Question & Answer

What is NAIC, and what is its purpose? (LO2)

How would Figure 3.3 change if the government were able to sell the surplus food on the world market?

IFRS prohibits the use of the completed-contract method in accounting for long-term contracts. If revenues and costs are difficult to estimate, how must companies account for long-term contracts?

How might a balanced scorecard be used?             (LO4)

Briefly comment on how legislation and societal expectations could influence the scope of sustainability management practice within organisations.

What is draft in a rolling operation?

Explain how pension plans provide tax benefits. (LO3)

1.      Match each primary value chain activity with its definition. a.       Marketing and sales activities b.      Service activities c.       Operations d.      Outbound logistics   e.       Inbound logistics

What important alloy is formed from lead and tin?

1.              : Let Owens know that you care about what he’s going through, but insist that he take a short paid leave and get counseling to deal with his emotional difficulties and evaluate the seriousness of his problems with alcohol. If the alcohol abuse continues, require him to attend a treatment program or find another job.

Why is the relationship between interest rates and bond prices important to financial institutions? (LO1)

Why are second mortgages offered by some home sellers? (LO2)

What else is the diagram telling us?

How do IPOs perform over the long run? (LO3)

Describe, in general terms, why Congress implemented the AMT.

How should the results of installment sales be reported on the income statement?

Emily and Toni are recently married college students. Can Emily qualify as her parents’ dependent? Explain.

Andrea Torbert purchased a computer for $8,000 on July 1, 2014. She intends to depreciate it over 4 years using the double-declining-balance method. Salvage value is $1,000. Compute depreciation for 2015.

Collecting overhead cost information A family member asked you to review the accounting system used for Hanna’s, a custom stained glass manufacturing business. The owner currently uses a software package to keep track of her bank account, but she does not produce financial statements. The owner seeks your help in setting up a costing system so that financial statements can be produced on a monthly basis.                           Required (a)     What kind of costing system is needed for this setting? (b)     You plan to categorise the banking data for entry into the financial statement records. List the categories you might use for these entries. List only broad categories here [see parts (c), (d), and (e) for more details.] (c)      List several costs that might be included in a fixed overhead category. (d)     List several costs that might be included in a variable overhead category. (e)      List several costs that might be included in direct materials. (f)      Write a memo to the owner discussing the alternative choices for the costing system. Include an explanation of the type of information that would need to be captured to support the costing system.

How is a business activity distinguished from an investment activity?  Why is this distinction important for the purpose of calculating federal income taxes?

How might the volatility of an economy affect the growth of potential output?

Explain why Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.

Why might the role of the accountant be referred to as one of a ‘detective’ in relation to variance analysis?

Explain why Congress allows taxpayers to deduct interest forfeited as a penalty on the premature withdrawal from a certificate of deposit.

: Explain the processes of team cohesiveness, team norms, and the general stages of team development.