Accounting Homework Help

Accounting Homework Help. Chapter 11Multiple ChoiceChoose the letter of the best answer to the questions listed

Chapter 11

Multiple Choice

Choose the letter of the best answer to the questions listed

below.

I.Which of the following is not an advantage of preparing and using a budget?

a It allows managers to anticipate and prepare for future business conditions

b.It provides managers defined standards used to develop and enforce appropriate cost

control systems

c.It ensures that the first department to request additional funding will receive it

d.It helps managers periodically carry out a self-evaluation of the organization and its

progress toward its financial objectives

2.A budget’s horizon refers to_

a.The amount of profit projected for the business

b.The amount of revenue projected for the business

C.The level of management consulted in preparing the budget

d.The time period included in the budget

3.A long-range budget typically covers_

a.One month

b.One week

c.Five years

d.One year

4.A weekly plan for the number of servers needed in a restaurant and their estimated wages is

an example of a(n)

a.Achievement budget

b.Cash budget

C.Long-range budget

d.Capital budget

5.What type of budget is management’s estimate of all(or any portion of)the income statement?a.Cash budget

b.Operations budget

C.Standards budget

d.Capital budget

6.What type of budget is developed by management to estimate the actual impact on cashbalances that will result from operating,investing,and financing activities?

a.Cash budget

b.Operations budget

c.Standards budget

d.Capital budget

Which of the following is not essential information to have when preparing an operations

budget?

a.Knowledge of the organization’s financial objectives

b.Assumptions about the next period’s operations

C.Information from prior periods

d.Knowledge of industry standards for similar operations

8.Forecasting revenues for an operations budget is critical because

a.If revenues are high,the business will be profitable

b.Expected revenues will determine how much the owner will pay in taxes

c.All forecasted expenses and profits will be based on revenue forecasts

d.It is impossible to forecast profits

9.Which of the following types of costs are not included in an operations budget?

a.Mixed costs

b.Fixed costs

C.Variable costs

d.Capitalization costs

10.Bonuses,sick leave,and employee meals are examples of_

a.Payroll allocations

b.Payroll taxes

C.Salary deductions

d.Tax-free income

11.Which of the following is not part of the operations budget monitoring process?

a.Compare actual results to the operations budget

b.Use a bidding process to ensure the best price

c.Identify significant variances

d.Take corrective action or modify the budget

12.Which of the following is not a characteristic of an effective management control system?a.Emphasis on protecting company assets

b.Placing a trusted employee in charge of all financial transactions

C.Cost effectiveness

d.Separation of responsibilities

True/False

Choose the letter of the best answer to the questions listed below.

13.An annual budget always includes 12 one-month periods.

Bonud

a.True

b.False

Chapter 12

Multiple Choice

hoose the letter of the best answer to the questions listed below.

I.Capital budgets are used to

a.Plan and evaluate purchases of fixed assets

b.Plan and evaluate hiring of new employees

c.Plan and evaluate revenues and expenses associated with the everyday running of a

business

d.Both a and c

2.The concept that money has different values at different points in time is called

a.Income deferral

b.Time value of money

C.Return on investment

d.Capital investment

3.What is the best definition of compounding?

a.The process of determining the discounted value of money

b.The process of evaluating the risk of an investment

c.The process of money earning interest and growing to a future value

d.Taking inflation into account when evaluating an investment

4.Maximum returns on money invested(ROI)are achieved by utilizing which of the followinginvestment strategies?

a.Increasing the length of time money is invested

b.Defer(delay)any cash flow into the future

c.Increasing the annual rate of return on the investment

d.Both a and c

5.An owner’s ROI can be calculated as follows:

a.Funds invested/Money earned on funds invested

b.Funds invested/Net operating income

C.Net operating income/Funds invested

d.Money earned on funds invested/Funds invested

6.The relationship between the annual savings achieved by an investment and the initial capitalinvested is called the

a.Savings rate of return

b.Book value of the investment

c.Money earned on funds invested

d.Payback period

The length of time it will take to recover 100% of an amount invested is called the_

a.Payout period

b.Return threshold

c.Payback period

d.Savings rate of return

8.In the hospitality industry,

are utilized to compare the price of entering

a business(the investment)with the anticipated,but not guaranteed,returns from that

investment(net operating income).

