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Study Resources (Accounting)

3) At December 31, 2011, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophocles Company. In addition, Pandora agreed to pay the owners of Sophocles an additional $200,000 if a specific contract achieved the profit levels that were targeted by.
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11) A(n) ________ is a hierarchy of the tasks required to complete a project. A) baseline B) work-breakdown structure C) reliable analysis D) V-Model 12) With respect to WBS, ________ means to define the system boundaries. A) Gantt chart B) critical path C) baseline D) scope 13) _________ concerns contracts with outside vendors for services, materials, and outsourcing of functions. A).
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1) Systems development projects require the balancing of three critical drivers: requirements, cost, and ________. A) scope B) time C) performance D) value 2) The plan, or ________, of a project stipulates the tasks to be accomplished, the labor, and other resources assigned to those tasks, and the schedule for completion. A) baseline B) data model C).
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11) Differences in language, culture, norms, and expectations compound the difficulties of international process management. 12) Information systems increase inventories. 13) The bullwhip effect is a phenomenon in which the variability in the size and timing of orders increases at each stage of the supply chain. 14) Information systems support just-in-time (JIT) inventory.
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15) Shoreline Corporation had $3,000,000 of $10 par value common stock outstanding on January 1, 2009, and retained earnings of $1,000,000 on the same date. During 2009, 2010, and 2011, Shoreline earned net incomes of $400,000, $700,000, and $300,000, respectively, and paid dividends of $300,000, $550,000, and $100,000, respectively. On January.
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11) It is not yet possible to outsource entire business functions. 12) In time, there is a risk that the outsource vendor will become the de facto sole source for the company. 13) Outsourcing protects companies from a potential loss of intellectual capital. 14) Although the fixed cost achieved through outsourcing does.
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11) With respect to goodwill, an impairment A) will be amortized over the remaining useful life. B) is a two-step process which analyzes each business reporting unit of the entity. C) is a one-step process considering the entire firm. D) occurs when asset values are adjusted to fair value in a purchase. Use the following.
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18) On January 1, 2010, Petrel, Inc. purchased 70% of the outstanding voting common stock of Ocean, Inc., for $2,600,000. The book value of Ocean's net equity on that date was $3,100,000. Book values were equal to fair values except as follows: BookFair Assets & LiabilitiesValuesValues Equipment$ 250,000$ 190,000 Building600,000700,000 Note payable270,000240,000 Required: Prepare a schedule to.
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1) Which of the following is true regarding the international business scenario in the twentieth century? A) After the dot-com bust, optical fiber was extremely scarce and expensive. B) After the fall of the Soviet Union, the economies of Russia and western-Europe closed their markets to the world. C) The economies of North.
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Exercises 1) Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2011. At that time, the fair value of Standaround's net assets were equal to the book values. The balance sheets of Passerby and Standaround at January 2, 2011 are summarized as follows: PasserbyStandaround Assets$1,600,000$470,000 Liabilities$840,000$230,000 Capital stock360,00050,000 Retained earnings400,000190,000 Required: .
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20) Keynse Company owns 70% of Subdia Incorporated. The Investment in Subdia qualifies as a business reporting unit under FASB 142, and Keynse has reported goodwill in the amount of $200,000 with respect to its acquisition of Subdia. Subdia's $10 par common stock is currently trading for $92 per share,.
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Multiple Choice Questions 1) Which of the following is not a reason for a company to expand through a combination, rather than by building new facilities? A) A combination might provide cost advantages. B) A combination might provide fewer operating delays. C) A combination might provide easier access to intangible assets. D) A combination might.
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1) The development of large-scale systems can involve integrating products and services from different companies. 2) Large-scale systems development projects require the balancing of three critical drivers: requirements, cost, and time. 3) The trade-off between time and cost is a simple process; the time involved in a project can always be.
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8) On January 2, 2011, Pilates Inc. paid $900,000 for all of the outstanding common stock of Spinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below. Cash$200,000 Accounts Receivable220,000 Copyrights (purchased)400,000 Goodwill120,000 Liabilities(180,000) Net assets$760,000 On January 2, 2011, Spinning anticipated collecting $185,000 of the recorded Accounts Receivable..
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17) For 2010, 2011, and 2012, Squid Corporation earned net incomes of $40,000, $70,000, and $100,000, respectively, and paid dividends of $24,000, $32,000, and $44,000, respectively. On January 1, 2010, Squid had $500,000 of $10 par value common stock outstanding and $100,000 of retained earnings. On January 1 of each of.
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10) Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2011. Any excess fair value over the identified assets and liabilities is attributed to goodwill.  The following year-end information was available just before the purchase: PoolSwimmin Swimmin BookBook Fair ValueValueValue Cash$756,000$80,000$80,000 Accounts Receivable260,000152,000152,000 Inventory480,000100,000120,000 Land440,000160,000140,000 Plant and equipment-net1,320,000400,000430,000 $3,256,000$892,000$922,000 Accounts Payable$880,000$22,000$22,000 Bonds.
