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

1 mrs beach wants to invest a lump sum of money today to

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%? b. What would Mr ...

Tf question1under the modified accrual basis of accounting

T/F QUESTION 1 Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that benefit multiple periods. 2 In fund accounting, expenditures may be classified in differ ...

Problem -the stay healthy medical clinics balance sheet on

Problem - The Stay Healthy Medical Clinic's Balance sheet on December 31, 2014 showed an owner's equity of $1,280,000. The December 31, 2015 balance sheet showed an owner's equity of $1,520,000. During the year, the owne ...

Assignmenttravel-r-us inc travel is a publicly-traded

Assignment Travel-R-Us, Inc. (Travel) is a publicly-traded company with annual revenue of $370 million and a fiscal year ending May 31. Travel owns and operates three cruise ships serving Alaska, the Mediterranean, and t ...

Please be sure to show all of your work and calculations1

Please be sure to show all of your work and calculations. 1. From the below information, calculate the final balance to be carried forward in your check stubs as of the end of October. Oct. 1 beginning balance $1,200.50 ...

Internet case-citizen-centric reportingalthough citizens

Internet Case-Citizen-Centric Reporting Although citizens should be concerned about the performance of government, in truth, few citizens typically review the financial information provided by their government. In part, ...

Assignment- review of accounting ethics papermany

Assignment- Review of Accounting Ethics Paper Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Sear ...

Watch accounting witts video titled cash and accrual -

Watch Accounting WITT's video titled "Cash and Accrual - Conceptual": https://www.youtube.com/watch?v=aPwdgUDXkkE&feature=youtu.be Based on the video, explain two (2) advantages and two (2) disadvantages in using both th ...

Problem 3-2 lo 2 simple equity method adjustments

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital ...

Accounting theory and contemporary issues individual case

Accounting Theory and Contemporary Issues Individual case study Assignment- Assessment Description - Learning Outcome:  Research and argue a position in regard to a contemporary issue in the accounting profession. Evalua ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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