The DEF Partnership has total assets of $55,000. Partner D has a capital credit of $6,000, Partner E has a capital deficit of $20,000, and Partner F has a capital credit of $8,000. Is the DEF Partnership solvent or insolvent?
> Veronica Sharpe, marketing manager for Diamond Communications, an outdoor advertising company, arrived in the boardroom for her teleconference with Brad Jones, a potential client. She was extremely busy today, and brought her smart tablet with her, check
> Jerry Blaire is the regional manager of a national electronic franchise retail store. This franchise has over 200 locally owned stores throughout the eastern United States. As the regional manager, Blaire is responsible for an urban area in which there a
> Saul and Latisha are both administrative managers in a machine tool company. Latisha is the director of purchasing and has four purchasing agents and a secretary reporting to her. Saul is the director of accounts payable and has two people reporting to h
> Jack Simpson, newly appointed human resources director for Geridan Contracting Corporation (GCC), had had an unusual morning. First on his agenda was an exit interview with Maria Johnson, the company president’s executive secretary. Johnson had simply in
> Give examples where you would use casual listening, factual listening, and empathic listening.
> Jessie had just taken his second test-drive in the new three-quarter–ton pickup truck he was considering purchasing. The salesman had become his “best” friend in the past three hours, pampering him with warm introductions to every “manager” in the dealer
> Coleen cheered as she completed the last of her attachments for the report, a last-minute request before the weekend; a fair-weather Friday, one that she was eager to begin, since she had made plans for a date with her new romance of the last three weeks
> Jessica Dunham paced as she spent the last few moments before her board presentation, trying to calm down. She had prepared a PowerPoint presentation and had practiced many times. It was no different than many PowerPoint presentations she had done in col
> Rod Edwards, the advertising manager for Waterlite Advertising and Associates, has two assistants. One is Gina Reese, an account executive who gets clients for the company. Edwards’s second assistant is Mina Patel, a copywriter. She does the actual writi
> Janna White sat in her office, perplexed. Two days previously, she had been given responsibility to lead a team on a project that would have a significant impact on the investment decision under consideration at PlexiWarm Corporation. The decision involv
> Linda Sims is the manager of the accounting department and Jose Martinez is the manager of the sales department for a production company. This is a fast-growing company, and the staff of the accounting department (11 employees) is often overwhelmed with
> &nbs
> Pick a computer presentation graphics package or multimedia package with which you are familiar. Assume you are a new sales representative for the company that developed this software. For instance, PowerPoint is a Microsoft product. In three days, you
> Discuss some of the rules of thumb for a visual aid. Give an example of an effective visual aid and of an ineffective visual aid.
> What techniques do you use to reduce speaker anxiety? What other techniques may be appropriate?
> According to the discussion presented in this chapter, what is the difference between interactive and active listening?
> Give an example in which you observed a poor physical arrangement for a meeting. What was wrong with the arrangement? How could it have been improved?
> What major considerations should be reviewed when determining who should be included in a meeting?
> Give an example in which you were forced to communicate with a reduced bandwidth when you would have preferred a broader bandwidth.
> Do you think there will be more or fewer meetings in the future? Why?
> What are some advantages of written over oral communication?
> Supply a set of questions that exemplify both the funnel and inverted funnel sequences.
> Give several examples of probes that you have used.
> What is meant by the statement that all the variables are interrelated in a strategic approach to communication?
> Why do many managers not have the beliefs necessary for a win-win strategy?
> Why can conflict be potentially beneficial?
> Provide an example where you detoured or debated while listening.
> What is your definition of conflict?
> Besides the examples provided in the chapter, are you familiar with any other gestures that are interpreted in a different way in other parts of the world?
> If English is the dominant international language of business, why should you learn a foreign language in preparation for an overseas assignment?
> What are four things a manager should do to become physically and psychologically prepared to listen? Discuss each of these.
> Why are emblems different from the typical movement communication cue?
> Explain how nonverbal communication is a part of the feedback system in communication interactions.
