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harshmyphoneBryan College

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History1English1Business6Science1Geography1Ethics1Algebra1Computer Science1Accounting19Biology3Mathematics1Physics1Chemistry5
Answer: The word biology is derived from the greek words /bios/ meaning /life/...
Answer: C
Answer:1 - Debit the receiver, credit the giveR
Answer: D

Can someone please help me with the following questions so I candouble check my work? No explanation needed just the answer isfine.

8. U.S. GAAP and IFRS require firms to account for minority,active investments, generally those where the investor owns between_____ using the equity method. Under the equity method, theinvestor recognizes as revenue (expense) each period its share ofthe net income (loss) of the investee. The investor recognizesdividends received from the investee as a return (reduction) ofinvestment, not as income.

a.

10% and 50%

b.

20% and 50%

c.

30% and 50%

d.

40% and 60%

e.

50% and 60%

25. Purchaser Corporation acquires 30%of the outstanding voting common shares of the Investee Corporationfor $600,000. Purchaser Corporation acquires the investment inInvestee Corporation by buying previously issued shares of InvesteeCorporation from other investors. When Purchaser Corporationacquired 30% of Investee Corporation’s common shares for $600,000,Investee Corporation’s total shareholders’ equity was $1.5 million.Purchaser Corporation’s cost exceeds the carrying value of the netassets acquired by $150,000 [ $600,000 - (0.30 x$1,500,000)].

Purchaser Corporation attributes the $150,000 excess purchaseprice as follows: $100,000 to remeasure buildings and equipment tofair value and $50,000 to goodwill. Which of the following is/aretrue?

a.

Purchaser Corporation does not reclassify this excess out of itsInvestment in Stock of Investee Corporation account to Buildingsand Equipment and to Goodwill.

b.

Purchaser Corporation must amortize (or depreciate) any amountattributed to assets with limited lives.

c.

Purchaser Corporation must depreciate the $100,000 attributed tobuildings and equipment over their remaining useful lives.

d.

U.S. GAAP and IFRS do not permit the investor to amortize theexcess purchase price attributed to goodwill and other assets withindefinite lives. Instead, the investor must test the investmentaccount annually for possible impairment.

e.

all of the above

32. Pareto Corporation owns 40% ofSpring Corporation. During Year 3, Spring has net income of$60,000. What entry should Pareto record related to its investmentin Spring during Year 3?

a.

Investment in SpringCorp. 24,000

Equity in Earnings ofAffiliate 24,000

b.

DividendReceivable 24,000

DividendIncome 24,000

c.

InvestmentReceivable 24,000

InvestmentIncome 24,000

d.

Investment in SpringCorp. 24,000

InvestmentIncome 24,000

e.

Investment in SpringCorp. 24,000

Cash 24,000

35. Pense Co. purchased 40% of thestock of Stretch Co. in Year 1 for $100,000. Stretch had net incomein Year 1 of $50,000 and net income in Year 2 of $30,000. Stretchalso paid total dividends of $20,000 in Year 2. On January 1, Year3, Pense Co. sold its investment in Stretch Co. to GE CapitalCorporation (GE) for $130,000. What entry would Pense Co. make torecord the sale of Stretch Co.?

a.

Cash 130,000

Gain onSale 6,000

Investment inStretch 124,000

b.

Cash 130,000

Loss onSale 2,000

Investment inStretch 132,000

c.

Cash 130,000

Loss onSale 10,000

Investment inStretch 140,000

d.

Cash 130,000

Loss onSale 30,000

Investment inStretch 160,000

e.

Cash 130,000

Loss onSale 20,000

Investment inStretch 150,000

55. Intercompany sales

a.

do not need to be eliminated as long as the sales have beencompleted to an outside party.

b.

must be eliminated from both the sales and cost of goods soldaccounts.

c.

do not need to be eliminated if made at arm's length values.

d.

must be eliminated only if not in the ordinary course of tradeor business.

e.

do not need to be eliminated.

