Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide an example of a departmental income statement in which at least three shared indirect costs are divided according to three different appropriate allocation bases.
Answer with Explanation:
Following are the benefits of using departmental Income Statements:
Gives an understanding of where the company lacks efficiencyHelps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.The above benefits makes the department income statements important for the managerial use.
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year.
Use the information in the following T-account for the investment in Sub to answer the following questions.
Investment in Sub Co.
1,000,000
110,000
44,000
A. How much was Parent Co.’s share of Sub Co.’s net income for the year?
Net income $Parent Co. invested $1,000,000 in Sub Co. for
B. How much was Parent Co.’s share of Sub Co.’s dividends for the year?
Dividends $
C. What was Sub Co.’s total net income for the year?
Total net income $
D. What was Sub Co.’s total dividends for the year?
Total Dividends $
Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $470 per month plus $101 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in May to be 12 jobs and 123 meals, but the actual activity was 9 jobs and 126 meals. The actual cost for catering supplies in May was $4,240. The spending variance for catering supplies in May would be closest to:
Answer:$163 which is favorable
Explanation:
Standard Cost per month is given as =Actual Quantity × Standard Rate
= Actual activity for number of jobs per month × Standard rate per job + Actual activity for meals× standard Rate per meal + Cost of Catering supplies
= 9 jobs×$101 per job + 126 meals × $24 per meal +$470
= $909 + $3,024 + $470 = $4,403
Also, Spending Variance = Actual cost of Catering in May- Standard cost of catering per month.
$4,240- $4,403= $163---- Favorable . This is because the actual cost for catering supplies is less than the Standard cost estimated.
The goal of the consumer in a market economy is to use his or her limited income to buy:________.A) The greatest number of goods and services possible.B) The goods and services that maximize profits for bussiness.C) The combination of goods and services which maximize their utility given a limited budget.D) Those goods and services with the lowest prices.
Answer:
C) The combination of goods and services which maximize their utility given a limited budget.
Explanation:
The goal of every consumer is to maximise utility. utility maximisation is the highest form of satisfaction a consumer can derive from consuming goods and services.
Utility is the total satisfaction derived from consuming goods and services.
Human wants are unlimited and the resources available to them are limited. So, consumers have to choose the combination of goods within their limited budget that would maximise utility
Tell me about the first job you’ve ever had. What did you do to learn the ropes?
Answer:
Explanation: talked to my coworkers
You have just made your first $5,900 contribution to your retirement account. Assume you earn a return of 11 percent per year and make no additional contributions. What will your account be worth when you retire in 36 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $ What if you wait 10 years before contributing? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $
Answer:
$252,626.70
$88,971.20
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
Value in 36 years :
$5,900 (1.11)^36 = $252,626.70
Value in 26 (36 -10) years :
$5,900 (1.11)^26 =$88,971.20
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:
Inventory,by Product Category Quantity Per Unit Cost Net Realizable Value
Tools:
Hammers 120 $5.50 $6.00
Saws 250 10.50 9.50
Screwdrivers 350 2.50 3.10
Paint products:
1-gallon cans 550 6.50 5.50
Paint brushes 120 4.50 5.00
Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
Answer:
Product category units cost NRV year-end inventory
Tools:
Hammers 120 $5.50 $6.00 $660Saws 250 $10.50 $9.50 $2,375Screwdrivers 350 $2.50 $3.10 $875Paint products:
1-gallon cans 550 $6.50 $5.50 $3,025 Paint brushes 120 $4.50 $5.00 $5401) carrying value of year-end inventory:
Tools:
Hammers $660 Saws $2,375 Screwdrivers $875sub-total $3,910Paint products:
1-gallon cans $3,025Paint brushes $540sub-total $3,565Total $7,475
2) adjustment to tools:
Dr Cost of goods sold 250
Cr Inventory: tools 250
adjustment to paint products:
Dr Cost of goods sold 550
Cr Inventory: paint products 550
or total adjustment to inventory account:
Dr Cost of goods sold 800
Cr Inventory 800
Inventory is the part of current assets held by the business organization to perform their business operations. The inventory is the working current asset as it keeps on moving with the sale of goods. There are various methods to determine the value of inventory such as FIFO, LIFO, and many more.
1. The carrying value of the inventory at year-end is $7,475
It is computed in the image attached below.
