Depreciation is considered as accounting policy and operational expense for the accounting period.

The value to be included in the financial statement is calculated based on the decision of the Board.

(a) You are required to:

1. Explain the difference between capital expenditure and revenue expenditure, and how each type of expenditure will affect the financial statements of a business.     (
2. Explain why it is important to distinguish between capital expenditure and revenue expenditure, and briefly explain the accounting treatment of each type of expenditure.
3. (iii) Under what circumstances will you consider the reducing balance method as the most appropriate method in calculating depreciation?                                           (b) Does depreciation decrease cash in a business? Explain your answer.

Depreciation is considered as accounting policy and operational expenses for the accounting period. the value to be included in the financial statement is calculated based on the decision of the board.

a) you are required to:

(i) Explain the difference between capital expenditure and revenue expenditure, and how each type of expenditure will affect the financial statements of a business.

ii) Explain why it is important to distinguish between capital expenditure and revenue expenditure and briefly explain the accounting treatment of each type of expenditure

iii) Under what circumstance will you consider the reducing balance method as the most appropriate method in calculating depreciation?

(b) Does depreciation decrease cash in a business? Explain your answer.

The data from data217.dat contains information on 78 seventh-grade students. We want to know how well each of IQ score and self-concept score predicts GPA using least-squares regression. We also want to know which of these explanatory variables predicts GPA better. Give numerical measures that answer these questions. (Round your answers to three decimal places.)
(Regressor: IQ) R ^{2 ANSWER 1}


(Regressor: Self-Concept) R ^{2 : ANSWER 2}

Which variable is the better predictor?

IQSelf Concept Answer 3

obs     gpa     iq      gender  concept
1       7.94    118     2       66
2       8.292   104     2       60
3       4.643   83      2       47
4       7.47    120     2       55
5       8.882   90      1       67
6       7.585   104     2       59
7       7.65    104     2       75
8       2.412   107     2       58
9       6       114     1       55
10      8.833   107     2       101
11      7.47    116     1       59
12      5.528   91      1       73
13      7.167   120     2       38
14      7.571   114     1       57
15      4.7     117     1       35
16      8.167   114     1       58
17      7.822   123     1       53
18      7.598   132     1       56
19      4       90      2       49
20      6.231   111     1       68
21      7.643   125     2       92
22      1.76    74      2       35
24      6.419   118     1       48
26      9.648   123     2       74
27      10.7    118     1       103
28      10.58   112     2       67
29      9.429   103     2       64
30      8       123     2       82
31      9.585   125     2       59
32      9.571   121     1       50
33      8.998   117     1       60
34      8.333   122     1       70
35      8.175   108     2       63
36      8       111     2       77
37      9.333   118     1       55
38      9.5     125     2       61
39      9.167   127     2       45
40      10.14   129     1       83
41      9.999   140     1       46
43      10.76   126     2       74
44      9.763   124     2       56
45      9.41    127     2       51
46      9.167   122     2       69
47      9.348   107     2       71
48      8.167   124     2       84
50      3.647   97      2       43
51      3.408   125     1       22
52      3.936   88      2       25
53      7.167   118     2       70
54      7.647   123     2       50
55      .53     80      2       37
56      6.173   95      2       64
57      7.295   105     2       57
58      7.295   99      1       58
59      8.938   124     1       80
60      7.882   103     1       50
61      8.353   101     2       36
62      5.062   92      2       69
63      8.175   117     2       75
64      8.235   118     2       67
65      7.588   114     2       39
68      7.647   113     2       43
69      5.237   109     1       53
71      7.825   97      2       61
72      7.333   99      1       61
74      9.167   129     2       70
76      7.996   120     2       63
77      8.714   103     1       45
78      7.833   111     1       41
79      4.885   108     2       67
80      7.998   98      1       65
83      3.82    102     2       56
84      5.936   101     1       48
85      9       118     1       37
86      9.5     115     1       50
87      6.057   108     2       32
88      6.057   105     1       63
89      6.938   107     2       49

10.12 A bank with a branch located in a commercial district of a city has the business objective of developing an improved process for serving customers during the noon-to-1 P.M. lunch period. Management decides to first study the waiting time in the current process. The waiting time is defined as the number of minutes that elapses from when the customer enters the line until he or she reaches the teller window. Data are collected from a random sample of 15 customers and stored in Bank1. These data are:

Suppose that another branch, located in a residential area, is also concerned with improving the process of serving customers in the noon-to-1 p.m. lunch period. Data are collected from a random sample of 15 customers and stored in Bank2. These data are:

• a. Assuming that the population variances from both banks are equal, is there evidence of a difference in the mean waiting time between the two branches? (Use α=0.05.α=0.05. alpha equals , 0.05.)

• b. Determine the p-value in (a) and interpret its meaning.

• c. In addition to equal variances, what other assumption is necessary in (a)?

• d. Construct and interpret a 95% confidence interval estimate of the difference between the population means in the two branches.

Phil's Home Handyman Services (PHHS) is a small business providing home maintenance services in Christchurch and surrounding areas. Phil is interested in purchasing some new machinery for his business and has approached a bank for funding. In order to be given a loan the bank has requested an audited financial report. Phil has approached your firm for this service and you have been allocated the task of auditing PHHS’s financial statements. Your initial review of the business indicates that a substantive testing approach would be appropriate and you are now preparing audit programmes. In particular, you are working on the testing of the revenue cycle. The information you have obtained from your review is as follows:  Phil usually works 50 hours a week. Part of this time is spent travelling between clients and is not charged to the clients. The remaining time is charged at $40 per hour, regardless of the task undertaken.  Phil is usually paid in cash, except for a small number of regular small-business customers whom Phil allows to pay on account on a monthly basis by cheque.  In all cases Phil provides the customer with a written receipt. Receipts are prepared manually from a receipt book purchased at a bookstore. The book contains prenumbered blank receipts, which are completed in duplicate.

REQUIRED: (a) Define ‘tests of controls’ and ‘substantive testing’, and then compare and contrast these two forms of audit tests.

b) For each of the following financial statement assertion categories, identify two substantive audit procedures you could use to audit revenue: (i) Accuracy and Cut-off (ii) Completeness (iii) Occurrence

Aron believes there is a distinct difference between not only the games played each night, AND within the date on which they bowled, but also between himself and Mjorgan. Construct a statistical test to determine if this might be the case – where are the real variations in their bowling? Interpret your results in a few sentences.

Aron believes there is a distinct difference between not only the games played each night, AND within the date on which they bowled, but also between himself and Mjorgan. Construct a statistical test to determine if this might be the case – where are the real variations in their bowling? Interpret your results in a few sentences.

The Perotti Pharma Company is investigating the relationship between advertising expenditures and the sales of some over-the-counter (OTC) drugs.

The following data represents a sample of 10 common OTC drugs. Note that AD = Advertising dollars in millions and S = Sales in millions $.

1. What is the equation of the regression line?

2. Interpret the slope in the context of the problem.

3. Find the coefficient of determination.

4. Interpret the meaning of R² in the context of the problem.

5. State the hypotheses to test for the significance of the regression equation.

6. Is there a significant relationship between dependent and independent variables at alpha=0.05? Why?

7. Create a 95% confidence interval for Sales if Advertising dollars = $50 million and interpret its meaning.

8. Paste the table with the results of regression analysis.

SS_between. (Round your answer to one decimal place.)
  

SS_within. (Round your answer to one decimal place.)


State the F statistic. (Round your answer to four decimal places.)

The binding energy per nucleon for magnesium-27 is 1.326*10^-12 J/nucleon. Calculate the atomic mass of magnesium-27, in amu. You may assume that the mass of a nucleon is 1.008 amu. (1 kg = 6.022*10²⁶ amu)