Week 1 Discussion Questions Reminder – I do not allow direct quotes in student’s work in this class. You need to paraphrase and cite your outside sources. “Outside sources” do not include the text and so you don’t need to cite it. 1) GAAS standards emphasize the critical importance of auditor independence and objectivity, as […]
Question 1.1. According to the FASB, the primary objective of financial reporting is to provide information _______. (Points : 1) regarding the assets and liabilities of a business to the Securities and Exchange Commission useful for making investing and lending decisions regarding the revenues and expenses of a business Question 2.2. […]
Scenario: Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year’s dividend is $2.50 per share that is growing by 4% per year. Prepare a […]
Exercise 16-3The ledger of Custer Company has the following work in process account.Work in Process—Painting5/1 Balance 4,740 5/31Transferred out?5/31 Materials 6,770 5/31 Labor 2,860 5/31 Overhead 1,760 5/31 Balance ? Production records show that there were 400 units in the beginning inventory, 30% complete, 1,470 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $3,010 and conversion costs of $1,730. The units in ending inventory were 40% complete. Materials […]
1. A federal unemployment tax is levied on: A) employees only. B) both employers and employees. C) employers only. D) government employers only. E) no one. 2. For FUTA purposes, an employer can be any one of the following except: A) an individual. B) a partnership. C) a trust. D) a corporation. E) All of […]
Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2012. The 2012 operating results for the company were as follows. Operating revenues $12,880,200Operating expenses 8,713,400Operating income $ 4,166,800 Analysis discloses that these data include the operating results of the hotel chain, […]
financial statement model (FSM)and Forecasting: 1- Income statement 2- Balance sheet 3- Cash flow statement
objectives of accounting
Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified, respectively, as expense and contra asset asset and contra liability revenue and asset contra asset and expense Comments: Question 2. Question : Which type(s) of adjustments are the financial statements affected by? Deferrals Accruals Both deferrals and accruals Neither deferrals nor accruals Comments: Question […]
Question 1. Merchandise inventory is reported on the balance sheet in the section entitled _____. current assets fixed assets current liabilities stockholders’ equity Question 2. Question : A machine with a useful life of 10 years and a residual value of $4,000 was purchased for $30,000. What is annual depreciation under the straight-line method? $3,000 […]