54. To avoid double counting P'sinvestment in S, P must eliminate

a.

the investment in S and S's separate company shareholders'equity.

b.

all debt on S's separate company financial statements.

c.

any dividends paid against the cash account.

d.

all intercompany transactions.

e.

all of the above.

58. U.S. GAAP view investments of over50 percent of the voting stock of another company (for the purposeof controlling the other company at the broad policy-making leveland at the day-to-day operational level) as

a.

minority, passive investments.

b.

minority, active investments.

c.

majority, passive investments.

d.

majority, active investments.

e.

marketable securities.

33. If Wabasso Company pays $55,000 individends to its corporate investor Lament Corporation (Lament owns35% of The Wabasso Company), what entry should Lament Corporationrecord when it receives the dividends?

a.

Cash 55,000

DividendIncome 55,000

b.

Cash 55,000

InvestmentIncome 55,000

c.

Cash 55,000

Investment in WabassoCompany 55,000

d.

Cash 55,000

Additional Paid-inCapital 55,000

e.

Cash 55,000

Common Stock- WabassoCompany 55,000

25. Purchaser Corporation acquires 30%of the outstanding voting common shares of the Investee Corporationfor $600,000. Purchaser Corporation acquires the investment inInvestee Corporation by buying previously issued shares of InvesteeCorporation from other investors. When Purchaser Corporationacquired 30% of Investee Corporation’s common shares for $600,000,Investee Corporation’s total shareholders’ equity was $1.5 million.Purchaser Corporation’s cost exceeds the carrying value of the netassets acquired by $150,000 [ $600,000 - (0.30 x$1,500,000)].

Purchaser Corporation attributes the $150,000 excess purchaseprice as follows: $100,000 to remeasure buildings and equipment tofair value and $50,000 to goodwill. Which of the following is/aretrue?

a.

Purchaser Corporation does not reclassify this excess out of itsInvestment in Stock of Investee Corporation account to Buildingsand Equipment and to Goodwill.

b.

Purchaser Corporation must amortize (or depreciate) any amountattributed to assets with limited lives.

c.

Purchaser Corporation must depreciate the $100,000 attributed tobuildings and equipment over their remaining useful lives.

d.

U.S. GAAP and IFRS do not permit the investor to amortize theexcess purchase price attributed to goodwill and other assets withindefinite lives. Instead, the investor must test the investmentaccount annually for possible impairment.

e.

all of the above

20. Pagoli Corporation acquires 30% ofthe outstanding voting common shares of the Inform Corporation for$600,000. Pagoli Corporation acquires the investment in InformCorporation by buying previously issued shares of InformCorporation from other investors.

Between the time of the acquisition and the end of PagoliCorporation’s next accounting period, Inform Corporation reportsearnings of $80,000; and pays a dividend of $30,000 to holders ofits common stock.

Inform Corporation reports earnings of $100,000 and paysdividends of $40,000 during the subsequent accounting period.

Pagoli Corporation’s Investment in Stock of Inform Corporationaccount now has a balance of:

a.

$609,000

b.

$621,000

c.

$633,000

d.

$642,000

e.

$657,000

Answer: D

Can someone please help me with the following questions so I candouble check my work? No explanation needed just the answer isfine.

8. U.S. GAAP and IFRS require firms to account for minority,active investments, generally those where the investor owns between_____ using the equity method. Under the equity method, theinvestor recognizes as revenue (expense) each period its share ofthe net income (loss) of the investee. The investor recognizesdividends received from the investee as a return (reduction) ofinvestment, not as income.

a.

10% and 50%

b.

20% and 50%

c.

30% and 50%

d.

40% and 60%

e.

