

Published: 3 months ago

Understanding Basic Accounting Principles for College

32. 1.7 Explain how an AIS and corporate strategy affect each other. 1. A change in the AIS that makes..

1.7   Explain how an AIS and corporate strategy affect each other.

1. A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the

A. organizational culture.

B. customer base.

C. external financial statement users.

D. production activity.

2. In Chapter 1, Figure 1-4 shows the factors that influence the design of AIS. The diagram shows a bi-directional arrow between the organizational culture and the AIS. The reason for this two-way interchange between organizational culture and AIS is

A. that the AIS should not influence the values of the organizational culture.

B. because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization.

C. due to the transfer of managers between the two corporate elements.

D. the AIS impacts the organization's key strategies.

3. Which of the following is a true statement?

A. Business strategy directly influences AIS, but not information technology.

B. Information technology directly influences organizational culture, but not business strategy.

C. Organizational culture directly influences business strategy, but not AIS.

D. AIS directly influences information technology, but not business strategy.

4. True or False: Corporate strategy should affect the way a firm deploys an accounting information system.

5. Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

A. because business strategy directly influences AIS, but not information technology

B. because most organizations have limited resources

C. because a firm never wants to waste time addressing issues that are not urgent

D. because it is expensive to improve accounting information systems

6. An AIS that makes information more easily accessible and more widely available is likely to increase pressure for

A. centralization and defined procedures.

B. centralization and autonomy.

C. decentralization and defined procedures.

D. decentralization and autonomy.

7. Identify how firms use predictive analysis.

A. to provide an educated guess regarding what is expected to occur in the near future

B. to engage in data warehousing

C. to engage in a low-cost strategy

D. to design the most effective accounting information system

8. Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

A. CVVP analysis

B. discounted cash flows

C. predictive analysis

D. economic order quantity (EOQ.

9. True or False:  It is important that a firm's AIS collect and integrate financial and non-financial information about the organization's activities if the firm seeks use its AIS to gain a competitive advantage.

10. True or False: When properly deployed, accounting information systems can provide firms with a competitive advantage.

33. SCS 200 Week 7 Short Responses Week 7 Question 1 Approach the clips you have seen from a social...

SCS 200 Week 7 Short Responses

Week 7 Question 1

Approach the clips you have seen from a social scientific perspective. What aspects of art therapy would interest a professional in each of the following fields?

Week 7 Question 2

Use the social science perspective to propose a few explanations as to why you might find graffiti in a society. Choose a social science principle (norms, roles, institutions, and beliefs and values) and describe how these might influence the appearance of graffiti in a society. Describe how the appearance of graffiti in a society might influence the people living there.

Week 7 Question 3

Channel your thought process before taking this course and before adopting a social science perspective. Through what type of lens would you have viewed graffiti before taking this course? How would this have influenced how you thought about graffiti? How do these two reactions compare? Has your understanding of social science principles changed the way you perceive graffiti in society? If so, how?

34. 11) Which cells are included in the notation A1:D1? A) A1, B1, and C1 B) B1, C1, and D1 C) A1 and D1

11) Which cells are included in the notation A1:D1?

A) A1, B1, and C1

B) B1, C1, and D1

C) A1 and D1

D) A1, B1, C1, and D1

12) Which symbol inserted between two cell addresses indicates a range?

A) colon

B) semi-colon

C) period

D) comma

13) The Merge & Center button is in the ________ group on the Home tab.

A) Font

B) Alignment

C) Number

D) Cells

14) When a range is selected, the name box displays the cell address of ________.

A) the first cell in the range

B) the last cell in the range

C) all cells in the range

D) none of the cells in the range

15) An underlying value that does mathematical calculations on numeric values in a worksheet is ________.

A) the Formula AutoComplete

B) a formula

C) a text value

D) a cell address

16) The ________ displays a list of functions that match the first letter typed.

A) Formula AutoComplete feature

B) edit feature

C) Quick Access Toolbar

D) formula bar

17) When a cell is part of an active function, it is ________.

A) surrounded by a solid border

B) highlighted

C) surrounded by a moving border

D) preceded by an Options button

18) Placing content in a cell can be done by pressing the Enter key or by clicking the ________.

A) Cancel button

B) Enter button

C) Esc key

D) column header

19) The symbol on the Enter button is a(n) ________.

A) right arrow

B) left arrow

C) x

D) checkmark

20) When a formula is in an active cell, the underlying formula is visible in the ________.