2. The journal entries for the adjustment amount of the year-end for each LCNRV is attached in the image below:
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Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.TransactionsMar. 1 Paid rent for the month, $4,000. 3 Paid advertising expense, $1,350. 5 Paid cash for supplies, $1,800. 6 Purchased office equipment on account, $11,500. 10 Received cash from customers on account, $8,600. 15 Paid creditor on account, $3,180. 27 Paid cash for miscellaneous expenses, $700. 30 Paid telephone bill for the month, $550. 31 Fees earned and billed to customers for the month, $37,200. 31 Paid electricity bill for the month, $830. 31 Paid dividends, $2,000.Journalize the preceding selected transactions for March 2018 in a two-column journal. CHART OF ACCOUNTS Zenith Consulting Co. General LedgerASSETS11 Cash12 Accounts Receivable13 Supplies14 Office EquipmentLIABILITIES21 Accounts PayableEQUITY31 Common Stock32 Retained Earnings33 Dividends
Answer:
Since there is not enough room here, I used an excel spreadsheet. I also assigned account numbers to fees earned account and expense accounts.
Which of the following statements about tax rate structures is true? A. Regressive rate structures are illegal in the United States. B. A tax with a graduated rate structure must be either regressive or progressive. C. A proportionate rate structure is the only structure resulting in vertical equity. D. None of the above is true.
Answer:
D
Explanation:
Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
A graduated income tax is also known as progressive tax
A proportionate tax taxes everyone the same regardless of the amount earned.
A progressive tax ensures vertical equity.
A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
Tetra Pak Ltd. is one of the leading business organization in packaging industry of Pakistan, and is currently assessing the commercial risk of its new project. The project which it currently want to peruse is introduction of new packaging material and system that is more of ecological and environmental friendly. This project would require Tetra Pak ltd. to establish new industrial plant in extension of the existing one, so to produce that new packaging material that could be sold to different industries for their packaging (such as beverages industry). Requirement: Assuming that you are part of project risk management team, how would you assess all of the key operating risk and revenue risk of the project (under commercial risk assessment and management)? As well as how would you assess which of the revenue risk management techniques would be appropriate for this project among offtake contracts, concession agreement, and hedging contract (provide rational for your choice for any one or mix approach for protecting organizational revenue).
Answer:
Poor implementation risk
Process risk
Equipment failure risk
Demand risk
Quality risk
Reputation risk
Explanation:
The new process implementation will require capital expense. There is high risk that the new packaging is not accepted by the customers. There can be quality check required to ensure that new packaging is not compromising quality of the product. There can be demand decline risk as the new packaging is rejected by the customers then the company can loose large amount of revenue. There will be heavy cost incurred for the extension of existing plant but if the implementation and management is poor then the new packaging will not be up to the mark and this may hit the brand reputation.
Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Mar.1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense
Answer:
Date Account Title and Explanation Debit Credit
Mar-01 Rent expenses $4,000
Cash $4,000
(To record payment of rent for the month)
Mar-03 Advertising expenses $1,350
Cash $1,350
(To record payment advertising expenses for the month)
Mar-05 Supplies $1,800
Cash $1,800
(To record payment for supplies)
Mar-06 Office equipment $11,500
Accounts payable $11,500
(To record purchase of office equipment on account)
Mar-10 Cash $8,600
Accounts receivable $8,600
(To record cash receipt from customers on account)
Mar-15 Accounts payable $3,180
Cash $3,180
(To record payment to creditors on account)
Mar-27 Misc. expenses $700
Cash $700
(To record payment for misc. expenses)
Mar-30 Utilities expenses $550
Cash $550
(To record payment for telephone expenses for the month)
Mar-31 Accounts receivable $37,200
Fees earned $37,200
(To record fee earned and billed to customer for the month)
Mar-31 Utilities expenses $830
Cash $830
(To record payment for electricity bill for the month)
Mar-31 Dividends $2,000
Cash $2,000
(To record payment of dividends)
In order for the economy to be strong, individuals must a. produce goods and pay workers b. provide labor and pay workers c. produce goods and buy goods d. provide labor and buy goods. PLEASE HURRY
d. Provide labor and buy goods
EconomyAn economy is a domain that includes the production, distribution, and trading of products and services, as well as the consumption of those goods and services by various agents. It is defined broadly as "a social domain emphasizing the activities, discourses, and material expressions linked with the creation, use, and management of finite resources."Individuals must d. provide labor and purchase things in order for the economy to be robust.For more information:
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Answer: D
Explanation: E2020
Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Upon what assumption does Donna's conclusion rest? Donne assumes that ________.
a. there are no factors other than globalization which influence the economic conditions of a country
b. the welfare of individuals matters less than the economic prosperity of a nation
c. globalization does not affect the employment rate of developed and developing countries
d. the wages paid to all individuals within developed countries are equal
Answer: there are no factors other than globalization which influence the economic conditions of a country
Explanation:
Globalization is the movement of goods, services, human beings, technologies, capital etc around the world. Globalization promotes interactions between people in different parts of the world.