50% and 60%

25. Purchaser Corporation acquires 30%of the outstanding voting common shares of the Investee Corporationfor $600,000. Purchaser Corporation acquires the investment inInvestee Corporation by buying previously issued shares of InvesteeCorporation from other investors. When Purchaser Corporationacquired 30% of Investee Corporation’s common shares for $600,000,Investee Corporation’s total shareholders’ equity was $1.5 million.Purchaser Corporation’s cost exceeds the carrying value of the netassets acquired by $150,000 [ $600,000 - (0.30 x$1,500,000)].

Purchaser Corporation attributes the $150,000 excess purchaseprice as follows: $100,000 to remeasure buildings and equipment tofair value and $50,000 to goodwill. Which of the following is/aretrue?

a.

Purchaser Corporation does not reclassify this excess out of itsInvestment in Stock of Investee Corporation account to Buildingsand Equipment and to Goodwill.

b.

Purchaser Corporation must amortize (or depreciate) any amountattributed to assets with limited lives.

c.

Purchaser Corporation must depreciate the $100,000 attributed tobuildings and equipment over their remaining useful lives.

d.

U.S. GAAP and IFRS do not permit the investor to amortize theexcess purchase price attributed to goodwill and other assets withindefinite lives. Instead, the investor must test the investmentaccount annually for possible impairment.

e.

all of the above

32. Pareto Corporation owns 40% ofSpring Corporation. During Year 3, Spring has net income of$60,000. What entry should Pareto record related to its investmentin Spring during Year 3?

a.

Investment in SpringCorp. 24,000

Equity in Earnings ofAffiliate 24,000

b.

DividendReceivable 24,000

DividendIncome 24,000

c.

InvestmentReceivable 24,000

InvestmentIncome 24,000

d.

Investment in SpringCorp. 24,000

InvestmentIncome 24,000

e.

Investment in SpringCorp. 24,000

Cash 24,000

35. Pense Co. purchased 40% of thestock of Stretch Co. in Year 1 for $100,000. Stretch had net incomein Year 1 of $50,000 and net income in Year 2 of $30,000. Stretchalso paid total dividends of $20,000 in Year 2. On January 1, Year3, Pense Co. sold its investment in Stretch Co. to GE CapitalCorporation (GE) for $130,000. What entry would Pense Co. make torecord the sale of Stretch Co.?

a.

Cash 130,000

Gain onSale 6,000

Investment inStretch 124,000

b.

Cash 130,000

Loss onSale 2,000

Investment inStretch 132,000

c.

Cash 130,000

Loss onSale 10,000

Investment inStretch 140,000

d.

Cash 130,000

Loss onSale 30,000

Investment inStretch 160,000

e.

Cash 130,000

Loss onSale 20,000

Investment inStretch 150,000

55. Intercompany sales

a.

do not need to be eliminated as long as the sales have beencompleted to an outside party.

b.

must be eliminated from both the sales and cost of goods soldaccounts.

c.

do not need to be eliminated if made at arm's length values.

d.

must be eliminated only if not in the ordinary course of tradeor business.

e.

do not need to be eliminated.

54. To avoid double counting P'sinvestment in S, P must eliminate

a.

the investment in S and S's separate company shareholders'equity.

b.

all debt on S's separate company financial statements.

c.

any dividends paid against the cash account.

d.

all intercompany transactions.

e.

all of the above.

58. U.S. GAAP view investments of over50 percent of the voting stock of another company (for the purposeof controlling the other company at the broad policy-making leveland at the day-to-day operational level) as

a.

minority, passive investments.

b.

minority, active investments.

c.

majority, passive investments.

d.

majority, active investments.

e.

marketable securities.

33. If Wabasso Company pays $55,000 individends to its corporate investor Lament Corporation (Lament owns35% of The Wabasso Company), what entry should Lament Corporationrecord when it receives the dividends?

a.

Cash 55,000

DividendIncome 55,000

b.

Cash 55,000

InvestmentIncome 55,000

c.

Cash 55,000

Investment in WabassoCompany 55,000

d.

Cash 55,000

Additional Paid-inCapital 55,000

e.