a.Profit ratios

b.Capitalization rates

C.Book values

d.Property values

9.When investors raise money by selling a portion of ownership in the company,they areutilizing_

a.Capitalization rates

b.Debt financing

C.Property values

d.Equity financing

10.What is the debt coverage ratio?

a.A measure of how much of the investor’s funding comes from debt

b.A measure of how likely the business is to actually have the funds necessary for loan

repayment

c.The ratio of the outstanding debt on a property to the market value of that property

d.The ratio of the debt financing on a property to the equity financing

11.Which of the following is not an advantage of leasing capital equipment?

a.Low cost tax advantages

b.100%financing

C.Property can be used as collateral for loans

d.Improved return on investment

12.

is generally defined as gross income adjusted for various

deductions allowable by law.

a.Taxable income

b.Accumulated depreciation

c.Realized capital gains

d.Total taxable assessment

Accounting Homework Help

Accounting Homework Help

Accounting Homework Help. Assignment 1: Auditors and Regulatory Oversight Due Week 4 and worth 240 points The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies

Assignment 1: Auditors and Regulatory Oversight

Due Week 4 and worth 240 points

The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company.

Use the Internet or Strayer Library to research a recent accounting scandal within the last five (5) years where the SEC accused public companies of accounting irregularities.Write a three to four (3-4) page paper in which you:

  1. Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.
  2. Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.
  3. Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position.  
  4. Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response.

Accounting Homework Help

Accounting Homework Help

Accounting Homework Help. Name:Course:Instructor:Date: High demand of coffee in any company is marked as the core reason why outsourcing is opted for. The same case applies to Australian Clean Green Coffee Production Company

Name:Course:Instructor:Date:

