Chapter 2 REVIEW Questions
2-25. Define fraud, and explain the two types of misstatements that are relevant to
auditors consideration of fraud.
(Ans.) Fraud is an intentional act involving the use of deception that results in
Chapter 3 REVIEW Questions
3-41. How does internal control benefit an organization?
(Ans.) Internal control benefits an organization by mitigating the risks of not
achieving its objectives. Internal control also gives an organ
Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership.
The articles of partnership include the following provisions regarding the division of net income:
interest on original investment at 10%, salary allowance
A partnership liquidation occurs when
a new partner is admitted
the assets are sold, liabilities paid, and business operations terminated
a partner dies
the ownership interest of one partner is sold to a new partner
The remaining cash of a partnership (af
The net income reported on the income statement for the current year Iwas $400,000. Depreciation recorded on store equipment
for the year amounted to $16,000. Balances of the current asset and current abity accounts at the beginning and end of the year
Bonds at face amount
Bonds at a discount
Issuing bonds at a premium
28,500,000 * 0.41464 (table at 4.5% (9%/2) 20 pmts
1,140,000 (28,500,000 * .08/2) * 13.00794 (table 4.5% and
The percentage on the table is: market rate / 2 semiannual
Let's say the partnership agreement says they divide income by a 3:2 ratio and they received
$200,000 net income.
To break it down you would:
Partner A is 3
Partner B is 2
A partnership is a joining of two people in this example so you add them together (
Investment in securities avil.
Prepaid Insurances (+)
Total Current Assets
Property, Plany and Equipment:
Buildings and Equipmen
Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20year, 7% callable bonds on
March 1, 2016 at their face amountI with interest payable on March 1 and September 1. The scal year
of the company is the calendar year.
Effect of Financing on Earnings per Share
Domanico Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 8% (issued at face
Preferred $5 stock, $10 par
Common stock, $20 par
Once you have reported all transactions a company has made for any given time what you do
next is organize them. To organize all transactions you would use what is called a financial statement.
This covers the income statement, statement
Account title and explanation
Other Current Assets
(To record the purchase of net assets)
Number Price per
of Shares Share
Acquired Company's Balance Sheet Before Purchase
In 1886 three brothers founded Johnson & Johnson in New Brunswick, New Jersey. In 1886 the
company published "Modern Methods of Antiseptic Wound Treatments. This quickly became a standard
teaching for sterile surgery in the U.S. Also in 1888 they had the
Dec 3, 2014
I chose to write my report on a A MODERN VIEW OF Inventory
Hadley, Scott W
Press the Escape key to close
. Strategic Finance 86.1 (Jul 2004): 30-35.
What I liked about this report was how it when through the roles f
October 11, 2014
Sparkling Sparkles, Inc.
Sparkling Sparkles, Inc. is a Louisville company that will provide a substantial inventory of
jewelry products and related services to customers in it targeted market. The compa
Allocation of the cost of a long-term asset to expense over its useful life.
Any consecutive, 12-month period that a business adopts as its accounting
The ending date of a business's fiscal year.
Accounting that records revenue when earned and expenses when incurred to
produce those revenues; recognizes the impact of transactions as they occur
regardless of whether t