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Study Resources (Accounting)

  Table 12-1   Hanna contributes $45,000 cash, land that she bought for $55,000, and a building that cost her $140,000 and has been amortized $40,000, to the newly formed partnership of H & B Company. The building is valued at $190,000 and has an outstanding mortgage of $100,000. The land is valued.
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51) Where is the responsibility for the development of end-user computing applications typically placed? A) End users B) Help desk C) Information Technology Services Department D) Programmers 52) Callow Youth Clothing (CYC) declared bankruptcy in 2007 and has since closed 27 stores, which amounts to over half of its retail outlets. One of the conditions.
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136) Jack and Will formed the JW Partnership on January 1, 2010, by combining the separate assets of their respective proprietorships. Information relating to their assets and liabilities are as follows: Jack's assetsWill's assets BookMarketBookMarket valuevaluevaluevalue Cash$100,000$100,000$95,000$95,000 Net accounts receivable39,00037,00028,00036,000 Inventory60,00075,000 55,00066,000 Land50,00080,00075,00082,000 Buildings80,00070,00090,00090,000 Accumulated     amortization25,000---- 30,000---- Accounts payable18,00018,00025,00025,000 Prepare the balance sheet for JW Partnership on January 1, 2010,.
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  Table 13-1   The following selected list of accounts with their normal balances was taken from the general ledger of Grant Corporation as of December 31, 2010: Cash$173,500 Common shares, 100,000 shares authorized, 50,000 shares issued190,000 Retained earnings131,500 Cash dividends payable25,000 Preferred shares, 200,000 shares authorized 100,000  shares issued500,000 64) Refer to Table 13-1. The average issue.
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69) Hugh and Liz formed a partnership with capital contributions of $80,000 and $120,000, respectively. Their partnership agreement called for 1) Hugh to receive a $20,000 "salary", 2) each partner to receive 10% of their initial capital contributions, and 3) the remaining income or loss to be divided in a.
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1) Mutual agency in a partnership means that partnership decisions may be made by any one of the partners. 2) Accounting for a partnership is similar to accounting for a proprietorship. 3) A partnership agreement may be oral. 4) Partners can share in net income or loss in any manner they choose. 5).
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11) Retained earnings represents investments by the shareholders of the corporation. 12) A debit balance in retained earnings is referred to as a deficit. 13) Dividends distributed increase the assets and decrease the retained earnings of the business. 14) No-par-value shares are shares of stock that do not have a value assigned to.
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  Table 12-2 80) Refer to Table 12-2. Assuming the business earns a profit of $72,500, the amount allocated to Tic is: A) $29,290 B) $26,390 C) $24,167 D) $16,820 81) Refer to Table 12-2. Assuming the company earns a profit of $146,500, the balance of Tac's capital account after closing out the income summary account is: A).
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74) A dividend is declared by the: A) president of the corporation B) board of directors C) chief financial officer D) corporate controller 75) Dividends on cumulative preferred shares of $2,500 are in arrears for 2009. During 2010, the total dividends declared amount to $10,000. There are 6,000 shares of $1 cumulative preferred shares outstanding.
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11) Physical input design considerations include A) which transactions to enter. B) layout of source documents. C) types of data input and optimal input methods. D) cost of collecting and storing data. 12) Program design A) spans all five stages of the system development life cycle. B) includes writing computer code. C) includes.
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41) A partnership balance sheet will show the ending capital balance for each partner. 42) The entry to record a withdrawal of a partner from the firm when payment is made from partners' personal assets affects only partners' capital accounts. 43) International financial reporting standards (IFRS) do  not include specific guidance.
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41) Which of the following forms of business organizations terminates when the ownership structure changes? A) corporation B) partnership C) share capital D) shareholders' equity A) investments by the creditors of a corporation B) capital that the corporation has earned through profitable operations C) investments by the shareholders of a corporation D) retained earnings A) is classified as an.
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  Match the following. A) dissolution B) equally C) liquidation D) partnership agreement E) current market value F) death of a partner G) partnership H) mutual agency I) unlimited liability J) limited liability partnership K) distribution of remaining cash to partners 120) Agreement that is the contract between partners 121) Ending of a partnership 122) A voluntary association of two or more persons who co-own.
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63) Describe the post-implementation review activity. 64) What output design considerations should be analyzed as part of the physical system design phase? 65) Describe structured programming. 66) Describe the conceptual systems design phase and identify the elements of conceptual design specif .
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  Table 12-7   Bill, Bob, and Bo, are partners in the Trendy Company, a retailer of inexpensive kids' wear. They share profits and losses in a 1:4:5 ratio and have decided to expand their business territory. They have agreed to admit Burt to the partnership for a cash investment. Their capital balances.
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146) Frasier, Niles, and Daffney are partners in the Lots A Laughs Company and share profits and losses in a ratio of 3:2:1, respectively. Frasier has been contemplating retirement. The partners' current capital account balances, after closing entries, are $147,000, $98,000, and $49,000, respectively. The new net income agreement for.
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134) Jill and Sue decide to form the JS Partnership. On February 1, 2010, they combine their assets with the following current market values and book values: Jill's assetsSue's assets BookMarketBookMarket valuevaluevaluevalue Cash$40,000$40,000$50,000$50,000 Net accounts receivable39,50037,00028,00027,000 Inventory69,00075,000 55,00072,000 Land50,00085,00075,00090,000 Equipment80,00070,00090,00075,000 Accumulated amortization25,000---- 30,000---- Accounts payable28,00028,000---------- Notes payable----------10,000 10,000 Journalize the entries on February 1, 2010, to record the partners' initial.
