ch14
86 Pages

ch14

Course Number: ECON 1001, Spring 2011

College/University: Virginia Tech

Word Count: 14722

Rating:

Document Preview

ch14 Student: ___________________________________________________________________________ 1. Divisional income statements do not have to follow generally accepted accounting principles (GAAP) because they are internal reports. True 2. One advantage of using after-tax income as a performance measure of divisional results is it's a financial accounting measure that is also used to compute the organizational...

Unformatted Document Excerpt
Coursehero >> Virginia >> Virginia Tech >> ECON 1001

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

ch14 Student: ___________________________________________________________________________ 1. Divisional income statements do not have to follow generally accepted accounting principles (GAAP) because they are internal reports. True False 2. One advantage of using after-tax income as a performance measure of divisional results is it's a financial accounting measure that is also used to compute the organizational income. True False 3. One disadvantage of using after-tax income as a performance measure of divisional results is it's an absolute measure which makes it difficult to compare divisions of significantly different sizes. True False 4. The profit margin ratio is computed by dividing after-tax operating income by sales. True False 5. In general, it is better to have a higher return on investment (ROI) than a lower one. True False 6. One problem associated with using accounting measures to evaluate divisional performance is the measures are based on historical information. True False 7. A problem with ratio-based measures is that managers can make decisions that improve divisional income but lower total organizational income. True False 8. It is not possible for a manager to accept an unacceptable project when his/her performance is evaluated using ROI. True False 9. Residual income is the difference between the divisional income and the cost of invested capital required to operate the division. True False 10. The use of residual income reduces, but does not eliminate, the suboptimization problem. True False 11. Managerial myopia is the distortion in incentives that result from using accounting measures to evaluate performance. True False 12. Most organizations use residual income instead of return on investment (ROI) as a performance measure.

