CHAPTER 1 Introduction to Financial Statements Study Objectives 1. 2. 3. 4. 5. 6. Describe the primary forms of business organization. Identify the users and uses of accounting information. Explain the three principal types of business activity. Describe the content and purpose of each of the financial statements. Explain the meaning of assets‚ liabilities‚ and stockholders’ equity‚ and state the basic accounting equation. Describe the components that supplement the financial statements in an
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CHAPTER 12 MULTIPLE CHOICE 12-1: d. This is recorded when the working fund is replenished. 12-2: c. Sales P 700‚000 Cost of goods sold: Purchases P800‚000 Merchandise inventory‚ end 180‚000 620‚000 Gross profit P 80‚000 Expenses 198‚000 Net income (loss) P (118‚000) 12-3: b Sales P 70‚000 Cost of goods sold (P70‚000 / 140%) 50‚000 Gross profit P 20‚000 Less: Samples (P8‚000 – P6‚000) P
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viewed Leeson to be independent. 4. Background Review: Due to the fact that the management of Baring Bank had created a wrong impression of Leeson they failed to investigate him even to the claims of the 88888 account letting the culprit handle the case and do a report to them. This was wrong and led to Leeson falsifying documents to cover up his tracks. 5. Limits to
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Brham S. Inocencio BSA IV-A CASE 01 – Enron Corporation 1. List three types of consulting services that audit firms have provided to their audit clients in recent years. For each item‚ indicate the specific threats‚ if any‚ that the provision of the given service can pose for an audit firm’s independence. In the recent years‚ auditing firms provides the following consulting services to their clients: a. Internal auditing b. Design of accounting systems c. Various types of Information Technology
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Comprehension Test Three Men in a Boat Jerome K. Jerome 1 Match a number from A with a letter from B to make complete sentences. A 1 The people in the maze were angry with Harris ... 2 George said it was most exciting to let girls tow your boat ... 3 The three men decided to go home early ... 4 Five different men said that they caught the fish ... 5 One morning George got up very early ... B a ... because his watch stopped the night before.
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Managerial Acctg Quiz 1 – Fall 2012 NAME_ ______________________ Chapters 1 and 2 10 Points 1. Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. The "Xs" can be placed under more than one heading for a single cost. (5 Points) Variable Cost Fixed Cost Direct Materials Direct Labor Manufactu ring Overhead Period Cost Materials costs X X Production line workers wages X X Production Equipment
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manager should use only the less expensive input in this case. If the inputs are not perfect substitutes‚ the isoquants will have a convex shape. The campaign manager should then spend the campaign’s budget on the combination of the two inputs will that maximize the number of votes. 5. For each of the following examples‚ draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case? a. A firm can hire only full-time employees to produce its
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2-40 Strategic positioning The emphasis in the case info on the product quality and craftsmanship‚ is the best described as differentiation on the quality of the product. In contrast‚ the company is more likely to succeed if it can continue to appeal to those customers looking for up-scale‚ higher quality table lamps and lighting fixtures. When using differentiation as the Company’s strategy‚ it becomes clear that maintaining the Classic line is critical to the company’s success. Thus‚ elimination
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Loan From Bank Buyout Cost for land Demolition Charge Advance from sports boat Sale of boats Compensation to Fred Paid for building Bank loan repaid Fred Salary Total Assumption: Type Cash F F OP F I 72000 20000 (800) 40000 (72000) F OP OP I F OP 40000 166800 (680) (145000) (42000) (10000) 68320 Land Building Accounts Receivable Retained earning (800) 72000 9000 13600 180400 (680) 145000 (2000) (10000) 81000 Total Asset 145000 13600 307920 166920 A)Any cost that increase the value
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WEIGHTED AVERAGE COST OF CAPITAL 1. Calculate the current cost of capital of Secure and Safe on a weighted average basis Capital structure Type Details $50‚000‚000 bonds 5.5% coupon $20‚000‚000 preferred stock Par value $50 per share Dividend $2.75 per share p.a $25‚000‚000 book value of common stock Cost of capital is 12% Firm’s marginal tax rate is 30%. Cost of debt (issuance of bonds) According to the book Finance for Managers (2015)‚ we get the real cost of debt by taking out the tax liability
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