1. Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods?

a. accrual basis accounting

b. cash basis accounting

c. tax basis accounting

d. revenue basis accounting

2. Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period?

a. accrual

b. deferral

c. estimate

d. cull

3. Rent collected in advance is an example of which of the following?

a. deferred revenue (unearned revenue)

b. accrued expense

c. accrued revenue

d. deferred expense (prepaid expense)

4. Rent paid in advance is an example of which of the following?

a. deferred expense (prepaid expense)

b. accrued expense

c. accrued revenue

d. deferred revenue (unearned revenue)

In early 2017, for the first time, Whispering Winds Corp. invested in the common shares of another Canadian company. It acquired 5,900 shares of Toronto Stock Exchange-traded Bayscape Ltd. at a cost of $81,125. Bayscape is projected to reach a value of $15.50 per share by the end of 2017 and $17.00 by the end of 2018, and has consistently paid an annual dividend of $0.90 per share. Whispering Winds is also a Canadian public corporation with a December 31 year end.

The controller of Whispering Winds is uncertain about which accounting method to use. The company is interested in establishing a closer relationship with Bayscape, but if that fails, Whispering Winds considers the investment a good opportunity to make a gain on its sale in the future. The controller has been advised that the investment could be accounted for at cost or at fair value. If at fair value, a decision would have to be made about whether to put the changes in fair value through net income or other comprehensive income. As one step in making a decision, the controller would like to know what the effect would be on total assets and net income in each of 2017 and 2018 if the predictions about Bayscape’s share prices and dividends are correct. Assume there would be no recycling of realized investment gains and losses.

Prepare journal entries for each of the three accounting alternatives indicated to recognize each of the following: (1) the 2017 dividend, (2) any December 31, 2017 adjustments, (3) the 2018 dividend, and (4) any December 31, 2018 adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1) Cost

(1) FV-NI

(1) FV-OCI

(2) Cost

(2) FV-NI

(2) FV-OCI

(3) Cost

(3) FV-NI

(3) FV-OCI

(4) Cost

(4) FV-NI

(4) FV-OCI

On July 1, 2020, Skysong Inc. made two sales: 1. It sold excess land in exchange for a four-year, non–interest-bearing promissory note in the face amount of $1,147,860. The land’s carrying value is $620,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $500,000. Interest at a rate of 3% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 10% interest. Skysong recently had to pay 7% interest for money it borrowed from British Bank. 3. On July 1, 2020, Skysong also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $20,300, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 9%. The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Partially correct answer. Your answer is partially correct. Try again. Prepare the journal entries to record the three notes receivable transactions of Skysong Inc. on July 1, 2020 2.Prepare an instalment note receivable schedule for the instalment note obtained in partial collection of accounts receivable

Q1:

Let’s say our research question we want to find the average (mean) wage among all workers in the United States. Let’s say (and this is obviously not a very good method) we go around UC and stop 500 people and ask them what their wage is and calculate the mean wage.

• What is our population?
• What is our sample?
• What is the parameter?
• What is the statistic?
• What are some problems with our sampling method?

Q2:

Identify the scale of measurement: nominal, ordinal, interval, ratio

• Zip codes
• Stock prices
• Item size (small, medium, large)
• Income of households, measured in dollars
• Educational level, recorded as (High School, some college, college graduate)
• Test score (0-100), measuring score on first statistics exam
• Test score (0-100), measuring overall knowledge of statistics
• A video game was previewed to a group of 30 teenagers. The teens were asked to rate the quality of the graphics.

Q3

A paper manufacturer in Country A sells much of its paper in Country B. The manufacturer is paid in Country​ B's dollars, but pays its employees in Country​ A's dollars. The manufacturer is interested in the fluctuating exchange rate between these two currencies. Each trading day in 2005 the exchange rate fluctuated by several basis points.​ (A basis point is 1/100 of a​ percent.) A year of data is collected.