Cash 55,000

Common Stock- WabassoCompany 55,000

25. Purchaser Corporation acquires 30%of the outstanding voting common shares of the Investee Corporationfor $600,000. Purchaser Corporation acquires the investment inInvestee Corporation by buying previously issued shares of InvesteeCorporation from other investors. When Purchaser Corporationacquired 30% of Investee Corporation’s common shares for $600,000,Investee Corporation’s total shareholders’ equity was $1.5 million.Purchaser Corporation’s cost exceeds the carrying value of the netassets acquired by $150,000 [ $600,000 - (0.30 x$1,500,000)].

Purchaser Corporation attributes the $150,000 excess purchaseprice as follows: $100,000 to remeasure buildings and equipment tofair value and $50,000 to goodwill. Which of the following is/aretrue?

a.

Purchaser Corporation does not reclassify this excess out of itsInvestment in Stock of Investee Corporation account to Buildingsand Equipment and to Goodwill.

b.

Purchaser Corporation must amortize (or depreciate) any amountattributed to assets with limited lives.

c.

Purchaser Corporation must depreciate the $100,000 attributed tobuildings and equipment over their remaining useful lives.

d.

U.S. GAAP and IFRS do not permit the investor to amortize theexcess purchase price attributed to goodwill and other assets withindefinite lives. Instead, the investor must test the investmentaccount annually for possible impairment.

e.

all of the above

20. Pagoli Corporation acquires 30% ofthe outstanding voting common shares of the Inform Corporation for$600,000. Pagoli Corporation acquires the investment in InformCorporation by buying previously issued shares of InformCorporation from other investors.

Between the time of the acquisition and the end of PagoliCorporation’s next accounting period, Inform Corporation reportsearnings of $80,000; and pays a dividend of $30,000 to holders ofits common stock.

Inform Corporation reports earnings of $100,000 and paysdividends of $40,000 during the subsequent accounting period.

Pagoli Corporation’s Investment in Stock of Inform Corporationaccount now has a balance of:

a.

$609,000

b.

$621,000

c.

$633,000

d.

$642,000

e.

$657,000

Answer: D
Answer:A) cultural-moral

1. Mary Tudor decides to use insider information to sell stock.She justifies this decision by saying that if she did not do this,she will lose money and have to cut down on her staff which willhurt her employees. This defense best illustrates

A. profit maximization B. rights theory C. Kant's categoricalimperative. D. Stakeholder theory

2. Who are the "stakeholders" that a corporate manager shouldnot consider when making a management decision?

A. Owners of shares of stock in the corporation B. Employees ofthe corporation C. The community in which the corporation operatesD. Corporate manager's family

3. "I am entitled to a job, a place to live, food, and healthcare regardless of how hard I work, how motivated I am to work toearn those things." This is:

A. Rights Theory B. Justice Theory C. Utilitarianism D. ProfitMaximization

4. Enron's executives' creation of partnerships that allowedEnron to keep liabilities off the balance sheet yet generate incomethat could be recognized in the current period could be describedas an example of:

A. Rule utilitarianism. B. Act utilitarianism. C. Profitmaximization. D. Kant's categorical imperative.

5. Which of the following is not the prescribed guideline forethical decision making?

A. What facts impact my decision? B. What are the alternatives?C. What factors appeal to pity? D. How do the alternatives impactthe decision maker?

7. Debra is talking to Alex, her stockbroker. Debra asks Alex ifshe can trust his advice to purchase Acme Co. stock. Alex replies:"Of course you can." Debra asks: "Why can I trust you?" Alex sayswith a smile, "because I am a trustworthy person." Alex is engagingin:

A. circular reasoning. B. a bandwagon fallacy. C. argumentum adbaculum. D. criminal sanctions to curb irresponsible corporatebehavior.

Answer: D
Answer: C

Part 1 : Retirement Planning Analysis – A case study (100 points)

Wow….Planning for retirement can be so HARD to understand!

