xid-811050_1 - MGT120 Winter 2008 Test #1 - Solutions Part...

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MGT120 Winter 2008 Test #1 - Solutions Part A (10 marks) 1 b 2 b 3 c 4 c 5 d 6 c 7 a 8 c 9 b 10 d Part B ( 14 marks) Halcyon Stress Reduction Statement of Profits 2006 Therapy fees 93,000 Expenses: Rent 12,000 Utilities 360 Telephone 2,340 Office Salaries 18,000 Office Supplies 725 Miscellaneous 2,400 Amortization 500 36,325 Net Income 56,675 Support Therapy Fees 115000 o/b 30000 8000 93000 Rent Utilities 13000 360 1000 12000 a)relates to pre- 2006 B)fees for 2006 not collected
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g) $13,000/13 months = $1,000 ** remove January rent Office Salaries Office Supplies (Assets) 16500 Purchases 900 1500 Opening 125 725 used 18000 Closing 300 e) 18000/12mths = $1,500 d)** Opening Balance $125 + 900 - 300 = 725 Amortization Exp Office Supplies (Expense) 500 725 c)** 5,000/10 years b) accepted standard - revenue principle - record revenue when earn not received - matching principle - best indicator of performance c) - other liability or asset - business reputation / location/ type of customer - current ratio/debt ratio
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This note was uploaded on 04/21/2008 for the course MGT 120 taught by Professor Zuliani during the Spring '08 term at University of Toronto.

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xid-811050_1 - MGT120 Winter 2008 Test #1 - Solutions Part...

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