• Identify whether the data are cross sectional or a time series.
• Give a name to each variable and indicate if the variable is​ categorical, ordinal, or numerical​ (if a variable is​ numerical, include its units if​ possible)
• List any concerns that you might have for the accuracy of the data. Select all that apply.

1. The recorded exchange rates might not be accurate for 2005.
2. The fluctuations of the exchange rate in 2005 might not be typical of other years.
3. The exchange rate is dependent on the country in which the data is recorded.
4. There are no concerns regarding the accuracy of the data.

Q4: A bakery is trying to decide what makes a loaf a bread sell. There are three locations of this bakery and they gather data at all three locations. They measure the volume of the loaf and whether or not it has nuts in it. They then time how long it takes the loaf to sell. What are the cases? (unit of observation) List the variables and the scale of measurement

Q5:

• Why is the median not an acceptable measure for nominal data?

• Why is the mean not an acceptable measure for ordinal data?

• In a strongly skewed distribution, would you prefer the mean or the median?

Q6:

Clara asked twenty-one people what their favorite number is. Please calculate the most complex yet appropriate measure of central tendency for the following data:

7, 3, 0, 7, 8, 2, 1, 2, 7, 6, 10, 6, 7, 1, 10, 0, 6, 8, 10, 3, 1

a. Construct a scatterplot of the data and tell why a linear regression model is appropriate. (Include this graph in your report.)   b. Run the linear regression procedure on StatCrunch and include the output in your report. c. Give the regression equation using the correct notation. d. Give the Coefficient of Determination AND interpret it.   e. Check the assumptions of the model by constructing each of the following plots and commenting on what they suggest in terms of the assumptions. (Include these graphs in your report.) 1. Fitted line plot 2. QQ-Plot of the residuals 3. Predicted values vs residuals


f. Test to see if the ‘before reading’ is useful in predicting the ‘after reading’. (Use ? = 0.05.) g. Instruct StatCrunch to save the 95% confidence intervals for the mean response. BUT DO NOT INCLUDE THE TABLE IN YOUR PROJECT. IT’S VERY BIG.   h. Use the table you created in part g to give the 95% confidence interval for the average ‘after reading’, when the ‘before reading’ is 60 bpm. i. Test to see if the ‘before reading’ and the ‘after reading’ are positively linearly correlated. (Use ? = 0.05.)

NOTE: Opinions may differ on whether or not the assumptions are met. For the sake of instruction, assume you can continue with the linear regression model to complete the project.

#1 The population of scores on the in-person version of Dr. Hale’s first statistics test forms a normal distribution with μ = 72 and σ = 6. He thinks the online class will do significantly better because they do a TON of extra homework that the other class doesn’t do. He gives a random sample of n = 25 students the test, and this sample got an average of 75. What conclusion should he draw if this was a 2-tailed test with alpha = .05?

#2 The population of scores on the in-person version of Dr. Hale’s first statistics test forms a normal distribution with μ = 72 and σ = 6. He thinks the online class will do significantly better because they do a TON of extra homework that the other class doesn’t do. He gives a random sample of n = 25 students the test, and this sample got an average of 75. What was the null hypothesis for this study?

#3 When computing z for a sample mean, which quantity is the denominator?

#4 The population of scores on the in-person version of Dr. Hale’s first statistics test forms a normal distribution with μ = 72 and σ = 6. He thinks the online class will do significantly better because they do a TON of extra homework that the other class doesn’t do. He gives a random sample of n = 25 students the test, and this sample got an average of 75. What conclusion should he draw if this was a 2-tailed test with alpha = .01?

#5 Which of the following is not a step or rule in a hypothesis test?

