11 gift tax returns are filed on a calendar year basis 12 the purchase of a 15 000 e 4315427

11) Gift tax returns are filed on a calendar-year basis.

12) The purchase of a $15,000 engagement ring generates a taxable gift necessitating the filing of a gift tax return.

13) Identify which of the following statements is true.

A) The gift tax is a wealth transfer tax that applies to transfers during a person's lifetime and transfers at death.

B) The gift tax is not a part of the unified transfer tax system.

C) Under the unified transfer tax system, taxable gifts made after 1976 are included in the donor's death tax base.

D) All of the above are false.

14) In 1998, Delores made taxable gifts to her son of property with an FMV of $200,000. In the current year when Delores dies, the property is worth $800,000. The amount included in Delores's estate tax base because of the 1998 gift is

A) $0.

B) $189,000.

C) $200,000.

D) $800,000.

15) In the current year, Cesar, who is single, gives $26,000 to each of his 20 nieces and nephews for a total property transfer of $520,000. Cesar's taxable gifts total

A) $520,000.

B) $260,000.

C) $300,000.

D) $240,000.

16) Identify which of the following statements is true.

A) If the annual exclusion for gifts is not used in the current year, the unused portion can be carried forward to subsequent years.

B) Individuals may not give more than $14,000 per person in gifts each year before being taxed on the transfer.

C) For transfer tax purposes, both the charitable contribution deduction and the marital deduction are unlimited.

D) All of the above are false.

17) In November 1976, Grant uses $30,000 of the specific exemption available at that time. The unified credit available to Grant for post-1976 transfers is reduced by

A) $0.

B) $6,000.

C) $15,000.

D) $30,000.

18) Barbara sells a house with an FMV of $170,000 to her daughter for $120,000. From this transaction, Barbara is deemed to have made a gift (before the annual exclusion) of

A) $50,000.

B) $170,000.

C) $120,000.

D) $0.

19) In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for $15,000. Later that year, Bonnie gives Linda $25,000 in cash. Bonnie's taxable gifts from these transfers total

A) $70,000.

B) $59,000.

C) $56,000.

D) $25,000.

20) Identify which of the following statements is true.

A) A taxable gift may occur when property is sold in an arm's length transaction for less than its FMV.

B) An individual can inadvertently make a gift by underestimating a property's fair market value and selling it to a relative for a price below its fair market value.

C) The statutory exemption from the gift tax for payments for medical care requires that the payment be made for a relative.

D) All of the above are false.

59 personnel records will typically include all of the following except a documentat 4315822

59.Personnel records will typically include all of the following, except:

A.Documentation related to the initial hiring

B.Personal information, such as the employee address

C.Medical history subsequent to hiring

D.Social security number

60.Each of the following items would likely be found in an employee’s personnel records related to the initial hiring, except:

A.Employment application

B.Recommendation letters

C.Background investigation results

D.Overtime and commission rates

61.It is necessary for employees to maintain adequate records of the hours worked and the projects worked on.  The record of hours worked by an employee for a specific payroll period is reported on a document called:

A.Time ticket

B.Time sheet

C.Salary document

D.Wage report

62.Which of the following would be a correct way to compute the gross pay for an employee?

A.Hours Worked times Authorized Pay Rate

B.Hours Worked times Authorized Pay Rate minus Withholding Taxes

C.Net Pay minus Authorized Deductions

D.Net Pay times Withholding Taxes

63.Which of the following would be a correct way to compute the net pay for an employee?

A.Hours Worked times Authorized Pay Rate

B.Gross Pay minus Withholding Taxes

C.Gross Pay minus Authorized Deductions

D.Hours Worked times Withholding Tax Rate

64.This record, prepared by the payroll department, is a complete listing of salary or wage detail for all employees for a given time.

A.Payroll journal

B.General ledger

C.Employee record

D.Payroll register

65.When accounting software is used to prepare the periodic payroll, which of the following items is necessary to input for each employee?

