• Q : Purchase the units internally or externally....
    Accounting Basics :

    From the company's perspective, should Department R purchase the units internally or externally? Assume Department A has ample capacity to handle all of Department R's needs.

  • Q : Deduct the salvage value in computing the depreciation base....
    Accounting Basics :

    At the beginning of 2008, the company purchased a machine for $510,000 (salvage value of $51,000) that had a useful life of 5 years. The bookkeeper used straight-line depreciation, but failed to ded

  • Q : Report by auditor relating to summarized financial statement....
    Accounting Basics :

    The proper report by an auditor relating to summarized financial statements includes:

  • Q : Responsibility for financial and accounting matters....
    Accounting Basics :

    When performing a review of a nonpublic company, which is least likely to be included in auditor inquiries of management members with responsibility for financial and accounting matters?

  • Q : Bonds are classified as held-to maturity....
    Accounting Basics :

    On Jan 1, 2010, Morgan Company acquires 300,000 of Nicklaus, Inc, 9% bonds at 278,384. the interest is payable each December 31, and the bonds mature Dec 31, 2012. the investment will provide Morgan

  • Q : Journal entries impacted its stockholders equity....
    Accounting Basics :

    Nilson Company is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operati

  • Q : What will be the effect on net income....
    Accounting Basics :

    Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?

  • Q : What is the total overhead variance....
    Accounting Basics :

    to arrive at the predetermined overhead rate of $8. Actual overhead for June was $15,800 variable and $9,100 fixed, and standard hours allowed for the product produced in June was 3,000 hours. what

  • Q : What was the actual rate of pay for direct labor....
    Accounting Basics :

    If the direct labor price variance was $10,500 unfavorable, and the standard rate of pay was $15 per direct labor hour, what was the actual rate of pay for direct labor?

  • Q : What is the total standard cost of fleck''s product....
    Accounting Basics :

    Fleck's standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $3 per pound and $10 per hour. The standard overhead rate is $12 per direc

  • Q : Is the trust a simple or complex trust....
    Accounting Basics :

    The trust had DNI of $25,000. What charitable contrubution deduction, if any, may the trust deduct? Is the trust a simple or complex trust in 2010?

  • Q : Significance of the income and principal categorization....
    Accounting Basics :

    As a CPA, explain to your client the significance of the income and principal categorization scheme used for fiduciary accounting purposes. Also, use this thread to discuss the current events on the

  • Q : What is the approximate internal rate of return....
    Accounting Basics :

    A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $227,790 and is expected to generate cash inflows of $90,000 each year for three years. wh

  • Q : Volume-based cost drivers and activity-based cost drivers....
    Accounting Basics :

    What is the difference between volume-based cost drivers and activity-based cost drivers? Why do activity-based cost drivers provide more accurate allocations of overhead in an automated manufacturi

  • Q : What is the approximate internal rate of return....
    Accounting Basics :

    Humphrey, Inc. is considering purchasing equipment costing $30,000 with a 6-year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its useful

  • Q : What is the internal rate of return for project gray....
    Accounting Basics :

    Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

  • Q : By how much would gorgas profits change....
    Accounting Basics :

    By how much would Gorga's profits change if 15,000 of part QT34 are purchased from Roseland?

  • Q : Restore the account and record the cash collection....
    Accounting Basics :

    The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in the question above. Prepare the journal entry(ies) necessary to restore the

  • Q : What is the net present value for project gray....
    Accounting Basics :

    Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

  • Q : What is the cash payback period on the equipment....
    Accounting Basics :

    If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight-line method of depr

  • Q : Mail the check to the charitable organization....
    Accounting Basics :

    Monica writes a $1,000 check for a charitable contribution on December 28, 2011, but does not mail the check to the charitable organization until January 10, 2012. She takes a deduction in 2011.

  • Q : What is the annual rate of return expected....
    Accounting Basics :

    If the equipment is purchased, what is the annual rate of return expected on this equipment ?

  • Q : Eexpect to incur a small loss....
    Accounting Basics :

    Sue and Bill plan to open an accounting firm and expect to work full time in the firm. They expect to incur a small loss during their first year of operation and expect to be profitable after the fi

  • Q : What the income will be....
    Accounting Basics :

    Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 1,000 mach

  • Q : Partnership or as an s corporation....
    Accounting Basics :

    Bob and Dave plan to start a business. Bob will contribute land and Dave will contribute services. Would you recommend this business be formed as a partnership or as an S corporation? Why?

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