#6 The population of scores on the in-person version of Dr. Hale’s first statistics test forms a normal distribution with μ = 72 and σ = 6. He thinks the online class will do significantly better because they do a TON of extra homework that the other class doesn’t do. He gives a random sample of n = 25 students the test, and this sample got an average of 75. What was the alternative hypothesis for this study?

need a justification paragraph to the following case

Introduction

The story of Enron Corp.is the story of a company that reached dramatic heights, only to face a dizzying fall. Its collapse affected thousands of employees and shook Wall Street to its core. At Enron's peak, its shares were worth $90.75; when it declared bankruptcy on December 2, 2001, they were trading at $0.26. To this day, many wonders how such a powerful business, at the time one of the largest companies in the U.S, disintegrated almost overnight and how it managed to fool the regulators with fake holdings and off-the-books accounting for so long.

Enron was formed in 1985, following a merger between Houston Natural Gas Co. and Omaha-based InterNorth Inc. Following the merger, Kenneth Lay, who had been the chief executive officer (CEO) of Houston Natural Gas, became Enron's CEO and chairman and quickly rebranded Enron into an energy trader and supplier. Deregulation of the energy markets allowed companies to place bets on future prices, and Enron was poised to take advantage. In 1990, Lay created the Enron Finance Corp. To head it, he appointed Jeffrey Skilling, whose work as a Mckinsey consultant had impressed Lay. Skilling was at the time one of the youngest partners at Mckinsey.

The Enron scandal was publicized in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audits and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was cited as the biggest audit failure.

After the U.S Congress adopted a series of laws to deregulate the sale of natural gas in the early 1990s, the company lost its exclusive right to operate its pipelines. With the help of Jeffrey Skilling, who was initially a consultant and later became the company's chief operating officer, Enron transformed itself into a trader of energy derivative contracts, acting as an intermediary between natural - gas producers and their customers.

As the boom years came to an end and as Enron faced increased competition in the energy - trading business, the company's profits shrank rapidly. Under pressure from shareholders, company executives began to rely on dubious accounting practices, including a technique known as "mark-to-market accounting" to hide the troubles. Mark to market allowed the company to write unrealized future gains from some trading contracts into current income statements, thus giving the illusion of higher current profits.

The severity of the situation began to become apparent in mid-2001 as a number of analysts began to dig into the details of Enron's publicly released financial statements. An internal investigation was initiated following a memorandum from a company vice - president, and soon the Securities and Exchange Commission (SEC) was investigating the transactions between Enron and Fastow's SPEs.

As the details of the accounting frauds emerged, the stock price of the company plummeted from a high of $90 per share in mid-2000 to less than $1 by the end of November 2001, taking with it the value of Enron employee’s pensions, which were mainly tied to the company stock. Lay and Skilling resigned, and Fastow was fired two days after the SEC investigation started. On December 2, 2001, Enron filed for Chapter 11 bankruptcy protection. Many Enron executives were indicted on a variety of charges and were later sentenced to prison. Arthur Andersen came under intense scrutiny and eventually lost a majority of its clients. The damage to its reputation was so severe that it was forced to dissolve itself. In addition to federal lawsuits, hundreds of civil suits were filed by shareholders against both Enron and Anderson.

The scandal resulted in a wave of new regulations and legislation designed to increase the accuracy of financial reporting for publicly traded companies. The most important of those measures, the Sarbanes -Oxley Act (2002), imposed harsh penalties for destroying, altering or fabricating financial records. The act also prohibited auditing firms from doing any concurrent consulting business for the same clients.

Analysis

            Enron was a company that thrived use of latest technologies and had a code of ethics that prohibited managers and executives from being involved in another business entity that did business with their own company. However, the codes of ethics that was voluntary and was set aside by the board of directors and the top management. The legal structure allowed top management to enter these arrangements, that constituted a conflict of interest and while it's a fiduciary duty the managers and executives had to behave and act in the best interest of the company and its shareholders. But there was discretion for them to exercise their own business judgment regarding what was in the best interest of the company. A path filled with unethical and illegal activities was followed. Management was succumbing to greed and dishonesty by secretly exercising stock options and constructed faulty falsely financial report which enabled to hide billions of dollars of debt. Enron management abandoned the basic accounting standards of integrity and created a noncompliance that existed different than GAAP or SEC reporting standards.