Since Donna Bader, whom is a globalization opponent believes that globalization does more harm than good to countries, her conclusion could have been gotten from the assumption that "there are no factors other than globalization which influence the economic conditions of a country".
In this scenario, such economy are only influenced by globalization and in a case whereby there's trade dispute or war between the country and other countries which could impede imports or affect communication or other things which can disrupt globalization to effectively take place, such economy can be affected.
Identify the characteristics of a successful workplace culture. Select all that apply.
Answer:
employees agree with goals of the organization
employees want to support the goals of the organization
Explanation:
i did it on edgenuity
A production possibilities frontier (PPF) is bowed outward as a result of:____.1) constant opportunity costs.2) increasing opportunity costs.3) decreasing opportunity costs.4) scarcity.5) choice.
Answer: 2) increasing opportunity costs
Explanation:
The Production Possibilities Frontier (PPF) measures how much of one good an economy would have to give up to be able to produce more of another good.
Resources in the economy are scarce so a trade-off needs to be made to determine how much resources would go into one good and how much into the other. This is why when more resources go to one good, less of the other is produced.
This is what the PPF shows. As we produce one more of one good, we produce less of the other good meaning the opportunity cost ( not producing the other good) of producing more of one good increases as we keep producing it.
Collection of a $1,000 Accounts Receivablle:_____________.
a. increases an asset $1,000; decreases an asset $1,000.
b. increases an asset $1,000; decreases a liability $1,000.
c. decreases a liability $1,000; increases stockholders' equity $1,000.
d. decreases an asset $1,000; decreases a liability $1,000.
Answer: a. increases an asset $1,000; decreases an asset $1,000.
Explanation: If an individual asset is increased, then it is possible there could be an equal decrease in another asset. Accounts receivable is the total monetary amount owed to a financial entity due to debts arising from sales on credit or on account. A collection of a $1,000 Accounts Receivable increases an asset $1,000; decreases an asset $1,000.
In order for a managerial team to develop an effective strategy, they first need to assess the conditions under which the organization is operating under and existing in. There are several tools available to managers to accomplish this end. One of these tools, Porter's Five Competitive Forces, allows managers to assess the level of competitiveness within a particular industry. According to strategy expent Michael Porter, business-level strategies originate within the five primary competitive forces of threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threats of substitute products or services, and rivalry among competitors. This exercise will test your knowledge of Porter's Five Competitive Forces. However each term or phrase and read the description. Next, drag and drop the term or phrase into the correct position to correspond with the related competitive force from Porter's Five Competitive Forces. 1. Internet 2. Investments 3. Music4. Glass 5. Advertisement A. Threat of New EntrantsB. Bargaining Power of Suppliers C. Bargaining Power of BuyersD. Threat of Substitute Products or Services E. Rivalry Among Competitors
Answer:
1. Internet - Bargaining power of buyers
With the internet buyers are much more knowledgeable about goods and services as well as having access to many more vendors. The internet has therefore increased the bargaining power of buyers.
2. Investments - Threat of Substitute Products or Services
Investment into an industry could mean that other companies are being financed to provide the goods and services that the other companies in the industry already create. This is a threat of substitute products and services.
3. Music - Threat of New Entrants
Music is dynamic and keeps evolving such that new entrants are a constant happening. These new musicians could attract the audiences of other musicians so it is a threat to entry.
4. Glass - Bargaining Power of Suppliers
If the specific kind of glass is not easy to get or is sold by one or few companies, this would mean that the bargaining power of suppliers is high due to the scarcity of the glass.
5. Advertisement - Rivalry Among Competitors
Advertisement is a way of telling consumers to buy a product from the company advertising instead of its customers. Advertising is therefore a medium of expression for rivalry amongst competitors.
Empire Company is a manufacturer of smartphones. Its controller resigned in October 2017.
An inexperienced assistant accountant has prepared the following income statement for the month of October 2017.
