Question & Answer

What is the role of rewards and incentives for executives in reducing    agency costs?

Explain how the yield on a foreign money market security would be affected if the foreign currency denominating that security declined to a significant degree. (LO3)

Explain whether a corporation’s assumption of shareholder liabilities will always constitute boot in a §351 transaction.

What are the functions served by the bit of a soldering iron in hand soldering?

Determine the starting disk diameter required to spin the part in Figure P20.32 using a conventional spinning operation. The starting thickness = 2.4 mm

Balanced scorecard measures for four perspectives Part of the process for developing a balanced scorecard is to identify one or more measures for each perspective.   Required Categorise each of the following potential balanced scorecard measures according to the following perspectives:   F     Financial C    Customer I      Internal business process L     Learning and growth (a)       Percentage of customer orders delivered on time (b)       Ratio of research and development cost to number of new products developed (c)        Economic value added (EVA) (d)       Number of hours of employee training (e)        Direct labour price variance (f)        Market share (g)       Percentage of customer orders delivered without error (h)       Days in accounts receivables (i)        Throughput time (j)        Direct materials efficiency variance (k)       Asset turnover (l)        Employee retention rate (m)      Percentage of bad debts collected (n)       Customer satisfaction ratings (o)       Number of degrees and certificates held per employee or department (p)       Percentage of purchase orders that are error free

Krauss Company’s income statement for the year ended December 31, 2014, contained the following condensed information. Service revenue $840,000 Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 130,000 Income tax expense 40,000 Net income $ 90,000 Krauss’s balance sheet contained the following comparative data at December 31. 2014 2013 Accounts receivable $37,000 $54,000 Accounts payable 41,000 31,000 Income taxes payable 4,000 8,500 (Accounts payable pertains to operating expenses.) Instructions Prepare the operating activities section of the statement of cash flows using the direct method.

Identify the important reasons why metals are annealed.

There are 12 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 4.1 Which one of the following metals has the lowest density: (a) aluminum, (b) copper, (c) magnesium, or (d) tin? 4.2 The thermal expansion properties of polymers are generally (a) greater than, (b) less than, or (c) the same as those of metals? 4.3 In the heating of most metal alloys, melting begins at a certain temperature and concludes at a higher temperature. In these cases, which of the following temperatures marks the beginning of melting: (a) liquidus or (b) solidus? 4.4 Which one of the following materials has the highest specific heat: (a) aluminum, (b) concrete, (c) polyethylene, or (d) water? 4.5 Copper is generally considered easy to weld because of its high thermal conductivity: (a) true or (b) false? 4.6 The mass diffusion rate dm/dt across a boundary between two different metals is a function of which of the following variables (four best answers): (a) concentration gradient dc/dx, (b) contact area, (c) density, (d) melting point, (e) thermal expansion, (f) temperature, and (g) time? 4.7 Which of the following pure metals is the best conductor of electricity: (a) aluminum, (b) copper, (c) gold, or (d) silver? 4.8 A superconductor is characterized by which of the following (one best answer): (a) high conductivity, (b) resistivity properties between those of conductors and semiconductors, (c) very low resistivity, or (d) zero resistivity? 4.9 In an electrolytic cell, the anode is the electrode that is (a) positive or (b) negative

Indicate how unrealized holding gains and losses should be reported for investments securities classified as trading, available-for-sale, and held-to-maturity.

The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Relevance Neutrality Verifi ability Faithful representation Completeness Understandability Predictive value Timeliness Comparability Confi rmatory value Materiality Free from error Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. (b) Quality of information that confirms users’ earlier expectations. (c) Imperative for providing comparisons of a company from period to period. (d) Ignores the economic consequences of a standard or rule. (e) Requires a high degree of consensus among individuals on a given measurement. (f) Predictive value is an ingredient of this fundamental quality of information. (g) Four qualitative characteristics that are related to both relevance and faithful representation. (h) An item is not recorded because its effect on income would not change a decision. (i) Neutrality is an ingredient of this fundamental quality of accounting information. (j) Two fundamental qualities that make accounting information useful for decision-making purposes. (k) Issuance of interim reports is an example of what enhancing quality of relevance?

In what situations do partners need to know the tax basis in their partnership interests?

In problem 9.3, what is the predicted value for the modulus of elasticity (a) in the longitudinal direction and (b) the perpendicular to the carbon fibers?

Show how Eq. (21.3) is derived from the definition of chip ratio, Eq. (21.2), and Figure 21.5(b).

Compare and contrast the IRS method and the Tax Court method for allocating expenses between personal use and rental use for vacation homes. Include the Tax Court’s justification for departing from the IRS method in your answer.

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www.wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) Does P&G report any intangible assets, especially goodwill, in its 2011 financial statements and accompanying notes? (b) How much research and development (R&D) cost was expensed by P&G in 2010 and 2011? What percentage of sales revenue and net income did P&G spend on R&D in 2010 and 2011?

How do the economic policies of the major political parties differ? (If it is near an election you could refer to their manifestos.) How far can an economist go in assessing these policies?

Until the end of year 0, Magic Carpets (MC) was a C corporation with a calendar year-end.  At the beginning of year 1, it elected to be taxed as an S corporation.  MC uses the LIFO method to value its inventory.  At the end of year 0, under the LIFO method, its inventory of rugs was valued at $150,000. Under the FIFO method, the rugs would have been valued at $170,000.  How much LIFO recapture tax must MC pay, and what is the due date of the first payment under the following alternative scenarios?

Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumulated depreciation of $17,000. The new truck is worth $35,000. Slaton also made a cash payment of $33,000. Prepare Slaton’s entry to record the exchange. (The exchange has commercial substance.)

What are the advantages and disadvantages of using prepreg material for lay-up of composites according to the composite video?

Treasure Land Corporation incurred the following costs in 2014. Cost of laboratory research aimed at discovery of new knowledge $120,000 Cost of testing in search for product alternatives 100,000 Cost of engineering activity required to advance the design of a product to the manufacturing stage 210,000 Prototype testing subsequent to meeting economic viability 75,000 $505,000 Prepare the necessary 2014 journal entry(ies) for Treasure Land.

What would be the classical economists’ criticisms of this argument?

Describe in words what the Merchant equation tells us

Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $800,000. The recoverable amount of the division is estimated to be $1,000,000. Prepare Waters’ journal entry, if necessary, to record impairment of the goodwill.

Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?