EXERCISE 5-1 (15-20 minutes)
1. Long-term investment. Fair Value-OCI investments are not held with the
intention of realizing direct investment gains. They are acquired for longer
term strategic purposes. Nonmonetary and is a Financial Instrument.
is the purpose of damages in tort law?
Distinguish between general and special
Why are employers held vicariously liable for
torts of employees?
Define: assault, battery, false imprisonment,
trespass, defamation, passing off,
As you study, bear these questions in mind. These are not the only questions
which may be on the exam but they should serve as a useful guide.
distinguish between the common law and the civil code.
what is precedent?
Negligence refers to inadvertent wrongful conduct that causes injury to another. To succeed in a
claim for negligence, a claimant must establish:
1. The existence of a duty of care.
2. A breach of that duty.
Is a duty
A tort is a social wrong, other than breach of contract, for which the law provides a remedy
Some torts are also crimes but if there are two trials, each is independent of the other
The burden of proof in the civil case is the balance of
Chapters 7 & 8
The statute of Frauds requires that certain contracts must be in writing. In particular, real estate
Capacity: contracts between adults and children are voidable at the option of the child unless
they are contracts for neces
EXERCISE 4-7 (15-20 minutes)
(a) Total net revenue:
Less: Sales discounts
Sales returns and
Net sales revenue
Total net revenue
(b) Net income:
Net revenue (from a)
BRIEF EXERCISE 4-1
(a)Pharmedical would have higher gross profit percentage
because it follows a cost differentiation strategy. Sunmart
is a discount retailer and follows a low cost/high volume
(b)Pharmedical would have higher selling expense as
EXERCISE 5-4 (35-40 minutes)
Statement of Financial Position
December 31, 2014
FV - NI Investments
Less allowance for doubtful accounts
Inventory, at lower of cost and net realizable
Yates Chapter 6
This chapter discusses the underlying rules of contract. In order to create an
agreement which the courts will enforce (a contract), that agreement must be
certain (as to content), agreed to, and must include an exchange of value.