A.Employee Name

B.Hours Worked

C.Pay Rate

D.Social Security Number

66.This document authorizes the transfer of cash from the company’s main operating account into the payroll cash account.

A.Payroll register

B.Payroll disbursements journal

C.Payroll voucher

D.Paycheck

67.This record, prepared by the cash disbursements department, provides a listing of al paychecks written, in check-number sequence, with the total supporting the amount of payroll funds to transfer to the payroll bank account.

A.Payroll Disbursements Journal

B.Payroll Register

C.Payroll Journal

D.Cash Disbursements Journal

68.This individual is responsible for distributing the signed paychecks on the designated pay day.

A.Human Resources Director

B.Department Supervisor

C.Payroll Department Manager

D.Paymaster

111 when the manager of the primary users of the system is satisfied with the system 4315930

111.When the manager of the primary users of the system is satisfied with the system, an acceptance agreement will be signed, the enforcement of which makes it much more likely that project teams will seek user input and that the project team will work hard to meet user needs.

A.System Conversion

B.Post-Implementation Acceptance

C.User Review

D.User Acceptance

              112.A review of the feasibility assessments and other estimates made during the projects, the purpose of which is to help the organization learn from any mistakes that were made and help the company avoid those same errors in the future.

A.System Design Life Cycle

B.Post-Implementation Review

C.User Acceptance

D.System Conversion Review

113.During the operation of an IT system, it is necessary that regular reports are received by management to monitor the performance of the system.  These reports would include all of the following, except:

A.IT Security and Number of Security Problems

B.IT Customer Satisfaction

C.Downtime of IT System

D.User Acceptance of the IT System

              114.Which of the following is not a major purpose served by the continual and proper use of the IT governance committee and the SDLC?

A.The fulfillment of ethical obligations

B.The strategic management process of the organization

C.The conversion of the system

D.The internal control structure of the organization

115.The careful and responsible oversight and use by management of the assets entrusted to management is called:

A.IT Governance

B.Stewardship

C.Fiduciary Control

D.System Access

              116.Employee Ethical considerations, related to IT governance, would include which of the following?

A.Maintain a set of processes and procedures that assure accurate and complete records.

B.Confidentiality for those who serve on the project teams.

C.Not to disclose proprietary information from the company to clients.

D.Carefully consider the impact of system changes and to be ethical in the manner in which the changes are processed.

              117.When an organization hires consultants to assist with any phase or any phases of the SDLC, there are at least four ethical obligations.  Which of the following is not one of those obligations?

A.Bid the engagement fairly, and completely disclose the terms of potential cost increases.

B.Bill time accurately to the client and do not inflate time billed.

C.Do not oversell unnecessary services or systems to the client.

D.Make an honest effort to participate, learn the new system processes, and properly use the new system.

              118.Which of the following relationships would be allowed for a CPA firm?

A.Offering IT consulting services and completing the external audit.

B.Completing the external audit and maintaining the bookkeeping work.

C.Internal audit outsourcing and financial information systems design and implementation.

D.Providing fairness opinions and completing the external audit.

21 sales total 200 000 when variable costs total 150 000 and fixed costs total 30 00 4315179

21) Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The break-even point in sales dollars is

A) $200,000.

B) $120,000.

C) $40,000.

D) $30,000.

E) $180,000.

22) Cost-volume profit is used to analyze

A) the behaviour of some costs and revenues as changes occur in the output level.

B) the behaviour of total costs, total revenues, and operating income as changes occur in the output level.

C) a single revenue driver and multiple cost drivers in special case CVP.

D) multiple revenue drivers and a single cost driver in special case CVP.

E) the behaviour of variable costs at all levels of output.

23) Which of the following is an assumption of CVP analysis?

A) Costs must be separated into separate fixed and variable components.

B) Total revenues and total costs are curvilinear in relation to output units.

C) Given revenue mixed of products is dynamic.

D) There will be a change between beginning and ending levels of inventory.

