1. For each of them, identify whether the account is closed or not at the end of fiscal period.

• Allowance for Accounts Receivable

• Sales Revenue

• Unearned Revenue

• Bond Payable Discount

2. At January 1, 2019, Fuller Company had total assets of $900,000 and at December 31, 2019, its total assets were $1,100,000. Fuller’s net sales for 2019 were $850,000 and its 2019 net income was $55,000.

• Return on assets for 2019

• Profit margin (or Return on sales ratio) for 2019

• Asset turnover for 2019

Exercise 24-3 Sweet Company is involved in four separate industries. The following information is available for each of the four industries.

Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets

W $57,014 $15,710 $160,428

X 9,820 2,450 80,214   

Y 24,575 (3,090) 19,362

Z 6,891 1,130 16,596

$98,300 $16,200 $276,600

Determine which of the operating segments are reportable based on the:

Reportable Segments

(a) Revenue test. __________________

(b) Operating profit (loss) test. ________________

(c) Identifiable assets test. _________________

The difference between IFRS and GAAP are well documented and in the 2000's and early 2010's several convergence projects were undertakem by IASB and FASB in the effort to align the two. One of the projects relate to revenue recongnition and specifically that of construction contracts. You are to critically reflect on the cponvergence projects taking into account the following:

(a) the differences in revenue recognition (of construction contracts) between IFRS and GAAP?

(b) Why it is importatant to consider the differences in IFRS and GAAP in general?

(c) Potential for lobbying to take place in final outcome of convergence projects.

Indicate if the following questions are True or False. Explain “Why” your answer is True or False.

1. Marginal costs tend to increase faster than average variable costs as firms produce more. Why?

2. Competitive firms try to become monopolistic firms. Why?

3. For a monopoly, marginal revenue is less than average revenue or demand for any given level of firm production except for its first production unit. Why?

4. Some oligopolistic firms try to collude. Why?

Assume that you’ve owned and operated a very successful elite seafood restaurant in a rather small strip mall for several years. A Red Lobster chain seafood restaurant is just about to open across the street from you in another strip mall. Explain how this may affect your total revenue, marginal revenue, marginal cost, and total cost. In other words what, if any, changes would you have to make to what, how, and how much you produce to remain competitive

Provide a thorough discussion of the following specific issues asked.

1. Define and explain third-degree Price Discrimination;

2. Demonstrate that in order to achieve optimal third-degree price discrimination, marginal revenue for each consumer group must be equal to marginal cost;

3. By using the condition in subpart 2, demonstrate how the firm carrying out the third-degree price discrimination, should change its prices and total output if the demand curve for one consumer group shifts outward, causing marginal revenue for that group to increase.      

On November 1, 2020, Victorious, Inc. lends $40,000 to one of its executives in exchange for a 6%, 8-month note receivable. Victorious properly accrued interest on the note at its year-end, December 31, 2020. the journal entries to record the collection of the note principle and interest on the July 1, 2021 maturity date will include a:

Multiple Choice

• credit to Interest Revenue of $1,800

• debit to Note Receivable for $40,000

• credit to Interest Revenue of $1,600

• debit to Cash of $1,200

• credit to Interest Receivable for $400

Topic: CONDUCTING MARKETING RESEARCH AND FORECASTING DEMAND Suppose the annual plan called for selling 34,000 widgets in the first quarter at $2 per widget, for total revenue of $68,000. At quarter's end, only 30,000 widgets were sold at $1.80 per widget, for total revenue of $54,000. Based on the Sales-variance analysis, how much of the sales performance is due to the price decline and how much to the volume decline? Note: Sales-variance analysis measures the relative contribution of different factors to a gap in sales performance.

A Malaysian firm has to choose between two new machines.

Machine A would cost $80,000 and is expected to have an economic life of four years. It should generate $50,000 of revenue each year, and incur costs of $22,000 a year.

Machine B will cost $100,000 and is expected to have an economic life of five years. It is anticipated that it will produce annual revenue of $51,000 and attract costs of

$22,000 a year.

If the firm requires a return of 10% on their investment and the company tax rate is 30%, which machine should be chosen?