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ACC 497 Entire Course (With New Final Guide)

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This Tutorial contains knowledge Check as well (Please check Questions) ACC 497 Final Exam Guide (New, 2017) ACC 497 Week 1 Knowledge Check ACC 497 Week 2 Team Accounting for Employee Stock Options ACC 497 Week 2 Accounting Ethics ACC 497 Week 2 Knowledge Check ACC 497 Week 3 Team Assignment Interest Cost ACC 497 Week 3 Accounting for Investments ACC 497 Week 3 Knowledge Check ACC 497 Week 4 Team Goodwill ACC 497 Week 4 Income Tax Implication of Capital Investment Decisions ACC 497 Week 4 knowledge Check ACC 497 Week 5 Signature Assignment FARS Case ACC 497 Week 5 Knowledge Check ACC 497 Individual Assignment FASB Codification System Orientation Paper ACC 497 Week 1 Case Study Cash Basis or Accrual Basis? (2 Sets) ACC 497 Week 1 DQ 1


ACC 497 Week 1 DQ 2 ACC 497 Week 2 Individual Assignment Financial Statements Paper Part I (2 Papers) ACC 497 Week 2 Team Assignment Case Study Assignment (2 Papers) ACC 497 Week 2 DQ 1 ACC 497 Week 2 DQ 2 ACC 497 Week 3 Individual Assignment Financial Statements Paper Part II (2 Papers) ACC 497 Week 3 Individual Assignment From the Readings Exercise 17(E1-17) ACC 497 Week 3 Learning Team Assignment From the Reading (2 Sets) ACC 497 Week 3 Learning Team Case Study Assignment (2 Papers) ACC 497 Week 3 DQ 1 ACC 497 Week 3 DQ 2 ACC 497 Week 4 Individual Assignment From the Reading ACC 497 Week 4 Learning Team Assignment From the Reading ACC 497 Week 4 DQ 1 ACC 497 Week 4 DQ 2 ACC 497 Week 5 Individual Assignment from the Text ACC 497 Week 5 Learning Team Case Study Assignment (2 Papers) ACC 497 Week 5 Learning Team Case Study Presentation (2 Sets) ACC 497 Week 5 DQ 1 ACC 497 Week 5 DQ 2 ----------------------------------------------------------

ACC 497 Final Exam Guide (New, 2018)


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1. An unmodified audit opinion rendered on a governmental unit's basic financial statements means those statements: Have been certified as free from error. Present the entity's financial position fairly in conformity with GAAP. Did not require modifications by the auditor. All of the above. 2 Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)

a. What is her after-tax rate of return for the City of Heflin bond?

3. One of the primary purposes of the Single Audit Act of 1984 (amended in 1996) is to:


Promote the efficient and effective use of audit resources. Make audit activity legal at the federal level. Allow federal auditors greater access to government entities receiving federal funds. Detect fraud, waste and abuse in government entities. 4. Tech Company has disclosed an uncertainty due to pending litigation. The auditor’s decision to issue a qualified opinion on Tech’s financial statements would most likely result from: the entity’s lack of experience with such litigation. an inability to estimate the amount of loss. a lack of sufficient evidence. a lack of insurance coverage for possible losses from such litigation. 5. The goal(s) of a performance audit include(s) assessment of: Economy. Internal control compliance. Program effectiveness. All of the above. 6. Eagle Company, a public company, had a computer failure and lost part of its financial data. As a result, the auditor was unable to obtain sufficient audit evidence relating to Eagle’s inventory account.


Assuming the inventory account is at least material, the auditor would most likely choose either: a qualified opinion with no explanatory paragraph or a qualified opinion with an explanatory paragraph. an unqualified opinion with no explanatory paragraph or an unqualified opinion with an explanatory paragraph. a qualified opinion or an adverse opinion. a qualified opinion or a disclaimer of opinion.

7. Which of the following funds is a governmental fund-type? Enterprise fund. Internal service fund. Permanent fund. Private-purpose trust fund. 8. Which of the following is true regarding financial reporting for internal service funds? Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements. Internal service funds are generally reported in the Business-type Activities column of the government-wide financial statements. Internal service funds are aggregated and reported as a major fund in the proprietary fund financial statements.


Internal service funds are reported in the governmental fund financial statements.