E) The time value of money must be taken into account.

24) Which of the following statements about contribution margin and gross margin in CVP analysis is TRUE?

A) Contribution margin equals total revenue minus cost of goods sold.

B) Contribution margin equals total revenue minus non-variable costs.

C) Gross margin equals total revenue minus cost of goods sold.

D) Service companies can compute a gross margin but not a contribution margin.

E) Gross margin equals total revenue minus non-variable costs.

25) The contribution income statement highlights

A) gross margin.

B) products costs and period costs.

C) different product lines.

D) variable and fixed costs.

E) gross margin and net operating income.

 

Use the information below to answer the following question(s).

Franscioso Company sells several products. Information of average revenue and costs is as follows:

Selling price per unit$28.50

Variable costs per unit:

Direct material$5.25

Direct manufacturing labor$1.15

Manufacturing overhead$0.25

Selling costs$1.85

Annual fixed costs$110,000

26) The Franscioso Company contribution margin ratio is

A) 1.102:1.

B) 1.425:1.

C) 0.298:1.

D) 0.637:1.

E) 0.702:1.

27) The Franscioso Company break-even in sales dollars is

A) $99,819.

B) $77,193.

C) $369,128.

D) $172,684.

E) $156,695.

28) The break-even point in CVP analysis is defined as the point

A) where output units equal input units.

B) where total revenue equals fixed costs.

C) where revenues less variable costs equal operating income.

D) where the unit contribution margin equals the selling price less the unit variable cost.

E) where total revenue equals total costs.

29) If unit sales exceed the break-even point when using the graph method

A) there is a loss because the total cost line exceeds the total revenue line.

B) total sales exceed total costs.

C) there is a profit because the total cost line exceeds the total revenue line.

D) expenses are extremely high relative to revenues.

E) operating income is negative (an operating loss).

Use the information below to answer the following question(s).

Jill Bishop makes homemade soap. She sells it for $100 a case. Her variable costs are $40 per case. She has fixed costs of $600.

30) What is the break-even point in cases?

A) 6 cases

B) 10 cases

C) 15 cases

D) 20 cases

E) 100 cases

31) What is the contribution margin per case?

A) $100.00

B) $60.00

C) $40.00

D) $15.00

E) $10.00

multiple choice conceptual 1 a manufacturing company typically maintains the followi 4315449

MULTIPLE CHOICE—Conceptual

1.A manufacturing company typically maintains the following inventory account(s):

a) Merchandise Inventory.

b) Raw Materials and Work in Process only.

c) Raw Materials, Work in Process and Finished Goods.

d) Work in Process and Merchandise Inventory.

2.A hardware retailer typically maintains the following inventory account(s):

a) Merchandise Inventory.

b) Raw Materials and Work in Process only.

c) Raw Materials, Work in Process and Finished Goods.

d) Work in Process and Merchandise Inventory.

3.Companies that carry inventories must carefully monitor inventory in order to

a) have the greatest selection available so customers can always find what they want.

b) minimize carrying costs and keep inventory levels high so stockouts never occur.

c) keep inventory levels high to maximize profits.

d) minimize carrying costs and meet customer demands.

4.The cost of goods available for sale is calculated as

a) beginning inventory plus ending inventory.

b) beginning inventory minus ending inventory.

c) beginning inventory plus the cost of goods acquired during the period.

d) cost of goods acquired during the period minus ending inventory.

5. A manufacturer that carries very little inventory likely follows the

a) allowance method.

b) just-in-time method.

c) indirect method.

d) replacement method.

6. Which of the following items would be inventory for a company like Marriott Hotel Corporation?

a) hotel rooms

b) food and beverage stock

c) cleaning supplies

d) all of the above

7. The cost of inventory is made up of

a) cost to purchase inventory only.

b) cost of purchase and allocated direct labour only.

c) cost of purchase, allocated direct labour, and allocated overhead.

d) cost of allocated direct labour and allocated overhead only.

