Which of the following breaks down company financial information into specific time spans, and can cover a month, quarter, half-year, or full year?

1. accounting period
2. yearly period
3. monthly period
4. fiscal period

On which two financial statements would the Retained Earnings account appear?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Statement of Cash Flows

What adjusting journal entry is needed to record depreciation expense for the period?

1. a debit to Depreciation Expense; a credit to Cash
2. a debit to Accumulated Depreciation; a credit to Depreciation Expense
3. a debit to Depreciation Expense; a credit to Accumulated Depreciation
4. a debit to Accumulated Depreciation; a credit to Cash

Which of these transactions requires an adjusting entry (debit) to Unearned Revenue?

1. revenue earned but not yet collected
2. revenue collected but not yet earned
3. revenue earned before being collected, when it is later collected
4. revenue collected before being earned, when it is later earned

What critical purpose does the adjusted trial balance serve?

1. It proves that transactions have been posted correctly
2. It is the source document from which to prepare the financial statements
3. It shows the beginning balances of every account, to be used to start the new year’s records
4. It proves that all journal entries have been made correctly.

From the trial balance and the information given below, prepare annual adjusting entries.

A plane delivers two types of cargo between two destinations. Each crate of cargo I is 7 cubic feet in volume and 131 pounds in weight, and earns $20 in revenue. Each crate of cargo II is 7 cubic feet in volume and 262 pounds in weight, and earns $25 in revenue. The plane has available at most 525 cubic feet and 12,576 pounds for the crates. Finally, at least twice the number of crates of I as II must be shipped. Find the number of crates of each cargo to ship in order to maximize revenue. Find the maximum revenue.

crates of cargo 1

crates of cargo 2

maximum revenue $

2. National Business Machines manufactures x model A fax machines and y model B fax machines. Each model A costs $100 to make, and each model B costs $150. The profits are $45 for each model A and $30 for each model B fax machine. If the total number of fax machines demanded per month does not exceed 2500 and the company has earmarked no more than $600,000/month for manufacturing costs, how many units of each model should National make each month to maximize its monthly profit?

What is the optimal profit?

Question 5 Academic Consultants Inc. had the following selected transactions in August 2016: Aug. 1 Prepaid insurance for August through December, $1,000 4 Purchased software for cash, $800 5 Performed service and received cash, $900 8 Paid advertising expense, $300 11 Performed service on account, $3,000 19 Purchased computer on account, $1,600 24 Collected for the August 11 service 26 Paid account payable from August 19 29 Paid salary expense, $900 31 Adjusted for August insurance expense (see Aug 1) 31 Earned revenue of $800 that was collected in advance in July Show how each transaction would be handled using the cash basis and the accrual basis. Under each column, give the amount of revenue or expense for August. Journal entries are not required. Use the following format for your answer, and show your computations. Academic Consultants Inc. Amount of Revenue (Expense) for August 2016 Date Cash Basis Accrual Basis Aug 1 Revenue/(Expense) Amount Revenue/(Expense) Amount Compute August income (loss) before tax under each accounting method Explain which measure of net income or net loss is preferable.

Problem 16-1 Single temporary difference originates each year for four years [LO16-1]

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.)

Required:
1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

Perfectly competitive industries are:

Group of answer choices

A. difficult to enter because there are already so many producers in the industry.

B. not particularly appealing or attractive to enter because there tend to be so many buyers that it is difficult to deal with them.

C. relatively easy to enter but not so easy to exit from.

D. none of the above

A perfectly competitive firm should increase its level of production as long as

Group of answer choices

A. total revenue is less than total cost.

B. the total revenue curve is rising.

C. marginal revenue is greater than marginal cost.

D. the marginal revenue curve is rising.

If firms are earning zero economic profits, they must be producing at an output level at which:

Group of answer choices

A. price equals marginal cost.

B. price equals average total cost.

C. price equals average variable cost.

D. marginal revenue equals marginal cost.

Which of the following is a characteristic of perfect competition?

Group of answer choices

A. many sellers and few buyers

B. many buyers and few sellers

C. a homogeneous product

D. high barriers to entry and exit

In a perfectly competitive market, the market demand curve is perfectly elastic.

Group of answer choices

A. True

B. False

THE CINEMA HOUSE ADJUSTS ITS PRICES

A week after the Galaxy cinema reduced the price of its tickets by 25%, the Maison du cinema replied with a drop-in price for people 25 and under.

"We are making this decision with a view to maintaining our policy of the best prices," says Jacques Foisy, the owner of the independent downtown complex.

Claiming "to want to please Sherbrooke moviegoers", Cineplex Entertainment had lowered the price of its adult biller from $ 9.50 to $ 6.99, last Friday, making its establishment on Boulevard Bertrand-Fabi that of the chain where the ticket is the cheapest in Quebec.

"I would like to know why Cineplex does not want to please other Quebecers, but only Sherbrookers. In The other markets, where the chain is alone, where it has no competition, the prices are rather on the rise, it seems mysterious to me. It looks strangely like dumping, "says Foisy.

                                                                                                The Tribune, 5 juin 2009

1. What type of market does the screening of films in theaters in Sherbrooke correspond to?

2. What type of competition do the Maison du cinema and Cineplex compete with?

3. Explain how Cineplex discriminates against its customers.

On Jan 1, 2017, NSP Corporation, a calendar year, accrual basis C corporation was organized and began business operations. NSP provides network security protection services for businesses. During 2017, it had financial income (per books) before tax of $1,000,000.

The following items were expensed in the arriving at NSP’s 2017 financial income (per books):

-$20,000 of organization costs to organize the corporation; the federal tax amortization amounted to $6,000.

-$20,000 increase to its allowance for doubtful accounts; actual bad debts written off amounted to $5,000.

-$100,000 straight ling financial depreciation; total federal depreciation amounted to $500,000.

-$7,000 life insurance premium paid on a key officer of the corporation.

-$5,000 political contribution maid to a candidate running for a seat in the United States of House of Representatives.

-$20,000 of meals and entertainment expenses.

1) Identify which of NSP’s 2017 items listed above are permanent book/tax differences and which are temporary book/tax differences.

2) What is NSP Corp’s 2017 federal taxable income and federal income tax liability? Please show your work and explain your calculations.

On Jan 1, 2017, NSP Corporation, a calendar year, accrual basis C corporation was organized and began business operations. NSP provides network security protection services for businesses. During 2017, it had financial income (per books) before tax of $1,000,000.

The following items were expensed in the arriving at NSP’s 2017 financial income (per books):

-$20,000 of organization costs to organize the corporation; the federal tax amortization amounted to $6,000.

-$20,000 increase to its allowance for doubtful accounts; actual bad debts written off amounted to $5,000.

-$100,000 straight ling financial depreciation; total federal depreciation amounted to $500,000.

-$7,000 life insurance premium paid on a key officer of the corporation.

-$5,000 political contribution maid to a candidate running for a seat in the United States of House of Representatives.

-$20,000 of meals and entertainment expenses.

1) Identify which of NSP’s 2017 items listed above are permanent book/tax differences and which are temporary book/tax differences.

2) What is NSP Corp’s 2017 federal taxable income and federal income tax liability? Please show your work and explain your calculations