9. The body that has the responsibility to set generally accepted accounting principles in Canada is the: AcSB. OSC. FASB. IASC. 10. Under GASB standards, where are nonmajor funds reported? In aggregate amounts in a single column in the fund financial statements. In a note disclosure following the financial statements. In the government-wide financial statements. In the management's discussion and analysis preceding the financial statements. 11. For each of the following scenarios, indicate how they would be classified for fund balance reporting purposes by selecting from the list of classification.

12.


Which of the following would be considered Category (b) GAAP for state and local government auditees? GASB Statements and Interpretations. AICPA Practice Bulletins if specifically made applicable to state and local governments by the AICPA and cleared by the GASB. GASB Technical Bulletins. GASB Implementation Guides. 13. The estate of Monique Chablis earned $450 of income this year. Is the estate required to file an income tax return?

No, because the estate's gross income is less than $600, the estate is not required to file an income tax return. 14. The essential characteristic(s) of accounting is (are): communication of financial information to interested persons, communication of financial information about economic entities, and identification, measurement, and communication of financial information. communication of financial information about economic entities. communication of financial information to interested persons. identification, measurement, and communication of financial information.


15. For each of the following independent situations, indicate the type of financial statement audit report that you would issue and briefly explain your reasoning. Assume that all companies mentioned are private companies and that each item is at least material. a. Barefield Corporation, a wholly owned subsidiary of Sandy, Inc., is audited by another CPA firm. As the auditor of Sandy, Inc., you have assured yourself of the other CPA firm’s independence and professional reputation. However, you are unwilling to take complete responsibility for its audit work. b. The management of Bonner Corporation has decided to exclude the statement of cash flows from its financial statements because it believes that its bankers do not find the statement to be very useful. c. You are auditing Diverse Carbon, a manufacturer of nerve gas for the military, for the year ended September 30. On September 1, one of its manufacturing plants caught fire, releasing nerve gas into the surrounding area. Two thousand people were killed and numerous others paralyzed. The company’s legal counsel indicates that the company is liable and that the amount of the liability can be reasonably estimated, but the company refuses to disclose this information in the financial statements. d. During your audit of Cuccia Coal Company, the controller, Tracy Tricks, refuses to allow you to confirm accounts receivable because she is concerned about complaints from her customers. You are unable to satisfy yourself about accounts receivable by other audit procedures and you are concerned about Tracy’s true motives.


e. On January 31, Asare Toy Manufacturing hired your firm to audit the company’s financial statements for the prior year. You were unable to observe the client’s inventory on December 31. However, you were able to satisfy yourself about the inventory balance using other auditing procedures. f. Gelato Bros., Inc., leases its manufacturing facility from a partnership controlled by the chief executive officer and major shareholder of Gelato. Your review of the lease indicates that the rental terms are in excess of rental terms for similar buildings in the area. The company refuses to disclose this related-party transaction in the footnotes. g. Johnstone Manufacturing Company has used the double-declining balance method to depreciate its machinery. During the current year, management switched to the straight-line method because it felt that it better represented the utilization of the assets. You concur with its decision. All information is adequately disclosed in the financial statements. 16. In which section of the standard audit report does the auditor inform financial statement users that certain information, such as combining statements or budgetary comparison schedules may not have been subject to the comprehensive audit procedures? Auditor’s Opinion section. Other Information section Other Matters section. Auditor’s Responsibility section. 17. Award


Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. 66.0% for 2017 and 64.6% for 2016. 54.2% for 2017 and 56.1% for 2016. 36.1% for 2017 and 40.4% for 2016. 120.3% for 2017 and 100.0% for 2016. 116.2% for 2017 and 100.0% for 2016. 2017: $279,200 / $232,000 Ă— 100 = 120.3% 2016: $232,000 / $232,000 Ă— 100 = 100.0% 18 A company reports basic earnings per share of $4.30, cash dividends per share of $1.65, and a market price per share of $65.15. The company's dividend yield equals: 2.62%. 3.82%. 15.50%. 2.53%. 6.45%. 19


Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) 45.2. 115.2. 49.1. 82.2. 43.6.

20 Capital assets used by an enterprise fund should be accounted for in the Business-type activities journal but no depreciation on the capital assets should be recorded. Governmental activities journal and depreciation on the capital assets should be recorded. Enterprise fund but no depreciation on the capital assets should be recorded. Enterprise fund and depreciation on the capital assets should be recorded.

21.


For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate terms.

