Week 1: Homework ACCT550 Chapter 1 CA1-3 (Financial Reporting and Accounting Standards) 1. GAAP stands for: (a) governmental auditing and accounting practices. (b) generally accepted attest principles. (c) government audit and attest policies. (d) generally accepted accounting principles. 2. Accounting standard-setters use the following process in establishing accounting standards: (a) Research‚ exposure draft‚ discussion paper‚ standard. (b) Discussion paper‚ research‚ exposure draft
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1. (TCO A‚ B‚ C) External users want answers to all of the following questions except: (Points : 3) Is the company earning satisfactory income? Will the company be able to pay its debts as they come due? Did the company use a budget to plan its expenses? How does the company compare in profitability with competitors? | 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called: (Points : 3) accounts
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retiring dentist and has been successful in his practice considerably. However‚ he now faces a management problem of motivating his employees who are suffering from low morale and do not seem to be working as hard as they could to help increase the revenue of the clinic. Dr. Perry‚ had attended a dental conference in Chicago in 2005‚ and recalled two approaches to profit sharing which would help in motivating the employees. He now faces the dilemma as to which one of the two pay structures would be
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Steven Kruid 005311499 Wal-Mart Case Assignment What impresses you about the company? What accounts for Wal-Mart’s success over the past 25+ years? Is it a great strategy‚ superb strategy implementation and execution‚ or great leadership? What aspects of Wal-Mart do you find unimpressive? Which of the five generic strategies is Wal-Mart employing? What are the chief elements of its strategy? The generic strategy that Wal-Mart employs is mainly a low-cost leader. This is evident by the
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Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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in debt at 10% $5‚000 in equity Both Firm A and Firm B- sell 10‚000 units @ 2.50 Variable cost- $1 Fixed Cost- $12‚000 a. What is the operating income (EBIT) for both firms? Firm A EBIT = Revenue - Operating Expenses = $2.50*10‚000 - $1*10000 - $12‚000 = $3‚000 Firm B EBIT = Revenue - Operating Expenses = $2.50*10‚000 - $1*10000 - $12‚000 = $3‚000 b. What are the earnings after interest? The earnings after Interest are: Firm A $3‚000-$0=$3‚000 Firm B $3‚000-10%*$5
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Should Main Line’s maximum and minimum lost profit amounts be revised downward for the following? Why? a. The domestic distribution revenues of $3 million because the deal had not been finalized. Answer: No‚ the amounts should not be revised due to the fact that this amount was an estimate of future cash flows from domestic distribution. Just because the deal had not been finalized does not matter in this instance. b. The $800‚000 of foreign pre-sales because
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Question 1 of 50 Which of the following is usually the largest current asset for a retailer? Inventory Question 2 of 50 In which journal would a return of merchandise purchased on account be recorded? The general journal Question 3 of 50 To find an error‚ you start with the trial balance and work your way back to which of the following? The financial statements you start with the trial balance and work your way back through the ledger and the journal to the transaction
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What is a static budget? A static budget is a budget that does not change as volume changes. If a company’s annual master budget is a static budget‚ the budget for sales commissions expense will be one amount such as $200‚000 for the year. In other words‚ in a static budget the budgeted amount for sales commissions expense will remain at $200‚000 even if the actual sales during the year are $3 million‚ $4 million or $5 million. In contrast to a company’s static master budget‚ the company’s sales
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(b) P – Simple to set up and maintains control with owner (c) C – Easier to transfer ownership and raise funds‚ no personal liability BE 1-2 1. Trying to determine whether the company complied with tax laws. (E) Internal Revenue Service 2. Trying to determine whether the company can pay its obligations. (C) Creditors 3. Trying to determine whether an advertising proposal will be cost-effective. (B) Marketing Manager 4. Trying to determine whether the company’s net income
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