...on their cost and on the use of accruals. 3. Describe interest rates and the basic types of unsecured bank sources of short-term loans. 4. Discuss the basic features of commercial paper and the key aspects of international short-term loans. 5. Explain the characteristics of secured short-term loans and the use of accounts receivable as short-term-loan collateral. 6. Describe the various ways in which inventory can be used as short-term-loan collateral. ( True/False 1. Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations of the firm. Answer: FALSE Level of Difficulty: 1 Learning Goal: 1 Topic: Accounts Payable 2. Notes payable can be either spontaneous secured or spontaneous unsecured financing and result from the normal operations of the firm. Answer: FALSE Level of Difficulty: 1 Learning Goal: 1 Topic: Notes Payable 3. Accounts payable result from transactions in which merchandise is purchased but no formal note is signed to show the purchaser’s liability to the seller. Answer: TRUE Level of Difficulty: 1 Learning Goal: 1 Topic: Accounts Payable 4. In credit terms, EOM (End-of-Month) indicates that the accounts payable must be paid by the end of the month in which the merchandise has been purchased. Answer: FALSE Level of Difficulty: 1 Learning Goal: 1 Topic: Analyzing Credit Terms 5. Accruals are liabilities for...
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...MKTG572 Basis For Interest Topic Form MKTG572 Marketing Basis For Interest Topic: Due Week One Complete this form and submit it to the Week 1 Basis For Interest Dropbox. Your instructor must approve your idea, and will give you feedback and suggestions if you need help. You have several options when choosing a product or service for your Basis For Interest plan. Consider choosing a new product for a new company (your own) or creating a new product for an existing company. Basis For Interest TOPIC Your Name: Nelson Michael Diaz Product or Service Idea: Business Plan Template Will your product or service be offered by: ____an existing company? X a new company imagined for the assignment? Explanation: I started a small company a few years ago that provided a service to young entrepreneurs that didn’t have the knowledge base to get their ideas off the ground. I targeted this portion of the population because I have always been an advocate of small businesses and the impacts they have on the economy. As business has grown I have come up with a product that will allow me to reach more individuals, while also teaching them the steps needed to create a successful business plan. This product will be a full business plan template that will have each section mapped out ,highlighting what objectives need to be achieved. The financial section will have all the formulas prepared in excel spreadsheet format and will entail all projections and calculations that...
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...financial assets? A) moneyness B) multiplicity and denomination C) reversibility D) cash flow Answer: B Comment: The eleven properties of financial assets are (1) moneyness, (2) divisibility and denomination, (3) reversibility, (4) cash flow, (5) term to maturity, (6) convertibility, (7) currency, (8) liquidity, (9) return predictability, (10) complexity, and (11) tax status. Diff: 2 Topic: 9.1 Properties of Financial Assets Objective: 9.1 the many key properties of financial assets: moneyness; divisibility and denomination; reversibility; cash flow and return; term to maturity; convertibility; currency; liquidity; return predictability or risk; complexity; and tax status 2) Which of the below is NOT one of the eleven properties of financial assets? A) convertibility B) currency C) liquidity predictability D) tax status Answer: C Comment: The eleven properties of financial assets are (1) moneyness, (2) divisibility and denomination, (3) reversibility, (4) cash flow, (5) term to maturity, (6) convertibility, (7) currency, (8) liquidity, (9) return predictability, (10) complexity, and (11) tax status. Diff: 2 Topic: 9.1 Properties of Financial Assets Objective: 9.1 the many key properties of financial assets: moneyness; divisibility and denomination; reversibility; cash flow and return; term to maturity; convertibility; currency; liquidity; return predictability or risk; complexity; and tax status 1 Copyright © 2010 Pearson Education Inc. Publishing as Prentice Hall 3) Which of the...
