• Q : Computation of earnings and profits....
    Accounting Basics :

    How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporation's computation of earnings and profits?

  • Q : National advertising costs....
    Accounting Basics :

    Advertising consists of 60% local ads, and 40% allocation of national advertising costs. Regional management represents an allocation of the cost of operating the regional office. These are fixed co

  • Q : Current costs for the bracelet....
    Accounting Basics :

    A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations. Current costs for the bracelet are as follows:

  • Q : Allocation of fixed overhead....
    Accounting Basics :

    Many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial incentives to overproduce.

  • Q : Operating-investing-financing....
    Accounting Basics :

    (In the first column, indicate whether the transaction would be a Source, Use, or Neither. In the second column, indicate whether the transaction would be classified as Operating, Investing, or Fina

  • Q : Practice of fixed-asset depreciation....
    Accounting Basics :

    Your great uncle, who is a CPA, is impressed that you are majoring in accounting, but based on his experience, he believes that depreciation is something that companies do based on past practice, no

  • Q : Bad checks and separations of duties....
    Accounting Basics :

    When we talk about "bad checks," are those always checks our customers have written to us? Explain. Would the company also write any bad checks and what are the repercussions for the same? Give exam

  • Q : Calculate elaines recognized gain-loss on exchange....
    Accounting Basics :

    Problem 1: Elaine exchanges a van that is used exclusively for business purposes for another van that also is used exclusively for business. The adjusted basis for the old van is $18,000 and its FM

  • Q : What is a flow-through entity....
    Accounting Basics :

    What is a flow-through entity? What advantages do flow-through entities have over a regular corporation? Compare and contrast the tax characteristics of an S corporation and a partnership.

  • Q : Fixed and variable components of repair expense....
    Accounting Basics :

    Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity.

  • Q : Prepare an income statement using full costing....
    Accounting Basics :

    Q1. Prepare an income statement using full costing. Q2. Prepare an income statement using variable costing.

  • Q : Discuss the tax implication....
    Accounting Basics :

    Mary and Peter formed a new corporation MP, INC on February 8, 2010 and did not elect Subchapter S. On December 20, 2010, they come to you and ask if an S corporation makes sense for them. MP Inc, e

  • Q : Purposes of national income accounting....
    Accounting Basics :

    State the purposes of national income accounting. List the components of GDP in the output (expenditures) approach and in the income approach.

  • Q : Accepting the energen desk order....
    Accounting Basics :

    Over the next three months, Rust's budgeted production without the Energen order is 70% of the plant machine capacity of 50,000 units per month. Is it in Rust's best interest to accept the Energen d

  • Q : Costs and declining productivity....
    Accounting Basics :

    Q1. What is the rationale that would lead to a desire to speed production in the face of increasing costs and declining productivity?

  • Q : Accounting-contingency....
    Accounting Basics :

    Problem: What is one contingency that would concern an auditor and how would the auditor become aware of this contingency?

  • Q : Statement of cash flows using the indirect method....
    Accounting Basics :

    Prepare the Operating Activities section of the Statement of Cash Flows using the indirect method.

  • Q : Evaluate the proposed zero-balance account....
    Accounting Basics :

    The firm currently has no other deposits in the bank. Evaluate the proposed zero-balance account, and make a recommendation to the firm, assuming that it has a 12% opportunity cost.

  • Q : Overcosted with one-cost-pool system....
    Accounting Basics :

    Which product will be undercosted and which will be overcosted with the one-cost-pool system? Support your answer with appropriate calculations.

  • Q : Calculate the firm eps....
    Accounting Basics :

    In addition, a regression analyst indicates the following relationship between growth in sales per share for MacLog and GDP growth is: % change sales per share= 0.015+ 0.75 (%change GDP) Calculate t

  • Q : Net assets established by fasb statement....
    Accounting Basics :

    Problem 1: What are the three classifications of net assets established by FASB Statement 117? Problem 2: How are these net assets affected by the existence or absence of donor-imposed restrictions?

  • Q : Permanent fund and fiduciary fund balances....
    Accounting Basics :

    How should governments report permanent fund and fiduciary fund balances and income in their government-wide statements? Explain.

  • Q : Annual exclusion amount....
    Accounting Basics :

    If the donor gives more than this amount, is the donor required to pay a gift tax? Recommend a tax strategy, other than giving only the annual exclusion amount, to minimize the gift tax.

  • Q : Set up the appropriate ledger accounts....
    Accounting Basics :

    A new client approaches you, Sara Sahara. She agrees to give you a retainer in trust. Set up the appropriate ledger accounts.

  • Q : Accounting-throughput accounting....
    Accounting Basics :

    Determine how many units each of Product A, Product B, and Product C that Marshall, Inc., should produce each week assuming 1,000 hours of available machine time.

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