• Q : Most accurate npv calculation....
    Accounting Basics :

    Keep in mind that NPV is the value in today's dollars of cash flows to be received some time in the future (just like the gold mine example back in Module 2) minus what we have to pay today to get

  • Q : Impact on operating profit....
    Accounting Basics :

    What is the impact on operating profit if variable cost per unit decrease by 10 percent? increase by 20?

  • Q : Prepare journal entries to record income taxes....
    Accounting Basics :

    Prepare journal entries to record income taxes for 2012 and 2013. Assume in 2012, management believed the company would benefit from the loss contingency; in 2013, management believes that the loss

  • Q : Periodic inventory system-cost of goods sold....
    Accounting Basics :

    Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purcha

  • Q : Distribution and subsequent sale....
    Accounting Basics :

    During the current taxable year, ABC Corporation sold Parcel A to Chris for $65,000 which amount was equal to the fair market value of Parcel A. Shortly after receiving Parcel A, Chris sold Parcel A

  • Q : Compute the issue price of the bonds in dollars....
    Accounting Basics :

    The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2009, when the market interest rate was 8 percent. Assuming Southwest Corporation uses effective-interest am

  • Q : What amount of total overhead cost applied to production....
    Accounting Basics :

    What amount of total overhead cost would have been applied to production for the month of April?

  • Q : Budgeted maintenance cost per machine-hour....
    Accounting Basics :

    At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totalled $9,800 and

  • Q : Purchase of merchandise costing related problem....
    Accounting Basics :

    Runedale Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purchas

  • Q : Determine the quantity of framing....
    Accounting Basics :

    Determine the quantity of framing, glass, and backing that is to be purchased during August.

  • Q : Absorption costing-cost of goods sold....
    Accounting Basics :

    Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under absorption costing, the cost of goods sold for the year would be:

  • Q : Audit sampling for details of balances....
    Accounting Basics :

    There are 14 steps to audit sampling for details of balances, divided into three sections: plan the sample, select the sample and perform the audit procedures, and evaluate the results. Discuss each

  • Q : What amount of child tax credit may they claim....
    Accounting Basics :

    Rhianna and Jay are married filing jointly in 2011. They have six children for whom they may claim the child tax credit. Their AGI was $123,440. What amount of child tax credit may they claim on the

  • Q : Statements concerning practical standards....
    Accounting Basics :

    Which of the following statements concerning practical standards is NOT correct?

  • Q : Describe how cvp analysis is used....
    Accounting Basics :

    How can CVP Analysis be used to predict future costs and profitability? Describe how CVP Analysis is used or could be used at your current employer. If you have not worked for a company that might u

  • Q : Prepare consignor summary entries for transactions....
    Accounting Basics :

    Tingey shipped $250,000 (manufacturing cost) of goods on consignment. Dealers sold $220,000 of goods (sales price). Dealers paid $139,000 after deducting commission. Prepare consignor's summary entr

  • Q : Compute market inventory turnover....
    Accounting Basics :

    Compute Market's inventory turnover and days' sales in inventory. Assume that there are 365 days in the year.

  • Q : Find out the depreciation expense....
    Accounting Basics :

    Gardner Corporation purchased a truck at the beginning of 2012 for $90,000. The truck is estimated to have a salvage value of $3,600 and a useful life of 120,000 miles. It was driven 18,000 miles in

  • Q : Determining the depreciation expense....
    Accounting Basics :

    During 2012, Noller Co. sold equipment that had cost $294,000 for $176,400. This resulted in a gain of $12,900. The balance in Accumulated Depreciation-Equipment was $975,000 on January 1, 2012, and

  • Q : Actual interest for arlington company....
    Accounting Basics :

    In addition, the company had outstanding all year a 10%, 3-year, $4,000,000 note payable and an 11%, 4-year, $7,500,000 note payable. What is the actual interest for Arlington Company?

  • Q : Inventory under the lower-of-cost-or-market method....
    Accounting Basics :

    Given the historical cost of product Z is $160, the selling price of product Z is $190, costs to sell product Z are $21, the replacement cost for product Z is $166, and the normal profit margin is 4

  • Q : Entrepreneurs plan to rent bicycles....
    Accounting Basics :

    Just Rolling Along Inc. was organized on May 1, 2010, by two college students who recognized an opportunity to make money while spending their days at a beach along Lake Michigan. The two entreprene

  • Q : Children wages are subject to fica taxes....
    Accounting Basics :

    Carol owns a small curio shop that is incorporated as an S corporation. Her three children, Sara, age 16, Mark, age 19, and Corey, age 22, all help in the shop. Which of the children's wages are sub

  • Q : Amount of inventory loss is material....
    Accounting Basics :

    Why might the inventory loss concern management more than it does the auditors? Do you think the amount of inventory loss is material?

  • Q : Breakdown of current production costs....
    Accounting Basics :

    Roaming could buy the handlebars for $35 each; they cost $38 each to make. The following is a detailed breakdown of current production costs.

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