Discussion : Case C - Sales (20,000 units) = Production (20,000 units)
Variable cost of goods sold
20,000 x P200
20,000 x P120
20,000 x P 20
20,000 x P10
Principles of Managerial Finance Solution
Lawrence J. Gitman
CHAPTERS IN THIS PART
The Cost of Capital
Leverage and Capital Structure
INTEGRATIVE CASE 4
OGRADY APPAREL COMPANY
Find out more at
International Accounting Standard 36
Impairment of Assets
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 36 Impairment of Assets was issued by the International Accounting Standards Committee in June 1998.
Reviewer for final exam
1 Fair company produces two versions of its product - the Regular model and the Premium model. Fair produces the regular model on
a regular basis. However, Fair produces the premium model only upon customer r
Communications Between Predecessor and Successor Auditors
AU Section 315
Communications Between Predecessor and
(Supersedes SAS No. 7.)
Source: SAS No. 84; SAS No. 93.
Effective with respect to acceptance of an engagement after Mar
Journal of Information Systems
Vol. 13, No. 1
Evaluation of Internal Control from a
Control Objective Narrative
Mary B. Curtis
University of North Texas
A. Faye Borthick
Georgia State University
ABSTRACT: Many accounting firms have ch
Auditing Case #3
Audit Risk and Analytical Procedures
Discussion Question 1
An independent auditor must document that an understanding of the audit engagement has been
established with the client. An en
AIS - 12th Edition
TEST BANK KEY
Chapter 10Debt Financing
1. For a liability to exist,
a. a past transaction or event must have occurred.
b. the exact amount must be known.
c. the identity of the party owed must be known.
d. an obligation to pay cash in the future must ex
Chapter 4The Income Statement
1. The transaction approach to determining income is a concept in which
a. income is measured as the amount that an equity could consume during a period and be as
well off at the end of that period as it was a
Part 1 : 07/28/10 08:46:46
Question 1 - CMA 678 4-12 - Classifications of Costs
Controllable costs are those that
A. Are governed mainly by past decisions that established the present levels of operating and organizational capacity
and that only change sl
Chapter 8Complexities of Revenue Recognition
1. An adjusting entry in which revenue is recognized and a receivable is established indicates that
revenue has been
OBJ: LO 1
Chapter 18Derivatives,Contingencies,Business Segments, and Interim Re ports
1. Uncertainty about the future market value of an asset is referred to as
a. price risk.
b. credit risk.
c. interest rate risk.
d. exchange rate risk.
Chapter 3The Balance Sheet and Notes to the Financial Statements
1. Balance sheet analysis is useful in assessing a firm's liquidity, which is the ability to
a. satisfy short-term obligations.
b. main profitable operations.
c. maintain pas
Chapter 16Income Taxes
1. Which of the following creates a permanent difference between financial income and taxable in come?
a. Interest received on municipal bonds
b. Completed contract method of recognizing construction revenue
Chapter 1Financial Reporting
1. The overall objective of financial reporting is to provide information
a. that is useful for decision making.
b. about an enterprise's assets, liabilities, and owners' equity.
c. about an enterprise's financ
Assignment 2: Chapter 4/5/6
Discussion Questions (Short answers)
1. Discuss the different types of e-commerce.
2. Give two examples from the Internet for each of the different revenue models used in ecommerce.
3. How do supply chains for service organizat
Chapter 2A Review of the Accounting Cycle
1. In an accrual accounting system
a. all accounts have normal debit balances.
b. a debit entry is recorded on the left-hand side of an account.
c. liabilities, owner's capital, and dividends all h
Chapter 19Earnings Per Share
1. Earnings per share disclosures are required only for
a. companies with complex capital structures.
b. companies that change their capital structures during the reporting period.
c. public companies.
Chapter 5The Statement of Cash Flows
1. A gain on the sale of a plant asset in the ordinary course of business should be presented in a
statement of cash flows prepared using the indirect method as
a. a cash inflow from investing activitie
The Professional CPA Review School
Chapter 7The Revenue/Receivables/Cash Cycle
1. An operating cycle
a. is twelve months or less in length.
b. is the average time required for a company to collect its receivables.
c. is used to determine current assets when the operating cy
Chapter 6-Earnings Management
1. The cost of capital is defined as
a. the simple average of the interest rates of all debt outstanding.
b. the simple average of the cost of debt and equity.
c. the weighted average of the interest rates of
Chapter 13Investments in Noncurrent Operating Assets-Utilization & Retirement
1. Depreciation of noncurrent operating assets is an accounting process for the purpose of
a. reporting declining asset values on the balance sheet.
Chapter 14Investments in Debt and Equity Securities
1. Which securities are purchased with the intent of selling them in the near future?
a. Marketable equity securities
b. Available-for-sale securities
c. Trading securities
Chapter 9-Inventory and Cost of Goods Sold
1. Activity-based cost (ABC) systems are designed to allocate direct labor costs to manufacturing
2. Work in process inventories include only the costs of direct materials and direct
and federal tax policies, and general economic
conditionsare outside the firms control. However, the firms decisions regarding how it raises
capital and how it invests those funds also have a
profound effect on its cost of capital
Chapter 21Analysis of Financial Statements
1. A useful tool in financial statement analysis is the common-size financial statement. What does
this tool enable the financial analyst to do?
a. Evaluate financial statements of companies withi
Chapter 12Investments in Noncurrent Operating Assets-Acquisition
1. Kramer Service Corporation bought a building lot to construct a new corporate office building.
An older home on the building lot was razed immediately so that the office b
Asian Financial Crisis
period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of
a worldwide economic meltdown due to financial contagion.
Currency markets first failed in Thailand as the result of the government
When choosing a loan for your small business, there are
several factors to address to determine the type of loan your
Length of time before the loan matures
There are t
NARRATOR 1: There was once a young man
named Kimana. He wanted to marry the Sky
Maiden. He wrote a letter to her father, the
KIMANA: (reads letter as he writes) I,
Kimana, a man of earth, wish to marry the
Sky Maiden, your daughter.
A space where automobiles are not allowed to park
Caution Wet Floor
is used to warn people about
wet floors and to
prevent them from slipping and falling.
Watch Your Children
is used to warn parents to carefully watched their
Microscope is said to be one of the most essential tools in biology. This is used to
be able to make small things appear larger and be magnified. It involves the use of light
which passes through the lens to enlarge objects that being analyzed.