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  Table 12-12   On January 1, 2010, Ruben Ho and Clay Runnerup formed the Ruben and Clay Partnership by investing the following assets and liabilities in the business:                                       Ruben'sClay's Book valueBook value Cash$12,000$18,500 Equipment38,00053,500 Accumulated amort.-equipment8,2009,900 Buildings84,00095,000 Accumulated amort.-buildings25,00035,000 Land60,00066,000 Accounts payable35,00035,000 Note payable17,00029,000 An independent appraiser believes that Ruben's equipment has a market value of $29,000 and Clay's equipment has a.
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31) Which advantage of outsourcing, given below, may tend to cause resistance on the part of in-house IS staff and other organization employees? A) Outsourcing allows a company to better use its assets and scarce resources. B) Outsourcing can lower a company's overall IS costs. C) Outsourcing facilitates downsizing. D).
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51) The partnership characteristic of co-ownership of property states that: A) all partnership assets are co-owned by any banks making loans to the partnership B) general partners co-own all assets, but limited partners do not C) general partners own a larger percentage of the assets of a partnership than do limited partners D) any.
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11) Information provided on a Request For Proposal given to vendors should include A) a budget for software and hardware. B) detailed specifications for the AIS. C) timeframe required for completion of the project. D) All of the above are correct. 12) The system performance evaluation approach that evaluates systems based.
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69) What are the advantages and disadvantages of custom software and of canned software for meeting application software needs? 70) Describe end-user computing and the advantages and risks involved. 71) Describe prototyping and identify when prototyping is appropriate. Identify the steps involved in prototyping. Discuss the advantages and disadvantages of.
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84) Passed dividends on cumulative preferred shares: A) remain a liability of the corporation until they are paid B) are forever lost by the preferred shareholders C) are referred to as dividends in arrears D) are paid after common shareholders receive their dividends A) are a liability on the balance sheet B) are passed dividends on.
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94) The following information is available for the Barber Corporation as of December 31, 2010: Preferred shares, cumulative, $10, 1,000 shares authorized and issued$100,000 Common shares, 4,000 shares authorized and issued400,000 Retained earnings100,000 Barber Corporation did not declare a dividend in 2009 or 2010. The liquidation value of the preferred shares is $100 per.
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21) Why do so many organizations develop their own software, when many canned software packages are available? A) An organization may have unique requirements. B) Canned software packages are often less expensive than software developed in house. C) The organization's size and complexity necessitates the in-house development of software. D) A and.
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31) Several types of documentation must be prepared for a new system. The type of documentation that includes the files and databases accessed and file retention requirements is called A) development documentation. B) operations documentation. C) reference documentation. D) user documentation. 32) What type of system test determines whether a.
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  Table 12-10   M, N, and O are partners in the Drain Company and share profits in a 3:3:2 ratio, respectively. They have decided to liquidate their business. At the start of the liquidation, their capital account balances were $50,000, $25,000, and $25,000, respectively. After the disposal of all noncash assets and.
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11) If the partnership agreement specifies a method for allocating profits but not losses, then losses are shared in the same proportion as profits. 12) It is not possible to share partnership income purely on the basis of partner's service to the partnership. 13) It is not possible to share partnership income.
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41) Which of the following is the final activity in the systems development life cycle? A) monitoring of the system B) ongoing maintenance activities C) preparation of the post-implementation review report D) user acceptance of the post-implementation review report 42) An analyst who asks the question, "Does the system produce.
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51) Which of the following is a priority granted to preferred shareholders? A) voting for the corporate board of directors B) receiving assets before creditors if the corporation liquidates C) receiving dividends before common shareholders D) receiving a guaranteed fixed dollar amount of dividends each year 52) A corporation may issue: A) common shares and preferred.
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131) What is a partnership? List three advantages and three disadvantages of the partnership form of business organization. 132) Describe the items that should be covered in a partnership agreement. 133) Jack and Will decide to form the JW Partnership. On January 1, 2010, they combine their assets with the following current.
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1) Developing a general framework for implementing user requirements and solving problems identified in the analysis phase occurs in which phase of the SDLC? A) conceptual systems design B) implementation and conversion C) operations and maintenance D) physical design 2) Who is responsible for evaluating the design alternatives and selecting the.
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  Table 12-13 Burns and Allan have formed a partnership and invested $40,000 and $60,000, respectively. They have agreed to share profits as follows:                                                         1)Burns is to receive a "salary" of $20,000 and Allan is to receive a "salary" of $10,000. 2)$15,000 is to be allocated according to their original capital contributions to.
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41) What is a disadvantage to prototyping? A) developers may shortchange the testing and documentation process B) errors are likely to be detected and eliminated early in the development process C) prototyping may be less costly than other approaches D) prototyping usually produces a better definition of user needs than.
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140) Copps, Rock, and Grey have recently formed a partnership by investing $50,000, $70,000, and $40,000, respectively. They are considering several methods of allocating income and losses. Compute the partners' shares of profits and losses under each of the following plans: a) Net income is $60,000 and the partners could not agree.
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