Read the following articles:

Adjusting Expectations

http://www.fa-mag.com/news/adjusting-expectations-13473.html

Drifting Off Track

http://www.fa-mag.com/news/drifting-off-track-13452.html

You are CPA's and your largest client asks you for assistance with retirement planning providing you with the following data – make sure your numbers are correct – their future depends upon it.

Case Data:

a) They will begin investing a monthly amount on 1/1/14 at age (a) 25, (b) 45, Yrs Old.

b) They will retire at age (a) 55, (b) 70, on 1/1/XX of that year.

c) They will stop contributing upon retirement and begin withdrawing a monthly amount of $3,500. (Their net nest egg will continue to earn interest)

d) They will earn an annual rate of: (a) 2%, (b) 8%.

e) They will invest 10% of their gross annual salary of $60k on an equal monthly basis.

f) When will their retirement money run out in each scenario if it does not last until they are 85? (Provide both the Number of Total Months and also Years and Month)

g) How much will they leave to their beneficiaries, should they die at age 85 on 1/1/XX of that year, in each scenario (Include this short comment within your Excel file)?

h) What advice would you give to yourself and your family members regarding retirement investing? (Include this short comment within your Excel file)

Provide your client with the following: (This is what you hand in to me)

A) An Excel-based, multi-sheet, data file with the first sheet being a tabular summary with one additional WS Tab for each of the scenarios providing all monthly calculation tables (Note: I provided you with an example of how to “start” this project…use this and you will be in great shape!).

B) Link all amounts/figures shown in this Summary to the WS pages from which they originate.

NOTE 1: Make sure that you are utilizing the power of excel's calculations and formulas at every stage in the table. You will be graded on your ability to use excel.

NOTE 2: Utilize one (1) Excel file with multiple sheets for each of the many scenarios (name each sheet appropriately), with the first sheet (Sheet 1) being the "Final Analysis" table appropriately named as such, followed by the first scenario tabbed (25, 55, 2%), then (25, 55, 8%), (25, 70, 2%) and so on and so forth.

NOTE 3: This is a planning tool…format and formulate it as such…as in any research case start with the main details as inputs for all spreadsheet calculations to utilize. This should provide a dynamic, not static, planning tool.

NOTE 4: Place a quotation from each article above plus one additional quote that you find on your own, regarding the importance of starting your retirement planning early (remember to utilize proper citations).

Answer: E
Answer: false

True/False

Indicate whether the sentence or statement is true or false. 1 point for each question

____ 1. The completed-contract method was developed to relate recognition of revenue on long-term construction-type contracts to the activities of a firm in fulfilling these contracts.

____ 2. Estimates of architects and engineers of percentage-of-completion are not acceptable under generally accepted accounting principles.

____ 3. The use of the direct write-off method is acceptable under generally accepted accounting principles.

____4. The method of estimating uncollectible accounts expense based on the accounts receivable balance emphasizes the determination of the net realizable value of the receivables.

____5. The "list" sales price less any trade discount is the amount at which the receivable and the corresponding revenue should be recorded.

____6. In a bank reconciliation statement, an outstanding check must be subtracted from the bank statement balance in determining the correct cash balance.

____ 7. Accounting for installment sales using the deferred gross profit approach requires determining a gross profit rate for the sales of each year, and establishing an accounts receivable and a deferred revenue account identified by the year of the sale.

____ 8. The deferred gross profit accounts are reported as liabilities under the installment sale method.

____ 9. The cost recovery method is often used when the circumstances surrounding a sale are too uncertain to use the installment sale method.

____ 10. In a bank reconciliation statement, the amount of a not-sufficient-funds check must be added to the depositor's cash balance in determining the correct cash balance.

Answer: false
Answer: f
Answer: f

True/False

Indicate whether the sentence or statement is true or false. 1 point for each question

____ 1. The completed-contract method was developed to relate recognition of revenue on long-term construction-type contracts to the activities of a firm in fulfilling these contracts.

