Accounting Expert Answers & Study Resources : Page 409

33.(Transaction analysis, journal entries, and adjusting journal entries) Lillian Rose opened a facility to provide day care for children. The following transactions occurred during the month of July 2013, the first month of business. a.Lillian Rose invested $10,000 of her personal funds in a business, to be known as LilyRose Day Care. b.To.

21.Just before the close of its fiscal year, a city government issues $2 million of bonds to finance the acquisition of capital assets. However, no part of the debt is repaid by year-end and no part of the debt is used to purchase capital assets. What adjusting entry is needed.

43.(Accounting for donations and donor-restricted and board-designated resources) A not-for-profit hospital uses the following funds to account internally for its resources: General Fund (GF); Specific Purpose Funds (SPF); Plant Replacement and Expansion Funds (PREF); and Endowment Funds (EF). The hospital is establishing a special trauma unit for brain-related injuries, and is.

Learning Objective 1-5 1) Which of the following is not a true statement about a manager that utilizes the cost-benefit approach? A) Senior managers could spend resources if the expected benefits to the company exceed the expected costs. B) Senior managers can compare the expected benefits to the expected costs associated with a.

21.The Bob Buckham Senior Center, a not-for-profit entity, serves a hot meal to senior citizens every Friday evening. All the food is donated by a local supermarket. All the food preparation and serving is done by local volunteers. If the Center had to pay for the food, it would need.

47.(Discussion problem - contributions to collections) Art on Wheels is a newly-formed not-for-profit corporation. Its purpose is to promulgate public appreciation of 19th century American artists. It plans to solicit works of art from donors and to display them both in a museum and in a specially constructed bus that will.

Learning Objective 1-6 1) Line management: A) is also known as staff management. B) is directly responsible for achieving the goals of the organization. C) is never responsible for achieving the goals of the organization. D) is not responsible for achieving the financial goals of the organization because that is the job of the CFO. E).

Learning Objective 1-4 1) Which of the following is not true about a managerial accountant that links rewards to performance? A) Not used to motivate managers. B) Allows companies to charge premium prices. C) Should only be based on financial information. D) Recognizes managers for a well-done job. E) Rewards managers by salary, bonuses, and performance. 2).

23.(Journal entries - set of transactions) The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products. Prepare budgetary and proprietary entries to record the following transactions for the month of October, 2013. a.BNS received.

Multiple Choice 1.For not-for-profit entities, external financial reporting focuses on: a.individual funds b.fund groups c.the organization as a whole d.major funds 2.When a not-for-profit entity's funds are classified as restricted, who has imposed the restrictions? a.the entity's board of trustees b.donors c.the bondholders d.government regulators 3.Under which of the following circumstances would a not-for-profit organization's net assets be classified as temporarily.

30.              (Analyzing a governmental entity's financial statements) The following data comes from the 2013 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete. General Fund - Balance Sheet Elements Cash$1,200,000 Short-term investments405,000 Property taxes receivable - delinquent282,000 Due.

Problems 39.(Reporting Internal Service Fund activity in government-wide financial statements) Regina County has an Internal Service Fund (ISF) that operates a motor pool for various county agencies, all of which receive appropriations from the General Fund. The amounts billed by the ISF during 2012 were: General government programs - $60,000; Public safety.

21.After it prepares its financial statements, a hospital has historically received malpractice claims for events occurring before the balance sheet date. How should the hospital handle these incurred but not reported (IBNR) claims its financial statements? a.take no action until it actually receives claims. b.disclose, in the notes to its financial statements,.

45.(Journal entries for several funds) Prepare entries to record the following transactions, showing which funds are affected. If a transaction affects more than one fund, prepare entries for all affected funds. a. The county adopts the following budget for its General Fund on January 1, 2013. Estimated revenues: Property taxes$520,000 Sales taxes80,000 Appropriations: Salaries480,000 Supplies and other60,000 Transfer.

Problems 41.(Journal entries for patient service revenues; computation of net patient service revenue) Prepare journal entries to account for the following transactions for Cort Hospital. Also, compute the net service revenue to be reported in the Hospital's statement of operations. a.Cort provided services to patients during the year, billing a total of $59,500,000.

11) In the United States, the Institute of Management Accountants (IMA) issues ethical guidelines. 12) Ethics form the basic foundation of any well-functioning economy. 13) What are the four standards of ethical conduct for management accountants. List each standard and provide an example that demonstrates compliance with that standard. 14) What should a.

Multiple Choice 1.To what extent should fund or fund type data be displayed on the face of government-wide financial statements? a.Information should be displayed for the government as a whole, but individual funds or fund types should not be displayed b.Information should be displayed by fund type, with a total for the government.

