Question & Answer

Explain why an employee should be concerned about whether their employer reimburses business expenses using an “accountable” plan.

Compare the management of a closed-end fund with that of an open-end fund. Given the differences in the funds’ characteristics, explain why the management of liquidity is different in the open-end fund as compared with the closed-end fund. Assume that the funds are the same size and have the same goal to invest in stocks and to earn a very high return. Which portfolio manager do you think will achieve a larger increase in the fund’s net asset value? Explain. (LO1, LO5)

What is the fundamental difference between a fusion weld and a solid state weld?

Define resistance welding.

How are the interest rate, the required rate of return on a stock, and the valuation of a stock related? (LO3)

What are the two basic types of control charts for attributes?

The first IBM personal computer was based on the Intel 8088 CPU, which was released in 1979. The 8088 had 29,000 transistors and 40 I/O pins. The final version of the Pentium III (1 GHz) was released in 2000. It contained 28,000,000 transistors and had 370 I/O pins. (a) Determine the Rent’s rule coefficient values m and C assuming that a transistor can be considered a circuit. (b) Use the value of m and C to predict the number of I/O pins required for the first Pentium 4 assuming that it is manufactured with 42,000,000 transistors. (c) The first Pentium 4, released in 2001, used 423 I/O pins. Comment on the accuracy of your prediction.

What are the three committees that debate proposed tax legislation?

What are two methods of recording accounts receivable transactions when a cash discount situation is involved? Which is more theoretically correct? Which is used in practice more of the time? Why?

Identify the lease classifications for lessors and the criteria that must be met for each classification.

How did the creation of money market deposit accounts influence the overall cost of funds for a savings institution? (LO2)

Why are the nontraditional material removal processes important?

] Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for interest on higher education loans under the following circumstances: a. Lionel’s AGI before deducting interest on higher education loans is $50,000. b. Lionel’s AGI before deducting interest on higher education loans is $89,000. c. Lionel’s AGI before deducting interest on higher education loans is $100,000.

Consider the cases for and against a poll tax.

How does separating current assets from property, plant, and equipment in the balance sheet help analysts?

Looking at the Maths) 1. If P was originally measured in £s, what would happen to the value of the d term if P were now measured in pence? (Looking at the Maths) 2. Draw the schedule (table) and graph for equation (2) for prices from £1 to £10. What is it in the equation that determines the slope of the supply ‘curve’? (Looking at the Maths) 3.  Explain why the P and j terms have a positive sign, whereas the a1 and a2 terms have a negative sign.

Daniel Hardware Co. is considering alternative financing arrangements for equipment used in its warehouses. Besides purchasing the equipment outright, Daniel is also considering a lease. Accounting for the outright purchase is fairly straightforward, but because Daniel has not used equipment leases in the past, the accounting staff is less informed about the specific accounting rules for leases. The staff is aware of some general lease rules related to “risks and rewards,” but they are unsure about the meanings of these terms in lease accounting. Daniel has asked you to conduct some research on these items related to lease capitalization criteria. Instructions Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) (a) What is the objective of lease classification criteria? (b) An important element of evaluating leases is determining whether substantially all of the risks and rewards of ownership are transferred in the lease. How is “substantially all” defined in the authoritative literature? (c) Besides the non-cancelable term of the lease, name at least three other considerations in determining the “lease term.”

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/Marksand- 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 types of leases are used by M&S? (b) What amount of finance leases was reported by M&S in total and for less than one year? (c) What minimum annual rental commitments under all non-cancelable leases at 31 March 2012 did M&S disclose?

Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, and received cash of $47,664. The implicit interest rate is 12%. Prepare Samson’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.

: Explain how different types of followership are related to effective leadership.

What will determine the elasticity of this curve?

: Describe how diversity initiatives such as sponsor relationships, employee resource groups, and coaching programs help create an inclusive climate that values diversity.

Why do banks invest in securities even though loans typically generate a higher return? Explain how a bank decides the appropriate percentage of funds that should be allocated to each type of asset. (LO3)

Johnny Football Shop began operations on January 2, 2014. The following stock record card for footballs was taken from the records at the end of the year. Units Unit Invoice Gross Invoice Date Voucher Terms Received Cost Amount 1/15 10624 Net 30 50 $20 $1,000 3/15 11437 1/5, net 30 65 16 1,040 6/20 21332 1/10, net 30 90 15 1,350 9/12 27644 1/10, net 30 84 12 1,008 11/24 31269 1/10, net 30 76 11 836 Totals 365 $5,234 A physical inventory on December 31, 2014, reveals that 100 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Johnny Football Shop uses the invoice price less discount for recording purchases. Instructions (a) Compute the December 31, 2014, inventory using the FIFO method. (b) Compute the 2014 cost of goods sold using the LIFO method. (c) What method would you recommend to the owner to minimize income taxes in 2014, using the inventory information for footballs as a guide?

Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This year Jim provided lawn-mowing services to other club members. Jim received the following from the barter club. Determine the amount, if any, Jim should include in his gross income in each of the following situations: