8. A variable cost
a. decreases in total with increases in volume
b. increases on a per-unit basis with increases in volume
c. increases in total with increases in volume
d. decreases on a per-unit basis with increases in volume
e. None of the above
9. In standard costing, the upper and lower control limits are used to determine
a. the direction of the variance
b. the dollar amount of the variance
c. whether or not to investigate a variance
d. All of the above
e. None of the above
10. The direct materials usage variance is part of the performance evaluation of the
a. production manager
b. sales manager
c. purchasing agent
d. controller’s office
e. None of the above
11. Volume variances are generally the responsibility of the
a. purchasing agent
b. production manager
c. sales manager
d. controller’s office
e. None of the above
12. When using variable costing,
a. all fixed costs are deducted on the variable costing income statement
b. the total cost of goods sold is deducted on the variable costing income statement
c. the cost allocated to ending inventory consists of both fixed and variable costs
d. the total contribution margin on the variable costing income statement is based on units produced
e. None of the above
13. According to GAAP, if the ending balance in the overhead control account is considered immaterial,
a. it is closed to direct materials, work-in-process, and finished goods
b. it is closed to work-in-process, finished goods, and cost of goods sold
c. it is closed to finished goods and cost of goods sold
d. the total is closed to cost of goods sold
e. None of the above
14. According to the IMA’s Statement of Ethical Professional Practice, an accountant must “Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.” This falls under the category of
a. Competence
b. Confidentiality
c. Integrity
d. Credibility
e. None of the above
15. The margin of safety is
a. the amount of revenue earned (or expected to be earned) above the break-even point
b. the amount of revenue earned (or expected to be earned) above total fixed costs
c. the amount of revenue earned (or expected to be earned) above total costs
d. the amount of revenue earned (or expected to be earned) above total variable costs
e. None of the above
In: Accounting
introduces the concept of probability and defines it. We
frequently use probability in our daily lives to make decisions
when we are not sure about the outcome. Read the following
mind-boggling famous problem and decide.
“The Monty Hall problem" is a famous probability related conundrum
faced by participants on the game show Let’s make a deal that
premiered in 1963 and is still running some markets around the
world. At the end of each day’s show, a contestant was invited to
stand with host Monty Hall facing three big doors: Door no. 1, Door
no.2, and Door no.3. Monty explained to the contestant that there
was a highly desirable prize behind one of the doors and a goat
behind the other two doors. The player chose the three doors and
would get a prize whatever was behind it. The initial probability
of winning was straight forward. There were three two goats and one
car. As the participant stood facing the doors with Monty, he or
she had a 1 in 3 chance of choosing the door that would be opened
to reveal the car. However, Let’s make a deal that had a twist,
which is why the show was immortalized in the probability
literature. After the contestant chooses a door, Monty would open
one of the two doors that the contestant had not picked, always
revealing a goat. At that point, Monty would ask the contestant if
he would like to change his pick-to switch from the closed door
that he had picked originally to the other remaining closed door.
For the sake of example, assume that the player has chosen Door no.
1. Monty would then open-Door no. 3; the live goat would be
standing there on stage. Two doors would still be closed, nos. 1
and 2. If the valuable prize was behind no. 1, the contestant would
win; if it was behind no. 2, he would lose. But then things got
more interesting: Monty would turn to the player and ask whether he
would like to change his mind and switch doors (from no. 1 to no. 2
in this case). Remember, both doors were still closed, and the only
new information the contestant had received was that a goat showed
up behind one of the doors that he didn’t pick.”
Address the following question in your post:
• Should the contestant switch the door? Make sure to discuss the
reasons why he needs to switch or not switch.
