3.3.4 Desired Changes
3.3.4.] Changes to improve customer satisfaction and quality of services provided
37.7% of the customers interviewed wanted to see improvement in staff ethics in the
Ministry; 17.1% wanted services speeded up; while 18% wanted the Mi
3.2.8. 7 Reason-able explanation given in case ofdeiay in service provision
62.3% of the corporate customers were satisfied with the explanation given by the Ministry
of Finance in case of delay in service provision. 25.8% were not satisfied. while 9.3% w
19. In a statement of cash flows. proceeds from issuing equity instruments should be
classified as cash inflows from
a. lending activities.
b. operating activities.
c. investing activities.
d. financing activities.
Ans: D. LD: 4. Bloom: C. Difficulty: Mod
Statement of Cash Flows
For the Tvvelve Months Ended December 31, 2015
cash flovvs from operating activities:
Gain/loss on sale of asset
Increase/decrease in Accounts receivable
184.108.40.206 Being the custodian of government assets and property ensuring the stability.
development and soundness of the nancial sector through semi autonomous
government agencies under the Ministry
54.6%- of the respondents rated the Ministry positively i
28. Keck Co. had 300 units of product A on hand at January 1, 2017, costing $21 each.
Purchases of product A during January were as follows:
Date Units Unit Cost
Jan.10 400 $22
18 500 23
28 200 24
A physical count on January 31, 2017 shows 400 units o
NOTE: AlThough T is roble is di 3 e o aT ound in T 2 ext you may use The
working papers designed for Problem 5lB in solving This problem.
Mercado Company's invenTory TransacTions in The fiscal year ended December 31, 2002,
Jan. 1 Beginning InvenTo
11. A common set of accounting standards and procedures are called
a. financial accounting standards.
b. generally accepted accounting principles.
c. objectives of financial reporting.
d. statements of financial accounting concepts.
Ans: b. LC: 1. Bloom:
ACCOUNTING COMPETENCY EXAM
The accounting process does not include:
a. interpreting d. observing
b. reporting e. classifying
The nancial statement or statements that pertain to a stated period of time is (are) the:
Ex. AimsClassification of income statement and retained earnings statement items.
For each of the items listed below, indicate how it should be treated in the financial statements.
Use the following letter code for your selections:
a. Continuing operation
220.127.116.11 Excellence in Delivery of Quality Services
Most of the customers (64.1%) were satisfied with the extent to which Ministry of Finance
strived to create excellence in delivery of quality service, with 38.5% saying they were
merely satisfied, 14% sli
7. During September Hernandezs bookkeeper recorded a $160 deposit in the journal as
8. Check #986, for $125, was outstanding at the end of August. It was not included in the
September bank statement, and had not been presented for payment.
CHAPTER 9 CLASS EXERCISES
I. On 11/16/317, France Company borrowed $75,000 on a bank note for 60 days at 6% interest. Prepare the
Nova] 6, 20x7
Dec .31 , 20X7
What is the effect on the financial statements if the Dec. 31, A
6. When a company has cash available in another account in the same bank at which an
overdraft has occurred, the company will:
a. offset the overdraft against cash account.
b. report the same in the notes to financial statement.
c. report the bank overdra
Beginning Balance of Accounts Receivable= $100,000
Sales on Account: $500,000
Collections on Account: $400,000
Beginning Bal of Allowance for Uncollectible Accounts = $100 (Cr.)
Uncollectible Accounts estimate: 1% of credit sales
. Result from sales on account [credit sales), not cash sales.
. May also result from credit card sales if there is a delay between when sale is
made and when the cash is received from the credit card company.
16. Wise Company adopted the dollar-value LIFO method on January 1, 2017, at which time
its inventory consisted of 6,000 units of Item A @ $5.00 each and 3,000 units of Item B
@ $16.00 each. The inventory at December 31, 2017 consisted of 12,000 units of
The T-Bond is shown to be independent of the state of economy because the rate of return of the T-bond is known as the risk
free rate, and they are
Overview of careers
Investment Banking - Intermediaries between a client/company and
investors/private equity firms.
Disciplined, driven, attention to detail
companies include Goldman Sachs, Morgan Stanley, Greenhill
Fund Management - research driven (va
WACC- marginal after tax cost
Pecking order= Rd(cost of debt, Rp( Preferred), Rs (Equity)
Cost of Debt- Rd
-observe the current YTM on a firms bonds
-if no debt, then look at company in same industry
-estimate the bond rating
Dr. Michael Long
BOND PROBLEMS 1
1. A $1000 par value bond has an original maturity of 15 years and a coupon rate of 3% paid annually.
Given this information, answer the following questions:
a. Find the price of the bond at th
Example Capital Budgeting Problem 4
You are trying to decide whether to replace your old HVAC System with a new more efficient HVAC.
The old HVAC originally cost $15,000, and is now 5-years old. It is being depreciated under 7-year
MACRS. If replaced, it
Dr. Michael Long
Example Capital Budgeting Problems 2
(see Appendix 12A for MACRS Depreciation Table in Ch. 12)
1. Smyrna Corp is considering purchasing forklifts to increase productivity. Evaluate the following CFs for Electric
Capital Budgeting Problem 3
Your firm is considering replacing its current Widget machine with a newer, more efficient
The Old Machine is 3 years old, originally cost $75,000, and is being fully depreciated using
The Old Mach
Capital Budgeting Problems 3
Solution to In Class EXAMPLE Bugeting Problem - Widgets
- Old Machine