22. Which of the following statements regarding audit findings is true? A material weakness is a deficiency in internal control important enough to merit attention by those charged with governance. All of the above are true. A deficiency exists when the design or operation of a control does not allow management or employees to prevent, or detect and correct misstatements on a timely basis. A significant deficiency is a deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. 23. Which of the following would be reported as a nonspendable fund balance? Assets whose use is limited. Restricted assets. Capital assets. Inventory. 24. For the following items that require reconciliation between governmental funds financial statements and governmental activities


financial statements at the government-wide level according to GASB standards, indicate which is the best appropriate terms. A) Always be subtracted from fund balances—governmental funds. B) Always be added to fund balances—governmental funds C) May be added to or subtracted from fund balances—governmental funds in arriving at net position of governmental activities. 25. Martinez Corporation reported Net sales of $777,000 and Net income of $130,000. The Profit margin is: 83.27%. 1.67%. 5.98%. 598.0%. 16.73%.

26. Selected current year company information follows:

27.


Some governments provide to their citizens highly condensed financial information, budget summaries, and narrative descriptions. This report is called a(an) Popular report. Required supplementary information. Basic financial statements. Comprehensive annual financial report. 28. A corporation reported cash of $25,600 and total assets of $454,000 on its balance sheet. Its common-size percent for cash equals: 5.64%. 100.00%. 17.73%. 1773%. 56.40%.

29. Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2. 17.1%. 32.5%. 9.8%. 14.2%. 12.1%.


30. An organization that has not published financial accounting standards is the: Institute of Chartered Accountants. Emerging Issues Committee. Certified Management Accountants of Canada. International Accounting Standards Committee. ----------------------------------------------------------

ACC 497 Week 1 Case Study Cash Basis or Accrual Basis? (2 Sets)

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This Tutorial contains two papers (different)


Resources: Brain Teaser 4: Cash Basis or Accrual Basis? in Ch. 4 of Mastery of the Financial Accounting Research System (FARS) Through Cases Write a 350- to 700-word response to the questions that follow the case study. Note. Although Brain Teaser 4 references the Financial Accounting Research System, refer to the Financial Accounting Standards Board when answering the questions ----------------------------------------------------------

ACC 497 Week 1 DQ 1

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What is the FASB Codification System? What is the purpose of the FASB Codification System? How can it be used to make better accounting decisions? ----------------------------------------------------------

ACC 497 Week 1 DQ 2

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What are Generally Accepted Accounting Principles (GAAP)? How do GAAP affect financial reporting? How might GAAP need to change to accommodate today’s dynamic business environment? ----------------------------------------------------------


ACC 497 Week 1 FASB Codification System (2 Papers)

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ACC 497 Week 1 FASB Codification System Access the FASB Online website and familiarize yourself with the contents. Write a 350- to 700-word paper in which you answer the following questions:  What is the FASB Codification System?  What is the purpose of the FASB Codification System?  What are the nine content areas located in the FASB Codification System? What types of items are located under each content area? Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------

ACC 497 Week 1 Individual Assignment FASB Codification System Orientation Paper


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Resources: FASB Codification System website accessible through the FASB Online link located on your student website Access the FASB Online website and familiarize yourself with the contents. Write a 350-word paper in which you answer the following questions:   

What is the FASB Codification System? What is the purpose of the FASB Codification System? What are the nine content areas located in the FASB Codification System? What types of items are located under each content area?

Format your paper consistent with APA guidelines. ----------------------------------------------------------

ACC 497 Week 1 Knowledge Check

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1. Refer to the following selected financial information from McCormik, LLC. Compute the company's working capital for Year 2. $257,000. $178,000. $270,500. $142,500. $166,500.

2. If cash flow prediction is a company's primary reporting objective, this would likely result in: Fewer accruals and deferrals. Lower earnings. Higher earnings. Poor matching. 3. Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2. 5.80.


3.09. 3.19. 3.14. 3.54. Year 2: $392,000 / [($123,000 + $127,000) / 2] = 3.14 4. Selected current year company information follows: The total asset turnover is (Do not round intermediate calculations.): 3.11 times. 2.49 times. 6.25 times. 2.26 times. 2.77 times. 5. Choose the correct statement about audits of corporations: Outside auditors are paid by the government for auditing the financial statements of corporations. Revenue Canada performs audits of corporations' financial statements. It is the employees of the firm being audited who perform the annual audit of the financial statements of that firm. Public corporations (those whose stock are traded on exchanges) are subject to annual audit as to their compliance with GAAP. 6. Refer to the following selected financial information from McCormik, LLC. Compute the company's accounts receivable turnover for Year 2. 7.98. 5.59. 6.84.


7.73. 7. A corporation reported cash of $28,400 and total assets of $468,000 on its balance sheet. Its common-size percent for cash equals: 60.70%. 6.07%. 1648%. 100.00%. 16.48%. 8. General-purpose financial statements report financial information relevant to: investors only. creditors only. investors, creditors and government users. government users only. 9. A corporation reports the following year-end balance sheet data. The company's current ratio equals: 2.14 0.57 1.32 0.36

10. Which of the following statements regarding cash flows is not accurate?


Information about the balances of current liabilities, long-term debt and stockholders' equity can be found in the statement of cash flows. Before the present cash flow statement standard became effective, companies had a choice of whether to report cash flow from operating activities or working capital from operating activities. Information about past cash flows is useful in predicting an entity's future cash flows. The reported cash flow from operating activities has been found useful in evaluating a firm's ability to make interest payments and repay debt. Studies have shown that a cash flows report is more relevant to investor decisions than a working capital report. ----------------------------------------------------------

ACC 497 Week 2 Accounting Ethics

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Review the following case study:


When the FASB issues new standards, the implementation date is often 12 months from date of issuance, and early implementation is encouraged. Becky Hoger, controller, discusses with her financial vice president the need for early implementation of a standard that would result in a fairer presentation of the company's financial condition and earnings. When the financial vice president determines that early implementation of the standard will adversely affect the reported net income for the year, he discourages Hoger from implementing the standard until it is required. Write a response of no more than 1,050 words in which you answer the following requirements: • Determine an ethical issue that is involved in this case if any. • Identify if the financial vice president acting improperly or immorally? • Explain what Hoger have to gain by advocacy of early implementation? • Identify who might be affected by the decision against early implementation? Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------

ACC 497 Week 2 Discussion (LIFO)

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ACC 497 Week 2 Discussion Discuss the following: ยง Client X contacted you for clarification and recommendations on how the use of the LIFO method to value its inventories will be impacted if a switch to financial statements prepared in compliance with IFRS will be made. ----------------------------------------------------------

ACC 497 Week 2 DQ 1

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What are at least three International Accounting Standards? Are these standards the same as U.S. standards? Explain your response. Is it necessary to have global standards? Explain your response. ----------------------------------------------------------


ACC 497 Week 2 DQ 2

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What are some nonfinancial performance measures? What do they tell us about the performance of an organization? Why is it important for managers to include nonfinancial performance standards in their analysis of their operations? ----------------------------------------------------------

ACC 497 Week 2 Individual Assignment Financial Statements Paper Part I (2 Papers)

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This Tutorial contains 2 different Papers Resources: Appendix A: The Home Depot, Inc. Annual Report in Fundamentals of Financial Accounting Write a 1,050- to 1,750-word paper in which you answer the following questions: 

What does the Consolidated Statements of Earnings—the income statement—tell you about the company? Why is this statement important? What business decisions could be made using the income statement?

What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet?

What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows?

What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making?

Format your paper consistent with APA guidelines. ----------------------------------------------------------


ACC 497 Week 2 Knowledge Check

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1. Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Complete the report showing Via Gelato revenue and spending variances for June


2. Heritage Watercraft makes reproductions of classic wooden boats. The bottleneck in the production process is fitting wooden planks to build up the curved sections of the hull. This process requires the attention of the shop’s most experienced craftsman. A total of 3,400 hours is available per year in this bottleneck operation. Data concerning the company’s four products appear below: No fixed costs could be avoided by modifying how many units are produced of any product or even by dropping any one of the products. Required: 1a. Calculate the total hours required in the bottleneck operation to satisfy demand for all the products.

3. Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria’s costs appear below: In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries. Data concerning the pizzeria’s operations in November appear below: Required:


1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. 4. Jake’s Roof Repair has provided the following data concerning its costs:

For example, wages and salaries should be $21,400 plus $15.00 per repair hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $52.00 per repair-hour. Required: Compute the company’s activity variances for May. 5. Advanced Pharmaceuticals, Inc., is a wholesale distributor of prescription drugs to independent retail and hospital-based pharmacies. Management believes that top-notch customer representatives are the key factor in determining whether the company will be successful in the future. Customer representatives serve as the company’s liaison with customers—helping pharmacies monitor their stocks, delivering drugs when customer stocks run low, and providing up-to-date information on drugs from many different companies. Customer representatives must be ultra-reliable and are highly trained. Good customer representatives are hard to come by and are not easily replaced. Customer representatives routinely record the amount of time they spend serving each pharmacy. This time includes travel time to and from the company’s central warehouse as well as time spent replenishing stocks, dealing with complaints, answering questions about drugs, informing


pharmacists of the latest developments and newest products, reviewing bills, explaining procedures, and so on. Some pharmacies require more hand-holding and attention than others and consequently they consume more of the representatives’ time. Recently, customer representatives have made more frequent complaints that it is impossible to do their jobs without working well beyond normal working hours. This has led to an alarming increase in the number of customer representatives quitting for jobs in other organizations. As a consequence, management is considering dropping some customers to reduce the workload on customer representatives. Data concerning a representative sample of the company’s customers appears below: Customer service costs include all of the costs—other than the costs of the drugs themselves—that could be avoided by dropping the customer. These costs include the hourly wages of the customer representatives, their sales commissions, the mileage-related costs of the customer representatives’ company-provided vehicles, and so on. Required: 1. Rank the four customers in terms of their profitability. Carlsville Company, which began operations in 2015, invests its idle cash in trading securities. The following transactions are from its shortterm investments in trading securities. 2015 Jan. 20 Purchased 800 shares of Ford Motor Co. at $26 per share plus a $125 commission. Feb. 9 Purchased 2,200 shares of Lucent at $44.25 per share plus a $578 commission. Oct. 12 Purchased 750 shares of Z-Seven at $7.50 per share plus a $200 commission. Dec. 31 Fair value of the short-term investments in trading securities is $130,000.


2016 Apr. 15 Sold 800 shares of Ford Motor Co. at $29 per share less a $285 commission. July 5 Sold 750 shares of Z-Seven at $10.25 per share less a $102.50 commission. July 22 Purchased 1,600 shares of Hunt Corp. at $30 per share plus a $444 commission. Aug. 19 Purchased 1,800 shares of Donna Karan at $18.25 per share plus a $290 commission. Dec. 31 Fair value of the short-term investments in trading securities is $160,000. 2017 Feb. 27 Purchased 3,400 shares of HCA at $34 per share plus a $420 commission. Mar. 3 Sold 1,600 shares of Hunt at $25 per share less a $250 commission. June 21 Sold 2,200 shares of Lucent at $42 per share less a $420 commission. June 30 Purchased 1,200 shares of Black & Decker at $47.50 per share plus a $595 commission. Nov. 1 Sold 1,800 shares of Donna Karan at $18.25 per share less a $309 commission. Dec. 31 Fair value of the short-term investments in trading securities is $180,000. Required: 1. Prepare journal entries to record these short-term investment activities for the years shown. On December 31 of each year, prepare the adjusting entry to record any necessary fair value adjustment for the portfolio of trading securities.


7. [The following information applies to the questions displayed below.] Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2015 and 2016. 2015 Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $5,938 cash. The exchange rate for pesos is $0.1043 on this day. July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 1.5 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0094 on this day. Oct. 14 Sold merchandise for 19,000 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The exchange rate for pounds is $1.4566 on this day. Nov. 18 Received Sumito’s payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0.0092 on this day. Dec. 20 Sold merchandise for 17,000 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the exchange rate for ringgits is $0.4501. Dec. 31 Recorded adjusting entries to recognize exchange gains or losses on Doering’s annual financial statements. Rates for exchanging foreign currencies on this day follow. 2016 Jan. 12 Received full payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The exchange rate for pounds is $1.4699 on this day. Jan. 19 Received Hamid Albar’s full payment in ringgits for the December 20 sale and immediately exchanged the ringgits for dollars. The exchange rate for ringgits is $0.4420 on this day.


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ACC 497 Week 2 Team Accounting for Employee Stock Options

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Discuss with your team the following case study: Client X offers a generous employee compensation package that includes employee stock options. The exercise price has always been equal to the market price of the stock at the date of grant. The corporate controller, John Jones, believes that employee stock options, like all obligations to issue the corporation's own stock, are equity. The new staff accountant, Marcy Means, disagrees. Marcy argues that when a company issues stock for less than current value, the value of preexisting stockholders' shares is diluted. Write a team consensus response of no more than 700 words in which you answer the following requirements: 1. Describe how Client X should account for its employee stock option plan, under existing GAAP. 2. Pretend you are hired to debate the issue of the proper treatment of options written on a company's own stock.


3. Formulate your argument, citing concepts and definitions to buttress your case, assuming: a. You are siding with John. b. You are siding with Marcy. Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------

ACC 497 Week 2 Team Assignment Case Study Assignment (2 Papers)

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This Tutorial contains 2 different Papers Resources: Ch. 1 & 2 of Financial Accounting Theory and Analysis: Text and Cases Write a 350-word response for each of the following cases answering the questions located at the end of each case.  

Case 1-3 Politicalization of Accounting Standards in Ch. 1 Case 1-4 Generally Accepted Accounting Principles in Ch. 1


Case 2-2 The Theoretical Foundation of Accounting Principles in Ch. 2 ----------------------------------------------------------

ACC 497 Week 2 Textbook Cases Case 1-1, Case 1-3, Case 2-2 (New Syllabus)

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ACC 497 Week 2 Textbook Cases Write a 350- to 700-word response for each of the following cases answering the questions located at the end of each case.  Case 1-1 Generally Accepted Accounting Principles on page 28)  Case 1-3 Politicization of Accounting Standards (page 28)  Case 2-2 The Theoretical Foundation of Accounting Principles (page 75) Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------


ACC 497 Week 3 Accounting for Investments

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Review the following case study: FASB ASC 320 requires companies to assign their portfolio of investment securities into: • Trading securities. • Securities available for sale. • Held-to-maturity securities. Write a response of no more than 1,500 words in which you answer the following: • Define each of these categories of securities and discuss the accounting treatment for each category. • Discuss how companies are required to assign each category of securities into its current and noncurrent portions. • Discuss the arguments for each position. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value. Others maintain that this treatment might allow companies to "manage earnings". Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------


ACC 497 Week 3 DQ 1

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What is tax research? What is the purpose of conducting tax research? Are results of tax research conclusive? Explain your response. ----------------------------------------------------------

ACC 497 Week 3 DQ 2

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What is the purpose of tax planning? How do we conduct tax planning? How could tax planning lead to unethical behavior? Resources: Ch. 1 of Prentice Hall’s Federal Taxation 2011: Individuals Respond to the following problems by conducting tax research and including tax-planning advice: 

I:1-48 Tax Strategy Problem

I:1-49 Case Study Problem ----------------------------------------------------------

ACC 497 Week 3 Individual Assignment Financial Statements Paper Part II (2 Papers)

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This Tutorial contains 2 different Papers Resources: Appendix A, The Home Depot, Inc. Annual Report in Fundamentals of Financial Accounting Write a 1,050- to 1,750-word paper in which you address the following: 

Does management’s assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain your response. Support your answer using trend analysis, vertical analysis, or ratio analysis.

In the Annual Report, there are several concerns from management. Discuss these concerns, and identify other weaknesses not discussed by management. Then, recommend a course of action addressing these concerns.

Format your paper consistent with APA guidelines. ----------------------------------------------------------

ACC 497 Week 3 Individual Assignment From the Readings Exercise 17(E1-17)


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Resources: Ch. 1 of Managerial Accounting: Tools for Business Decision Making Prepare a written response to the following exercise: Exercise 17 (E1-17) at the end of Ch. 1 ----------------------------------------------------------

ACC 497 Week 3 Knowledge Check

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1. The estate of Monique Chablis earned $450 of income this year. Is the estate required to file an income tax return?

2. Congress would like to increase tax revenues by 5 percent. Assume that the average taxpayer in the United States earns $40,000 and pays an average tax rate of 20 percent. a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 5 percent increase in tax revenues? (Round your answer to 2 decimal places.) b. This is an example of what type of forecasting? 3. Molto Stancha Corporation had zero earnings this fiscal year; in fact, they lost money. Must they file a tax return? 4. Scot and Vidia, married taxpayers, earn $187,500 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answer to 2 decimal places.)


a. If Scot and Vidia earn an additional $82,750 of taxable income, what is their marginal tax rate on this income? b. How would your answer differ if they, instead, had $82,750 of additional deductions?

