Questions from General Accounting


Q: A small industrial machine costs $136 000 and is expected to

A small industrial machine costs $136 000 and is expected to earn annual net cash inflows of $58 200, $52 600, $49 500 and $42 100, before it wears out sufficiently to be unreliable and must be sold f...

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Q: Emerald Ltd is considering a new machine which will reduce net cash

Emerald Ltd is considering a new machine which will reduce net cash inflow by $38 000 in the current year, but increase net cash inflow by $9000, $14 000, $18 000, $22 000, $26 000 and $26 000 in the...

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Q: An improvement to the process in a children’s shirt factory will cost

An improvement to the process in a children’s shirt factory will cost $1.2 million, but will result in net cost savings of $380 000 annually for the next ten years. Required (a) If funds are worth 12...

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Q: The accountants at French Scents decide to increase the price of a

The accountants at French Scents decide to increase the price of a scent called Summer by 10 per cent, from $6 per bottle to $6.60. The accountants for French Scents expect the 10 per cent price incre...

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Q: List the advantages and disadvantages of ROI, RI and EVA.

List the advantages and disadvantages of ROI, RI and EVA.

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Q: The Top Taste Cheesecake Company supplies cheesecakes to three large supermarket chains

The Top Taste Cheesecake Company supplies cheesecakes to three large supermarket chains throughout Australia. Management have become concerned about the rising costs associated with the processing and...

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Q: Suppose that Willow Daycare provides two different services — full-time

Suppose that Willow Daycare provides two different services — full-time childcare for preschoolers and after-school care for older children. The director would like to estimate an annual cost per chil...

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Q: Zigbee & Associates is a local legal entity employing six solicitors,

Zigbee & Associates is a local legal entity employing six solicitors, four paralegals and six administrative staff. The entity has a costing system that assigns costs to clients. There are two dep...

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Q: Overseas Adventures is a travel agency with 20 offices located throughout Australia

Overseas Adventures is a travel agency with 20 offices located throughout Australia. Caleb Thomas, the managing director, recently attended an accounting seminar on cost allocation. During a coffee br...

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Q: Willow and Glen is a public accounting entity that offers auditing and

Willow and Glen is a public accounting entity that offers auditing and tax services to local small entities. The partners are in dispute over who contributes the greater amount to the entityâ...

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