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3) Pancake Corporation saw the potential for vertical integration and purchases a 15% interest in Syrup Corp. on January 1, 2010, for $150,000.  At that date, Syrup's stockholders' equity included $200,000 of $10 par value common stock, $300,000 of additional paid in capital, and $500,000 retained earnings.  The companies began.
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1) ________ is the hiring of another organization to perform a service. A) Insourcing B) Merchandising C) Poaching D) Outsourcing 2) Which of the following is an advantage of outsourcing? A) It allows the organization greater control. B) It guarantees quality and risk reduction. C) It can be an easy way to gain expertise. D) It allows for an.
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8) Patterson Company acquired 90% of Starr Corporation on January 1, 2011 for $2,250,000. Starr had net assets at that time with a fair value of $2,500,000. At the time of the acquisition, Patterson computed the annual excess fair-value amortization to be $20,000, based on the difference between Starr's net.
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11) On January 1, 2012, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values.  The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows: PackagingShipaway Assets$590,000$180,000 Liabilities$70,000$30,000 Capital stock360,00090,000 Retained earnings160,00060,000 If a consolidated balance.
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1) Just about any business activity in the value chain—from marketing and sales to logistics, manufacturing, and customer service—can be outsourced. 2) Outsourcing, by definition, refers to the use of a foreign vendor. 3) IT and IS services cannot be outsourced by a company. 4) Some companies choose to outsource to save.
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6) Polaris Incorporated purchased 80% of The Solar Company on January 2, 2011, when Solar's book value was $800,000. Polaris paid $700,000 for their acquisition, and the fair value of noncontrolling interest was $175,000. At the date of acquisition, the fair value and book value of Solar's identifiable assets and.
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1) What are the management advantages of outsourcing? 2) How can outsourcing reduce risk? 3) What are the popular outsourcing alternatives? 4) Describe in brief the risks related to the loss of control that may result from outsourcing. 5) Outsourcing does not offer the hiring company an easy exit from the agreement with.
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Exercises 1) Parrot Incorporated purchased the assets and liabilities of Sparrow Company at the close of business on December 31, 2011. Parrot borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Sparrow's recorded assets and liabilities as.
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14) On December 31, 2010, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance.
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11) Flashlight Films has outsourced its internet and social media marketing campaigns. This is an example of how companies can outsource ________. A) computer hardware B) computer software C) entire applications D) entire business functions 12) Which of the following is a disadvantage of outsourcing? A) loss of control B) inability to ensure a certain level of.
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7) On January 1, 2011, Pendal Corporation purchased 25% of the outstanding common stock of Sedda Corporation for $100,000 cash. Book value and fair value of Sedda's assets and liabilities at the time of acquisition are shown below. AssetsBookFair ValuesValues Cash$40,000$40,000 Accounts receivable100,00090,000 Inventories40,00050,000 Equipment   180,000  210,000  $360,000$390,000 Liabilities & Equities Accounts payable$110,000$110,000 Note payable50,00040,000 Capital stock100,000 Retained earnings 100,000          $360,000$150,000 Required: Prepare an.
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  Use the following information to answer the question(s) below. On January 1, 2011, Pansy Company acquired a 10% interest in Sunflower Corporation for $80,000 when Sunflower's stockholders' equity consisted of $400,000 capital stock and $100,000 retained earnings. Book values of Sunflower's net assets equaled their fair values on this date. Sunflower's.
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Exercises 1) Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1, 2011 when Plum's stockholders' equity was as follows: 10% cumulative preferred stock, $100 par$  500,000 Common stock, $10 par value300,000 Other paid-in capital 400,000 Retained earnings     800,000 Total stockholders' equity$2,000,000 On this date, the book values of Plum's assets and.
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Multiple Choice Questions 1) What method must be used if FASB Statement No. 94 prohibits full consolidation of a 70% owned subsidiary? A) The cost method B) The Liquidation value C) Market value D) Equity method 2) From the standpoint of accounting theory, which of the following statements is the best justification for the preparation of.
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6) Bigga Corporation purchased the net assets of Petit, Inc. on January 2, 2011 for $380,000 cash and also paid $15,000 in direct acquisition costs. Petit, Inc. was dissolved on the date of the acquisition. Petit's balance sheet on January 2, 2011 was as follows: Accounts receivable-net$90,000Current liabilities$75,000 Inventory 220,000 Long term.
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Multiple Choice Questions 1) What method of accounting will generally be used when one company purchases less than 20% of the outstanding stock of another company? A) Only the fair value method may be used. B) Only the equity method may be used. C) Either the fair value method or the equity method may.
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11) If a distributed database contains copies of the same data, it is called a ________ database. A) mirrored B) redundant C) replicated D) partitioned 12) If a distributed database divides the database into nonoverlapping segments, it is called a(n) ________ database. A) mirrored B) replicated C) independent D) partitioned 13) Which of the following is an advantage.
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