Question & Answer

What is etching used for in PCB fabrication?

Identify the factors that are relevant in determining the annual depreciation charge, and explain whether these factors are determined objectively or whether they are based on judgment.

For each of the following subsequent events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. ________ 1. Settlement of a tax case at a cost considerably in excess of the amount expected at year-end. ________ 2. Introduction of a new product line. ________ 3. Loss of assembly plant due to fire. ________ 4. Sale of a significant portion of the company’s assets. ________ 5. Retirement of the company president. ________ 6. Issuance of a significant number of ordinary shares. ________ 7. Loss of a significant customer. ________ 8. Prolonged employee strike. ________ 9. Material loss on a year-end receivable because of a customer’s bankruptcy. _______ 10. Hiring of a new president. _______ 11. Settlement of prior year’s litigation against the company (no loss was accrued). _______ 12. Merger with another company of comparable size.

Why would a new partner who pays more for a partnership interest than the selling partner’s outside basis want the partnership to elect a special basis adjustment?

Gordeeva Corporation began selling goods on the installment basis on January 1, 2014. During 2014, Gordeeva had installment sales of $150,000; cash collections of $54,000; cost of installment sales of $102,000. Prepare the company’s entries to record installment sales, cash collected, cost of installment sales, deferral of gross profit, and gross profit recognized, using the installment-sales method.

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marks-and- Spencer-Annual-report-and-financial-statements-2012.pdf. Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions. (a) What is the company’s main line of business? (b) In what countries does the company operate? (c) What is the address of the company’s corporate headquarters? (d) What is the company’s reporting currency?

Gary and Lakesha were married on December 31 last year. They are now preparing their taxes for the April 15 deadline and are unsure of their filing status. a.    What filing status options do Gary and Lakesha have for last year?

If the federal government planned to expand the space program, how might this change affect interest rates? (LO1)

What is a terminal block?

How do you think the positions of these eight countries will change over the next decade?

Lane and Cal each own 50 percent of the profits and capital of HighYield LLC. HighYield owns a portfolio of taxable bonds and municipal bonds, and

A fiberglass composite is composed of a matrix of vinyl ester and reinforcing fibers of E-glass. The volume fraction of E-glass is 35%. The remainder is vinyl ester. The density of the vinyl ester is 0.882 g/cm3 , and its modulus of elasticity is 3.60 GPa. The density of E-glass is 2.60 g/cm3 , and its modulus of elasticity is 76.0 GPa. A section of composite 1.00 cm by 50.00 cm by 200.00 cm is fabricated with the E-glass fibers running longitudinal along the 200-cm direction. Assume there are no voids in the composite. Determine the (a) mass of vinyl ester in the section, (b) mass of Eglass fibers in the section, and (c) the density of the composite

Presented below are two independent situations. (a) On January 1, 2014, Robin Wright Inc. purchased land that had an assessed value of $350,000 at the time of purchase. A $550,000, zero-interest-bearing note due January 1, 2017, was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged on a note of this type is 12%. Determine at what amount the land should be recorded at January 1, 2014, and the interest expense to be reported in 2014 related to this transaction. (b) On January 1, 2014, Field Furniture Co. borrowed $5,000,000 (face value) from Gary Sinise Co., a major customer, through a zero-interest-bearing note due in 4 years. Because the note was zerointerest- bearing, Field Furniture agreed to sell furniture to this customer at lower than market price. A 10% rate of interest is normally charged on this type of loan. Prepare the journal entry to record this transaction and determine the amount of interest expense to report for 2014.

Explain how changes in foreign currency values can affect the performance of international mutual funds. (LO2)

Helen’s basis in Haywood Partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet just before the distribution: Assets: Tax Basis FMV Cash $ 220,000 $ 220,000 Stock (investment) 480,000 220,000 Land 110,000 220,000    Totals $ 810,000 $ 660,000 Liabilities and capital: Capital- Charles $ 270,000 - Esther 270,000 - Helen 270,000   Totals $ 810,000 a. What are the amount and character of Helen’s recognized gain or loss? What is the effect on the partnership assets? b. If Haywood has a §754 election in place, what is the amount of the special basis adjustment?

Match the qualitative characteristics below with the following statements. 1. Timeliness 5. Faithful representation 2. Completeness 6. Relevance 3. Free from error 7. Neutrality 4. Understandability 8. Confirmatory value (a) Quality of information that assures users that information represents the economic phenomena that it purports to represent. (b) Information about an economic phenomenon that corrects past or present expectations based on previous evaluations. (c) The extent to which information is accurate in representing the economic substance of a transaction. (d) Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent. (e) Quality of information that allows users to comprehend its meaning.

What is the predominant chemical compound in almost all glass products?

Keystone Corporation’s financial statements for the year ended December 31, 2014, were authorized for issue on March 10, 2015. The following events took place early in 2015. (a) On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share. (b) On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2014 should be $1,320,000. At December 31, 2014, income taxes payable were recorded at $1,100,000. Instructions Discuss how the preceding subsequent events should be reflected in the 2014 financial statements.

Scatter plots, cost function using regression, two potential cost drivers Suppose we need to predict the cost of maintenance for Brush Valley High School for the upcoming school year. From the school district records we gather weekly data about costs and volumes for two potential cost drivers: labour hours used in the maintenance department and number of enrolled students.   Required (a)          Identify and explain two potential cost drivers for total maintenance cost, in addition to number of students and maintenance hours worked. (b)          Create a scatter plot, first for maintenance cost against hours worked and then maintenance cost against students. (c)           Would you eliminate either cost driver based on the plots? Explain. (d)          Perform regression analysis using each cost driver. Use your judgement to determine the most appropriate cost driver and write out the cost function for maintenance cost. (e)           Can we know for certain that the cost driver chosen in part (d) is the best cost driver? Why?

There are two basic types of friction welding (FRW). Describe and distinguish the two types.

What are the principal polymers used in fiber-reinforced polymers?

Explain the dilemma of stock analysts who work for securities firms and assign ratings to large corporations. Why might they prefer not to assign low ratings to weak but large corporations? (LO6)

If the government increases the tax on a litre of petrol by 5p, what will determine the amount by which the price of petrol will go up as a result of this tax increase?

The accountant of Latifa Shoe Co. has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2014. Rent revenue $ 29,000 Interest expense 18,000 Market appreciation on land above cost 31,000 Salaries and wages expense (selling) 114,800 Supplies (selling) 17,600 Income tax 37,400 Salaries and wages expense (administrative) 135,90 5Other administrative expenses $ 51,700 Cost of goods sold 496,000 Net sales 980,000 Depreciation on plant assets (70% selling, 30% administrative) 65,000 Cash dividends declared 16,000 There were 20,000 shares of common stock outstanding during the year. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. (c) Which format do you prefer? Discuss.

: Explain how empowerment and engagement approaches can be used to heighten employee motivation.