Accounting

Multiple Choice Questions 1. For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except: A. identifiable assets acquired, at fair value.   B. liabilities assumed, at book value.   C. non-controlling interest, at fair value.   D. goodwill or a gain from bargain […]

ECONOMIC RESOURCES 2 1.   Gulf Consulting Co. reported the following on its December 31, 2011, balance sheet: Equipment (at cost) . . .$700,000 In a disclosure note, Gulf indicates that it uses straight-line depreciation over five years and estimates salvage value as 10% of cost. Gulf’s equipment averages 3.5 years at December 31, 2011. What is

Performance Report with More Than One Cost Driver [LO4, LO5]     The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professional administrative staff. Through a special arrangement with the actors’ union, actors and directors rehearse without pay and are paid only for actual

Critiquing a Report; Preparing Spending Variances [LO3, LO5, LO6]     Farrar University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool operated with 20 vehicles until February, when an

All applicable cases are available with McGraw-Hill’s Connect™ Accounting. CASE 9–26 All applicable cases are available with McGraw-Hill’s Connect™ Accounting. CASE 9–26 Ethics and the Manager [LO3]     Lance Prating is the controller of the Colorado Springs manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must

Critiquing a Report; Preparing a Performance Budget [LO1, LO4, LO6]     Facilitator Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, known as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes thatwould otherwise be due. The bookkeeper for the company has

  Critiquing a Cost Report; Preparing a Performance Report [LO1, LO4, LO6]   Sue Jaski, supervisor of the Karaki Corporation’s Machining Department, was visibly upset after being reprimanded for her department’s poor performance over the prior month. The department’s cost control report is given below:   “I just can’t understand all the red ink,” Jaski

Critiquing a Variance Report; Preparing a Performance Report [LO1, LO4, LO6]     Several years ago, Shipley Corporation developed a comprehensive budgeting system for profit planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A typical

More Than One Cost Driver [LO4, LO5]     Verona Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries

All applicable problems are available with McGraw-Hill’s Connect™ Accounting. PROBLEM 9–20 Activity and Spending Variances [LO1, LO2, LO3]   You have just been hired by SecuriDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us