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Virginia Tech - ECON - 1001
ch15Student: _1.A transfer price is the value assigned to the transfer of goods or services between divisions within the sameorganization.True2.Transfer prices are not used to record the exchange between two cost centers within the same organizatio
Virginia Tech - ECON - 1001
ch16Student: _1.In essence, the terms "master budget" and "operating budget" mean the same thing and can be usedinterchangeably.True2.Variances are the difference between actual results and budgeted results.True3.FalseThe difference between ope
Virginia Tech - ECON - 1001
ch17Student: _1.The variable production cost variances are computed using the units produced instead of the units sold.True2.If variances are not prorated at the end of the accounting period, they are closed to the Cost of Goods Sold.True3.False
Virginia Tech - ECON - 1001
ch18Student: _1.One reason financial measures are used to evaluate performance is that they are easily quantifiable.True2.One disadvantage of using nonfinancial measures to evaluate performance is that they are only available ona monthly, quarterly
Virginia Tech - ECON - 1001
Chapter 01 - Environment and Theoretical Structure of Financial AccountingChapter 01Environment and Theoretical Structure of Financial AccountingTrue / False Questions1. The primary function of financial accounting is to provide relevant financial inf
Virginia Tech - ECON - 1001
Chapter 02 - Review of the Accounting ProcessChapter 02Review of the Accounting ProcessTrue / False Questions1. Owners' equity can be expressed as assets minus liabilities.True False2. Debits increase asset accounts and decrease liability accounts.
Virginia Tech - ECON - 1001
Chapter 03 - The Balance Sheet and Financial DisclosuresChapter 03The Balance Sheet and Financial DisclosuresTrue / False Questions1. The balance sheet reports a company's financial position at a point in time.True False2. A company's market value i
Virginia Tech - ECON - 1001
Chapter 04 - The Income Statement and Statement of Cash FlowsChapter 04The Income Statement and Statement of Cash FlowsTrue / False Questions1. Income from continuing operations sometimes includes gains from nonoperating activities.True False2. Intr
Virginia Tech - ECON - 1001
ch5Student: _1.Revenue is not recognized under the realization principle unless the earnings process is complete orvirtually complete and there is reasonable certainty about collectibility of the asset received.True2.Under IFRS, revenue from produc
Virginia Tech - ECON - 1001
ch6Student: _1.Compound interest includes interest earned on interest.True2.When interest is compounded, the stated rate of interest exceeds the effective rate of interest.True3.FalseAn annuity consists of level principal payments plus interest
Virginia Tech - ECON - 1001
ch7Student: _1.Cash equivalents would include investments in marketable equity securities as long as management intendsto sell the securities in the next three months.True2.From a financial accounting perspective, the main purposes of a system of i
Virginia Tech - ECON - 1001
ch8Student: _1.Physical counts of inventory are never done with perpetual inventory systems.True2.The main difference between perpetual and periodic inventory systems is the timing of the allocation ofcosts between inventory and cost of goods sold.
Virginia Tech - ECON - 1001
ch9Student: _1.In determining lower-of-cost-or-market, market is the expected selling price under normal operations.True2.Net realizable value is selling price less costs of completion and disposal.True3.FalsePurchase returns and purchase discou
Virginia Tech - ECON - 1001
ch10Student: _1.Property, plant, and equipment and intangible assets are long-term, revenue producing assets.True2.Sales tax paid on equipment acquired for use in the business is not capitalized.True3.FalseThe fair value of the asset, debt or eq
Virginia Tech - ECON - 1001
ch11Student: _1.The three factors in cost allocation of a depreciable asset are service life, allocation base, and allocationmethod.True2.The physical life of a depreciable asset sets the lower limit of its service life.True3.FalseOne of the ad
Virginia Tech - ECON - 1001
ch12Student: _1.Securities classified as held to maturity could be reported as either current or long-term in a classifiedbalance sheet, depending upon their maturity dates.True2.All investments in debt securities whose fair values are not readily
Virginia Tech - ECON - 1001
ch13Student: _1.Some liabilities are not contractual obligations and may not be payable in cash.True2.Amounts withheld from employees in connection with payroll often represent liabilities to third parties.True3.FalseFor a loss contingency to be
Virginia Tech - ECON - 1001
ch14Student: _1.The specific provisions of a bond issue are described in a document called a bond indenture.True2.Periodic interest expense is the stated interest rate times the amount of debt outstanding during the period.True3.FalseAn implicit
Virginia Tech - ECON - 1001
ch15Student: _1.At the inception of a lease agreement, the company's debt to equity ratio and rate of return on assets areboth affected whether the lease is classified as a capital lease or as an operating lease.True2.Capital leases are agreements
Virginia Tech - ECON - 1001
ch16Student: _1.A temporary difference originates in one period and reverses, or turns around, in one or more later periods.True2.Expenditures currently deducted in the tax return but not included with expenses in the income statementuntil subseque
Virginia Tech - ECON - 1001
ch17Student: _1.The projected benefit obligation may be less reliable than the accumulated benefit obligation.True2.The amount of the vested benefit obligation is less than the projected benefit obligation and more than theaccumulated benefit oblig
Virginia Tech - ECON - 1001
ch18Student: _1.Mandatorily redeemable preferred stock is reported as a liability.True2.Noncash assets received as consideration for the issue of stock are always valued based on the fair value ofthe stock.True3.FalseDividends in arrears on cum
Virginia Tech - ECON - 1001
ch19Student: _1.GAAP requires using intrinsic value accounting for employee stock options.True2.If previous experience indicates that a material number of stock options will be forfeited before they vest,the fair value estimate of the options on th