In: Operations Management
Students will create a 2 – 3-page infographic summarizing the effects of an emerging technology on business and accounting. The objective of this assignment is to familiarize yourself with a variety of emerging data and technology topics and their importance to accounting. Before completing this assignment, make sure to read the documents related to ‘Data Analytics Mindset’ in the Week 5 Documents & Resources folder. An analytics mindset is the ability to: Ask the right questions Extract, transform, and load relevant data Apply appropriate data analytics techniques Interpret and share the results with stakeholders You will learn about emerging technologies that are or becoming influential in the accounting profession. Many of these technologies may have significant implications for the future of accounting. Understanding these current and emerging technologies can influence every aspect of an analytics mindset by changing the questions you ask, altering how you work with data, requiring you to apply different or new data analytics techniques, and influencing how you share your results with stakeholders. Required Select a technology (see list below). Create an infographic that includes the following: (1) a brief summary about the topic and (2) explain how the technology affects, or could affect business and accounting. (3) Briefly explain how the technology affects/may affect the analytics mindset – asking the right questions, extracting/transforming/loading relevant data, applying appropriate data analytic techniques, and interpreting and sharing the results with stakeholders. Sample List of Technologies American Institute of Certified Public Accountants data standards Artificial intelligence (software of robots) Augmented reality and virtual reality Big data ethics (including data privacy) Big data storage (e.g. data lakes) Blockchain (internet of value) and cryptocurrencies (bitcoin) Cloud computing Cognitive computing Continuous auditing and monitoring Cybersecurity Dark data and dark analytics Drones Internet of Things (IOT), Internet of People and sensors Machine learning Natural language generation Neural networks, deep neural networks and deep learning Robotic process automation (RPA)
In: Finance
Assignment on New Technologies (Essay)
Assignment on New Technologies
The world of information technology is constantly changing. New technologies are invented almost daily.
Tell the story of a new information technology invented during the past 30 years. You may present inventors’ stories. You should explain the relation to information technology. Examples of information technologies invented during the past 30 years include:
3. It is a group activity and makes a group of two (2) students. You can work individually if you do not find a suitable partner. However, each student has to submit the assignment and powerpoint presentation individually but have to mention the name of your partner in the submitted documents.
Submit the assignment and the presentation by uploading your files on CCMS (Moodle) to each student individually. If needed, you may submit only a link to the presentation. A submission of a presentation file is not required. You may present without any presentation documents.
In: Computer Science
On June 1, 2018, Metlock Company and Bonita Company merged to
form Windsor Inc. A total of 876,000 shares were issued to complete
the merger. The new corporation reports on a calendar-year
basis.
On April 1, 2020, the company issued an additional 637,000 shares
of stock for cash. All 1,513,000 shares were outstanding on
December 31, 2020.
Windsor Inc. also issued $600,000 of 20-year, 8% convertible bonds
at par on July 1, 2020. Each $1,000 bond converts to 44 shares of
common at any interest date. None of the bonds have been converted
to date.
Windsor Inc. is preparing its annual report for the fiscal year
ending December 31, 2020. The annual report will show earnings per
share figures based upon a reported after-tax net income of
$1,491,000. (The tax rate is 20%.)
Determine the following for 2020.
(a) The number of shares to be used for
calculating: (Round answers to 0 decimal places, e.g.
$2,500.)
| (1) |
Basic earnings per share |
|||||
|---|---|---|---|---|---|---|
| (2) |
Diluted earnings per share |
(b) The earnings figures to be used for
calculating: (Round answers to 0 decimal places, e.g.
$2,500.)
| (1) |
Basic earnings per share |
|||
|---|---|---|---|---|
| (2) |
Diluted earnings per share |
In: Accounting
Question 1
Mr. Chai sells various types of toys throughout Malaysia. Three of the accounts in the ledger of Mr. Chai indicated the following;
Balances at 1 January 2020:
(i) Insurance paid in advance RM562
(ii) Wages outstanding RM306
(iii) Rent receivable, received in advance RM36
During 2020, Mr. Chai:
(i) Paid for insurance RM1,019, by bank standing order
(ii) Paid RM15,000 wages, in cash
(iii) Received RM2,600 rent, by cheque, from the tenant
At 31 December 2020:
(i) Insurance prepaid was RM345
(ii) Wages accrued amounted to RM419
(iii) Rent receivable in arrears was RM105
Required;
(a) Prepare the prepaid insurance, accrued wages and rent receivable accounts for the year ended 31 December 2020.
(b) Prepare the income statement extract showing clearly the amounts of insurance expense, wages expense and rent revenue for the year ended 31 December 2020.
(c) Explain the effects on the financial statements of accounting for:
(i) the expenses accrued at year-end
(ii) the income received in advance at year end
(d) Explain the purposes of accounting for:
(i) the expenses accrued at year end
(ii) the income received in advance at year end
(Total: 20 marks)
In: Accounting
A comparative statement of financial position for Nathalina
Industries Inc. follows:
NATHALINA INDUSTRIES INC.
Statement of Financial Position
December 31, 2020
December 31
Assets 2020 2019
Cash $ 21,000 $ 34,000
Accounts receivable 114,000 54,000
Inventory 220,000 189,000
Land 71,000 110,000
Equipment 240,000 200,000
Accumulated depreciation—equipment (69,000)
(42,000)
Total $597,000 $545,000
Liabilities and Shareholders' Equity
Accounts payable. 52,000. 59,000
Long term liabilities 25,000 0
Bonds payable 125,000 200,000
Common shares 204,000 164,000
Retained earnings 191,000 122,000
Total $597,000 $545,000
Additional information:
1. Net income for the fiscal year ending December 31, 2020, was
$129,000.
