010:603:41 Income Taxation
Professor Jay A. Soled
Mon. (6 9 p.m.)
1 Washington Park (Room 904)
Office Phone Number: (973) 353-1727
Email Address: firstname.lastname@example.org
A tentative syllabus has been prepa
Variable costs- Costs that vary in total directly and proportionately with changes in the activity level. If the level increases 10%,
total variable costs will increase 10%. If the level of activity decreases by 25%, variable costs will decrease
- Types of business that can apply managerial accounting
- Components of Raw Materials
c. Product Cost- Direct materials, direct labor, and manufacturing overhead. Product costs are costs that are a necessary part of producing the
1. What are the Benefits of Budgeting?
a. It requires all levels of management to plan ahead and to formalize goals on a recurring basis.
b. It provides definite objectives for evaluating performance at each level of responsibility.
c. It creates an early
1. Definition of Manufacturing Costs- Manufacturing consists of activities and processes that convert raw materials into
finished goods. Manufacturing costs are classified as direct materials, direct labor, and manufacturing overhead.
4 April 2016
Greeting Inc. Case Study
1. Define and explain the meaning of a manufacturing overhead rate that is applied in
a job order costing system.
a) A predetermined overhead rate is based on the relationshi
Intermediate Accounting 2
16 October 2015
What are the major perceived deficiencies which the standards setters are seeking to address? Is
there a difference in the perceptions of the lessees/users compared to primary lessors (banks, independent
Chapter 10 Liabilities
Bearer (coupon) bonds Bonds not registered in the name of the owner.
Bond certificate A legal document that indicates the name of the issuer, the face
value of the bonds, the contractual interest rate and maturity date of the
Chapter 6 Inventories
Average-cost method Inventory costing method that uses the weighted-average
unit cost to allocate to ending inventory and cost of goods sold the cost of goods
available for sale. (New average each time company makes a purchase
Chapter 2 The Recording Process
Account A record of increases and decreases in specific asset, liability, or
stockholders' equity items.
Chart of accounts A list of accounts and the account numbers that identify their
location in the ledger.
Chapter 1 Accounting in Action
Accounting The information system that identifies, records, and communicates the
economic events of an organization to interested users.
Assets Resources a business owns.
Balance sheet A financial statement that repor
Chapter 13 Statement of Cash Flows
Direct method A method that shows operating cash receipts and payments, making
it more consistent with the objective of the statement of cash flows.
Financing activities Cash flow activities that include (a) obtai
Chapter 12 Investments
Consolidated financial statements Financial statements that present the assets
and liabilities controlled by the parent company and the total revenues and
expenses of the subsidiary companies.
Controlling interest Ownership o
Chapter 8 Accounting for Receivables
Accounts receivable Amounts owed by customers on account.
Accounts receivable turnover ratio A measure of the liquidity of accounts
receivable; computed by dividing net credit sales by average net accounts recei
Chapter 5 Accounting for Merchandising Operations
Contra-revenue account An account that is offset against a revenue account on the
Cost of goods sold The total cost of merchandise sold during the period.
FOB destination Freight t
Chapter 11 - Corporations: Organization, Stock Transactions, Dividends, and
Authorized stock The amount of stock that a corporation is authorized to sell as
indicated in its charter.
Cash dividend A pro rata distribution of cash t
Chapter 3 Adjusting the Accounts
Accrual-basis accounting Accounting basis in which companies record
transactions that change a company's financial statements in the periods in which
the events occur.
Accruals Adjusting entries for either accrued r
Chapter 4 Completing the accounting cycle
Classified balance sheet A balance sheet that contains standard classifications or
Closing entries Entries made at the end of an accounting period to transfer the
balances of temporary accounts to
Chapter 9 Plant Assets, Natural Resources, & Intangible Assets
Accelerated-depreciation method Depreciation method that produces higher
depreciation expense in the early years than in the later years.
Additions and improvements Costs incurred to in
Chapter 7 Fraud, Internal Control, and Cash
Bank reconciliation The process of comparing the bank's balance of an account
with the company's balance and explaining any differences to make them agree.
Bank service charge A fee charged by a bank for
Income Tax Chapter 8 (part 1)
Deductions for exemptions/itemized deductions phase out (handout, ch 6 appendix A & B)
Self-employment tax (handout)
Additional Medicare tax (handout)
Taxation of a dependent
o For an individual who is eligible to be clai
The residual interest in a corporation belongs to the
c. common stockholders.
d. preferred stockholders.
The pre-emptive right of a common stockholder is the right to
a. share propo
a. any accounts having credit balances after closing entries are made.
b. deferred credits that are recognized and measured in conformity with generally
accepted accounting principles.
MULTIPLE CHOICEDilutive Securities, Conceptual
a. have priority over other indebtedness.
b. are usually secured by a first or second mortgage.
c. pay interest only in the event earnings are sufficient to cover the interest
1. Amy and Jay Golden
a. Since we have a very basic service-type firm, can a simple accounting system be developed?
Yes, since their firm is relatively new, a simple accounting system that allows them the
freedom to grow and ch
State and Local Governments
1. Which of the following statements is true regarding the definition of a fund?
2. Which of the following statements is true regarding the basic financial statements of a state or
Case: Traditional and Activity-Based Costing (ABC) Systems
Traditionally, job-order and process costing systems allocate indirect (support) costs in
1. To operating departments (first stage allocation) in proportion to the direc
Answers to Assignment 1-B
1) (1) Using overtime production would spread fixed costs over more units, thus lowering unit fixed (and
total) cost. However, workers become less efficient in overtime and cost per hour increases,