Question & Answer

There are 18 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. 1.1 Which of the following industries are classified as secondary industries (three correct answers): (a) beverages (b) financial services, (c) fishing, (d) mining, (e) power utilities, (f) publishing, and (g) transportation? 1.2 Mining is classified in which one of the following industry categories: (a) agricultural industry, (b) manufacturing industry, (c) primary industry, (d) secondary industry, (e) service industry, or (f) tertiary industry? Answer. (c). 1.3 Inventions of the Industrial Revolution include which one of the following: (a) automobile, (b) cannon, (c) printing press, (d) steam engine, or (e) sword? 1.4 Ferrous metals include which of the following (two correct answers): (a) aluminum, (b) cast iron, (c) copper, (d) gold, and (e) steel? 1.5 Which one of the following engineering materials is defined as a compound containing metallic and nonmetallic elements: (a) ceramic, (b) composite, (c) metal, or (d) polymer? 1.6 Which of the following processes start with a material that is in a fluid or semifluid state and solidifies the material in a cavity (two best answers): (a) casting, (b) forging, (c) machining, (d) molding, (e) pressing, and (f) turning? 1.7 Particulate processing of metals and ceramics involves which of the following steps (two best answers): (a) adhesive bonding, (b) deformation, (c) forging, (d) material removal, (e) melting, (f) pressing, and (g) sintering? 1.8 Deformation processes include which of the following (two correct answers): (a) casting, (b) drilling, (c) extrusion, (d) forging, (e) milling, (f) painting, and (g) sintering? 1.9 Which one of the following is a machine used to perform extrusion: (a) forge hammer, (b) milling machine, (c) rolling mill, (d) press, (e) torch? 1.10 High-volume production of assembled products is most closely associated with which one of the following layout types: (a) cellular layout, (b) fixed position layout, (c) process layout, or (d) product layout?   1.11 A production planning and control department accomplishes which of the following functions in its role of providing manufacturing support (two best answers): (a) designs and orders machine tools, (b) develops corporate strategic plans, (c) orders materials and purchased parts, (d) performs quality inspections, and (e) schedules the order of products on a machine?

Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10years.  Anne paid $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity.            a.  How much of the first $20,000 payment should Anne include in gross income? b.  How much income will Anne recognize over the term of the annuity?

: Identify specific benefits and limitations of planning.

Presented below is a note disclosure for Matsui Corporation. Litigation and Environmental: The Company has been notified, or is a named or a potentially responsible party in a number of governmental (federal, state and local) and private actions associated with environmental matters, such as those relating to hazardous wastes, including certain sites which are on the United States EPA National Priorities List (“Superfund”). These actions seek clean-up costs, penalties and/or damages for personal injury or to property or natural resources. In 2014, the Company recorded a pre-tax charge of $56,229,000, included in the “Other expense (income)—net” caption of the Company’s consolidated income statements, as an additional provision for environmental matters. These expenditures are expected to take place over the next several years and are indicative of the Company’s commitment to improve and maintain the environment in which it operates. At December 31, 2014, environmental accruals amounted to $69,931,000, of which $61,535,000 are considered noncurrent and are included in the “Deferred credits and other liabilities” caption of the Company’s consolidated balance sheets. While it is impossible at this time to determine with certainty the ultimate outcome of environmental matters, it is management’s opinion, based in part on the advice of independent counsel (after taking into account accruals and insurance coverage applicable to such actions) that when the costs are finally determined they will not have a material adverse effect on the financial position of the Company. Instructions Answer the following questions. (a) What conditions must exist before a loss contingency can be recorded in the accounts? (b) Suppose that Matsui Corporation could not reasonably estimate the amount of the loss, although it could establish with a high degree of probability the minimum and maximum loss possible. How should this information be reported in the financial statements? (c) If the amount of the loss is uncertain, how would the loss contingency be reported in the financial statements?

Identify some of the common alloying elements other than carbon in low alloy steels.

Derive the equation for average flow stress, Eq. (18.2) in the text

Mathys Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants “to get everything straightened out.” Consequently, she has proposed the following accounting changes in connection with Mathys Inc.’s 2014 financial statements. 1. At December 31, 2013, the client had a receivable of $820,000 from Hendricks Inc. on its balance sheet. Hendricks Inc. has gone bankrupt, and no recovery is expected. The client proposes to write off the receivable as a prior period item. 2. The client proposes the following changes in depreciation policies. (a) For office furniture and fixtures, it proposes to change from a 10-year useful life to an 8-year life. If this change had been made in prior years, retained earnings at December 31, 2013, would have been $250,000 less. The effect of the change on 2014 income alone is a reduction of $60,000. (b) For its new equipment in the leasing division, the client proposes to adopt the sum-of-theyears’- digits depreciation method. The client had never used SYD before. The first year the client operated a leasing division was 2014. If straight-line depreciation were used, 2014 income would be $110,000 greater. 3. In preparing its 2013 statements, one of the client’s bookkeepers overstated ending inventory by $235,000 because of a mathematical error. The client proposes to treat this item as a prior period adjustment. 4. In the past, the client has spread preproduction costs in its furniture division over 5 years. Because its latest furniture is of the “fad” type, it appears that the largest volume of sales will occur during the first 2 years after introduction. Consequently, the client proposes to amortize preproduction costs on a per-unit basis, which will result in expensing most of such costs during the first 2 years after the furniture’s introduction. If the new accounting method had been used prior to 2014, retained earnings at December 31, 2013, would have been $375,000 less. 5. For the nursery division, the client proposes to switch from FIFO to LIFO inventories because it believes that LIFO will provide a better matching of current costs with revenues. The effect of making this change on 2014 earnings will be an increase of $320,000. The client says that the effect of the change on December 31, 2013, retained earnings cannot be determined. 6. To achieve an appropriate recognition of revenues and expenses in its building construction division, the client proposes to switch from the completed-contract method of accounting to the percentage-of-completion method. Had the percentage-of-completion method been employed in all prior years, retained earnings at December 31, 2013, would have been $1,075,000 greater. Instructions (a) For each of the changes described above, decide whether: (1) The change involves an accounting principle, accounting estimate, or correction of an error. (2) Restatement of opening retained earnings is required. (b) What would be the proper adjustment to the December 31, 2013, retained earnings?