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...No. 2014-17 November 2014 Business Combinations (Topic 805) Pushdown Accounting a consensus of the FASB Emerging Issues Task Force An Amendment of the FASB Accounting Standards Codification® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. For additional copies of this Accounting Standards Update and information on applicable prices and discount rates contact: Order Department Financial Accounting Standards Board 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 Please ask for our Product Code No. ASU2014-17. FINANCIAL ACCOUNTING SERIES (ISSN 0885-9051) is published quarterly by the Financial Accounting Foundation. Periodicals postage paid at Norwalk, CT and at additional mailing offices. The full subscription rate is $242 per year. POSTMASTER: Send address changes to Financial Accounting Standards Board, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116. | No. 406 Copyright © 2014 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval...
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...author, is false, or at least outdated. The author supported his claim with the premise that, a recently published survey indicated that 79% of the nearly 1,200 workers who responded to the survey questionnaires expressed a high level of interest in the topics of corporate restructuring and redesign of benefits programs. However, a critical review of the claim and its premise cast some doubts on the validity of the argument. First, corporate restructuring and redesign of benefit programs is a small part of management issues and thus cannot be used as a basis to say workers have interest in management issues. Second, for workers to have merely indicate on a questionnaire that they have interest in the topics of corporate restructuring and design of benefit programs is not enough to conclude that they actually do it in reality. Finally, a generalization made from the result of a survey with a sample size of 1,200 workers without stating the population size is not adequate. First and foremost, the discussion will touch on the inadequacy of the premise as against the claim. With this, I state that, corporate restructuring and redesign of benefit programs is a small part of management issues and thus cannot be used as a basis to say workers have interest in management issues. Management issues encompass several measures. These are inclusive of spinning of departments into agencies to enhance efficiency, changing of product lines, merging with or acquiring of other firms and so on. Again...
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...value is the sum of the old value plus the new. C. Managers can make correct corporate decisions that will satisfy all shareholders if they select projects that maximize value. D. The determination of value must consider the timing and risk of the cash flows. E. None of the above. Difficulty level: Medium Topic: Mm Proposition I 2. Financial leverage impacts the performance of the firm by: A. increasing the volatility of the firm's EBIT. B. decreasing the volatility of the firm's EBIT. C. decreasing the volatility of the firm's net income. *D. increasing the volatility of the firm's net income E. None of the above. Difficulty level: Medium Topic: Financial Leverage Difficulty level: Medium Topic: Mm Proposition I 3. The change in firm value in the presence of corporate taxes only is: A. positive as equity holders face a lower effective tax rate. *B. negative as equity holders gain the tax shield on the debt interest. C. negative because of the increased risk of default and fewer shares outstanding. D. negative because of a reduction of equity outstanding. E. None of the above. Difficulty level: Medium Topic: Firm Variation with Corporate Taxes 4. Bryan invested in Bryco, Inc. stock when the firm was financed solely with equity. The firm is now utilizing debt in its capital structure. To unlever his position, Bryan needs to: A. borrow some money and purchase additional shares of Bryco stock. *B. sell some shares...
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...Topic: Apply valuation techniques to determine the intrinsic value of debt and equity instruments. Question: Assume that the par value of a bond is $1,000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true? Answer Rationale: The current yield is typically equal to the coupon rate when the bond is first issued. If the current yield is greater than the coupon rate, the par value of the bond is greater than the market value. | Topic: Apply valuation techniques to determine the intrinsic value of debt and equity instruments. Question: If the yield to maturity for a bond is less than the bond's coupon rate, the market value of the bond is __________. Answer Rationale: The yield to maturity of a bond and the bond’s market value has an inverse relationship. If the yield to maturity decreases, that means that the market value has increased. | Topic: Analyze how markets adjust for risk. Question: For investors, the proper measure of a stock's risk is its __________. Answer Rationale: Specific and nonsystematic risk deal with specific instances of something happening and standard deviation measures variance. | Topic: Analyze how markets adjust for risk. Question: A company’s beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price? Answer Rationale: Beta is a measure of volatility. The higher the beta, the more volatile the stock. A negative beta means...
