Question & Answer

What is the difference between earned and unearned income?

1.       : Studies have suggested that extroverts contribute less to teams and are poor listeners, yet other studies suggest that they are more likely to earn six-figure incomes. Discuss why you think this might be the case.

Identify and briefly describe the two methods generally employed to account for the cash received in situations where the collection of the sales price is not reasonably assured.

If the regulator imposed such rules, would they cause the firm to make a loss if it faced a downward-sloping LRMSC curve? (Clues: Where would the LRAC curve be relative to the LRMC curve? What would be the effect of externalities and the addition of the Z factor on the price?)

Jamareo has found a “favorable” authority directly on point for his tax question.  If the authority is an administrative authority, which specific type of authority would he prefer to answer his question?  Which administrative authority would he least prefer to answer his question?

How will the following reduce the moral hazard problem? (a)  A no-claims bonus in an insurance policy. (b)  You having to pay the first so many pounds of any insurance claim (an ‘excess’). (c)  The use of performance-related pay.

A 125.0-mm-diameter shaft rotates inside a stationary bushing whose inside diameter = 125.6 mm and length = 50.0 mm. In the clearance between the shaft and the bushing is a lubricating oil whose viscosity = 0.14 Pa-s. The shaft rotates at a velocity of 400 rev/min; this speed and the action of the oil are sufficient to keep the shaft centered inside the bushing. Determine the magnitude of the torque due to viscosity that acts to resist the rotation of the shaft.

Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (c) Organizational costs. (b) Research and development costs. (d) Costs incurred internally to create goodwill.

When must an S corporation make estimated tax payments?

Define glass.

Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf.

An experimental power source for spot welding is designed to deliver current as a ramp function of time: I = 100,000 t, where I = amp and t = sec. At the end of the power-on time, the current is stopped abruptly. The sheet metal being spot welded is low carbon steel whose unit melting energy = 10 J/mm3. The resistance R = 85 micro-ohms. The desired weld nugget diameter = 4 mm and thickness = 2 mm (assume a disc-shaped nugget). It is assumed that 1/4 of the energy generated from the power source will be used to form the weld nugget. Determine the power-on time the current must be applied in order to perform this spot-welding operation.

On June 1, year 1, Jasper Corporation’s S election was involuntarily terminated.  What is the earliest Jasper may be taxed as an S corporation again?  Are there any exceptions to the general rule?  Explain.

This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000.  Last year, their total tax liability was $170,000.  They estimate that their tax withholding from their employers will be $175,000.  Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty?  If so, how much?

Can you think of any reasons why the predictions of the Cournot and Bertrand models of oligopoly are so different?

Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare Buttercup’s journal entry

What is Rent's rule?

Identify which basic assumption of accounting is best described in each item below. (a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports. (b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effects of inflation. (c) Walgreen Co. reports current and noncurrent classifications in its balance sheet. (d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.

Describe liquid phase sintering

(Threshold Concept 6) 1. What would you understand by the ‘wage elasticity of demand for labour’? How would the magnitude of this elasticity affect the working of the market for (a) plumbers and (b) footballers? (Threshold Concept 6) 2. How can income elasticity of demand help explain how the structure of economies changes over the years.

Paul Dobson Stores sell appliances for cash and also on the installment plan. Entries to record cost of sales are made monthly. PAUL DOBSON STORES TRIAL BALANCE DECEMBER 31, 2015 Dr. Cr. Cash $153,000 Installment Accounts Receivable, 2014 56,000 Installment Accounts Receivable, 2015 91,000 Inventory—New Merchandise 123,200 Inventory—Repossessed Merchandise 24,000 Accounts Payable $ 98,500 Deferred Gross Profi t, 2014 45,600 Capital Stock 170,000 Retained Earnings 93,900 Sales Revenue 343,000 Installment Sales 200,000 Cost of Goods Sold 255,000 Cost of Installment Sales 120,000 Loss on Repossession 800 Operating Expenses 128,000 $951,000 $951,000 The accounting department has prepared the following analysis of cash receipts for the year. Cash sales (including repossessed merchandise) $424,000 Installment accounts receivable, 2014 96,000 Installment accounts receivable, 2015 109,000 Other 36,000 Total $665,000 Repossessions recorded during the year are summarized as follows. 2014 Uncollected balance $8,000 Loss on repossession 800 Repossessed merchandise 4,800 Instructions From the trial balance and accompanying information: (a) Compute the rate of gross profit on installment sales for 2014 and 2015. (b) Prepare closing entries as of December 31, 2015, under the installment-sales method of accounting. (c) Prepare an income statement for the year ended December 31, 2015. Include only the realized gross profit in the income statement.

In an electrochemical machining operation, the frontal working area of the electrode is 2.5 in2. The applied current = 1500 amps, and the voltage = 12 volts. The material being cut is pure aluminum, whose specific removal rate is given in Table 26.1. (a) If the ECM process is 90 percent efficient, determine the rate of metal removal in in3/hr. (b) If the resistivity of the electrolyte = 6.2 ohm-in, determine the working gap

(Threshold Concept 4) 1. If there is a shortage of certain skilled workers in the economy, how will market forces lead to an elimination of the skills shortage? (Threshold Concept 4) 2. If consumers want more of a product, it is always desirable that market forces result in more being produced?

Name the two basic categories of casting processes.

Explain how banks become exposed to exchange rate risk. (LO7)