____ 2. Estimates of architects and engineers of percentage-of-completion are not acceptable under generally accepted accounting principles.

____ 3. The use of the direct write-off method is acceptable under generally accepted accounting principles.

____4. The method of estimating uncollectible accounts expense based on the accounts receivable balance emphasizes the determination of the net realizable value of the receivables.

____5. The "list" sales price less any trade discount is the amount at which the receivable and the corresponding revenue should be recorded.

____6. In a bank reconciliation statement, an outstanding check must be subtracted from the bank statement balance in determining the correct cash balance.

____ 7. Accounting for installment sales using the deferred gross profit approach requires determining a gross profit rate for the sales of each year, and establishing an accounts receivable and a deferred revenue account identified by the year of the sale.

____ 8. The deferred gross profit accounts are reported as liabilities under the installment sale method.

____ 9. The cost recovery method is often used when the circumstances surrounding a sale are too uncertain to use the installment sale method.

____ 10. In a bank reconciliation statement, the amount of a not-sufficient-funds check must be added to the depositor's cash balance in determining the correct cash balance.

Answer: false

I. True/False 2 points

Indicate whether the sentence or statement is true or false.

____ 1. Revenues and gains are generally recognized when they are realized or realizable and they have been earned through substantial completion of the activities involved in the earnings process.

____ 2. The proportional performance method has been developed to reflect revenue earned on service contracts under which many acts of service are to be performed before the contract is completed.

____ 3. Beginning with the Tax Reform Act of 1986, the tax laws eliminated the use of the completed-contract method.

____ 4. The most popular input measure under percentage-of-completion accounting is the cost-to-cost method.

____ 5. Estimates of architects and engineers of percentage-of-completion are not acceptable under generally accepted accounting principles.

____ 6. At the conclusion of a construction contract, the balance in Construction in Progress will be exactly equal to the amount in Progress Billings on Construction Contracts when using the percentage-of-completion method.

____ 7. If analysis of construction contracts indicates that there will be an overall loss on the contract, the loss should immediately be recognized in full under the completed-contract method and the percentage-of-completion method.

____ 8. Under the cost recovery method, no income is recognized on a sale until the cost of the item sold is recovered through cash receipts with all subsequent receipts reported as revenues.

____ 9. The cost recovery method is the most conservative revenue recognition method.

____ 10. If a company is heavily involved in installment sales, the operating cycle of the business is normally defined as the average period of the installment contracts.

Answer: false
Answer: C
cAnswer: C

I. True/False 2 points

Indicate whether the sentence or statement is true or false.

____ 1. Revenues and gains are generally recognized when they are realized or realizable and they have been earned through substantial completion of the activities involved in the earnings process.

____ 2. The proportional performance method has been developed to reflect revenue earned on service contracts under which many acts of service are to be performed before the contract is completed.

____ 3. Beginning with the Tax Reform Act of 1986, the tax laws eliminated the use of the completed-contract method.

____ 4. The most popular input measure under percentage-of-completion accounting is the cost-to-cost method.

____ 5. Estimates of architects and engineers of percentage-of-completion are not acceptable under generally accepted accounting principles.

____ 6. At the conclusion of a construction contract, the balance in Construction in Progress will be exactly equal to the amount in Progress Billings on Construction Contracts when using the percentage-of-completion method.

____ 7. If analysis of construction contracts indicates that there will be an overall loss on the contract, the loss should immediately be recognized in full under the completed-contract method and the percentage-of-completion method.

____ 8. Under the cost recovery method, no income is recognized on a sale until the cost of the item sold is recovered through cash receipts with all subsequent receipts reported as revenues.

____ 9. The cost recovery method is the most conservative revenue recognition method.

____ 10. If a company is heavily involved in installment sales, the operating cycle of the business is normally defined as the average period of the installment contracts.

Answer: false false
Answer: B
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