2. Cash dividends were declared and paid in the year.
3. Bonds payable amounting to $75,000 were paid off.
4. Additional issuance of common shares for cash occurred in the
year.
5. Land was sold for cash at a gain of $5,000. This gain on sale of
the land is listed on the income statement.
6. Equipment was purchased during the year. It was purchased with
$25,000 Long term liabilities and the remaining was paid with
cash.
7. Depreciation Expense during 2020 was $27,000.
Required: Prepare a statement of cash flows for 2020 using the
indirect method.
In: Accounting
Sage Landscaping began construction of a new plant on December
1, 2020. On this date, the company purchased a parcel of land for
$138,000 in cash. In addition, it paid $2,160 in surveying costs
and $4,560 for a title insurance policy. An old dwelling on the
premises was demolished at a cost of $3,360, with $960 being
received from the sale of materials.
Architectural plans were also formalized on December 1, 2020, when
the architect was paid $32,400. The necessary building permits
costing $3,360 were obtained from the city and paid for on December
1 as well. The excavation work began during the first week in
December with payments made to the contractor in 2021 as
follows.
| Date of Payment | Amount of Payment | |
| March 1 | $254,400 | |
| May 1 | 336,000 | |
| July 1 | 61,200 |
The building was completed on July 1, 2021.
To finance construction of this plant, Sage borrowed $609,600 from
the bank on December 1, 2020. Sage had no other borrowings. The
$609,600 was a 10-year loan bearing interest at 10%.
Compute the balance in each of the following accounts at December
31, 2020, and December 31, 2021. (Round answers to 0
decimal places, e.g. 5,275.)
| December 31, 2020 | December 31, 2021 | |||||
| (a) | Balance in Land Account | |||||
| (b) | Balance in Building | |||||
| (c) | Balance in Interest Expense |
In: Accounting
On May 1, 2018, Delta Airlines buys 100 SkyFlight Food Service, Inc. bonds for $1,015 each. Delta classifies this investment as available for sale. This is the first available for sale investment Delta has recorded and the only item that affects comprehensive income during this time period. During 2018, SkyFlight pays all bondholders $42 interest per bond. At the end of 2018, the bonds of Skyflight are trading for $1,020 each. During 2019, Skyflight pays all bondholders interest of $75 per bond. At the end of 2019, the bonds of Skyflight are trading for $1,014 per bond. On May 1, 2020, Delta Airlines sells all of its Skyflight bonds for $1,010 per bond. No interest was paid by Skyflight in 2020. Net income before anything to do with Skyflight (even the interest is not included) for Delta was $20 million in 2018, $16 million in 2019 and $18 million in 2020 after taxes. The tax rate is 20% for all years.
Requirements:
a. Show all the needed journal entries for the Skyflight stock from purchase to sale.
b. Show the statement of comprehensive income for 2018, 2019 and 2020.
c. If accumulated other comprehensive income is $500,000 at the beginning of 2018, what is the accumulated other comprehensive income at the end of 2018, 2019 and 2020
In: Accounting
Garda World Security Corporation has the following shares, taken
from the equity section of its balance sheet dated December 31,
2020.
| Preferred shares, $4.58 non-cumulative, | |||
| 55,000 shares authorized and issued* | $ | 3,520,000 | |
| Common shares, | |||
| 90,000 shares authorized and issued* | 1,440,000 | ||
*All shares were issued during 2018.
During its first three years of operations, Garda World Security
Corporation declared and paid total dividends as shown in the last
column of the following schedule.
Required:
Part A
1. Calculate the total dividends paid in each year to the
preferred and to the common shareholders.
Total Dividend 2018$ 170,000
2019 $410,000
2020 $570,000
2. Calculate the dividends paid per share to both
the preferred and the common shares in 2020. (Round the
final answers to 2 decimal places.)
Part B
1. Calculate the total dividends paid in each year to the
preferred shares and to the common shareholders assuming preferred
shares are cumulative.
Total for three years$1,150,000
Total Dividend 2018$ 170,000
2019 $410,000
2020 $570,000
2. Calculate the dividends paid per share to both
the preferred and the common shares in 2020 assuming preferred
shares are cumulative. (Round the final answers to 2
decimal places.)
In: Accounting