Reference no: EM133185121

Questions -

I. Answer the following questions in a sentence or two.

Define asset turnover.

What do you mean by capital expenditure?

When does the government grant a copyright?

What is a cost model?

What is a franchise?

What do you mean by royalties?

How is a trademark different from a license?

How does a material error affect accounting?

Why is neutrality part of the accounting information?

What is the meaning of Relevance in accounting?

II. Answer any five questions.

1. What may be the consequences to you if you misrepresent yourself on your resume?

2. What are the three characteristics of property, plant, and equipment? What does the cost for an item related to property, plant, and equipment include?

3. Determine the objective of financial reporting.

4. What are land improvements? Should the cost of clearing and grading land be recorded as a land improvement cost or not? Explain.

5. What is depreciation? Identify and explain the three factors that are used to calculate depreciation.

6. Describe the similarities and differences between natural resources and property, plant, and equipment.

III. Read the following and answer all the questions.

Health Corporation has several current notes receivable on its year-end balance sheet. While collection seems certain, it may be delayed beyond one year. Because of this, the controller wants to re-classify these notes as non-current. Health's treasurer also thinks that collection will be delayed but does not favor re-classification because this will reduce the current ratio from 1.5:1 to .8:1. This reduction in current ratio is detrimental to company prospects for securing a major loan.

Answer the following questions:

1) Should the controller re-classify the notes? Give your reasons.

2) Does the treasurer's position pose an ethical dilemma for the controller? Explain your answer.