High demand of coffee in any company is marked as the core reason why outsourcing is opted for. The same case applies to Australian  Clean Green Coffee Production Company (ACGCP). Considering that the company does not have the capacity to serve the great demand from consumers, outsourcing from elsewhere is seen as the only way out. In this case, ACGCP does not opt for domestic outsourcing. Rather the company considers sourcing coffee from Guatemala, one of the greatest producers of coffee worldwide. For decades now, Guatemala has appeared in forefront as one of the places with high production of quality coffee. Domestic coffee outsourcing in the case of ACGCP Company was not seen as the best option. This is for the simple fact that if the company was running low on raw coffee, other competitors are likely to be in the same situation. Moreover, Guatemala has a record of high quality coffee, the more reason for ACGCP Company to import coffee from there. The entire Latin America has registered strong growth in coffee production since 1993 and this has seen the region rank high in terms of quality and any other positive aspect. For the two highlighted reasons, there was every need to source coffee from Guatemala. A perfect source is always very important especially due to the corporate social responsibility that the outsourcing company must observe. The principal ethical aspect in this case is quality. ACGCP Company owes its consumers the duty of ensuring that their products are of top quality. It is the corporate social responsibility of the company to ensure satisfaction among consumers. The type of product that the company in question intends to import should and must bear all quality characteristics . The ethical image of ACGCP Company may be compromised if they end up importing coffee whose quality is below what they produce locally. The sense of ownership is also considered as a key ethical aspect that must be checked before ACGCP Company considers importing coffee from Guatemala. Normally, local people hold much pride in products that are produced domestically, rather than those sourced from other countries. In this regard, in as much as ACGCP Company wishes to import coffee from Guatemala, the sense of ownership among consumers must be observed. There is the importance of maintaining the assurance that what the consumers are getting is indeed one of their own. The law of the country where ACGCP Company is located must be abided by as a way of upholding ethics as well as corporate social responsibility. Should any conflict with regard to the company emanate, the law will always prevail. In the same line, ACGCP Company has the ethical responsibility of ensuring that there is no form of conflict between them and other company with regard to importation of coffee from Guatemala. All activities that involve one company must not affect another company negatively. Instead, it should uphold a conducive business environment. The main point is that ACGCP Company must do all it takes to uphold ethical practices as well as Corporate Social Responsibility during the entire process of importing and selling coffee. Possible Solutions and Alternatives Coffee importation from Guatemala by ACGCP Company is certainly not the only way of curbing the great demand from consumer. In as much as importing is seen as an important move, there are key downsides connected to the same. For instance, coffee sourced from Guatemala is of high quality . This means that ACGCP Company will get the same coffee at a high price (probably higher than that of their locally produced coffee). Additionally, it might consume more time and resources to channel in coffee as an import from Guatemala. This is the main reason why it is deemed necessary for the ACGCP Company manager to seek alternatives rather than just relying on imports from Guatemala. Food security and safety is one of the reasons why the management of ACGCP Company may decide to seek alternatives. In the process of importation, the safety of products, especially consumables, may be compromised and therefore threatening the health of consumers. Other aspects are also affected hence rendering the whole process quite challenging. One of the best alternatives in this case is to encourage local production of Coffee. Encouraging local production can break dependence on imports. The level of demand does not really matter at this juncture. The prime focus is to beef up supply by engaging with the root production sources so as to beat the prevailing demand. The management of ACGCP Company may consider launching a campaign that will encourage local people to produce more coffee that will, in return, increase company output. Alternatively, the company may merge with other companies of similar interests and embark on an initiative to boost local production of coffee domestically.The benefit of local food production is that the consumers are assured of safety, unlike in the case of imports. Considering that local food is processed within common standards all across, safety for consumers is not compromised. Additionally, local food production allows for cheap market price . One of the corporate social responsibilities of any company is to ensure that consumers are supplied with products at affordable prices. It is also in the line of ethics to ensure that consumers do not receive products that are overcharged and ones that have the capacity to threaten their health. According to the law, two companies with similar interest may merge partially with the intention of achieving something common. In this regard, the management of ACGCP Company may consider it necessary to form a merger with another company that has similar interests and import coffee as one entity. This strategy will work positively in ensuring that the amount of resources used is reduced. Note that the prime corporate social responsibility in this case is safety and price reduction. Sharing the coffee importation burden from Guatemala between two or more companies is an easy way of upholding ethics and responsibility among the consumers. Forming mergers with other companies to aid in cost-effective importation of coffee is a long-term solution that will curb deficit in local production of the same commodity. Recommendation It is evident that importation of coffee by ACGCP Company from Guatemala is a process that squarely involves ethics and corporate social responsibility. As such, it is imperative to implement strategies that will uphold both the corporate social responsibility and ethics. As the manager of ACGCP Company, there is great need to take into account different things that can help in brining about a perfect solution. Strategic decision-making is very necessary for the manager of ACGCP Company. It is with the help of strategic decision-making that the company will engage in a productive importation process . Without proper decision-making, the import strategy, or otherwise, may turn futile. There is the likelihood of resource wastage in the process and this can only be brought to rest through proper decision-making. The first thing that the company manager should do is branding the imported coffee. It is possible to import coffee from another country and brand it in the name of the company in question. In other words, the company involved may decide to brand the imported coffee to rhyme the specifications of the locally produced coffee. The importance of branding is to instill the element of ownership of the product despite the fact that the coffee in question has been imported. It is an ethical move that ensures that locals have pride in their local product. Communication cannot be overlooked in a case where a company has decided to import a product from another country. Remember that a company has a corporate social responsibility of ensuring constant communication with the consumers. The importance of communication is that consumers are put in the know regarding any product improvement or upgrade. After all, communication is all about exchange of information between the involved parties, and most importantly the consumer. It is necessary to make sure that each and every development is properly communicated to the consumers as well as other involved parties in the importation process.Upholding public relations in the process of product marketing is very important. Public relations ensure that the company involved is in constant connection with other companies as well as the consumer. The importance of proper public relations is that a long-term solution to importation of products is found. Company-to-company as well as company-consumer relationships are beefed up effectively through public relations. Product labeling has a major impact in boosting the image of the selling company. Labeling is all about including critical details on the product cover. Some of the details that are considered necessary include standardization marks, quality assurance marks, and brand name among others. Consumer psychology is an added strategy of ensuring an effective flow of coffee in ACGCP Company. This is where a company aims at understanding the views of consumers with regard to a new product in the market. It is absolutely necessary to speculate the manner in which consumers will behave towards a certain product. In this case, ACGCP Company should work towards understanding the psychological behavior of the consumers with regard to the newly imported coffee from Guatemala. Having understood the consumer behavior, it becomes easy for the management of the company to implement strategies that will boost consumption of the product in question. All loopholes in the sales chain are sealed effectively when the consumer behavior is first understood . Consumer psychology aids in understanding the general market especially when new products are involved. Advertisement is something that the management of ACGCP Company must consider. It helps in boosting brand awareness among consumers. Advertisement has a very close relationship with communication and it helps in informing the consumers about all the details that they need to know about the product in question

