Apes Chapter 4 Quizlet Multiple Choice

Accounting Test 3 Module 5 quiz Flashcards

Using accelerated depreciation yields a lower amount of taxable income in the earlier years of the asset’s life than does straight-line depreciation. This relation reverses in the later years of the asset’s life; however, companies prefer the tax savings sooner rather than later so that the cash savings can be invested to produce earnings. Explain why using the FIFO inventory costing method will increase gross profit during periods of rising inventory costs. A professional organization for project management specialists is the a. The Project Management Institute is a professional organization for project managers.

Accounting Test 3 Module 5 quiz Flashcards

Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Round percents to the nearest one-tenth and dollar amounts to the nearest whole dollar.) 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. Do you think delivery costs fit the definition of a joint cost?

Accounting Module 5 Quiz

On January 4, 2012, G.L. Brown Co. paid $235,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of$1,100, $6,200 sales tax, and$37,200 for a special platform on which to place the computer. Brown management estimates that the computer will remain in service for five years and have a residual value of $24,500. For each of the generally accepted depreciation methods, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Brown reports to stockholders and creditors in the financial statements using the depreciation method that maximizes reported income in the early years of asset use.

In the _____________ stage of the project life cycle project the product is delivered to the customer and resources are reassigned…. The chart of accounts for Outback Guide Service follows. $$ \begin \mathbf & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \text & \text\\ \end $$ 1. In your working papers, open an account in the general ledger for each account in the chart of accounts.

Apes Chapter 4 Quizlet Multiple Choice

Initiating actions to boost the combined performance of the businesses the firm has entered. Pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage…. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.

For income tax purposes, the company uses the depreciation method that minimizes income tax payments in those early years. Consider the first year G.L.

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He is the sole author of all the materials on AccountingCoach.com. Read more about the author. Whether it’s part of a study assignment or you’re doing it for fun, creating your own kahoot takes minutes in the app. Add YouTube and Vimeo videos, snap photos with your device or add drawings to questions to make them more interesting. The net funding that a company receives from issuing and acquiring its equity shares. This is calculated by adding the par value of the shares to the value paid that was greater than par value.

The riskier a company has been deemed, the higher their rate of interest will be. Contingent liability is a liability that depends on the occurrence of a future uncertain event to determine whether a liability exists and, if so, in what amount. One example of this is warranty liabilities, the amount of liability depends on the occurrence of product defects that require the company to repair or replace the product purchased.

Accounting Test 3 Module 5 quiz Flashcards

When a company repurchases stock, this account is reduced by the same amount as the cash used for the repurchase. This is the yield on U.S. Government borrowings such as T-Bills, Accounting Test 3 Module 5 quiz Flashcards notes, and bonds that are deemed to be free from risk over a specified period. These borrowings are deemed risk free because they are backed by the U.S. Government.


Performance obligations relate to revenue recognition via the Cost-to-Cost method. Companies must determine the point in which their obligations have been satisfied so the revenue can be recognized. In a multi-year contract, waiting until the good is delivered would be problematic because the expenses related to the obligation would be recognized https://accountingcoaching.online/ as incurred. An annuity is when the cash flow is equally spaced over time and each cash flow is the same dollar amount. With an annuity, you can invest a lump sum or make several smaller investments over time. After a specified date, you will begin receiving payments that are equally spaced out over a period, and are of an equal dollar amount.

  • Purchase machinery, building, information systems, or other expensive items.
  • Keeping the selling price of the product constant at $50, but using LIFO which would show a COGS of $15, and in return give me a $35 gross profit would not be ideal.
  • Forward contracts to hedge a firm commitment to buy or sell inventory.
  • Increases liabilities and decreases the earned capital on the balance sheet while increasing the expenses and decreasing the net income on the income statement.
  • Cash dividends have an impact on both the company’s cash and retained earnings.

Artificial selection and stabilizing selection d. Sexual dimorphism is most often a result of ? Intersexual selection. Stabilizing selection. Artificial selection. Which of the following would be considered an important organizational goal in recruiting efforts? Attract as many applicants as possible for a job.

Chegg Products And Services

Brown Co. uses the computer. Identify the depreciation methods that meet Brown’s objectives, assuming the income tax authorities permit the use of any of the methods. Cash provided by operations before income tax is$154,000 for the computer’s first year. The income tax rate is 40%. For the two depreciation methods identified, compare the net income and cash provided by operations . Show which method gives the net-income advantage and which method gives the cash-flow advantage. Pro Forma Income is not considered GAAP.

  • The premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in each investment.
  • Futures contracts to hedge the fair value of commodities held as inventory.
  • The SEC requires companies to reconcile Pro Forma Income to the GAAP numbers so that financial statement readers can have a basis for comparison and can evaluate the excluded items.
  • Are you familiar with PERT and CPM?
  • Changes in fair value of these securities do not affect either the balance sheet or the income statement.

Certain debt securities have maturity dates, dates when the security must be repaid by the borrower. Held to Maturity Securities are the securities that are purchased, and management intends to hold it until the security matures. Changes in fair value of these securities do not affect either the balance sheet or the income statement. The presumption is that these investments will indeed be held to maturity, at which time their market value will be exactly equal to their face value. Fluctuations in fair value, as a result, are less relevant, and any interest received is recorded in current income. Currently, R&D costs are expensed as incurred.

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Which of the following statements about social responsibility is correct? A) Social responsibility dimensions do not include philanthropic concerns. B) Social responsibility does not deal with the total effect of all marketing decisions on society. C) Social responsibility refers to a company’s obligation to maximize its positive impact and minimize its negative impact on society…. When a company operates outside of the US and operate using a foreign currency, a weakening $US will increase the value of the company’s sales and net income.

If someone told you they would give you $500 now, or $500 one year from now, which is better? $500 dollars now gives you the ability to invest it, and gain interest; therefore, your $500 now will be worth more than the $500 you would have received one year from now, that would not have gained interest.

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This is money paid to stockholders that is generally calculated on a per share basis. This is a way for companies to return capital to their shareholders in the form of periodic cash payments, typically on a quarterly schedule. Cash dividends have an impact on both the company’s cash and retained earnings.

Forward-exchange contracts to hedge the foreign currency risk related to an asset or liability denominated in a non-U.S. Futures contracts to hedge the fair value of commodities held as inventory. Purchased options to hedge the value of marketable securities. Forward contracts to hedge a firm commitment to buy or sell inventory. Interest rate swaps to convert a fixed-rate debt into a variable-rate debt or vices versa. Process to plan for, evaluate, and control investments in fixed assets; management decisions with long term impacts for long term assets.

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Is used when a company owns more than 50% of the investee’s outstanding stock, and the investor controls the investee. Financial statements are consolidated. Little to no influence over the investment.

Purchase machinery, building, information systems, or other expensive items. We aim to reduce duration uncertainty because we want to control the duration so that revenue management can be used effectively.Please select which element below is not to reduce duration uncertainty. The cumulative net income retained by the company. Within earned capital is retained earnings, dividends, stock splits, and AOCI. When a company pays a cash dividend, the earned capital is decreased by the same amount as the cash used for the dividend payment. The purpose of hedging is to mitigate the types of risks that companies are exposed to such as the two mentioned above.

Cattle breeders have improved the quality of meat over the years by which process? Artificial selection b. Directional selection c. Stabilizing selection d. Artificial selection and directional selection e.

This is used as the base of the “yield rate” calculation. Investments that management intends to actively buy and sell for trading profits. These were reported at fair value with changes in value reflected in earnings.

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