Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: Company X purchased all of the outstanding stock of company Y for $3,000,000 in cash. At the date of the acquisition company Y’s stockholders’ equity consisted of $2,250,000 of common stock and $250,000 of retained earnings. What is the amount of the difference between cost and book value of the subsidiary interest:

a. Excess of cost over book value of subsidiary interest of $500,000
b. Excess of cost over book value of subsidiary interest of $750,000
c. Excess of book value over cost of subsidiary interest of $500,000
d. Excess of book value over cost of subsidiary interest of $750,000

problem 2: On May 10, 2011 a sale on account for $20,000 to a Mexican company was billed for 250,000 pesos. The exchange rate was $0.08 per peso on the date of the sale. On May 17, 2011 the cash was received on account and the exchange rate was $0.10 per peso. Which of the following statements identifies the exchange gain or loss related to this transaction at the end of the fiscal year (December 31, 2011):

a. Realized exchange loss of $5,000
b. Realized exchange gain of $5,000
c. Unrealized exchange loss of $5,000
d. Unrealized exchange gain of $5,000

problem 3
: Which of the given is an ex of a cash flow from a financing activity:

a. Payment of cash for dividends
b. Payment of cash to acquire marketable securities
c. Receipt of cash from the sale of equipment
d. Receipt of cash from customers on account

problem 4: What type of analysis is indicated by the following:

 a. Contribution margin analysis
 b. Differential analysis
 c. Horizontal analysis
 d. Vertical analysis

problem 5: The ratio determined by dividing quick assets (cash, receivables and marketable securities) by total current liabilities is:

a. Acid-test ratio
b. Current ratio
c. Debt to equity ratio
d. All of the above

problem 6: Which of the following is generally considered a variable cost:

a. Indirect labor cost
b. Direct materials cost
c. Factory overhead cost
d. Sales salaries

problem 7. If the factory overhead account has a debit balance the factory overhead is said to be:

a. In error
b. Over-applied
c. Over-absorbed
d. Under-applied

problem 8: For which of the following would the process cost system be appropriate:

a. Antique furniture repair shop
b. Building contractor
c. Custom bike manufacturer
d. Oil refinery

problem 9: Suppose sales are $800,000, variable costs are $600,000, and fixed costs are $100,000. What is the contribution margin ratio:

a. 12.5%
b. 25%
c. 37.5%
d. 87.5%

problem 10:The process by which management allocates investment funds among competing capital investment oppurtunities is termed as:

a. Capital leasing
b. Capital prioritization
c. Capital rationing
d. Capital expenditure budgeting

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92840

Have any Question? 


Related Questions in Accounting Basics

Question 1the financial statement that shows revenue and

Question 1 The financial statement that shows revenue and expenses for a period of time is the A. balance sheet. B. income statement. C. statement of owner's equity. D. statement of cash flows. Question 2 If a company's ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

1you have been hired by the cfo of strayer university to

1.You have been hired by the CFO of Strayer University to develop a plan to protect its accounting and financial systems at a reasonable cost. Suggest a high-level plan for the CFO. Provide support for your suggestion. B ...

Accounting information systemsquestion 1a describe five

Accounting Information Systems Question 1 a) Describe five technologies that can support electronic commerce. b) List and explain five main reasons for implementing AIS in organizations. c) What is the role of a database ...

Why does it matter whether social security is considered a

Why does it matter whether Social Security is considered a pension plan or an entitlement program? How does the FASAB direct that Social Security be reported? What unique issues does the federal government face in calcul ...

Payrolllocate a payroll processing company you may either

Payroll Locate a payroll processing company. You may either contact one in person, by telephone, or conduct an Internet search. Write a brief report describing the advantages and disadvantages of using a payroll processi ...

Asignment1 the function is one-to-one on the interval

Assignment (1) The function is one-to-one on the interval . Find a formula for the inverse function on that domain. Sketch the graphs of and for on the same set of x,y-axes. (2) Show is one-to-one on the interval . (Just ...

Accounting for nonfinancial assets will experience some

Accounting for nonfinancial assets will experience some major changes with the convergence to IFRS. One of the key issues will be that of fair value. Research this topic, and give your argument for or against the use of ...

Forwards and options respond to each of the following

Forwards and Options Respond to each of the following questions (notice that there are main questions and sub-questions below some of the main questions - don't miss any!) 1. Suppose you enter into a long 6-month forward ...

Assignment reorganizationtarget corporation holds assets

Assignment: Reorganization Target Corporation holds assets with a fair market value of $4 million (adjusted basis of $2.2 million) and liabilities of $1.5 million. It transfers assets worth $3.7 million to Acquiring Corp ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen