CHAPTER 19 SPECIAL TOPICS IN REA MODELING SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 19.1 Often it takes several sales calls to obtain the first order from a new customer. Why then does Figure 19-1 depict the relationship between the Call on Customer and Take Customer Order events as being 1:1? When a sales person visits a customer it is represented by the event Call on Customer. Although single sales call may be followed by many orders from a customer over time‚ it is easier and more
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Multiple Choice Questions 1. Which of the following entities would not require accounting information pertaining to their economic activities? a. Social clubs. b. Not-for-profit entities. c. State governments. D. All of these require accounting information. e. None of these requires accounting information. Difficulty: Easy 2. Which of the following is not an objective of financial reporting described in FASB Concepts Statement No. 1? a. To provide information about how management of
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CHAPTER 2 Professional Standards LEARNING OBJECTIVES | | | | | | |Exercises‚ Problems‚ and | | |Review Checkpoints |Simulations | |
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CHAPTER 12 ACCOUNTING FOR PARTNERSHIPS AND LIMITED LIABILITY COMPANIES DISCUSSION QUESTIONS 1. a. Proprietorship: Ease of formation and nontaxable entity. b. Partnership: Expanded owner expertise and capital‚ nontaxable entity‚ and moderate complexity of formation. c. Limited liability company: Limited liability to owners‚ expanded access to capital‚ nontaxable entity‚ and moderate complexity of formation. 2. The disadvantages of a partnership are that its life is limited
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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
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Name: _____________________________________ Period: _____ Chapter 24 Overview Directions: Complete each section to ensure full credit. If you have any questions‚ please email me immediately! Chapter 24: Land Empires in the Age of Imperialism‚ 1800 1870. [Topic 5] Introduction: Directions – Read pages 679680. Summarize the reading in 1 sentence. The emperors of the Qing dies‚ and his friend‚ Heshen‚ is killed. Section 1: The Ottoman Empire – Read pages 680690. Using the SPICE acronym (see handout)
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CHAPTER 1 Introduction Practice Questions Problem 1.1 What is the difference between a long forward position and a short forward position? When a trader enters into a long forward contract‚ she is agreeing to buy the underlying asset for a certain price at a certain time in the future. When a trader enters into a short forward contract‚ she is agreeing to sell the underlying asset for a certain price at a certain time in the future. Problem 1.2. Explain carefully the difference
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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
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Chapter 14 Financial Statement Analysis True / False Questions 1. Vertical analysis compares the results of financial information with a business in the same industry for a number of consecutive periods of time. True False 2. The quick ratio is especially useful in evaluating the liquidity of a company with fast moving inventories. True False 3. Deducting the cost of goods sold from net income gives us operating income. True False 4. The gross profit rate is
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goodwill Cr 12 In relation to Jericho‚ reduce goodwill by $25 and allocate the remaining $175 impairment loss to applicable assets: Carrying Proportion Allocation Net Carrying Amount of Excess Amount Plant 850 85/109 136 714 Patent 240 24/109 39 201 1 090 175 As the patent has a fair value less costs to sell of $220‚ only $20 of the impairment loss can be allocated to it‚ so the plant must be reduced by a further $19‚ to $695. At 31 December 2010‚ the plant and patent are recorded
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