EMPIRE COMPANY
Income Statement
For the Month Ended October 31, 2017
Sales Revenue $780,000
Less: Operating Expenses
Raw materials purchases $264,000
Direct labor costs 190,000
Advertising expense 90,000
Selling and administrative salaries 75,000
Rent on factory facilities 60,000
Depreciation on sales equipment 45,000
Depreciation on factory equipment 31,000
Indirect labor cost 28,000
Utilities expense 12,000
Insurance expense 8,000 803,000
Net loss ($23,000)
Prior to October 2017, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.
1. Inventory balances at the beginning and end of October were:
October 1 October 31
Raw materials $18,000 $29,000
Work in process 20,000 14,000
Finished goods 30,000 50,000
2. Only 75% of the utility expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.
Instructions:
a. Prepare a schedule of cost of goods manufactured for October 2017.
b. Prepare a correct income statement for October 2017.
Answer:
a. Schedule of cost of goods manufactured for October 2017.
Raw materials costs ($264,000 + $18,000 - $29,000) $253,000
Direct labor costs $190,000
Depreciation on factory equipment $31,000
Indirect labor cost $28,000
Rent on factory facilities $60,000
Utilities expense $12,000 × 75% $9,000
Insurance expense $8,000 × 60% $4,800
Add Opening Work in process Inventory $20,000
Less Closing Work in process Inventory ($14,000)
Cost of goods manufactured $581,800
b. Income statement for October 2017.
Sales Revenue $780,000
Less Cost of Goods Sold :
Opening Finished goods Inventory $30,000
Add Cost of goods manufactured $581,800
Less Closing Finished goods Inventory ($50,000) ($561,800)
Gross Profit $218,200
Less Expenses :
Advertising expense $90,000
Selling and administrative salaries $75,000
Depreciation on sales equipment $45,000
Utilities expense 12,000 × 25 % $3,000
Insurance expense 8,000 × 40 % $3,200 ($216,200)
Net Profit / Loss $2,000
Explanation:
First, Prepare the cost of goods manufactured for October 2017 and include the amount in the calculation of cost of goods sold.
In the cost of goods manufactured schedule, include only the costs that are factory related.
Then, Prepare the income statement for October 2017, making sure to adjust the Utilities and Insurance expenses appropriately.
Price inflation:
a. is relatively unimportant to individuals
b. is considered to be acceptable in the nation's quest for high levels of employment
c. encourages investment by reducing the uncertainty about future returns
d. is almost always due to financing wars
e.none of the above
Answer: encourages investment by increasing the uncertainty about future returns
Explanation:
Price inflation is the increase in general price level which brings about reduction in the purchasing power of economic agent such as the individuals or firms at a particular period of time.
Price inflation is important to individuals as it affects their decision making and it reduces their spending ability. Causes of inflation are due to excess demand, rise in production cost, rise in money supply etc. Financing wars isn't the main cause of inflation.
It should be noted that inflation encourages investment by reducing the uncertainty about future returns. This is because since prices of goods have already shoot up, investors will be encouraged as they'll like to invest in such economy as there'll be tendency to make maximize profit.
Employees do a better job of selling when they are happy at work. You make sure that you check in with employees frequently, addressing any of their concerns as soon as they arise.This is called__________.a. Classical Management theoryb. Humanistic Management theoryc. Contingency Theoryd. Management Science
Answer: b. Humanistic Management theory
Explanation:
The idea of the Humanistic Management theory is totally centralized on a belief that humans are not an economic asset . Humans have value and some needs in any organisation, so management of employees is a major concern to get expecting results.
So by checking employees frequently, addressing any of their concerns are the actions to manage them.
This is called Humanistic Management theory.
Hence, the correct option is b.
A manager of a taco stand is interested in advertising to get more lunch time customers, but doesn’t know how much time it takes to process a single customer. The amount of time it takes to process a single customer will help the manager determine the maximum amount of customers they can process in the lunch hour. On average during lunch hour there are 12 people in line to approach the window. 4 people per minute leave the taco stand after receiving their food.
Fill in the blanks below.
I =________
R =_______
On average how long do customers wait in line? Calculate you answer in minutes. (Enter the value only. Do not enter text.)