Accounting Homework Help

Accounting Homework Help

Accounting Homework Help. Suppose a firm’s operating cash flows is estimated to be $10 million, its fixed capital investment is at $2.5

Suppose a firm’s operating cash flows is estimated to be $10 million, its fixed capital investment is at $2.5

million, and its investment in net working capital is currently at $1.0 million. 

Its long-term debt is $100 million in total and the most recent debt issuance had the YTM of 4.5%. Its stock is currently trading at $50 a share with 2 million shares outstanding. Its beta is estimated to be 1.2; risk-free rate is 2% with the equity market premium of 5%.

Q1) What is the value of the firm if you assume the firm’s free cash flows will grow at 3% indefinitely?

Q2) what is your estimate of a share price?

Accounting Homework Help

Accounting Homework Help

Accounting Homework Help. You are hired as Manager of Internal Audit for a company similar to Phar-Mor (the company in a recent case

You are hired as Manager of Internal Audit for a company similar to Phar-Mor (the company in a recent case

study). The internal controls for a long time have been “weak at best.” As a result of the deteriorating controls, management has gained the approval of the Board to “change the environment.” Upon being hired by management who you believe sincerely expects and demands a change in the environment, you are charged with bring about the requisite change in ethical climate in the organization.

Accounting Homework Help

Accounting Homework Help

Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. (12 pts) Required(a)What is the annual amount of

Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. (12 pts)Required(a)What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used?(b)What is the book value of the equipment on January 1, Year 4?(c)Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale.(d)Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale.

Accounting Homework Help

Deliverable Length: 2-3 pages. OBJECTIVES You will create this assignment following the Assignment Detail instructions below. This assignment will be submitted in the Unit 1 – Submission Assignment 1

Deliverable Length: 

2-3 pages.

OBJECTIVES

You will create this assignment following the Assignment Detail instructions below. This assignment will be submitted in the Unit 1 – Submission Assignment 1 lesson in intellipath.Review the tutorial titled How to Submit the Intellipath Submission Assignment.Please submit your work to this week’s Intellipath Unit Submission lesson. Click the Upload button within the submission lesson to access the submission area. Click the Select File button to upload your document, and then click “OK” to finish. Assignment Details

Financial statements are the primary means of communicating financial information to users. It is important to have a firm understanding of the income statement, balance sheet, and statement of cash flows. Managers will make decisions daily that will have an effect on the elements of the accounting equation: Assets = Liabilities + Owners’ Equity. Managerial accounting reports use these same financial statements but also incorporate non-financial information that will assist internal users in making strategic and tactical decisions. For this reason, it is important for you to understand how decisions will affect the accounting equation.

Accounting Homework Help

Global Tronics, Inc., manufactures a variety of printers, scanners, and fax Machines in its two divisions: the Machines Division and the Parts Division. The Parts Division produces electronic Parts th

Global Tronics, Inc., manufactures a variety of printers, scanners, and fax Machines in its two divisions: the Machines Division and the Parts Division. The Parts Division produces electronic Parts that can be used by the Machines Division. All the Parts this division produces can be sold to outside customers; however, from the beginning, nearly 90 percent of its output has been used internally. The current policy requires that all internal transfers of Parts be transferred at full cost.

