Question & Answer

Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has just purchased a new Acura. You decided to test the accuracy of the accounts receivable balance of $82,000 as shown in the ledger. The following information is available for your first year in business. (1) Collections from customers $198,000 (2) Merchandise purchased 320,000 (3) Ending merchandise inventory 90,000 (4) Goods are marked to sell at 40% above cost Instructions Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

There are 20 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 31.1 In brazing, the base metals melt at temperatures above 840°F (450°C) while in soldering they melt at 840°F (450°C) or below: (a) true or (b) false? 31.2 The strength of a brazed joint is typically (a) equal to, (b) stronger than, or (c) weaker than the filler metal out of which it is made? 31.3 Scarfing in the brazing of a butt joint involves the wrapping of a sheath around the two parts to be joined to contain the molten filler metal during the heating process: (a) true or (b) false? 31.4 Best clearances between surfaces in brazing are which one of the following: (a) 0.0025-0.025 mm (0.0001-0.001 in.), (b) 0.025-0.250 mm (0.001-0.010 in.), (c) 0.250-2.50 mm (0.010-0.100 in.), or (d) 2.5-5.0 mm (0.10-0.20 in.)? 31.5 Which of the following is an advantage of brazing (three best answers): (a) annealing of the base parts is a by-product of the process, (b) dissimilar metals can be joined, (c) less heat and energy required than fusion welding, (d) metallurgical improvements in the base metals, (e) multiple joints can be brazed simultaneously, (f) parts can be readily disassembled, and (g) stronger joint than welding? 31.6 Which of the following soldering methods are not used for brazing (two correct answers): (a) dip soldering, (b) infrared soldering, (c) soldering iron, (d) torch soldering, and (e) wave soldering? 31.7 Which one of the following is not a function of a flux in brazing or soldering: (a) chemically etch the surfaces to increase roughness for better adhesion of the filler metal, (b) promote wetting of the surfaces, (c) protect the faying surfaces during the process, or (d) remove or inhibit formation of oxide films? 31.8 Which of the following metals are used in solder alloys (four correct answers): (a) aluminum, (b) antimony, (c) gold, (d) iron, (e) lead, (f) nickel, (g) silver, (h) tin, and (i) titanium? 31.9 A soldering gun is capable of injecting molten solder metal into the joint area: (a) true, or (b) false? 31.10 In adhesive bonding, which one of the following is the term used for the parts that are joined: (a) adherend, (b) adherent, (c) adhesive, (d) adhibit, or (e) ad infinitum? 31.11 Weldbonding is an adhesive joining method in which heat is used to melt the adhesive: (a) true or (b) false? 31.12 Adhesively bonded joints are strongest under which type of stresses (two best answers): (a) cleavage, (b) peeling, (c) shear, and (d) tension? 31.13 Roughening of the faying surfaces tends to (a) have no effect on, (b) increase, or (c) reduce the strength of an adhesively bonded joint because it increases the effective area of the joint and promotes mechanical interlocking?

Use the loanable funds framework to explain how European economic conditions might affect U.S. interest rates. (LO1, LO2)

What are interim reports? Why are balance sheets often anot provided with interim data?

Describe a lockup provision and explain why it might be required by the lead underwriter. (LO3)

What are the two types of losses that can become evident in accounting for long-term contracts? What is the nature of each type of loss? How is each type accounted for?

Name the three main types of electrochemical machining.

1. Do poor people gain more from a cut in income tax with an elastic or an inelastic supply of labour? Is the supply of unskilled workers likely to be elastic or inelastic? 2. Draw two diagrams like Figure 11.13, one with a steep demand curve and one with a shallow demand curve. How does the elasticity of demand affect the incidence of the income tax?

How might the development of new financial instruments affect a central bank’s conduct of monetary policy?

At what company was the Six Sigma quality program first used?