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...Client Understanding Paper Sharon Sherman ACC/541 December 13, 2010 Rebecca Kime Client Understanding Paper To be able to complete the analysis of the work papers of the current clients’ work papers certain information must be obtained. The topics of the information requested are the (1) adjusting lower cost of market inventory on valuation, (2) capitalizing interest on building construction, (3) recording gain or loss on asset disposal, and (4) adjusting goodwill for impairment. To alleviate the concern of the client of why the information is requested analysis of each topic and its importance will be discussed in this paper. The adjusting lower cost of market inventory valuation is essential because through the life cycle of inventories the inventories will decline in value. Although the primary basis of accounting for inventories is cost when when inventories usefulness become lower than cost then the use of adjusting lower cost of market is accepted. There are many advocates that think that inventories should be valued at market price. The belief is assets should reflect current values. Generally Accepted Accounting Principles instructs that when inventories decline in value the future selling price should move in the same direction in the same time period. The American Institute of Certified Public Accountants provides the following definitions for use when applying the lower cost or market rule to inventories. These definitions are: 1. Market should not...
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...an acquirer obtains control of one or more businesses, acquirees. In mergers and acquisitions, pushdown accounting applies to the separate financial statements of an acquiree and it reflects the acquirer’s new basis of accounting for the acquiree’s assets and liabilities. It is a method of accounting that was required under US GAAP if the purchase transaction resulted in an entity becoming substantially wholly owned. The securities and exchange commission (SEC) stated that pushdown accounting was required if 95% or more of the company was acquired, permitted if 80% to 95% was acquired, and prohibited if less than 80% of the company was acquired. Generally accepted accounting principles (GAAP) offered limited guidance for determining whether and at what threshold an acquiree can reflect the acquirer’s accounting and reporting basis in its separate financial statements. The Accounting Standards Update, No. 2014 – 17, Business Combinations Topic 805 – Pushdown Accounting, made the guidance optional so the acquiree could choose based on facts and circumstances, including the user’s needs, to implement or not pushdown accounting. Control of an acquiree is obtained in various ways including: • Transfer of cash or other assets • Incurred liabilities • Issue equity interests • Providing more than one type of consideration • Without the transfer of consideration (805-10-25-11) o Acquiree repurchases a sufficient number of its own shares for an existing investor, acquirer, to obtain...
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...Proposed Accounting Standards Update (Revised) Issued: May 16, 2013 Comments Due: September 13, 2013 Leases (Topic 842) a revision of the 2010 proposed FASB Accounting Standards Update, Leases (Topic 840) This Exposure Draft of a proposed Accounting Standards Update of Topic 842 is issued by the Board for public comment. Comments can be provided using the electronic feedback form available on the FASB website. Written comments should be addressed to: Technical Director File Reference No. 2013-270 The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. Notice to Recipients of This Exposure Draft of a Proposed Accounting Standards Update The Board invites comments on all matters in this Exposure Draft and is requesting comments by September 13, 2013. Interested parties may submit comments in one of three ways: Using the electronic feedback form available on the FASB website at Exposure Documents Open for Comment Emailing a written letter to director@fasb.org, File Reference No. 2013270 Sending written comments to ―Technical Director, File Reference...
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...first was the ongoing need to apply and improve writing skills. The second was to provide an opportunity for the student to select a project management topic of particular interest and expand their knowledge on that topic. Hopefully, this will allow the student to put their time into investigating aspects of a topic that holds their interest, allowing them to enjoy the effort. It should be noted, that while the student has latitude as to the final topic selection the instructor has established the following selection parameters. The topic selected must be from one of the nine (9) project management areas presented in the text. That is not to suggest that you must address an entire knowledge area. You will discover that each of the knowledge areas is actually composed of multiple topics within the context of the larger subject area. Topic Selection Approach It is recommended that you read the 9 chapter summaries to begin to narrow down the topics that interest you most. When you have identified 3 or so that you think are good candidates I suggest you do a little research on each to see what is available and increase your knowledge of the that subject matter. Once you have selected a topic you will be required to submit it, and a minimum of three (3) research sources, to the instructor for approval. When a topic has been approved it can be changed, with the approval of the instructor, at anytime prior to submission. Paper Perspective As stated, the basic...
