EXERCISE 14-1 (15-20 minutes) Valuation account relating to the long-term liability‚ bonds payable (sometimes referred to as an adjunct account). The 3‚000 would continue to be reported as long-term. Current liability if current assets are used to satisfy the debt. Current liability‚ 200‚000 long-term liability‚ 800‚000. Current liability. Probably noncurrent‚ although if operating cycle is greater than one year and current assets are used‚ this item would be classified as current. Current liability
Premium Bond Generally Accepted Accounting Principles Discounted cash flow
Chapter 6 Cost-Volume-Profit Relationships Solutions to Questions 6-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can be used in a variety of ways. For example‚ the change in total contribution margin from a given change in total sales revenue can be estimated by multiplying the change in total sales revenue by the CM ratio. If fixed costs do not change‚ then a dollar increase in contribution margin will result in a dollar
Premium Variable cost Contribution margin Total cost
1. Conversion cost is the sum of direct labor cost and direct materials cost. F 2. Depreciation on office equipment would be included in product costs. F 3. When the predetermined overhead rate is based on direct labor-hours‚ the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job. F 4. Indirect materials are charged to specific jobs. F 5. When a job is completed‚ the goods are transferred from the production department to the finished goods
Premium Variable cost Costs Fixed cost
Professor and Manager FROM: SUBJECT: Forrest Hill Evaluation of Profits and Costing Systems DATE: November 1‚ 2013 Executive Summary Throughout this report‚ our team will describe how we used activity based costing to allocate costs‚ illustrate why the traditional system is faulty‚ and recommend changes that Forest Hill Paper Company should consider implementing in the near future. After closely reviewing the financial and production data‚ our accounting team has found that your traditional
Premium Cost accounting Profit Costs
Cost Accounting: A Managerial Emphasis‚ 14th Edition Horngren‚ Datar and Rajan Check Figures for Exercises and Problems Chapter 2. An Introduction to Cost Terms and Purposes 2-16 1. S‚ $1.1856 D‚ $1.0213 R‚ $0.6400 2-17 1. yeast D/V‚ flour D/V‚ pkg D or I/V‚ dep ov I/F or V‚ dep mix I/F or V‚ rent I/F‚ ins I/F‚ fact util I/F and V‚ fin labor D/V or F‚ mix mgr I/F‚ matl hand I/F or V‚ cust I/F‚ guard I/F‚ mach I/F or V‚ mach maint I/F or V‚ maint sup I/V‚ clean sup I/F. 2. Dep. M&M‚ MDM‚ MH‚ Mac.
Premium Costs Variable cost Fixed cost
In the Thing in the Forrest two little girls‚ Penny and Primrose became friends with one another while being sent away to a foster home. Both were scared and afraid of what the outcome of their futures would be‚ but both vowed to keep by each other’s side no matter what happened to either one of them. On a day they would never forget; Penny and Primrose was playing and decided to go in the woods. There they encountered a scary monstrous thing that would leave them scared for years. Penny‚ who later
Premium Psychology Anxiety Fear
Many species of animals live in the Amazon Rain Forest. The rain forest itself‚ covering nearly 40 percent of South America‚ contains one in every ten species known on earth (“World’s” 1). Around 500 species of mammals‚ 475 reptiles‚ and one third of the world’s birds live in the Amazon. Although they all live in the same general area‚ animals have different habitats‚ diets‚ and life spans. A few of the many animals are the Scarlet macaw‚ Anaconda‚ Giant Amazon River Turtle‚ and the Howler Monkey
Premium Amazon Rainforest Primate Amazon River
ORGANIZATION ACCOUNTANT’ See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures‚ analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally accepted accounting principles (GAAP). Financial accounting focuses on reporting to external parties such as investors
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
Role of Internal Audit Function Nano Circuits Inc‚ is a publicly traded company that produces electronic control circuits‚ which are used in many products. In an effort to comply with SOX‚ Nano is in the process of establishing an in-house internal audit function‚ which previously had been outsourced. The company began this process by hiring a Director of Internal Audits. Nano Circuits’ CEO recently called a planning meeting to discuss the roles of key corporate participants regarding the implementation
Premium Internal control Auditing Internal audit
Chapter 1 the equity method of accounting for investments Answers to Questions 1. The equity method should be applied if the ability to exercise significant influence over the operating and financial policies of the investee has been achieved by the investor. However‚ if actual control has been established‚ consolidating the financial information of the two companies will normally be the appropriate method for reporting the investment. 2. According to Paragraph 17 of APB Opinion 18‚ "Ability
Premium Generally Accepted Accounting Principles Balance sheet Dividend