Enron's chief financial offer, Andrew Fastow, was the alleged mastermind behind camouflaging an estimated one billion dollars of debt that resulted to the Enron's bankruptcy. practices. To misrepresent its true financial condition, he took the role by involving special purpose entities and unconsolidated partnerships. By concealing the debts, and presenting inaccurate financial condition he hide Enron's true financial standing. In the year 2000, Enron financially fell short and resulted to the long-awaited demise of bankruptcy. David Duncan had the responsibility of representing the interests of Arthur Andersen in Enron Company. He was acting as the head auditor thus hold the responsibility to maintain the highest professional accounting and auditing ethics, and leading his auditing team in an unbiased and responsible approach. However, he was acting negligently, and followed a complete lack of ethics throughout his involvement with Enron. Nancy Temple acted in sole interest of the client. Whistle blowing by an employee, Sherron Watkins, is termed to be an employee's moral responsibility. Sherron Watkins owed loyalty to herself as well as the investors, which is exactly why she blew the whistle at Enron. Andersen ruined their goodwill and having the charges overturned was not easy going to change how the government and the public view and rate them. The company had lost all of their credential investors. The investors shake hands with Anderson’s competitors. Without the money coming from the investors the Anderson company was not able to survive the business in the market.

Solution

            Enron’s bankruptcy scandal not only not effected Enron and its shareholders but it affected the market as well lower company’s values that were in the same industry. The scandal surrounding Enron bankruptcy has its impact on their competitors because of them being in the similar industry the thought that they too were doing the same thing that lead to the downfall of Enron. To avoid such conflict government regulations and rules are required to be updated for the new economy, not relaxed and eliminated. The government must regulate the constitution of the board of directors by including professionals such as accountants and auditors. Government can tighter regulation and monitoring on rogue board members by requiring for individual audits of the members. In certain ways, the culture of Enron was the main cause of the collapse. The company must advocate is strict adherence to proper corporate governance principles; and encourage their employees to act in the best interest for the company. A proper implemented and formulated structured control procedure also helps in minimizing the risks.

Furthermore, to limit errors and risks when auditing special projects, external auditors must ensure that the company gives detailed disclosures of the financial transactions occurred in the special projects along with detailed substantial communication that provides proper detailed description on the relevancy of the financial interest involved. Moreover, should be strict adherence to proper corporate governance principles. It will help senior leadership to act in the interest of the shareholders of the company instead of self-interest.

Need summary of the below article.

The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. That tells you what a country is good at producing. GDP is the country's total economic output for each year. It's equivalent to what is being spent in that economy. The only exception is the shadow or black economy.

The formula to calculate the components of GDP is Y = C + I + G + X.

That stands for: GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports. In 2017, U.S. GDP was 68 percent personal consumption, 17 percent business investment, 17 percent government spending, and negative 3 percent net exports.

Here's how the Bureau of Economic Analysis divides U.S. GDP into the four components.

1. Personal Consumption Expenditures

Consumer spending contributes 70 percent of total United States production. In 2017, that was $12.6 trillion. Note that the figures reported are real GDP. It's the best way to compare different years. They are rounded to the nearest billion. The BEA sub-divides personal consumption expenditures into goods and services.

Goods are further sub-divided into two even smaller components. The first is durable goods, such as autos and furniture. These are items that have a useful life of three years or more. The second is non-durable goods, such as fuel, food, and clothing.

The retailing industry is a critical component of the economy since it delivers all these goods to the consumer. The BEA uses the latest retail sales statistics as its data source. Since this report comes out monthly, it gives you a preview of this component of the quarterly GDP report.

Services are almost half of U.S. GDP.

These include commodities that cannot be stored and are consumed when purchased. It contributes 45 percent of GDP. That's a big increase since the 1960s when services contributed 30 percent to GDP. Thank the expansion in banking and healthcare. Most services are consumed in the United States. These are difficult to export.

