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Some elements of geography that the global CEO should analyze include all of the following except?
Location, Climate, Infrastructure and
QS 1-6 Identifying accounting principles L.O. C4
Identify which accounting principle or assumption best describes each of the following practices:
a.
If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.
Business entity assumption
Objectivity principle
Revenue recognition principle
Monetary unit principle
Cost principle or historical cost
Going-concern principle
b.
Alissa Kees owns both Sailing Passions and Dockside Supplies. In preparing financial statements for Dockside Supplies, Kees makes sure that the expense transactions of Sailing Passions are kept separate from Dockside’s transactions and financial statements.
Revenue recognition principle
Cost principle or historical cost
Monetary unit principle
Business entity assumption
Objectivity principle
Going-concern principle
c.
In December 2010, Ace Landscaping received a customer’s order and cash prepayment to install sod at a new house that would not be ready for installation until March 2011. Ace should record the revenue from the customer order in March 2011, not in December 2010.
Cost principle or historical cost
Monetary unit principle
Going-concern principle
Objectivity principle
Revenue recognition principle
Business entity assumption
Which of the following is not one of the steps considered in the “Six Steps in Decision Making”?
a. Clearly define the problem at hand
b. Evaluate the success of the decision.
c. Apply the model and make your decision.
d. List the payoff or profit of each combination of alternatives and outcomes.
e. List the possible alternatives.
Stock (G=R-D1/P). What is the growth rate of the stock with a $2 expected dividend and a 20 price with 10 % required return?
Stock (R=D1/P + G). What is the required rate of return on a stock with a $1.5 expected dividend and a 29 price with 25 % growth?
Stock ( P = D0*(1+G) / (R-G) ). What is the value of a stock with a $0.25 dividend just paid (D0) and a 10 % required return with 5 % growth?
If a company changes the useful life of its assets from 10 years to 12 years, this will be recorded as _________.
a). a non recurring gain
b). an extraordinary item
c). a change in accounting principle
d). None of the above
Which of the following overall accounting concepts has a number of exceptions under GAAP?
a). Historical cost
b). Transactions basis
c). Conservatism
d). Accrual accounting
R & D expenses for tangible assets that have alternative future uses qualify as _________. (Points : 3)
a). past charges
b). current charges
c). deferred charges
d). None of the above
Deferred charges – you capitalize and amortize the expense over the period of alternative future uses
Which of the following statements is correct?
a). Tax loss carrybacks result in deferred tax assets.
b). Tax loss carryforwards result in deferred tax assets.
c). The tax valuation account is used to adjust deferred tax liabilities.
d). All of the above
Which of the following is not a source of industry information?
a). SEC Manuals
b). Standard and Poor’s
c). Trade journals
d). Associates
Capital Corporation had the following results in 2012:
Gross receipts from operations: $200,000
Net short-term capital gain: $50,000
Net long-term capital loss: ($75,000)
Cost of goods sold: $60,000
Operating expenses: $40,000
Dividends received from 30% owned domestic corporation: $80,000
What is Capital Corporation’s taxable income and regular income tax liability for 2012?
Assuming that Capital Corporation’s taxable income in 2011, its first year of existence, was $400,000, which included a net short-term capital gain of $50,000, what advice should be given to Capital with respect to its net capital asset position for 2012?
Assuming that Capital Corporation’s taxable income in 2011, its first year of existence, was $400,000, which included a net short-term capital gain of $50,000, what advice should be given to Capital with respect to its net capital asset position for 2012?