Question & Answer

How would raising interest rates in this way affect the balance between the current and financial accounts of the balance of payments?

Jill Accardo, M.D., maintains the accounting records of Accardo Clinic on a cash basis. During 2014, Dr. Accardo collected $142,600 from her patients and paid $55,470 in expenses. At January 1, 2014, and December 31, 2014, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.)   Instructions Prepare a schedule that converts Dr. Accardo’s “excess of cash collected over cash disbursed” for the year 2014 to net income on an accrual basis for the year 2014.

Identify some of the general principles and guidelines for design for assembly.

Lenexa State Bank has followed the practice of capitalizing certain marketing costs and amortizing these costs over their expected life. In the current year, the bank determined that the future benefits from these costs were doubtful.Consequently, the bank adopted the policy of expensing these costs as incurred. How should the bank report this accounting change in the comparative financial statements?

Name the various ways in which a workpart can be held in a lathe

Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2014 net income and 2015 net income. 2014 2015 (a) Equipment purchased in 2012 was expensed. (b) Wages payable were not recorded at 12/31/14. (c) Equipment purchased in 2014 was expensed. (d) 2014 ending inventory was overstated. (e) Patent amortization was not recorded in 2015.

Define glass.

What is an onerous contract? Give two examples of an onerous contract.

What are stock rights? How does the issuing company account for them?

Distinguish between a price variance and an efficiency variance.

Look through the categories of possible market failings in section 12.2. Are there any others, in addition to the four we have just identified, that will result in a socially inefficient use of the environment?

What is a machining center?

What are the three types of tax credits? Explain why it is important to distinguish between the different types of tax credits.

Is deindustrialisation necessarily undesirable?

Below is a payroll sheet for Otis Import Company for the month of September 2014. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $113,700. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $113,700 per employee. Income Unemployment Tax Earnings September Tax Name to Aug. 31 Earnings Withholding FICA State Federal B.D. Williams $ 6,800 $ 800 D. Raye 6,500 700 K. Baker 7,600 1,100 F. Lopez 13,600 1,900 A. Daniels 107,000 13,000 B. Kingston 112,000 16,000 Instructions (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll. (b) Make the entry to record the payroll tax expenses of Otis Import Company. (c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

What are the possible channels through which hysteresis effects can arise, such that demand shocks have persistent effects on the macroeconomy?

Explain how residual income is calculated, and define required rate of return in your own words.

List the three parts of a common twist drill. List the three parts of a common twist drill.

1.    : Over the past 20 years, entrepreneurship has been the fastest-growing course of study on campuses throughout the United States. Do you think it is possible to teach someone to be an entrepreneur? Why or why not?

Assess the economic situation today. Is the current presidential administration more concerned with reducing unemployment or inflation? Does the Fed have a similar opinion? If not, is the administration publicly criticizing the Fed? Is the Fed publicly criticizing the administration? Explain. (LO2; LO3)

What is a gang-drilling machine?

How does the above argument about firms’ responses to a rise in demand relate to the shape of their marginal cost curves?

Determine whether a taxpayer can change their election to itemize deductions once a return is filed. (Hint: Read about itemization under Reg. §1.63-1.)

Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2014 (warranty expense is incurred half in 2014 and half in 2015). As a result of product testing, the company estimates that the warranty cost is $390 per machine ($170 parts and $220 labor). Instructions Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? (a) Under application of the expense warranty accrual method for: (1) Sale of machinery in 2014. (2) Warranty costs incurred in 2014. (3) Warranty expense charged against 2014 revenues. (4) Warranty costs incurred in 2015. (b) Under application of the cash-basis method for: (1) Sale of machinery in 2014. (2) Warranty costs incurred in 2014. (3) Warranty expense charged against 2014 revenues. (4) Warranty costs incurred in 2015. (c) What amount, if any, is disclosed in the balance sheet as a liability for future warranty costs as of December 31, 2014, under each method? (d) Which method best reflects the income in 2014 and 2015 of Alvarado Company? Why?

1.       : Research on team interactions indicates that when people eat lunch at 12-person tables, they are more talkative and collaborative than when they eat at 4-person tables, even if they aren’t eating with their own team members. What do you think would explain this finding?