Why does personal consumption make up such a large part of the U.S. economy? America is fortunate to have a large domestic population within an easily accessible geographic location. It's almost like a huge test market for new products. That advantage means that U.S. businesses have become excellent at knowing what consumers want.

2. Business Investment

The business investment includes purchases that companies make to produce consumer goods. But, not every purchase is counted. If a purchase only replaces an existing item, then it doesn't add to GDP and isn't counted. Purchases must go toward creating new consumer goods to be counted.

In 2017, business investments were $3.197 trillion. That's 18 percent of U.S. GDP. It's double its recession low of $1.5 trillion in 2009. In 2014, it beat its 2006 peak of $2.3 trillion. The BEA divides business investment into two sub-components: Fixed Investment and Change in Private Inventory.

Most of Fixed Investment is non-residential investment. That consists primarily of business equipment, such as software, capital goods, and manufacturing equipment. The BEA bases this component on shipment data from the monthly durable goods order report. It’s a good leading economic indicator.

A small but important part of non-residential investment is commercial real estate construction. The BEA only counts the new construction that adds to total commercial inventory. Resales aren't included. The BEA adds them to GDP in the year they were built.

Fixed investment also includes residential construction, which includes new single-family homes, condos, and townhouses. Just like commercial real estate, the BEA doesn't count housing resales as fixed investments. New home building was $600 billion in 2017.

That was 3 percent of GDP. Combined, commercial and residential construction was $1.07 trillion or 6 percent of GDP.

The 2008 financial crisis burst the bubble in housing. Residential construction reached its peak in 2005 when it added $872 billion to GDP. Comparisons over time are always adjusted for inflation. It didn't hit bottom until 2010 when only $382 billion was added. Housing's contribution to GDP plummeted from 6.1 percent to 2.6 percent during this time. At its peak in 2005, combined commercial and residential construction contributed $1.3 trillion or 9.1 percent of GDP. In 2010, it fell to a low of $748.7 billion or 5.1 percent of GDP.

Change in Private Inventory is how much companies add to the inventories of the goods they plan to sell. When orders for inventories increase, it means companies receive orders for goods they don't have in stock. They order more to have enough on hand. It's important for companies to have enough inventory so they don't disappoint and turn away potential customers. An increase in private inventories contributes to GDP.

A decrease in inventory orders usually means that businesses are seeing demand slack off. As inventories build, companies will cut back production. If it continues long enough, then layoffs are next. So, the change in private inventories is an important leading indicator, even though it contributed less than 1 percent of GDP in 2017.

3. Government Spending

Government spending was $3.1 trillion in 2017. That's 17 percent of total GDP. It's less than the 19 percent it contributed in 2006. In other words, the government was spending more when the economy was booming before the recession. That's exactly when it should have been spending less to cool things off. Slower spending now is a result of sequestration, which was also timed poorly. Austerity measures shouldn't be used when the economy is struggling to recover.

The federal government spent $1.2 trillion in 2017. Almost 60 percent was military spending. State and local government contributions rose to 11 percent. This increase is because government revenues have improved now that the recession is over.

4. Net Exports of Goods and Services

Imports and exports have opposite effects on GDP. Exports add to GDP and imports subtract.

The United States imports more than it exports, creating a trade deficit. America still imports a lot of petroleum, despite gains in domestic shale oil production. The U.S. economy is based on services, which are difficult to export. In 2017, imports subtracted $3.3 trillion, while exports added $2.5 trillion. As a result, international trade subtracted $859 billion from GDP.

Components of 2017 GDP Chart

Direct Printing Company currently leases its only copy machine for $1,600 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based. Under the new​ agreement, Direct would pay a commission for its printing at a rate of $ 10 for every 500 pages printed. The company currently charges $0.19 per page to its customers. The paper used in printing costs the company $ 0.01 per page and other variable​ costs, including hourly​ labor, amount to $ 0.10 per page.