© The Hong Kong Polytechnic University T HE H ONG K ONG P OLYTECHNIC U NIVERSITY SCHOOL O F A CCOUNTING AND FINANCE Final Examination Programme BBA (Hons) in Accountancy (02002-BAC) BBA (Hons) in Accounting and Finance (02002-BAF) BBA (Hons) in Financial Services (02002-BFS) BBA (Hons) in Management (02002-MGT) BBA (Hons) in Marketing (02002-MKT) BBA (Hons) in Global Supply Chain Management (02002-GSC) (02004-GSC) (02004-IST) BBA (Hons) in International
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inventory= 200x$3+3‚300x$5=17‚100 Inventory turnover ratio= COGS/average inventory= 14‚500/[(600+17‚100)/2]=1.64 (different rounding is OK) 2. At the end of 2011‚ using aging of accounts receivable‚ Hammon Co. estimated that it needs $5‚000 in allowance for doubtful account‚ and it had $1‚000 previous credit balance from 2010. On May 4‚ 2012‚ Hammon decided that $500 became uncollectible and should be written
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accelerated method for its US operating plants. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life by changing the depreciation method to straight line method the economic life of the asset was increased then depreciation expense was lowered resulting in higher net income. This change resulted in
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Operating activities - decrease in accounts receivable $76‚000 g) Financing activities - paid dividend (97‚000) Note: this cash outflow may also be classified in operating activtiies if the company wishes. h) Operating activities - add back depreciation 67‚000 i) Operating activities - deduct gain on sale (3‚000) Investing activities - sold capital asset 13‚000 Requirement 3 a) Investing activities - cash paid for capital asset (no change from above) (18‚000) b) Financing activities
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ADM 2342X MID TERM EXAM Intermediate Financial Accounting 1 Spring/Summer 2014 SOLUTIONS Instructions: 1. This examination comprises 6 questions over 19 pages. The last two pages (pages 18 and 19) contain present value tables. Page 17 is a page for rough work. Answer all questions directly in this booklet. The booklet is not to be removed from the examination room. You may separate the pages but ensure that you put them back together in the correct sequence and that you staple them before
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Part B a. What is depreciation? What is the difference between straight line and reducing balance method of depreciation? How can Murah Travel determine which depreciation method to use? (Explain in detail) Depreciation is an expense‚ it is the process of what benefit that the business can get from the non-current assets they own from its original cost that is spread throughout the business over the years. Depreciation occurs due to wear and tear from continuous use‚ physical weather or the non-current
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C521 Exam 1 Name: | Imtiaz Ahmed | You have three hours to take and submit this exam. You must save this file using the following convention: LastnameFirstname (for example‚ my exam would be saved as SmithReed.docx). If you do not have the most current version of Word‚ that is OK. The file extension might be .doc instead. The document is protected (Tools menu) so that the data in the answer cells is type-restricted. You may unprotect the document in order to “paste” excerpts from Excel
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* Question 1 0 out of 10 points | | | Winston Corp. had $1‚800 of supplies on hand at January 1. During the year‚ supplies with a cost of $4‚000 were purchased. At December 31‚ the actual supplies on hand amount to $1‚300. After the adjustments are recorded and posted at December 31‚ determine the balances in the Supplies and Supplies Expense accounts. Supplies ; Supplies ExpenseAnswer | | | | | Selected Answer: | [None Given] | Correct Answer: | $1‚300; $4‚500 | Response
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Depreciation Accounting 1 Types of Long-Lived Assets y Tangible asset y Asset with physical substance y Property‚ plant‚ and equipment = fixed asset. y Intangible asset y Intellectual property. y No physical substance y Examples are patent rights‚ copyrights 2 Amortization y y View capital asset as bundle of services Similar to prepaid expenses‚ cost is expensed as company benefits from the services y y y y Land - no depreciation Plant and equipment - depreciation Natural
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Harnischfeger altered their depreciation from a direct method to the straight-line method for financial reporting purposes. They also included the products purchased from Kobe Steel‚ LTD and sold by them in their net sales instead of stating only the gross margin per unit. An adjustment of the residual values on certain machinery and equipment was made and they also included the financial statements of some foreign subsidiaries. 2. What is the effect of the depreciation accounting method change on
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