Answer:
R = 4 customers per minute
I = 12 customers in line
average time (T) = 3 minutes per customer
Explanation:
if we follow Little's Law and its assumptions: L = λW
L = average number of clients in line = 12λ = arrival or departure rate = 4 per minuteW = average waiting timeW = L / λ
average waiting time = average number of clients in line / average number of clients arriving (or departing) = 12 / 4 = 3 minutes
Little's Law can also be written as I = RT
I = L
R = λ
Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.Cash $ 5,900 Accounts receivable 27,500 Office supplies 7,590 Trucks 196,000 Accumulated depreciation—Trucks $ 40,376 Land 48,000 Accounts payable 9,900 Interest payable 7,000 Long-term notes payable 63,000 Common stock 15,000 Retained earnings 172,347 Dividends 29,000 Trucking fees earned 126,000 Depreciation expense—Trucks 26,043 Salaries expense 64,722 Office supplies expense 17,000 Repairs expense—Trucks 11,868 Totals $433,623 $ 433,623
Answer:
.............................................. Wilson Trucking Company ......................................
................................................ Classified Balance Sheet ......................................
....................................................... December 31, 2017.........................................
Assets
Current assets
Cash .................................................... $5,900
Account receivable ............................ $27,500
Office supplies..................................... $7,590
Total current assets ............................................. $40,990
Non current assets
Land ......................................................................... $48,000
Truck ..................................................... $196,000
Less: Accumlated depreciation - Truck $(40,376) $155,624
Total Non current assets ......................................... $203,624
Total Assets ............................................................... $244,614
Liabilities
Current Liabilities
Account payable................................. $9,900
Interest payable ................................. $7,000
Total current liabilities............................................... $16,900
Long term liabilities
Long term notes payable.......................................... $63,000
Total liabilities............................................................. $79,900
Stockholder's equity
Common Stock ................................... $15,000
Retained earnings............................... $149,714
Total Stockholder's equity......................................... $164,714
Total liabilities and stockholder's equity.................. $244,614
Retained Earnings
= Opening retained earnings + Net Income - Dividends
Net Income
= Revenue - Expenses
= 126,000 (Trucking fees earned ) - 26,043 - 64,722 - 17,000 - 11,868
= $6,367
Retained earnings
= 172,347 + 6,367 - 29,000
= $149,714
Open-ended questions are the best way to gain more information about a customer's needs and how you can help meet them during their visit. What questions below are good examples of open-ended questions? Select all that apply.
A. Can I help you with something today?
B. What are you looking for in your outdoor patio?
C. How are you?
D. What brings you in today?
Answer: The answer is given below
Explanation:
Open ended questions are the questions whereby their answers vary according to the person, and usually leads to a longer conversation.
Examples are:
•™Can I help you with something today?
• What are you looking for in your outdoor patio?
•. What brings you in today
Is Darby doing anything wrong? If so, what? What ethics traps is she facing?
Answer:
Hello your question is incomplete attached below is a screenshot of the question
Answer: i) Darby is doing something wrong
ii) Ethic traps are : Money and Rationalization
Explanation:
Darby is doing something wrong because she is taking the benefits of H associates company for personal purposes. and this totally unethical behavior been exhibited by Darby
The ethics trap faced by Darby are :
Money ; Money is the most influential trap that makes employees engage in most unethical activities because Human beings want more money always
Rationalization : Darby is using the company's facilities for personal use because she feels that her usage of the facilities for personal use won't affect the company negatively
Which of the following best describes the primary role of auditors in financial reporting? A. Consultants that are hired by company management to advise on key matters related to competition, product pricing, employee retention, and financial reporting strategies. B. Key employees of the company that actively participate on the management team in strategic planning, product development, and financial reporting. C. Government employees assigned by local officials to ensure accurate financial reporting and operational integrity by the company. D. Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles
Answer:
D. Independent party hired by management to express a professional opinion of the extent to which the company’s financial reporting is in compliance with generally accepted accounting principles.
Explanation:
I just finish my quiz on it.
'Auditors' are the 'individuals who conduct an independent review and examination of system records and activities in order to test the adequacy of the effectiveness of data security and processes.'
The statement that most adequately displays the central role of auditors in the 'financial reporting' would be:
D). "Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles."
The responsibilities of an auditor include:
Review and monitoring of the financial records to prevent any discrepancy. Ensure that the organization follows all the standard principles and policies. Prevent it from any kind of fraud or risk. Assist in saving costs. Ensure the operations are being run effectively. Preparation of reports and data charts etc.Thus, option D correctly goes with the above-stated duties that he/she is an individual who looks after that the company is in proper alliance with the set principles.