8. Under IFRs, liabilities related to non-cancellable purchase commitments are typically recognized

a) on the date the contract takes effect.

b) at the time of payment.

c) when the purchase is recorded in the accounting system.

d) in the period a decline in market price occurs.

9. An estimated loss on purchase commitments is reported

a) under other expenses and losses.

b) as a deduction from purchases.

c) as a current liability.

d) as an extraordinary item.

10.When substantially all risks and rewards of ownership have passed to the purchaser, the purchaser then recognizes an asset. For this recognition, which of the following statements is correct?

a) The purchaser must have both legal title and possession of the goods.

b) Legal title and possession do not always pass to the purchaser at the same time.

c) In practice, recording inventory purchases often takes place when they leave the seller’s place of business.

d) The purchaser must have possession of goods before it has legal title.

10 4 outline the steps in estimating a cost function 1 there is poor goodness of fit 4315004

10.4   Outline the steps in estimating a cost function.

1) There is poor goodness of fit if the predicted values do not match actual cost observation.

2) Cross-sectional data pertain to the same entity over successive past periods.

3) The advantage of the high-low method when compared to regression analysis is that it considers multiple data points.

4) For cost estimation purposes data must be collected using both time-series data and cross-sectional data.

5) Time-series data analysis includes

A) using a variety of time periods to measure the independent variable.

B) using the highest and lowest observation.

C) observing different entities during the same time period.

D) comparing information in different cost pools.

E) analyzing cost drivers at different levels of production.

6) Cross-sectional data analysis includes

A) using a variety of time periods to measure the dependent variable.

B) using the highest and lowest observation.

C) analyzing different cost drivers.

D) comparing information in different cost pools.

E) observing different entities during the same time period.

Use the information below to answer the following question(s).

Presented below is the production data for the last six months of the year for the mixed costs incurred by Wagner Company.

MonthCostUnits

July$24,4508,200

August20,1206,400

September32,40010,600

October44,20015,000

November29,0009,600

December36,68013,200

7) Using the high-low method, the cost function would be stated as

A) y = $2,200 + $2.80x.

B) y = $17,816 + $0.36x.

C) y = $536 + $3.06x.

D) y = $24,450 + $0.33x.

E) y = $39,250 + $0.33x.

8) The total cost at an operating level of 10,000 units would be

A) $31,136.

B) $30,200.

C) $21,416.

D) $42,550.

E) $46,625.

Use the information below to answer the following question(s).

The Skip Corporation has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. Skip Corporation has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

CostHours

$20,0007,000

12,2004,000

17,000 5,200

15,6404,900

18,200 6,000

22,0807,800

21,2007,480

18,6006,760

9) The cost function would be stated as

A) y = $13,386 + $0.46x.

B) y = $10,680 + $0.38x.

C) y = $5,056 + $2.16x.

D) y = $1,800 + $2.16x.

E) y = $1,800 + $2.60x.

10) The total cost at an operating level of 2,850 hours would be

A) $19,210.

B) $11,763.

C) $14,697.

D) $11,212.

E) $9,210.

 

e xercises ex 8 135 inventory management explain why inventory management is referre 4315471

Exercises

Ex. 8-135Inventory management

Explain why inventory management is referred to as a double-edged sword.What competing interests is management trying to balance in their management of inventories?

Ex. 8-136Definitions

Provide clear, concise answers for the following:

1.Identify the inventory categories of a manufacturing company and describe how they are related.

2.What is a perpetual inventory system?

3.What is a periodic inventory system?

4.What is the specific identification cost flow method?

5.What is the average cost inventory cost flow method?

6.What is the FIFO cost flow method?

105 when the pdq partnership formed it knew it had a good product but it was a bit s 4315502

105) When the PDQ Partnership formed, it knew it had a good product, but it was a bit short on cash. After seeing the product, Jim, a CPA, said that he would set up an accounting system for the partnership in exchange for a 15% profits interest in the partnership. The partners agreed to this, as Jim was receiving only a profits interest and not a capital interest in the partnership. Jim's usual fee for this type of service would be approximately $5,000. What tax issues should Jim and the PDQ Partnership consider with respect to the payment made for the services?