31.A donor had previously donated $2,000 to a not-for-profit entity, stipulating that the gift must be used to finance the annual Fall Harvest festival. The festival is held and the gift is used for the stipulated purpose. Which of the following best describes the effect of the journal entries needed.

45.              (Distinguishing among the three net asset classifications) Assume that Andy Kelly Hospital (Problem 44) is a not-for-profit hospital. For each of the six transactions or events shown in that problem, state which of the three net asset classifications are affected: unrestricted; temporarily restricted; or permanently restricted. 46.(Preparing a not-for-profit hospital operating.

Problems 23.Tina opens a business to do small printing jobs. Her first few transactions are shown below. For each of them, state which two of the following six possibilities occurred as a result of each transaction - an asset increased, an asset decreased, a liability increased, a liability decreased, equity increased,.

34.              (Preparation of financial statements) (This problem is based on the transactions for problem 33.) Following is a trial balance for LilyRose Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31,.

11.An Internal Service Fund (ISF) provided services to two agencies financed by the General Fund -- the Tax Department (which it billed $200,000) and the Comptroller's Office (which it billed $100,000). In the fund financial statements, the ISF reported a loss of $30,000. How should this information be reported in.

31.              Differences between a hospital's established rates and amounts negotiated with third-party payers are referred to as: a.contractual adjustments b.unrecovered costs c.equity adjustments d.restricted revenues 32.Which of the following is reported as an expense by not-for-profit hospitals? a.charity care b.bad debts c.contractual adjustments d.volunteer and employee discounts 33.The accounting and financial reporting procedures for which fund category apply to governmental.

Multiple Choice 1.Which of the following formulations of the accounting equation is incorrect? a.assets - liabilities = equity b.assets = liabilities + equity c.assets = liabilities + opening equity + (revenues - expenses) + (owner additions to – withdrawals from equity) d.assets = liabilities - equity 2.John pays cash to buy auto insurance for a three-year.

11.A federal agency received allotments of $95,000. It does not use commitment accounting. It placed three orders totaling $70,000, received all the supplies ordered, and approved invoices totaling $73,000 for the three orders. It then consumed $55,000 of those supplies. It then placed another order for $12,000, but the agency.

28.(Financial statement analysis of a governmental enterprise hospital) Following is a trial balance (with 000 omitted for simplification) showing the accounts of Beta Hospital at December 31, 2013. Using the information from the trial balance, analyze Beta's financial statements by answering the following questions. Show all calculations. a.What is the current ratio?.

21) Classify each cost item into one of the business functions of the value chain, either (1) R&D, (2) Design, (3) Production, (4) Marketing, (5) Distribution, or (6) Customer service. Item: a.cost of free food mailed to promote sales of a new organic food product b.labor cost of workers in the construction plant c.bonus.

Learning Objective 1-7 1) Which of the following is not an ethical behavior of Practitioner's of Management Accounting and Financial Managers? A) Maintains an appropriate level of professional expertise by continually developing knowledge and skills. B) Performs professional duties in accordance with relevant laws, regulations, and technical standards. C) Provides decision support information and.

11.A not-for-profit hospital provided charity care. The value of the hospital's service for the year, at its normal billing rates, was $4 million. How should the hospital report the charity care services in its financial statements? a.include the $4 million as part of patient service revenue and report an operating expense.

Learning Objective 1-2 A) is not consistent with organizational goals. B) does not relate to ethical practices. C) has no focus on the organization. D) specifically focuses on strategic issues. E) does not specifically focus on strategic issues. 2) Which of the following is not one of the six primary business functions that managerial accountants use.

  Problems 43.              (Identifying the net asset classifications and funds used for transactions by NFPOs) The following transactions pertain to the activities of the Whitt Shakespeare Company (WSC), a not-for-profit entity. For each transaction, state which classification of net assets is affected: unrestricted, temporarily restricted, or permanently restricted. In addition, state the fund.

31.Jace Township's General Fund reports a balance due from another fund.  This item and the corresponding interfund liability will appear in Jace Township's government-wide statement of net position only if the debtor fund is a.an enterprise fund b.a capital projects fund c.an internal service fund d.a permanent fund 32.If a government uses the "modified approach".

Multiple Choice 1.In the federal government, which organizations make appropriations and which make apportionments? a.The Congress makes appropriations, and department heads apportion the appropriations to individual agencies or divisions within the department. b.The Congress makes appropriations, and the Treasury Department appropriates to individual departments the total amount apportioned by the Congress. c.The President makes.