5. Juanita, a Texas resident (5th Circuit), is researching a tax question and finds a 5th Circuit case ruling that is favorable and a 9th Circuit case that is unfavorable. Which circuit case has more “authoritative weight�?

6. Hyundai is considering opening a plant in two neighboring states. Option 1: One state has a corporate tax rate of 10 percent. If operated in this state, the plant is expected to generate $1,435,000 pretax profit. Option 2: The other state has a corporate tax rate of 2 percent. If operated in this state, the plant is expected to generate $1,360,000 of pretax profit. a. What is the after state taxes profit in the state with the 10% tax rate? b. What is the after state taxes profit in the state with the 2% tax rate? Which state should Hyundai choose?


7. Song earns $130,000 taxable income as an interior designer and is taxed at an average rate of 25 percent (i.e., $32,500 of tax). a. If Congress increases the income tax rate such that Song’s average tax rate increases from 25 percent to 35 percent, how much more income tax will she pay assuming that the income effect is descriptive? b. If the income effect is descriptive, the tax base and the tax collected will increase.

8. Dennis is currently considering investing in municipal bonds that earn 4.05 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 5.4 percent. a. If Dennis’s tax rate is 20 percent, which bond should he choose?

b. Which bond should he choose if his tax rate is 30 percent?

c. At what tax rate would he be indifferent between the bonds? d. What strategy is this decision based upon?


9. Jonah has the choice of paying Rita $15,000 today or $75,000 in 10 years. Assume Jonah can earn a 4 percent after-tax rate of return. Which should he choose? Use Exhibit 3.1.

10. Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)

a. What is her after-tax rate of return for the City of Heflin bond? ----------------------------------------------------------

 

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ACC 497 Week 3 Learning Team Discussion Discuss the following as a team:


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Discuss with your team the following case study: Client X contacted you for clarification and recommendations regarding whether the interest cost on construction of a new warehouse may be included in the cost of the new warehouse. Write a team consensus response of no more than 700 words to include the following: • Provide rational and clarifications of the proper treatment of interest cost under the rules of GAAP. • Explain the impact of this interest cost on: o Financial statements.


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ACC 497 Week 4 DQ 2


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ACC 497 Week 4 Income Tax Implication of Capital Investment Decisions

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Read the following case study: The Whitley Corporation's year-end is December 31. It is now October 1, 2013. The Whitley management team is taking a look at the prior nine months and attempting to make some short-term strategy decisions. Whitley has experienced steady growth over the five preceding years. The result has been a steadily increasing EPS. Last year, Whitley reported an EPS of 1.95. This year, owing to a mild recession, Whitley's sales have fallen off. Management is looking for strategies that can improve the appearance of the financial statements. At the same time, there is a need for new equipment in the plant. Despite the recession, Whitley has enough cash to make the purchase. Based on the year's performance to date and extrapolation of the results to year-end, management feels that the pretax financial accounting income for the year will be $200,000. Transactions from prior years have resulted in a deferred tax asset of $15,000 and a deferred tax liability of $70,000 at the beginning of 2013. The temporary difference of $37,500 that resulted in the deferred tax asset is expected to completely reverse by the end of 2013. The deferred tax liability resulted totally from temporary depreciation differences. There will be a pretax reversal of $42,500 in this temporary difference during 2013. Based on currently enacted tax law, the purchase of the equipment will result in a future taxable amount of $50,000. Whitley management feels that it can wait four to six months to purchase the machine. Whitley's tax rate is 40 percent. Write a response of no more than 1,050 words to the following: • Determine the projected amount of income tax expense that would be reported if Whitley waits until next year to purchase the equipment. • Determine the projected amount of income tax expense that would be reported if Whitley purchases the equipment in 2013. • Explain why Whitley should/shouldn't wait to purchase the equipment? Your answer should take into consideration the expected financial statement effects, as well as the effect on EPS. Support your conclusions with pro forma data. The number of shares that Whitley will use to calculate EPS is 55,500.


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ACC 497 Week 4 knowledge Check

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1.