A) Name Box

B) worksheet

C) formula bar

D

35. solve and show your solution Problem 1-28 (AICPA Adapted) Ronald Company has an incentive compensati

solve and show your solution
 Problem 1-28 (AICPA Adapted) Ronald Company has an incentive compensation plan under which a branch manager received 10% of the branch income after deduction of the bonus but before deduction of income. tax. . Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate was 30%. What is the bonus for the current year? a. 126,000 b. 150,000 c. 165,000 d. 180,000

36. Plato Pharmaceuticals Ltd has invested £300,000 to date in developing a new type of insect

Plato Pharmaceuticals Ltd has invested £300,000 to date in developing a new type of insect repellent. The repellent is now ready for production and sale and the marketing director estimates that the product will sell 150,000 bottles per annum over the next five years. The selling price of the insect repellent will be £5 per bottle and the variable costs are estimated to be £3 per bottle. Fixed costs (excluding depreciation) are expected to be £200,000 per annum. This figure is made up of £160,000 additional fixed costs and £40,000 fixed costs relating to the existing business which will be apportioned to the new product.

In order to produce the repellent, machinery and equipment costing £520,000 will have to be purchased immediately. The estimated residual value of this machinery and equipment in five years time is £100,000. The company calculates depreciation on a straight-line basis.

The company has a cost of capital of 12 per cent. Ignore taxation.

Required

(a) Calculate the net present value of the product.

(b) Undertake sensitivity analysis to show by how much the following factors would have to change before the product ceased to be worthwhile:

(i) the discount rate

(ii) the initial outlay on machinery and equipment

(iii) the net operating cash flows

(iv) the residual value of the machinery and equipment

(c) Discuss the strengths and weaknesses of sensitivity analysis in dealing with risk and uncertainty.

(d) State, with reasons, whether or not you feel the project should go ahead.

37. Costume Kings has two product lines; Machine made costumes and hand made costumes. The company assig

Costume Kings has two product lines; Machine made costumes and hand made costumes. The company assigns $80,000 in manufacturing overhead costs to two cost pools; Power cost and Inspection cost. Of this amount, the power cost pool has been assigned $32,000 and the inspection cost pool has been assigned $48,000. Additional information about each product line is shown below:

Required:-

1. Allocate manufacturing overhead from the activity cost pools to each product line. Use what you believe is the most significant cost drivers from information provided.


2. Compute the cost per unit of Machine made costumes and hand made costumes.


3. On a per-unit basis, which product line appears to be the most profitable? Explain

38. Transferred-in costs, weighted-average method. Spelling Sports, which produces basketballs, has...

Transferred-in costs, weighted-average method. Spelling Sports, which produces basketballs, has two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the stitching department. Basketballs that have undergone the cutting process are immediately transferred to the stitching department. Direct material is added when the stitching process is 70% complete. Conversion costs are added evenly during stitching operations. When those operations are done, the basketballs are immediately transferred to Finished Goods. Spelling Sports uses the weighted-average method of process costing. The following is a summary of the March 2017 operations of the stitching department:

1. Summarize total stitching department costs for March 2017, and assign these costs to units completed (and transferred out) and to units in ending work in process.

2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods.

39. I'm struggling to use the correct cell formulas to get the answers. The results in grey are the r...

answers. The results in grey are the right answers but I didn't get the excel formula to use correct. All yellow need to utilize excel formulas to use the formulas to get the answers. All answers in formula form.

JPL, Inc. has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. 10 points Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell,"B5 was entered, the formula would output the result from cell B5, or 75 in this example. Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: (plus sign to add, (minus sign to subtract), (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell -85+B6" was entered, the formula would add the values from those cells and output the result, or 120 in this example.I using the other math symbols the result would output an appropriate answer for its function. Print ???. CVP Analysis- Excel HOME INERT PAGE LAYOUT FORMULASDATA REVIEW VIEW Sign In width: Automate- Themes éflests Margins Orientation SizePBeBacground Print Titles Scale: 100% ^ Sheet Arrange Page Setup Scale to Ft A1 : X ? Given the following information complete a CVP analysis 1 Given the following information a CVP analysis 20 units 4 5 6 Unit sales Selling price per unit Variable expenses per unit 575 per unit S45 per unit

40. Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the S...

gold nest company of guandong, china is a family owned Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market, The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. A of the company's transactions with austomers, employees, and suppliers are conducted in cash, there is no aedt The company uses a job order costing system in which overhead is applied to obs on the basis of direct labor cost lts predetermined overhead rate is based on a cost formula that estimated $103,500 of manufacturing overhead for an estimated activity level of SA5,000 direct labor dollars. At the beginning of the year, the inventory balances were as folows: Raw materials 10,800 Work in process 4,500 Finished goods 8,900 During the year, the folowing transactions were completed a. Raw materials purchased for cash, $161,000. b, Raw materials requisitioned for use in production, $142.000 (materiais costing S124,000 were charged directly to jobs, the remaining materials were indirect). c. Costs for employee services were incurred as foliows: 154,000 Direct labor Indirect labor 275,700 28,000 Sales commissions 48,000 Administrative salaries d. Rent for the year was$18 700 ($13,500 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $16 000. Advertising costs incurred, S14,000. g Depreciation recorded on equipment, S24,000. (S17,000 of this amount was on equipment used in factory operations, the remaining $7,000 was on equipment used in selling and administrative activities.) h Manufacturing overhead cost was appied to jobs, S2 L Goods that had cost $229,000 to manufacture according to their job cost sheets were completed. j Sales for the year totaled $518.000. The total cost to manufacture these goods according to their job cost sheets was

