revenue in the period in which we earn it. | | | 2. | | Discuss the major principle that describes recording expenses.The matching principle states that we recognize expenses in the same period as the revenues they help to generate. | | LO1 | 3. | | Samantha is a first-year accounting student. She doesn’t think it matters that expenses are reported in the same period’s income statement with the related revenues (matching principle). She feels that “as long as revenues and expenses are recorded
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over the project ’s life because of its effect on taxes. Depreciation is an expense item and‚ the more depreciation incurred‚ the larger are expenses. Thus‚ accounting profits become lower and‚ in turn‚ so do taxes‚ which are a cash flow item. 10-3. If a project requires an increased investment in working capital‚ the amount of this investment should be considered as part of the initial outlay associated with the project ’s acceptance. Since this investment in working capital is never "consumed
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Problem 20-6 on Call Options Based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a) If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? b) If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? c) Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Short call: value at expiration
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void of professional judgment. From the point of view of both the profession and the users of auditing services‚ there is probably a greater harm from defining authoritative guidelines too specifically than too broadly. 2-16 a. (1) b. (2) c. (3) d. (3) 2-20 a. Rossi and Montgomery’s primary ethical consideration is their professional competence to perform all of the audit work for filing with the SEC. In addition‚ if Rossi and Montgomery have performed bookkeeping services or certain consulting
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Module 3 Accounting Adjustments and Constructing Financial Statements DISCUSSION QUESTIONS Q3-1. The fiscal year is the annual accounting period that a firm adopts. A firm that uses December 31 as its year-end is on a calendar-year basis. Traditionally‚ fiscal years that end in January through the end of May‚ are labeled as the prior calendar year. For example‚ a fiscal year ending January 31‚ 2010 would be labeled fiscal 2009 because the bulk of the operations occurred in calendar 2009
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transfer of values from one party to another. Transactions (c) and (e) are not business transactions because a transfer of values has not resulted‚ nor can the event be considered financial in nature and capable of being expressed in terms of money. 3. Transaction (a): Transaction (b): Transaction (c): Transaction (d): Accounts Receivable (debit)‚ Service Revenue (credit). Cash (debit)‚ Accounts Receivable (credit). Supplies (debit)‚ Accounts Payable (credit). Delivery Expense (debit)‚ Cash
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SOLUTIONS FOR MATH 55‚ HOMEWORK #1 Contact. If you see any errors in this solution set‚ or if you have any questions‚ feel free to email the GSI at isammis@math.berkeley.edu. Note about problem set 1. Because this is the first problem set and because it’s the introduction to formal logic‚ many questions on this set are of the form “write down an x equivalent to y.” There’s no intermediate work in such a problem—one simply writes the answer down and moves on. This is generally not the case
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Cellular Biology Lab – Homework #3 Due the week of Nov. 4th You may use the lab manual‚ pre-lab lectures‚ and credible internet resources‚ however you may not use your cell bio lab classmates as a resource. You will most likely see this material again on the Final and I highly encourage you to work individually and seek help from myself or your TA. Plagiarism will result in an automatic zero. 1. In the cell bio lab‚ we use company manufactured gels‚ however you can make you own polyacrylamide
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BSCI 222 – Principles of Genetics Required Homework #9 Chapters 16 & 17 – Gene Expression 1. Indicate the phenotypes of the following E. coli lac partial diploids in terms of the active enzymes synthesized. With lactose? Without lactose? a. I-P+O+Z+Y-/I+P-O+Z+Y+ - + b. I-P+OCZ+Y-/I+P+O+Z-Y+ + - c. I-P+OCZ+Y+/I-P+O+Z+Y - - d. I+P-OCZ+Y+/I-P+OC
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Quiz 3 Name ______________________________ Class Number _________________ 1. Let X be a random variable with Cumulative Distribution Function (CDF) below. Answer the following probability questions: (You must write out CDF notation) – such as 1 2 3 4 5 6 7 8 9 10 .02 .09 .15 .41 .51 .66 .73 .97 .98 1.0 a) Answer _______________________ c) Answer _______________________ d) Answer _______________________ e) Answer _______________________
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