A public entity changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. This change has no material effect on the current year’s financial statements but is reasonably certain to have a substantial effect in later years. The client’s financial statements contain no material misstatements and the auditor concurs with this change. If the change is disclosed in the notes to the financial statements, the auditor should issue a report with a(n): unqualified opinion. “except for” qualified opinion. explanatory paragraph. consistency modification. 2. The single audit requirement applies to: All audits of state and local government reporting entities. Most audits of state and local governments expending federal grant funds. Financial audits of all not-for-profit entities. Only those governments and not-for-profit entities that are audited by a federal audit agency. 3. For each of the following independent situations, indicate the reason for and the type of financial statement audit report that you would issue. Assume that all companies mentioned are private companies and that each item is at least material. a. Thibodeau Mines, Inc., uses LIFO for valuing inventories held in the United States and FIFO for inventories produced and held in its foreign operations.


b. Walker Computers is suing your client, Super Software, for royalties over patent infringement. Super Software’s outside legal counsel assures you that Walker’s case is completely without merit. c. In previous years, your client, Merc International, has consolidated its Panamanian subsidiary. Because of restrictions on repatriation of earnings placed on all foreign-owned corporations in Panama, Merc International has decided to account for the subsidiary on the equity basis in the current year. You concur with the change d. In prior years, Worcester Wool Mills has used current market prices to value its inventory of raw wool. During the current year, Worcester changed to FIFO for valuing raw wool. e. Upon review of the recent history of the lives of its specialized automobiles, Gas Leak Technology justifiably changed the service lives for depreciation purposes on its autos from five years to three years. This change resulted in a material amount of additional depreciation expense. f. During the audit of Brannon Bakery Equipment, you found that a material amount of inventory had been excluded from the company’s financial statements. After discussing this problem with management, you become convinced that it was an unintentional oversight. Management appropriately corrected the error prior to your finalization of field work. g. Jay Rich, CPA, holds 10 percent of the stock in Rothenburg Construction Company. The board of directors of Rothenburg asks Rich to conduct its audit. Rich completes the audit and determines that the financial statements present fairly in accordance with generally accepted accounting principles. h. Ramamoorthi Savings and Loan’s financial condition has been deteriorating for the last five years. Most of its problems result from loans made to real estate developers in Saint Johns County. Your review of the loan portfolio indicates that there should be a major increase in the loan-loss reserve. Based on your calculations, the proposed writedown of the loans will put Ramamoorthi into violation of the state’s capital requirements. The client refuses to make the adjustment or to disclose the possible going concern issue in the notes to the financial statements.


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Resources: Ch. 15 of Prentice Hall’s Federal Taxation 2011: Individuals Conduct tax research and formulate tax-planning advice in your response to the following problems: 

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ACC 497 Week 4 Learning Team Discussion


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ACC 497 Week 4 Team Goodwill

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Discuss with your team the following case study: Client X contacted you for clarification and recommendations regarding the instances when goodwill should be adjusted for impairment. Write a team consensus response of no more than 700 words to include the following: • Provide detailed rational of why goodwill must be adjusted for impairment. • List the tests for impairment. • Explain the meaning of a non cash impairment charge. Click the Assignment Files tab to submit your assignment.


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What are the differences in reporting guidance in a for-profit and notfor-profit organization? What are the similarities in reporting guidance in a for-profit and not-for-profit organization? How do these differences and similarities affect the comparability of financial reports? Should these reports be comparable? Explain your response. ----------------------------------------------------------

ACC 497 Week 5 DQ 2


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What are the differences in financial reporting in a for-profit and government organization? What are the similarities in financial reporting in a for-profit and government organization? How do these differences and similarities affect the comparability of financial reports? Should these reports be comparable? Explain your response. ----------------------------------------------------------

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ACC 497 Week 5 FARS Case Write a 1,050- to 1,400-word response in which you address the following questions from Case 3, Charitable Contributions and Debt: A Comparison of St. Jude Children’s Research Hospital/ALSAC and Universal Health Services:  Questions from Requirement A  Questions from Requirement B  How would your answers to Requirements A and B differ if the government owned and operated the hospital? Click the Assignment Files tab to submit your assignment. ----------------------------------------------------------

ACC 497 Week 5 Individual Assignment from the Text

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Resources: Ch. 4 & 5 of Modern Auditing Write answers to the following problems:


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ACC 497 Expect Success/newtonhelp.com  

ACC 497 Entire Course (With New Final Guide) For more course tutorials visit www.newtonhelp.com This Tutorial contains knowledge Check...

ACC 497 Expect Success/newtonhelp.com  

ACC 497 Entire Course (With New Final Guide) For more course tutorials visit www.newtonhelp.com This Tutorial contains knowledge Check...

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