106) Jason, a lawyer, provided legal services for the employees of the ABC Partnership during the first six months of the current year. In exchange, he received a 2% capital and profits interest in the partnership. The value of the interest is $5,000. What are the tax consequences to Jason, the ABC Partnership, and the employees of ABC?

107) Dinia has agreed to provide services valued at $30,000 to the L-M Partnership. On January 1 of the current year, she is given a 20% capital and profits interest in the partnership in exchange for her services. The partnership has no liabilities at the time but has assets with a basis of $50,000 and an FMV of $70,000. What are the tax consequences to Dinia and the partnership?

108) Mary and Martha, who had been friends for years, decided to open a retail store to sell kitchen and bath items. In June, they spent $500 looking for a suitable location. They paid an attorney $1,500 to have their partnership agreement drawn up, and they paid an accountant $400 to set up their accounting system. During July, they searched for vendors for the merchandise they planned to carry and stocked their shelves. The store opened in August and was immediately successful. They paid the accountant $300 to prepare an income statement for August. What tax issues should the partnership consider with regard to beginning this business?

true or false 1 microsoft access is a database management system 2 excel is superior 4308781

True or False

1) Microsoft Access is a database management system.

2) Excel is superior to Access for tracking orders, inventory, equipment, and people.

3) To use Excel to process data stored in Access, it is recommended to rekey all of the Access data into Excel.

4) Import/export is the process of transferring data from one computer system to another.

5) In Excel and Access, import/export maintains an active connection to the source of the data.

6) If users subsequently change the Access data, the imported data in Excel will be out-of-date until it is re-imported.

7) Commas cannot be used to separate field data if the data itself contains commas.

8) Delimited text files cannot be imported into either Excel or Access.

9) To import data into Excel, open Excel, click the Data tab, and in the Get External Data section of that ribbon click From Text.

10) Data can be exchanged between Excel and Access by exporting the data into a text file and then importing that text data.

ex 9 109 incurred loss expected loss and impairment tyne corporation owns corporate 4315400

Ex. 9-109Incurred loss, expected loss, and impairment

Tyne Corporation owns corporate bonds at December 31, 2017, accounted for using the amortized cost model.These bonds have a par value of $864,000 and an amortized cost of $851,000.After an impairtment review was triggered, Tyne determined that the discounted impaired cash flows are $796,500 using the current market rate of interest, but are $793,000 using the market rate when the bonds were first acquired.The company follows a policy of directly reducing the carrying amount of any impaired assets.

Instructions

a)Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to the impairment at December 31, 2017.

b)Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to a December 31, 2018 fair value of $821,000 and an adjusted carrying amount at that date of $801,000.

c)Assuming Tyne applies IFRS using IAS 39, prepare any necessary journal entry(ies) related to the impairment at December 31, 2017.

d)Assuming Tyne applies IFRS using IAS 39, prepare any necessary journal entry(ies) related to a December 31, 2018 fair value of $821,000 and an adjusted carrying amount at that date of $801,000.

e)Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry related to the impairment at December 31, 2017.

f)Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry(ies) related to a December 31, 2018 fair value of $821,000 and an adjusted carrying amount at that date of $801,000.

Ex. 9-110Significantinfluence

Julep Corporation purchases a 25% interest in Orange Corporation on January 2, 2017, for $800.At that time, the carrying amount of Orange’s net assets was $2,950.Any excess of the cost of the investment over Julep’s share of Orange’s carrying amount can be attributed to unrecorded intangibles with a useful life of 20 years.Orange declared and paid a dividend of $17 and reported net income of $50 for its year ended December 31, 2017.

Instructions

Prepare Julep’s 2017 entries to record all transactions and events related to the investment in its associate.Assume Julep is a publicly accountable enterprise that applies IFRS.