There are 16 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 32.1 Which of the following are reasons why mechanical assembly is often preferred over other forming processes (two best answers): (a) ease of assembly, (b) ease of disassembly, (c) economies of scale, (d) involves melting of the base parts, (e) no heat affected zone in the base parts, and (f) specialization of labor? 32.2 Most externally threaded fasteners are produced by which one of the following processes: (a) cutting the threads, (b) milling the threads, (c) tapping, (d) thread rolling, or (e) turning the threads? 32.3 Which of the following methods and tools are used for applying the required torque to achieve a desired preload of a threaded fastener (three best answers): (a) arbor press, (b) preload method, (c) sense of feel by a human operator, (d) snap fit, (e) stall-motor wrenches, (f) torque wrench, and (g) use of lockwashers? 32.4 Which of the following are the common ways in which threaded fasteners fail during tightening (two best answers): (a) excessive compressive stresses on the head of the fastener due to force applied by the tightening tool, (b) excessive compressive stresses on the shank of the fastener, (c) excessive shear stresses on the shank of the fastener, (d) excessive tensile stresses on the head of the fastener due to force applied by the tightening tool, (e) excessive tensile stresses on the shank of the fastener, and (f) stripping of the internal or external threads? 32.5 The difference between a shrink fit and an expansion fit is that in a shrink fit the internal part is cooled to a sufficiently low temperature to reduce its size for assembly, whereas in an expansion fit, the external part is heated sufficiently to increase its size for assembly: (a) true or (b) false? 32.6 Advantages of snap fit assembly include which of the following (three best answers): (a) components can be designed with features to facilitate part mating, (b) ease of disassembly, (c) no heat affected zone, (d) no special tools are required, (e) parts can be assembled quickly, and (f) stronger joint than with most other assembly methods? 32.7 The difference between industrial stitching and stapling is that the U-shaped fasteners are formed during the stitching process while in stapling the fasteners are preformed: (a) true or (b) false? 32.8 From the standpoint of assembly cost, it is more desirable to use many small threaded fasteners rather than few large ones in order to distribute the stresses more uniformly: (a) true or (b) false? 32.9 Which of the following are considered good product design rules for automated assembly (two best answers): (a) design the assembly with the fewest number of components possible, (b) design the product using bolts and nuts to allow for disassembly, (c) design with many different fastener types to maximize design flexibility, (d) design parts with asymmetric features to mate with other parts having corresponding (but reverse) features, and (e) limit the required directions of access when adding components to a base part?

Solve Problem 34.5, only use a wafer size of 12.0 in whose processable area has a diameter = 11.75 in. What is the percent increase in (a) processable area on the wafer and (b) number of chips on the wafer compared to the 200% increase in wafer diameter?

Describe the difference between up milling and down milling?

Why is PM technology so well suited to the production of gears and bearings?

Describe two specific accounting methods that are treated as initiated by the taxpayer without any need for consent of the IRS when the business qualifies under the gross receipts test.

A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2015, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2012 to 2015, inclusive. The following data were ascertained. Balance of Trucks account, Jan. 1, 2012 Truck No. 1 purchased Jan. 1, 2009, cost $18,000 Truck No. 2 purchased July 1, 2009, cost 22,000 Truck No. 3 purchased Jan. 1, 2011, cost 30,000 Truck No. 4 purchased July 1, 2011, cost 24,000 Balance, Jan. 1, 2012 $94,000 The Accumulated Depreciation—Trucks account previously adjusted to January 1, 2012, and entered in the ledger, had a balance on that date of $30,200 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2012. Transactions between January 1, 2012, and December 31, 2015, which were recorded in the ledger, are as follows. July 1, 2012 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $40,000. Ichiro Mfg. Co. paid the automobile dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,000. The transaction has commercial substance. Jan. 1, 2013 Truck No. 1 was sold for $3,500 cash; entry debited Cash and credited Trucks, $3,500. July 1, 2014 A new truck (No. 6) was acquired for $42,000 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.) July 1, 2014 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro Mfg. Co. received $2,500 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,200, and credits to Miscellaneous Income, $700, and Trucks, $2,500. Entries for depreciation had been made at the close of each year as follows: 2012, $21,000; 2013, $22,500; 2014, $25,050; and 2015, $30,400. Instructions (a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company’s errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (b) Prepare one compound journal entry as of December 31, 2015, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2015.

Does the kiddie tax apply to all children no matter their age?  Explain.

For what reasons might GDP be a poor indicator of (i) the level of development of a country; (ii) its rate of economic development?

: Define leadership and explain the differences between formal and informal leaders.

How would the radical right reply to these arguments?

The weekly demand and supply schedules for t-shirts (in millions) in a free market are as follows: Price (£) 8 7 6 5 4 3 2 1 Quantity demanded 6 8 10 12 14 16 18 20 Quantity supplied 18 16 14 12 10 8 6 4            (a)  What are the equilibrium price and quantity?          (b)  Assume that changes in fashion cause the demand for t-shirts to rise by 4 million at each price. What will be the new equilibrium price and quantity? Has equilibrium quantity risen as much as the rise in demand? Explain why or why not.          (c)  Now plot the data in the table and mark the equilibrium. Also plot the new data corresponding to (b).

Draw a diagram like Figure 13.2, only this time assume that the activity has the effect of reducing pollution, with the result that there are marginal external benefits. Identify the socially optimal level of the activity. What would be the level of subsidy required to achieve this level of activity?

Why may managers choose to set prices that cover all costs including sunk costs.

Ortiz purchased a piece of equipment that cost $202,000 on January 1, 2014. The equipment has the following components. Component Cost Residual Value Estimated Useful Life A $70,000 $7,000 10 years B 50,000 5,000 5 years C 82,000 4,000 12 years Compute the depreciation expense for this equipment at December 31, 2014.

How can the market distortions argument be used to justify putting excise duties on specific goods such as petrol, alcohol and tobacco? Is this the only reason why excise duties are put on these particular products?