FIANCE AND MANAGERIAL ACCOUNTING, Financial Management

Assignment Help:
Ask question
Open Quick Links
Quick Links
Page Landmarks

Content Outline

Keyboard Shortcuts

Global Menu
Top Frame Tabs
My UMass Amherst Tab 1 of 2 (active tab)

Help & Resources Tab 2 of 2
Current Location

SCH-MGMT 633 S.Machuga Fall15 SPIRE#39194
Exams, quizzes and Case Assignments Take Test: Quiz on Unit 3

Hide Course Menu
Menu Management Options

Refresh
Display Course Menu in a Window

Course Menu:
SCH-MGMT 633 S.Machuga Fall15 SPIRE#39194
Course Entry Page

Home Page
Getting Started and Syllabus
Course Content
Exams, quizzes and Case Assignments
Classwide Discussions
My Grades
My Messages
Announcements
Calendar
Tools Area

Take Test: Quiz on Unit 3
Content
Assistive Technology Tips [opens in new window]
Test Information
Instructions
Description

This quiz contains 10 questions. Seven of the questions are from Module 5 and three of the questions are from Module 6 (pages 1 - 12).

The details of the quiz are as follows:

1) Use of Percentage of Completion method to recognize revenue.

2) Revenue recognition rules.

3) Rules regarding R&D expenses, restructuring expenses and income tax expenses.

4) Foreign currency translation.

5) Computation of basic EPS.

6) Accounts receivable, estimating uncollectible accounts and adjusting the allowance acccount, and recording bad debts expense.
Instructions
Timed Test This test has a time limit of 2 hours.You will be notified when time expires, and you may continue or submit.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain.
Multiple Attempts Not allowed. This test can only be taken once.
Force Completion This test can be saved and resumed later. The timer will continue to run if you leave the test.
Remaining Time: 1 hour, 31 minutes, 48 seconds.

Question 1

In spring 2014, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city hall. Parmac expects to construct the building within two years and incur expenses of $120 million. The city of Parkersburg paid $40 million when the contract was signed, $80 million within the next six months, and the final $40 million exactly one year from the signing of the contract. Parmac incurred $48 million in costs during 2014 and rest in 2015 to complete the contract on time. Using the percentage-of-completion method how much revenue should Parmac recognize in 2014?
a.

$ 40 million
b.

$ 120 million
c.

$ 64 million
d.

$ 80 million

4 points
Question 2

When should each of the following companies recognize revenue for the following operations?

a. Sam’s Club collects annual membership fees from customers.

b. Wall Street Journal receives advertising revenues in advance from Banco do Brasil, for an ad campaign that will run a full-page spread once a week for six months.

c. J. Jill is an internet clothing retailer. It receives credit card payments when customers place their orders and ships products from warehouses within 5-7 business days.

For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).




Font family


Font size














Paragraph


Arial


3 (12pt)































































Path: p
Words:15

6 points
Question 3

Google reported the following in its 2013, Form 10K (in millions). Use the information to determine in which year, Google reported a more significant R&D expenditure.






2013


2012

Total assets


$110,920


$93,798

Revenues


$59,825


$50,175

Research and development expense


$7,952


$6,793

For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).




Font family


Font size














Paragraph


Arial


3 (12pt)































































Path: p
Words:2

4 points
Question 4

Nickolas Imports recorded a restructuring charge of $21.6 million during fiscal 2014 related entirely to the closing of its California based operations in San Diego and in Tijuana, Mexico. The company’s financial statement footnotes indicated that expected employee separation payments amounted to $16.8 million and that fixed asset write-downs accounting for the remainder. Nickolas had never before incurred restructuring charges. At the end of the year, the company’s balance sheet included a restructuring accrual of $3,600,000. Calculate the cash flow effect of Nickolas’s restructuring during fiscal 2014.




Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

4 points
Question 5

December 31, 2012, includes the following information (in thousands):



Current tax provision




Federal


$237,481

State


13,156

Foreign


50,548




301,185

Deferred tax provision




Federal


(174,953)

State


(9,925)

Foreign


(1,182)




(186,060)

Provision for income taxes


$115,125



What income tax expense did Life Technologies Company report in its 2012 income statement?





Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

2 points
Question 6

The Bean Import Export Corp. has a profitable Portuguese subsidiary that maintains its financial records in Euros. During the current year, the U.S. dollar strengthened vis-à-vis the Euro. What affect did this have on The Bean’s consolidated income statement for the current year?





Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

2 points
Question 7

Oil Services Corp. reports the following EPS data in its 2014 annual report (in millions except per share data).



Net income


$2,436

Weighted average shares outstanding:







1,172

Compute basic earnings per share.





Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

2 points
Question 8

The 2013 annual report of Oracle Corporation, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $323 million, accounts written off during the year $145 million, balance in allowance at the end of the year $296 million. What did Oracle report as bad debt expense for the year?




Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

4 points
Question 9

Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in millions):



Age of Receivables


Balance


Estimated % uncollectible

Current


$5,500


1%

30-60 days past due


1,200


3%

61-90 days past due


850


6%

Over 90 days past due


420


10%

Total


$7,970






a. Determine the appropriate allowance for uncollectible accounts.

b. How will Fey Corporation report its accounts receivable on the balance sheet?





Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

6 points
Question 10

Dick’s Sporting Goods reported Accounts receivable, net of $60,779 thousand in 2013 and an allowance for doubtful accounts of $3,109 thousand. Pretax income in 2013 was $546,107 thousand. If Dick’s Sporting Goods’ managers had purposely underestimated the allowance for doubtful accounts by $750 thousand, how would the 2013 income statement be affected? What about future financial statements?





Font family


Font size














Paragraph


Arial


5 (18pt)































































Path: p
Words:0

6 points

Click Save and Submit to save and submit. Click Save All Answers to save all answers.

#Minimum 100 words accepted#

Related Discussions:- FIANCE AND MANAGERIAL ACCOUNTING

Why do businesses spend time effort and money, Why do businesses spend time...

Why do businesses spend time, effort, and money to produce forecasts?  Explain. Businesses fail or succeed depending on how well prepared they are to deal with the situations t

Definition of cost of capital, Definition of cost of capital In analyzi...

Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va

What is dependent care expenses, Q. What is Dependent Care Expenses? De...

Q. What is Dependent Care Expenses? Dependent Care Expenses - Qualified child care expenses would allow a taxpayer this computed credit against tax. Amounts can be found on the

Enhance or maintain its image and reputation, a) Marketing might be vital t...

a) Marketing might be vital to an organisation such as WHSG for several reasons, including: • The need to be a focus for the right kind of students to the school (there are riva

Obtain the break even rate, Question 1 (a) These are merely the diffe...

Question 1 (a) These are merely the differences of the two prices. Consequently the mark to market losses are given by { Q 1 - Q 0 ,Q 2 - Q 0 ,Q 3 - Q 0

Explain the methods used to treat the obsolete stock, Explain the methods u...

Explain the methods used to treat the obsolete stock Review Inventory for obsolete items Make materials review board Include an obsolescence review in the closing p

Calculate the expected return and risk, QUESTION The Stock of Max Ltd ...

QUESTION The Stock of Max Ltd performs relatively well compared to other stocks during recessionary periods. The stock of Bax Ltd, on the other hand, does well during growth p

Brigham, how do legal consideration affect a firms credit policy

how do legal consideration affect a firms credit policy

Define working capital, Q. Define Working Capital. Ans. Introduction: - ...

Q. Define Working Capital. Ans. Introduction: - Working capital plays the similar role in the business as the role of heart in the human body. Just like heart gets blood as well

Sensex, What is Financial index & commodity index? Method of index uses in ...

What is Financial index & commodity index? Method of index uses in calculation? Weighted average method? How to calculate index?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd