It is argued that culture (Wong, 2004) and non-compliance with IFRSs (Ali, 2005) are two major barriers to harmonize accounting standards globally.
Briefly discuss the above statement in the Introduction section.
Do you agree that culture can be a barrier to harmonize accounting standards throughout the world? Discuss with examples and provide your own comments.
Do you think that compliance with IFRS is essential to harmonize accounting standards globally? What are the reasons for non-compliance with IFRS? Discuss with examples.
Do you think harmonization of accounting standards is possible? Justify your answer.
Summarise the above questions in the Conclusion section.
In: Accounting
The Pew Internet and American Life Project reported in 2004 that “17% of current music down loaders say they are using paid services”. Consider a random sample of 400 music down loaders. Compute the probability that X equals the mean of X where X is the number of current music down loaders (You can use appropriate program). Find the mean of X. Find the probability?
In: Statistics and Probability
In December 2004, 44% of students in high school were satisfied with the lunches supplied through the school. In May 2010, an organization conducted a poll of 766 students in high school and asked if they were satisfied with the lunches supplied through the school. Of the 766 surveyed, 299 indicated they were satisfied. Does this suggest the proportion of students satisfied with the quality of lunches has decreased? (a) What does it mean to make a Type II error for this test? (b) If the researcher decides to test this hypothesis at the alpha=0.10 level of significance, compute the probability of making a Type II error, beta, if the true population proportion is 0.39. What is the power of the test? (c) Redo part (b) if the true population proportion is 0.43.
In: Statistics and Probability
In December 2004, 54% of students in high school were satisfied with the lunches supplied through the school. In May 2010, an organization conducted a poll of 1045 students in high school and asked if they were satisfied with the lunches supplied through the school. Of the 1045 surveyed, 502 indicated they were satisfied. Does this suggest the proportion of students satisfied with the quality of lunches has decreased?
(a) What does it mean to make a Type II error for this test?
(b) If the researcher decides to test this hypothesis at the alpha equals 0.10 level of significance, compute the probability of making a Type II error, beta, if the true population proportion is 0.48. What is the power of the test?
(c) Redo part (b) if the true population proportion is 0.52.
In: Statistics and Probability
1. What accounting standard in 2004 caused stock options to decline as the primary source of non-cash compensation? Why?
2. Does compensation expense from stock options meet the definition of an expense as discussed in SFAC 6? Why?
3. Do you think compensation expense from stock options should be recognized as an expense? Choose one position, and support it.
In: Accounting
Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2004 by two talented engineers with little business training. In 2016, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2016 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.
a. A five-year casualty insurance policy was purchased at the beginning of 2014 for $34,000. The full amount was debited to insurance expense at the time.
b. Effective January 1, 2016, the company changed the salvage value used in calculating depreciation for its office building. The building cost $592,000 on December 29, 2005, and has been depreciated on a straightline basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
c. On December 31, 2015, merchandise inventory was overstated by $24,000 due to a mistake in the physical inventory count using the periodic inventory system.
d. The company changed inventory cost methods to FIFO from LIFO at the end of 2016 for both financial statement and income tax purposes. The change will cause a $950,000 increase in the beginning inventory at January 1, 2017
. e. At the end of 2015, the company failed to accrue $15,300 of sales commissions earned by employees during 2015. The expense was recorded when the commissions were paid in early 2016.
f. At the beginning of 2014, the company purchased a machine at a cost of $700,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2015, was $448,000. On January 1, 2016, the company changed to the straight-line method.
g. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2016. Credit sales for 2016 are $3,800,000; in 2015 they were $3,500,000. Required: For each situation:
|
Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2016 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund-income tax. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a(1), a(2), b(1),b(2), c(1), c(3) , d(1), d(2), e(1), e(2) , f(1), f(2), g(1), g(2) |
In: Accounting
The dataset ToyotaCorolla.jmp contains data on used cars on sale during the late summer of 2004 in the Netherlands. It has 1436 records containing details on 38 attributes, including Price, Age, Kilometers, HP, and other specifications. (a.) Explore the data using the data visualization (e.g., Graph > Scatterplot Matrix and Graph > Graph Builder) capabilities of JMP. Which of the pairs among the variables seem to be correlated? (three or four correlations please).
Multivariate Correlations
|
Price |
Age_08_04 |
KM |
HP |
CC |
Quarterly_Tax |
Weight |
Guarantee_Period |
|
|
Price |
1.0000 |
-0.8766 |
-0.5700 |
0.3150 |
0.1264 |
0.2192 |
0.5812 |
0.1466 |
|
Age_08_04 |
-0.8766 |
1.0000 |
0.5057 |
-0.1566 |
-0.0981 |
-0.1984 |
-0.4703 |
-0.1526 |
|
KM |
-0.5700 |
0.5057 |
1.0000 |
-0.3335 |
0.1027 |
0.2782 |
-0.0286 |
-0.1389 |
|
HP |
0.3150 |
-0.1566 |
-0.3335 |
1.0000 |
0.0359 |
-0.2984 |
0.0896 |
0.0762 |
|
CC |
0.1264 |
-0.0981 |
0.1027 |
0.0359 |
1.0000 |
0.3070 |
0.3356 |
-0.0177 |
|
Quarterly_Tax |
0.2192 |
-0.1984 |
0.2782 |
-0.2984 |
0.3070 |
1.0000 |
0.6261 |
-0.1634 |
|
Weight |
0.5812 |
-0.4703 |
-0.0286 |
0.0896 |
0.3356 |
0.6261 |
1.0000 |
-0.0129 |
|
Guarantee_Period |
0.1466 |
-0.1526 |
-0.1389 |
0.0762 |
-0.0177 |
-0.1634 |
-0.0129 |
1.0000 |
In: Economics
|
illiams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2004 by two talented engineers with little business training. In 2016, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2016 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years. |
| a |
A five-year casualty insurance policy was purchased at the beginning of 2014 for $34,000. The full amount was debited to insurance expense at the time. |
| b. |
Effective January 1, 2016, the company changed the salvage value used in calculating depreciation for its office building. The building cost $592,000 on December 29, 2005, and has been depreciated on a straightline basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000. |
| c. |
On December 31, 2015, merchandise inventory was overstated by $24,000 due to a mistake in the physical inventory count using the periodic inventory system. |
| d. |
The company changed inventory cost methods to FIFO from LIFO at the end of 2016 for both financial statement and income tax purposes. The change will cause a $950,000 increase in the beginning inventory at January 1, 2017. |
| e. |
At the end of 2015, the company failed to accrue $15,300 of sales commissions earned by employees during 2015. The expense was recorded when the commissions were paid in early 2016. |
| f. |
At the beginning of 2014, the company purchased a machine at a cost of $700,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2015, was $448,000. On January 1, 2016, the company changed to the straight-line method. |
| g. |
Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2016. Credit sales for 2016 are $3,800,000; in 2015 they were $3,500,000. |
| Required: |
| 2. |
Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2016 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund-income tax. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
|
In: Accounting
1. The comparative income statement of Lawn Products, Inc. showed sales of $325,000 in 2004 and $494,450 in 2005. Compute the percentage of net change in sales. (Round answer to one decimal place.)a. 52.1%b. 34.3%c. 48.5%d. 65.7%
2. The balance sheet of Food Products, Inc. showed owners' equity of $200,000 in 2001 and $320,000 in 2002. Compute the percentage of increase in owners' equity. (Round answer to one decimal place.)a. 37.5%b. 62.5%c. 60.0%d. 38.4%
In: Accounting
In: Economics