• Q : Level as a pass-through entity problem....
    Accounting Basics :

    Which one of the following forms of business is NOT taxed at individual owner level as a pass-through entity?

  • Q : What profit-loss can be anticipated....
    Accounting Basics :

    If the publisher believes that the price per copy could be increased to $29.95 and not affect the anticipated demand of 4,000 copies, what action would you recommend? What profit or loss can be anti

  • Q : Cost of the incremental expenses....
    Accounting Basics :

    Can John and Ling deduct the cost of the incremental expenses for John accompanying Ling on the trip? List your primary sources of authority that you used to answer this question.

  • Q : Evaluating the capital budget performance....
    Accounting Basics :

    If you were evaluating the capital budget performance of a hospital what factors would you consider justifying taking on more debt to purchase new equipment for a surgical unit?

  • Q : Employee evaluation and reward system....
    Accounting Basics :

    What are the advantages and disadvantages to FSC's decision to not use the BSC as a performance tool-i.e., linking it to the employee evaluation and reward system?

  • Q : Fundamentals of perpetual inventory system....
    Accounting Basics :

    Damaged goods totaling $300 are returned to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both companies

  • Q : How is service revenue recognized....
    Accounting Basics :

    Describe the differences in revenue recognition between product sales and after-sale services. How does the company recognize revenue for consignment sales? For products sold on a subscription basis

  • Q : Determine the free cash-flow for the current year....
    Accounting Basics :

    XYZ Inc. has the following info from the previous year: What is free cash flow for the current year?

  • Q : Dividend paid to common stock-holders....
    Accounting Basics :

    A company has 2,400 shares of $10 par value, 4.5% cumulative and nonparticipating preferred stock and 24,000 shares of $10 par value common stock outstanding. The company paid total cash dividends o

  • Q : Controller of a small fruit-packing company....
    Accounting Basics :

    A controller of a small fruit-packing company in California stole $212,000 from the company. When asked why, he said, "Nobody at the company (especially the owners) ever talked to me. They treated m

  • Q : Percent marginal tax rate....
    Accounting Basics :

    Hugh has the choice between investing in a City of Heflin bond at 6 percent or a Surething bond at 9 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 per

  • Q : Problem related to paid off in monthly instalments....
    Accounting Basics :

    A truck costing $112,000 is paid off in monthly instalments over four years on terms of 8% APR. After three years the owner wishes to sell the truck. What is the closest amount from the following li

  • Q : Management to worry about attitudinal surveys....
    Accounting Basics :

    Would you expect management to worry about attitudinal surveys? Explain your answer, as well as explaining how such surveys might impact on the disclosure policies of an organisation.

  • Q : Management to undertake in subsequent period....
    Accounting Basics :

    If an organization's management considered that the organisation might not have operated in accordance with community expectations(it broke the terms of the social contract), consistent with Legitim

  • Q : Internal revenue code preparer penalties....
    Accounting Basics :

    How does a tax advisor meet this standard? How is this standard the same or different from Circular 230 and the Internal Revenue Code preparer penalties?

  • Q : Prepare the adjusting entry for financial statements....
    Accounting Basics :

    Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements.

  • Q : Evaluate the dividends....
    Accounting Basics :

    Net Income for the year was $175,000, and net assets at the end of the year were $193,000. There were no changes in paid-in capital during the year. a) Calculate the dividends, if any, declared duri

  • Q : Organizations system of internal control....
    Accounting Basics :

    An organization's system of internal control is designed primarily to: A. ensure that no employees steal the organization's property. B. increase efficiency by letting one employee handle all aspects

  • Q : Write-off of an uncollectible account receivable....
    Accounting Basics :

    With respect to the write-off of an uncollectible account receivable against the allowance for bad debts, a sound system of internal control would require:

  • Q : Same accounting period as the revenue....
    Accounting Basics :

    Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because:

  • Q : Wages accrued during the month....
    Accounting Basics :

    The balance in the Accrued Wages Payable account increased from $12,200 at the beginning of the month to $15,000 at the end of the month. Wages accrued during the month totaled $61,000.

  • Q : Interest receivable account for showed transactions....
    Accounting Basics :

    The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200.All of the following responses are correct except:

  • Q : Accrue interest on a note receivable....
    Accounting Basics :

    The accountant at Abco, Inc. made an adjusting entry at the end of February to accrue interest on a note receivable from a customer. The effect of this entry is to:

  • Q : Note payable to bank....
    Accounting Basics :

    Wisdom Co. has a note payable to its bank. An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the:

  • Q : Problem related to end of the accounting period....
    Accounting Basics :

    Sage, Inc. has 20 employees who each earn $100 per day and are paid every Friday. The end of the accounting period is on a Wednesday. How much wages should the firm accrue at the end of the period?

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