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Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return in excess of the minimum required return on average operating assets?
a.) return on investment
b.) transfer pricing
c.) the contribution approach
d.) residual income
Calculate the proceeds (issue price) of Learned Inc.'s, bonds on January 1, 2010, assuming that the bonds were sold to provide a market rate of return to the investor.
The approach the controller recommended is to compare SUPERVALU's revenue recognition accounting policies to three similar companies, one reporting under US GAAP ( Safeway ) and two reporting under IFRS ( Ahold and Loblaw Companies ).
Determine the amount of the bundled product sell price that should be allocated to each individual software item using the incremental method with individual sales items ranked as follows: (1) word processing (2) spreadsheet (3) accounting.
Molly and Dolly form MD Corporation. Molly transfers a building with a fair market value of $800,000 and a basis of $400,000 that is encumbered by a $100,000 mortgage that the corporation assumes in exchange for 50 percent of MD's stock.
What are the tax consequences of these transactions for Barney and Wilma?
Bright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November.
An error was made by ABC Company in computing the percentage of completion of the current year's ending Work-in-Process Inventory. The error resulted in the assignment of a lower percentage of completion to each component of the inventory than act..
A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the reason for the apparent inconsistency..
In addition, Otter has tax-exempt interest income of $250,000 and makes distributions to Ellie and Linda of $50,000 each. Discuss the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is:
What are the typical outputs of an Accounting Information Systems? Why do system analysts begin by designing the outputs instead of system inputs?
Under what circumstances would you not want to normalize a table? Finally, do you feel the advantages of normalization outweigh the disadvantages?
Many firms recognize revenus at the point of shipment. This provides an incentive to accelerate revenues by shipping goods at the end of the quarter.
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