finact2 - from 2009 to 2008 accounts payable from 1.2 to...

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1) B-contra-accounts but allowance account is contra asset account, not contra revenue 2) A-violates premise of separation of duties-someone else should be counting it out 3) B-patent is amortized-lesser of 20 yrs or economic life-15 yrs remaining-6000/15 yrs = 400 dollars a year 4) B-everything you give up is part of cost-500,000 in cash, 6,000 shares of stock- record at market value not par value-240,000, 25,000 acquisition cost 5) C-asset turnover-accelerated gives you more dep so less book value-less book value going into-more terms 6) C-double-declining balance because 200%-800,000x8% (4% is 25 yrs of 200 percent)-800,000-64,000=736,000x8%=5,888 7) C-24,000/30,000 tons=.8 x 4000 = 3200 8) B-6000-600=5400/4=1350 9) B-cash flows not pure expense-3 components-cogs is 15, inventory 2.9 to 3.1
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Unformatted text preview: from 2009 to 2008, accounts payable from 1.2 to 1.4 from 2009 to 2008—changes .2 which cancel each other out-cogs only factor so its 15 bill 10) C-LIFO-inv smallest, lowest gross profit and net income-FIFO gives biggest inventory-cogs only thing low for fifo in inflation 11) D 12) A-fob destination-seller owns merchandise until it reaches the destination-shipping point means when it leaves their dock it’s yours 13) A 14) E-always use beginning inventory…?? 15) B 16) D 17) E-not possible with fifo or lifo-cogs and inventory can’t be measured at oldest cost-something has to be oldest and something has to be newest 18) C 2)timing differences-items you didn’t know you had yet outstanding checks don’t go on general journal...
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This note was uploaded on 03/01/2009 for the course AEM 2210 taught by Professor Little,j. during the Fall '07 term at Cornell.

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