41.              (Entries to prepare government-wide financial statements - revenue and expense accruals) For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial statements. a.To prepare its government-wide financial statements for the year ended December 31,2012, the.

Learning Objective 2-1 1) The cost incurred is: A) actual costs. B) budgeted costs. C) cost object. D) cost accumulation. E) cost allocation. 2) A ________ is usually measured as the amount of money that must be paid to acquire goods and services. A) time B) cost C) goal D) product E) prediction 3) Which of the following explains why managers compare the.

43.(Preparation of Government-Wide Financial Statements) On the following page is the government-wide adjusted trial balance for the Town of Catlettville as of June 30, 2013, the end of the fiscal year.  The adjustments needed to convert accounting information from the current financial resources measurement focus and modified accrual basis of accounting.

9) The comparison of ________ performance to ________ performance, this is known as the control or postdecision role of information. A) low; high B) actual; budgeted C) real; superficial D) known; unknown E) new; existing 10) ________ can lead to changes in goals, strategies, and the ways decision alternatives are identified, and the range of information.

31.              In August, 2013, a publisher receives a check for $120 from a subscriber for a one-year subscription to "Willie," a monthly magazine. The subscriber will receive the first magazine in September. Prepare: (a) the journal entry to record the amount received in August; and (b) the adjusting entry to.

45(Journal entries to record transactions) Prepare journal entries to record the following transactions of Weatherford Teen Foundation, Inc. (WTFI), a not-for-profit entity that provides counseling, training, and other programs for young people. WTFI accounts for all transactions in a single fund, recording them so as to identify the three classes.

11.What can a financial analyst learn from a hospital's number of days' revenue in receivables? a.the hospital's accounts receivable collection efficiency b.the average length of stay of patients in the hospital c.the average daily occupancy rate of the hospital's beds d.the proportion of hospital beds occupied by patients covered by self-pay patients 12. and 13. This.

36. (Preparation of financial statements)               (This problem is based on the transactions for problem 35.) Following is a trial balance for Ricardo Sanchez's Auto Repair as of January 31, 2013. Prepare an (1) income statement and a (2) statement of changes in owner's equity for the month ended January 31, 2013,.

11) The ________ ________ is an administration function that includes the human resource management function of training front-line workers. A) design function B) distribution function C) production function D) marketing function E) customer service function 12) The ________ function is the function of analyzing, reporting, and accounting for those resources spent in different marketing channels; while.

Problems 20.(Matching) Match the entity that takes the action with the nature of the action taken by putting the number of the action taken (second column) next to the letter for the entity (first column). Entity that takes action Nature of action taken a. Congress1. Allots b. Office of Management and Budget2. Appropriates c. Treasury.

Multiple Choice 1.Which of the following statements is generally true about the basis of accounting used by governmental and not-for-profit hospitals? a.both use the full accrual basis of accounting b.both use the modified accrual basis of accounting c.governmental hospitals use the modified accrual basis of accounting and not-for-profit hospitals use the full.

11.In response to a fund-raising campaign, an electric utility provides free electricity to a not-for-profit entity. How should the not-for-profit entity report this gift in its statement of activities? a.It should not be reported in the statement. b.It should not be reported on the face of the statement, but should be disclosed.

Multiple Choice 1.What is the major purpose of the statement of net position from a financial analysis perspective? a.to describe the major sources of revenue and types of expense b.to show the inflows and outflows of cash during the reporting period c.to show whether the entity was efficient and effective in delivering services d.to provides.

Problems 26.(Assessment of a hospital's accounts receivable collection efficiency) Assess Plains Regional Hospital's accounts receivable collection efficiency based on the following set of facts: a.Days' revenue in patient accounts receivable at December 31, 2012, for Plains Regional Hospital - 76 days b.Extracts from Plains Regional Hospital's calendar year 2013 financial statements: Net patient accounts.

Learning Objective 1-3 1) Which of the following is not a way for a company to improve customer response time? A) An increase in capacity of bottleneck operations. B) Decrease in response time to consumer requests. C) Faster delivery procedures. D) Produce the product quicker. E) Effective management accounting information. 2) Trader Joe's is known for delivering.

11.Suzy Queue hires a salesperson for her business. Suzy agrees to pay the salesperson a commission of 10 percent of sales. By the end of the first month, the salesperson has done $50,000 of sales. Suzy wants to prepare accurate financial statements at the end of the month, but has.

Learning Objective 1-1 1) Managers use management accounting information to do all of the following except: A) collect. B) analyze. C) perform. D) categorize. E) summarize. 2) Managers make cost management decisions to increase the value of products and services they provide to customers and to achieve organizational goals. Which of the following is not an.