Virginia Tech - ECON - 1001
ch20Student: _1.Most, but not all, changes in accounting principle are reported using the retrospective approach.True2.Prior years' financial statements are restated when the prospective approach is used.True3.FalseBoth changes in reporting enti
Virginia Tech - ECON - 1001
ch21Student: _1.Amounts held in cash equivalent investments must be reported separately from amounts held as cash in thestatement of cash flows.True2.If the direct method is used to report cash flows from operating activities in the body of the sta
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425261234567891011121314151617181920212223
Virginia Tech - ECON - 1001
123456789101112123456789101112
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627282912345678910111213141516171819202122232425
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223242526272829123456789101112131415161718192021222324252627282930
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425262728293031123456789101112131415161718192021222324252627282930
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627282930313233343536373839123456789101112131415161718192021222324252627282930313233343536373839
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223123456789101112131415161718192021222324
Virginia Tech - ECON - 1001
12345678910111213141516171819202122123456789101112131415161718192021
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425262728293031323334353612345678910111213141516171819202122232425262728293031
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425261234567891011121314151617181920212223242526
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232412345678910111213141516171819202122232425
Virginia Tech - ECON - 1001
12345678910111213141516171819202112345678910111213141516171819202122
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223242526272829303132333435363712345678910111213141516171819202122232425262728293031323334353637
Virginia Tech - ECON - 1001
CHAPTER 13 PART 2-PROPERTY TRANSACTIONS: DETERMINATION OF GAIN OR LOSS,CHAPTER 13 PART2-PROPERTY TRANSACTIONS: DETERMINATION OFGAIN OR LOSS, BASIS CONSIDERATIONS, ANDNONTAXABLE EXCHANGESBASIS CONSIDERATIONS, AND NONTAXABLE EXCHANGES1. Louis sold his
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627282930313233341234567891011121314151617181920212223242526272829303132333435
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223242526272829303132123456789101112131415161718192021222324252627282930313233
Virginia Tech - ECON - 1001
1234567891011121314151617181920212212345678910111213141516171819202122
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627282912345678910111213141516171819202122232425262728293031323334
Virginia Tech - ECON - 1001
123456789101112131415161718192021221234567891011121314151617181920212223
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223242526272829303112345678910111213141516171819202122232425262728293031323334
Virginia Tech - ECON - 1001
1234567891011121314151612345678910111213141516171819
Virginia Tech - ECON - 1001
1234567891011121314151617181920212223242526272829303132333435363738394041421234567891011121314151617181920212223242526272829303132333435363738394041424344
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425262728123456789101112131415161718192021222324252627
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627282930313233343536123456789101112131415161718192021222324252627282930313233
Virginia Tech - ECON - 1001
CHAPTER 24-MULTISTATE CORPORATE TAXATIONCHAPTER 24-MULTISTATE CORPORATE TAXATION1. Roughly one-fifth of all taxes paid by businesses in the U.S. are to state, local, and municipal jurisdictions.True False2. Usually a business chooses a location where
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425262728293031323312345678910111213141516171819202122232425262728293031323334
Virginia Tech - ECON - 1001
123456789101112131415161718192021222324252627281234567891011121314151617181920212223242526272829303132
Virginia Tech - ECON - 1001
12345678910111213141516171819202122232425262728293031321234567891011121314151617181920212223242526272829
Virginia Tech - ECON - 1001
CHAPTER 28-INCOME TAXATION OF TRUSTS AND ESTATESCHAPTER 28-INCOME TAXATION OF TRUSTS AND ESTATES1. Trusts are created exclusively to reduce tax liabilities.True False2. A trust might be used by a newly elected politician.True False3. Like a partners
Ludwig Maximilians Universit├Ąt - ECON - 101
Running head: A NEW HOUSE - ECONOMYA New House - EconomyTina JagoszXECO/21204/27/2011Don MacLean1A NEW HOUSE - ECONOMY2A New House EconomyThe strength of the economyThe strength of the economy as a whole could affect the marginal benefits and t
UMBC - CHEM - 101
Section:KEYTeam:Manager:Blogger:Scribe:Researcher:101D week 2, doc 2Isotopes~ Are all atoms the same? ~GOAL(S)Investigate what an isotope isIdentify the components of an atomSKILL(S)Be able to calculate average atomic massThe Parts of an At
UMBC - CHEM - 101
101D week 5, doc 1Section Day, Time: Thursdays, 1-3PMTeam:PlutoniumManager:Shomaila ShaikhBlogger:Marcus GarciaScribe:Ashly McClureResearcher: Shomaila ShaikhPolar, Nonpolar and Ionic Bonds~ Lets play nice and try to share electrons. ~GOALSU
UMBC - CHEM - 101
101D week 5, doc 2Section Day, Time:Team:Manager:Blogger:Scribe:Researcher:Chemical Nomenclature~ Whats in a name?~GOALSLearn how to name molecular compoundsLearn how to name ionic compoundsUnderstand the patterns in chemical namesSKILLSBe a
UMBC - CHEM - 101
101D week 7, doc1Section Day, Time: Thursday 1-3Team: plutoniumManager:Ashly McClureBlogger:Scribe: Shomaila ShaikhResearcher: Marcus GarciaMolecular Shapes~ Shape up or ship out! ~GOALSUnderstand Valence Shell Electron Pair Repulsion (VSPER) th
UMBC - CHEM - 101
101D week 7, doc2Section Day, Time: Thursday 1-3Team: plutoniumManager:Ashly McClureBlogger:Scribe: Shomaila ShaikhResearcher: Marcus GarciaDipole Moments~ Special times for polar bonds, polar molecules, and polar bears? ~GOALSUnderstand how ele
UMBC - CHEM - 101
To pay for your CHEM 101 book, youre working at a fastfood restaurant wrapping hamburgers. Each hour you wrap184 hamburgers. You work 4 hours per day and 2 days perweek. You get paid every 2 weeks with a salary of $78.40.How many hamburgers will you h