Elliott Corp. failed to record accrued salaries for 2013, $2,000; 2014, $2,100; and 2015, $3,900. What is the amount of the overstatement or understatement of Retained Earnings at December 31, 2016?

1.      : Give the job to the candidate with the highest score. You don’t need to make enemies on the Civil Service Board, and, although it is a bureaucratic procedure, the test is an objective way to select a permanent placement.

The U.S. Constitution is the highest tax authority but provides very little in the way of tax laws.  What are the next highest tax authorities beneath the U.S. Constitution?

In the equation for Rent's rule with C = 4.5 and m = 0.5, determine the value of nio and nc at which the number of logic gates equals the number of I/O terminals in the package.

Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales revenue 1,000,000 Sales returns 70,000 Purchase discounts 12,000 Instructions (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. (b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

How does mechanical assembly differ from the other methods of assembly discussed in previous chapters (e.g., welding, brazing, etc.)?

Cajun Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Instructions Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in pershare amounts using the format shown below. Assumptions (a) (b) Preferred, noncumulative, Preferred, cumulative, and nonparticipating and fully participating Year Paid-out Preferred Common Preferred Common 2012 $13,000 2013 $26,000 2014 $57,000 2015 $76,000

A flux-cored arc-welding process is used to join two low alloy steel plates at a 90° angle using an outside fillet weld. The steel plates are ½ in thick. The weld bead consists of 55% metal from the electrode and the remaining 45% from the steel plates. The melting factor of the steel is 0.65 and the heat transfer factor is 0.90. The welding current is 75 amps and the voltage is 16 volts. The velocity of the welding head is 40 in/min. The diameter of the electrode is 0.10 in. There is a core of flux running through the center of the electrode that has a diameter of 0.05 in and contains flux (compounds that do not become part of the weld bead). (a) What is the cross-sectional area of the weld bead? (b) How fast must the electrode be fed into the workpiece?

You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 $ 38,000 Purchases—goods placed in stock July 1–15 85,000 Sales revenue—goods delivered to customers (gross) 116,000 Sales returns—goods returned to stock 4,000 Your client reports that the goods on hand on July 16 cost $30,500, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan’s insurance covers only goods owned. Instructions Compute the claim against the insurance company.

Use the information from IFRS18-6, but assume Turner uses the cost-recovery method. Prepare the company’s 2014 journal entries.

Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2014. On May 1, 2014, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued on October 1. Compute Douglas’s weighted-average number of shares outstanding for 2014.

Describe what happens to the individual particles during compaction.

Last year, TBA Corporation, a calendar-year taxpayer, reported a tax liability of $100,000. TBA confidently anticipates a current-year tax liability of $240,000. Compute the minimum estimated tax payments TBA should make for the first, second, third, and fourth quarters respectively (ignore the annualized income method), assuming the following:

O’Neil, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. O’Neil uses the percentage-of-completion method. At December 31, 2014, the balances in certain accounts were Construction in Process $2,450,000; Accounts Receivable $240,000; and Billings on Construction in Process $1,400,000. Indicate how these accounts would be reported in O’Neil’s December 31, 2014, balance sheet.

Would could we say about the necessary subsidy if the MR curve crossed the horizontal axis to the left of point b?

Venzuela Company’s net income for 2014 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2013, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2014. The average market price of Venzuela’s stock during 2014 was $20. Instructions (a) Compute diluted earnings per share. (Round to nearest cent.) (b) Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2014 (rather than in 2013). The average market price during the last 3 months of 2014 was $20.

There are 10 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. 14.1 The most important rubber product is which one of the following: (a) footwear, (b) conveyor belts, (c) pneumatic tires, or (d) tennis balls? 14.2 The chemical name of the ingredient recovered from the latex of the rubber tree is which one of the following: (a) polybutadiene, (b) polyisobutylene, (c) polyisoprene, or (d) polystyrene? 14.3 Of the following rubber additives, which one would rank as the single most important: (a) antioxidants, (b) carbon black, (c) clays and other hydrous aluminum silicates, (d) plasticizers and softening oils, or (e) reclaimed rubber? 14.4 Which one of the following molding processes is the most important in the production of products made of conventional rubber: (a) compression molding, (b) injection molding, (c) thermoforming, or (d) transfer molding? 14.5 Which of the following ingredients do not contribute to the vulcanizing process (two correct answers): (a) calcium carbonate, (b) carbon black, (c) stearic acid, (d) sulfur, and (e) zinc oxide? 14.6 How many minutes are required to cure (vulcanize) a modern passenger car tire: (a) 5, (b) 15, (c) 25, or (d) 45? 14.7 When is the tread pattern imprinted onto the circumference of the tire: (a) during preforming, (b) while building the carcass, (c) during molding, or (d) during curing? 14.8 Which of the following are not normally used in the processing of thermoplastic elastomers (two correct answers): (a) blow molding, (b) compression molding, (c) extrusion, (d) injection molding, or (e) vulcanization?

Differentiate between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer’s obligation differs between the two types of plans.