Recent Question

Retained earnings reported on the statement of financial position 1. During July, its first period of operations, Aju inc. sold ordinary shares for W960,000,000, earned net income of W110,000,000, and paid dividends of W27,000,000. Retained earnings at the end of July is a. W1,070,000,000 b. W1,043,000,000 c. W933,000,000 d. W83,000,000 Use the following information for questions 2–5 EI Greco Corporation began operat ...

Other / Other 14 Apr 2016

Which of the following procedures are frequently performed 1. A listing of all the things which the auditor will do to gather sufficient, competent evidence is the: a. audit strategy. b. audit program. c. audit procedure. d. audit risk model. 2. Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests? 1. procedur ...

Other / Other 14 Apr 2016

Hite Industries reported retained earnings 1. A start-up firm is making an initial investment in new plant and equipment. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes law, which of the following would occur in the year following the change? a. The fir ...

Other / Other 14 Apr 2016

The final step in solving an ethical dilemma 1. Internal users of accounting information include all of following except the a. CEO of Sony. b. Human Resources department at Hyundai. c. Marketing department at Braun. d. Shareholders of Airbus. 2. Internal users of accounting information include a. the shareholders of Royal Dutch Shell. b. the State Administration of Taxation of China. c. the Chief Financial officer of ...

Other / Other 14 Apr 2016

Tuttle Enterprises is considering a project 1. Which of the following statements is CORRECT? a. For a project to have more than one IRR, then both IRRs must be greater than the WACC. b. If two projects are mutually exclusive, then they are likely to have multiple IRRs. c. If a project is independent, then it cannot have multiple IRRs. d. Multiple IRRs can only occur if the signs of the cash flows change more than once. e. If a proje ...

Other / Other 14 Apr 2016

The primary advantage to using accelerated 1. Although it is extremely difficult to make accurate forecasts of the revenues that a project will generate, projects' initial outlays and subsequent costs can be forecasted with great accuracy. This is especially true for large product development projects. a. True b. False 2. Since the focus of capital budgeting is on cash flows rather than on net income, changes in noncash balance shee ...

Other / Other 14 Apr 2016

A basic assumption of accounting that requires activities 1. Bumi Corporation purchased an investment in the ordinary shares of another corporation for Rp250,000,000 in 2009. The shares are actively traded on the Indonesian Stock Exchange. The fair value of the investment at December 31, 2011 is Rp266,000,000. If the company follows the fair value principle, the investment will be reported in the 2011 financial statement at a. Rp250,000,0 ...

Other / Other 14 Apr 2016

Municipal bonds with the same risk, maturity, and liquidity 1. Hartzell Inc. had the following data for 2007, in millions: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2008 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $925; and Total assets = $2,500. How much free cash flow did the firm generate during 2008? a. $383 b. $425 c. $468 d. $ ...

Other / Other 14 Apr 2016

Which of the following would be most likely to occur 1. Which of the following statements is CORRECT? a. Most rapidly growing companies have positive free cash flows because cash flows from existing operations generally exceed fixed asset purchases and changes to net working capital. b. Changes in working capital have no effect on free cash flow. c. Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T) + Depreciation ...

Other / Other 14 Apr 2016

Le Bateau Company began operations 1. During October, Mica Inc. sold ordinary shares for €200,000, earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000. Net income for the month is a. €9,000 b. €10,000 c. €209,000 d. €210,000 2. During January, Bruni Corporation earned revenue of €45,000, incurred expenses of €22,000, and paid dividends ...

Other / Other 14 Apr 2016