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Painter Corporation was organized by five individuals on January 1 of the current year. At the end of January of the current year, the following monthly financial data are available:Total revenues $ 299,000Total expenses (excluding income taxes) 192,000Income tax expense (all unpaid as of January 31) 33,200Cash balance, January 31 66,950Receivables from customers (all considered collectible) 33,200Merchandise inventory (by inventory count at cost) 95,700Payables to suppliers for merchandise purchased from them (will be paid during February current year) 27,350Common stock 94,700No dividends were declared or paid during January.Required1. Complete an Income Statement for Painter Corporation.2. Complete Painter Corporation's Balance Sheet.
Answer:
Painter Corporation
Income Statement
For the month ended January, 202x
Total revenues $299,000
Total expenses ($192,000)
EBIT $107,000
Income taxes ($33,200)
Net income $73,800
Painter Corporation
Balance Sheet
For the month ended January, 202x
Assets:
Cash $66,950
Accounts receivables $33,200
Merchandise inventory $95,700
Total assets $195,850
Liabilities:
Accounts payable $27,350
Stockholders' equity
Common stock $94,700
Retained earnings $73,800
Total stockholders' equity $168,500
Liabilities + stockholders' equity $195,850
A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.
Goods in Process Inventory Finished Goods Inventory
Beg. bal 100,800 Beg. bal 118,200
DM? 324,800 301,000
D.L?
O.H? F.G?
End Bal. 131.040 End Bal. 142,000
Factory Overhead
93,240 90,720
Answer:
Materials used during the period $ 113,120
Explanation:
The credit side of the Factory overhead is the applied overhead
Thus: 90,720 os 60% of labor: 90,720 / 0.6 = 151,200
Good in Process
Beginning Balance 100,800
Materials X
Labor 151,200
Overhead 90,720
Transferred-out (Y)
Ending Balance 131,040
Finished Goods
The debit of 324,800 represents the amount transferred out from Goods in Process. Having this, we can solve for direct materials
Beginning Balance 100,800
Materials X
Labor 151,200
Overhead 90,720
Transferred-out (324,800)
Ending Balance 131,040
material = 131,040 + 324,800 - 90,720 - 151,200 - 100,800 = 113,120
In JIT manufacturing, each operation produces
A) only what is necessary for the succeeding operations.
B) all that it can to offset fixed costs.
C) a fixed percentage in excess of orders to ensure adequate quality stock.
D) all that it can in order to build inventories.
Answer:
A) only what is necessary for the succeeding operations.
Explanation:
JIT manufacturing is a system in which it focused to reduced the time with respect to the producton system and the feedback time arises from the suppliers and from the customer
It is to be developed for meeting out the demand not for the any kind of surplus or the advance requirement
Therefore in the given case, the option A is correct as it shows the necessity to be used for the coming operations
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $1,800 in the bank and leave it there. Required:a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
Answer and Explanation:
The computation of the interest in the following years are shown below:
a. For the first year
= Deposits made in the bank × (1 + interest rate) - deposits made in bank
= $1,800 × (1 + 3%) - $1,800
= $54
b. For the second year
= Deposits made in the bank × (1 + interest rate)^ - deposits made in bank × (1 + interest rate)
= $1,800 × (1 + 3%)^ - $1,800 × (1 + 3%)
= $55.62
c. For the tenth year
= Deposits made in the bank × (1 + interest rate)^n - deposits made in bank × (1 + interest rate)^n
= $1,800 × (1 + 3%)^10 - $1800 × (1 + 3%)^9
= $70.46
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin Inc. Los Angeles Division Bay Area Division Central Valley Division
Revenues $750,000 $200,000 $235,000 $325,000
Variable operating expenses 410,000 110,000 120,000 180,000
Controllable fixed expenses 210,000 65,000 75,000 70,000
Noncontrollable fixed expenses 60,000 15,000 20,000 25,000
In addition, the company incurred common fixed costs of $18,000.
The profit margin controllable by the Central Valley segment manager is:
a. $32,000
b. $44,000
c. $50,000
d. $75,000
e. $145,000
Answer:
d. $75,000
Explanation:
total Los Angeles Bay Area Central Valley
Revenues $750,000 $200,000 $235,000 $325,000
Variable exp. $410,000 $110,000 $120,000 $180,000
Controllable $210,000 $65,000 $75,000 $70,000
fixed expenses
controllable $130,000 $25,000 $40,000 $75,000
profit margin
Noncontrollable fixed expenses and common fixed expenses are not included in the calculation of individual controllable profit margin.