Recently, Sasha Lebron, the chief executive officer of Global Tronics, decided to investigate the transfer pricing policy. He was concerned that the current method of pricing internal transfers might force decisions by divisional managers that would be suboptimal for the firm. As part of his inquiry, he gathered some information concerning Part Z35, used by Machines Division in its production of a basic scanner, Model SC20.

The Machines Division sells 40,000 units of Model SC20 each year at a unit price of $42. Given current market conditions, this is the maximum price that the division can charge for Model SC20. The cost of manufacturing the scanner follows:

Part Z35

$6.50

Direct materials

12.50

Direct labor

3.00

Variable overhead

1.00

Fixed overhead

15.00

Total unit cost

$38.00

The scanner is produced efficiently, and no further reduction in manufacturing costs is possible.

The manager of the Parts Division indicated that she could sell 40,000 units (the division’s capacity for this part) of Part Z35 to outside buyers at $12 per unit. The Machines Division could also buy the part for $ 12 from external suppliers. The Parts Division manager supplied the following details on the manufacturing cost of the component:

Direct material

$2.50

Direct labor

0.50

Variable overhead

1.00

Fixed overhead

2.50

Total unit cost

$6.50

REQUIRED

1. Compute the contribution margin for Parts Division, Machines Division, and Global Tronics, Inc. associated with the sale of Part Z35 and Model SC20. Show ALL workings.                                                                                                   

2. Suppose that Sasha Lebron abolishes the current transfer pricing policy and gives division autonomy in setting transfer prices.

(i) Can you predict what transfer price the manager of the Parts Division will set?

(ii)What should the minimum transfer price for this part be?

(iii) What should the maximum transfer price be?   

3. Given the new transfer pricing policy, predict how this will affect the production decision for Model SC20. How many units of Part Z35 will the manager of the Machines Division purchase, either internally or externally?             

4. Given the new transfer price set by the Parts Division and your answer to Requirement 3, how many units of Part Z35 will be sold externally?

5. Given your answers to Requirements 3 and 4, compute the firm wide contribution margin. What has happened? Was Sasha ’s decision to grant additional decentralization good or bad? Why?                              

Accounting Homework Help

Two type of audit a) External Audit b) Internal Audit External audit-It is the type of audit which is conducted by an external audit body i.e. external to the organisation. EA is generally a

Two type of audit

a)      External Audit

b)      Internal Audit

External audit-It is the type of audit which is conducted by an external audit body i.e. external to the organisation. EA is generally an audit of financial statements normally conducted at the end of the year i.e. on annual basis. It is the examination by an independent third party of the financial statements of the organisation. It results in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.

•         Internal audit-It is the type of audit which has its unit within the organisation. It is conducted on regular basis within the organisation. IA is both an assurance and a consulting activity designed to add value and improve organisation’s operations in the areas of risk management, control, and governance processes.

•         Objectives of Auditing

•         Main objective (express opinion or reporting) (2) Subsidiary objective.

•         The main objective of an audit is:

•         an independent examination of the book of account and underlying records of an entity and to “express opinion” based on reliable evidence on the financial statements of the entity whether or not the financial statements give a true and fair view of the state of affairs at the end of accounting period under review and to report on any material inconsistencies between the directors reports and the financial statements

•         Subsidiary objectives:

•         the audit work is planned by the auditor in such a way in case there are frauds or irregularities they are exposed.

•         Note: The concept of true and fair view has been authoritatively defined as follows:

•         “… true and fair has become a term of art. It is generally understood to mean a presentation of accounts drawn up according to accepted accounting principles using accurate figures as far as possible and reasonable estimates otherwise, and arranging them so as to show within the limits of current accounting practice as objective a picture as possible free from willful bias, distortion, manipulation or concealment of material facts” (Lee).

•          

Accounting Homework Help

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from h

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 74.0 when he fully retires, he will begin to make annual withdrawals of $148,763.00 from his retirement account until he turns 86.00. After this final withdrawal, he wants $1.72 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 8.00% interest rate.