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...Relations Review; Sloan Management Review). Organizational Behavior/Human Resources Management Behavior Systems and Management Thought The objective of this course is to explore the evolution and development of management theory with particular emphasis on the design of behavioral systems in organizations. It is a core premise of the course that the design of systems to manage people in organizations is based on a set of assumptions about humans that are part of the managerial theory that guides the formation and operation of complex organizations. Management theory and the models of human beings that are incorporated in them need not be formally articulated statements. They are often implicit as values, assumptions and beliefs that form the basis for organization and action. This seminar will examine a range of formal and informal management theories and the various models of human beings that are explicit and...
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...financial statements Revised November 2013 Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements To our clients and other friends This Financial reporting developments (FRD) publication is primarily designed to help you understand financial reporting issues related to the accounting for noncontrolling interests. This publication also includes interpretive guidance on consolidation procedure and on the presentation of combined, parentonly, and consolidating financial statements. The publication reflects our current understanding of the relevant guidance in these areas, based on our experience with financial statement preparers and related discussions with the FASB and SEC staffs. The accounting for noncontrolling interests is based on the economic entity concept of consolidated financial statements. Under the economic entity concept, all residual economic interest holders in an entity have an equity interest in the consolidated entity, even if the residual interest is relative to only a portion of the entity (that is, a residual interest in a subsidiary). Therefore, a noncontrolling interest is required to be displayed in the consolidated statement of financial position as a separate component of equity. Likewise, the consolidated net income or loss and comprehensive income or loss attributable to both controlling and noncontrolling interests is separately presented on the consolidated statement of...
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...13 chapter TAX ACCOUNTING OBJECTIVES After completing Chapter 13, you should be able to: 1. List what are permissible tax years. 2. Explain the requirements for changing a tax year. 3. Identify the available accounting methods. 4. Understand the rules for accounting method changes. 5. Account for the capitalization of inventory costs. 6. Describe long-term contract reporting. 7. Defi ne the installment method of accounting. 13–2 CCH FEDERAL TAXATION—COMPREHENSIVE TOPICS OVERVIEW The fi rst 12 chapters are presented primarily from the individual taxpayer’s point of view (including self-employed taxpayers). This chapter provides a general discussion of the previous material as it applies to other entities and provides a discussion of accounting periods and accounting methods as they apply to all entities. Discussions of specifi c provisions as they apply to other entities (e.g., corporations, partnerships, etc.) are contained in subsequent chapters. The term “fi nancial accounting” refers to the reporting of the fi nancial data of an enterprise through fi nancial statements prepared in accordance with generally accepted accounting principles. Income tax accounting, hereafter referred to as “tax accounting,” is concerned with the reporting of fi nancial data to satisfy the requirements of the Internal Revenue Code, the Regulations which interpret the Code, rulings by the IRS which further interpret the Code and Regulations, and the decisions of the courts...
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...Research demands a clear statement of the problem. 4. Research deals with the main problem through subproblems. 5. Research seeks direction through appropriate hypotheses. 6. Research deals with facts and their meaning. 7. Research is circular. Purposes and Goals of Research 1. To discover new facts about known phenomena. 2. To find answers to problems which are only partially solved by existing methods and information. 3. Improve existing techniques and develop new instruments or product. 4. TO discover previously unrecognized substances or elements. 5. Discover pathways of action of known substances and elements. 6. To order related, valid generalizations into systematized science. 7. To provide basis for decision making in business, industry, education, government, and in other undertakings. 8. To satisfy the researcher’s curiosity. 9. To find answers to queries by means of scientific methods. 10. To acquire a better and deeper understanding about one phenomenon. 11. To expand or verify existing knowledge. The Research Process Research holds the hypotheses until all the facts are in and interpreted, At that point, the hypotheses are supported or rejected. Research holds the hypotheses until all the facts are in and interpreted, At that point, the hypotheses are supported or rejected. System View of Research Input * Knowledge and skills in the conduct of research process. * Material resource * Time...
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