41. Please Enter a title

You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six years at 8.4% per year. How much will you have in eight years\

42. Using the following data, Garcon Company Pepper Company Beginning finished goods inventory $ 12,700.

 Using the following data, Garcon Company Pepper Company Beginning finished goods inventory $ 12,700 $ 17,650 Beginning work in process inventory 16,800 21,300 Beginning raw materials inventory 10,900 9,000 Rental cost on factory equipment 30,000 25,750 Direct labor 22,600 39,000 Ending finished goods inventory 17,900 15,600 Ending work in process inventory 24,100 21,000 Ending raw materials inventory 6,000 8,800 Factory utilities 13,950 12,250 Factory supplies used 11,800 5,700 General and administrative expenses 34,000 48,000 Indirect labor 1,400 8,020 Repairs—Factory equipment 5,780 3,650 Raw materials purchases 35,000 56,000 Selling expenses 63,200 49,000 Sales 202,530 340,010 Cash 32,000 16,200 Factory equipment, net 227,500 178,825 Accounts receivable, net 15,600 20,950 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company.

43. Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin

Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin $ 432,000 Fixed costs 324,000 Pretax income $ 108,000 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.

44. Rokat Corporation is a manufacturer of tables sold to schools,

Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Rokat, but the table legs are purchased from an outside supplier. The assembly department takes a manufactured table top and attaches the four purchased table legs. It takes 18 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next month’s sales are in the finished goods inventory. Rokat also purchases sufficient materials to ensure that materials inventory is 60 percent of the following month’s scheduled production. Rokat’s sales budget in units for the next quarter is as follows:
July ……………………..2,300
August ………………….2,500
September ………………2,100
Rokat’s ending inventories in units for June 30 are as follows:
Finished goods ………………….1,900
Materials (legs) ………………….4,000
Required:
1. Calculate the number of tables to be produced during August.
2. Disregarding your response to Requirement 1, assume the required production units for August and September are 1,600 and 1,800, respectively, and the July 31 materials inventory is 4,200 table legs. Compute the number of table legs to be purchased in August.
3. Assume that Rokat Corporation will produce 1,800 units in September. How many employees will be required for the assembly department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.)
(CMA adapted)

45. Contingencies)

During 2010, Maverick Inc. became involved in a tax dispute with the IRS. Maverick's attorneys have indicated that they believe it is probable that Maverick will lose this dispute. They also believe that Maverick will have to pay the IRS between $800,000 and $1,400,000. After the 2010 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2010?

46. Which of the following is NOT a database management task?

1. Which of the following is NOT a database management task?

a. retrieval

b. storage

c. summarization

d. deletion

2. When viewed from the highest to most elemental level, the data hierarchy is

a. attribute, record, file.

b. record, attribute, key.

c. file, record, attribute.

d. file, record, key.

e. key, record, file.

3. Which is NOT an accountant’s primary role in information systems?

a. system user

b. system auditor

c. system designer

d. system programmer

4. Which of the following is NOT an objective of all information systems?

a. support for the stewardship function of management

b. support for management decision making

c. support for the day-to-day operations of the firm

d. all of the above are objectives

5. Which of the following best describes the 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

47. Following is information on two alternative investments being considered by Tiger Co. The company...

Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

1(a) Compute each project’s net present value.

48. You are provided with the following information for Koetteritz Inc. for the month ended June 30, ...

You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2017. Koette tz uses the periodic method for inventory. Unit Cost or Quantity Date Description Selling Price $40 June 1 Beginning inventory June 4 Purchase 135 44 June 10 Sale 112 71 71 June 11 Sale return 45 June 18 Purchase June 18 Purchase return 12 45 June 25 Sale 66 76 June 28 Purchase 25 48 EX Your answer is incorrect. Try again. Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Weighted average cost per unit

49. Your company's summarized financial information for the beginning and projected end of the curren...

Your company's summarized financial information for the beginning and projected end of the current year is as follows:

Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 8% interest semi-annually for 10 years and the market rate for similar bonds is 5%. Therefore, the total bond proceeds are $37,015.12. Calculate the following ratios with and without the bond issue.

Review question: how much did the company pay in dividends this year (if any)? The company did not issue or repurchase any stock during the year.

ROA ROE Debt Ratio- DE Dividends- 10 Without Bond If Bonds are Issue Issued

50. 3. Mr. Shanmugavel purchased (second hand) a machine for Rs. 8,000 on 1st April, 2001. He spent Rs..

3.Mr. Shanmugavel purchased (second hand) a machine for Rs. 8,000 on 1st April, 2001. He spent Rs. 3,500 on its overhaul and installation. Depreciation is written off @ 10% p.a. on the original cost. On 30th June, 2004 the machine was found to be unsuitable and sold for Rs. 6,500. Prepare the machine account from 2001 to 2004 assuming that the accounts are closed on 31st December, every year.