> During the next few days, observe how people around you use the personal space communication zones detailed in the text. If these zones are not utilized according to what is predicted in the text, what other factors might explain the discrepancies?
> Differentiate between formal and informal listening. Provide an example in which you have participated in both types of listening within the last day.
> What are four things a manager should do to become physically and psychologically prepared to listen? Discuss each of these.
> Differentiate between formal and informal listening. Provide an example in which you have participated in both types of listening within the last day.
> What would be the best basis for organizing the major subdivisions of a site selection report’s body?
> What is the difference between hearing and listening?
> How are extraordinary items reported on an interim basis?
> Caine, a new partner in the ABC Partnership, has invested $12,000 for a one-third interest in a partnership with capital of $21,000 before Caine’s admission. What is the ABC Partnership’s implied fair value? If the partners agree to recognize goodwill fo
> Must interim reports submitted to the SEC be audited? What is the role of the public accountant in the preparation of Form 10-Q?
> Aabel, a partner in the ABC Partnership, receives a bonus of 15 percent of income. If income for the period is $20,000, what is Aabel’s bonus, assuming that it is computed as a percentage of income before the bonus? What is the bonus if it is computed as
> The installment liquidation process uses a worst-case assumption in computing the payments to partners. What does worst-case assumption mean?
> In what ratio are losses during liquidation assigned to the partners’ capital accounts? Is this ratio used in all instances?
> What is the purpose of the schedule of safe payments to partners?
> What is the book value of a partnership? Does book value also represent its market value?
> How are a partner’s personal payments to partnership creditors accounted for on the partnership’s books?
> How can investors use interim reports to identify a company’s seasonal trends?
> How is a deficit in a partner’s capital account eliminated if he or she is personally insolvent?
> Match the items in the left-hand column with the descriptions/explanations in the right-hand column /
> Which securities act—1933 or 1934—regulates the initial registration of securities? Which regulates the periodic reporting of publicly traded companies?
> Under what circumstances would a partner’s capital account have a debit, or deficiency, balance? How is the deficiency usually eliminated?
> Which law requires that companies maintain accurate accounting records and an adequate system of internal control? What is meant by an “adequate system of internal control”?
> Which division of the SEC receives the registration statements of companies wishing to make public offerings of securities? Which division investigates individuals or firms that may be in violation of a security act?
> During a partnership liquidation, do a partnership’s liabilities to individual partners have a lower priority than the partnership’s obligations to other, third-party creditors? Explain.
> What is the Uniform Partnership Act of 1997 and what is its relevance to partnership accounting?
> Select the correct answer for each of the following questions. On May 1, 20X1, Cathy and Mort formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cathy contributed a parcel of land that cost her $10,000. M
> Refer to the data in Exercise E12-5, but now assume that the exchange rates were as follows: The receivable from Popular Creek Corporation is denominated in Swiss francs. Popular Creek’s books show a $3,650 payable to RoadTime. Ass
> Refer to the data in Exercises E12-5 and E12-7. Required: Prepare a proof of the remeasurement gain or loss computed in Exercise E12-7. How should this remeasurement gain or loss be reported on Popular Creek’s consolidated financi
> Refer to the data in Exercise E12-5, but assume that the dollar is the functional currency for the foreign subsidiary. Required: Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. Data from E12-5:
> Refer to the data in Exercise E12-5. Required: Prepare a proof of the translation adjustment computed in Exercise E12-5. Where is the translation adjustment reported on Popular Creek’s consolidated financial statements and its for
> On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTime’s December 31, 20X1, trial balance in SFr is as follows: A
> Use the following information for questions 1, 2, and 3. Bartell Inc., a U.S. company, acquired 90 percent of the common stock of a Malaysian company on January 1, 20X5, for $160,000. The net assets of the Malaysian subsidiary amounted to 680,000 ringgi
> Match the items in the left-hand column with the descriptions/explanations in the right-hand column. Items Descriptions/Explanations A. The group that has attempted to harmonize the world's many different accounting methods. B. The currency of
> The following information should be used for questions 1, 2, and 3. Select the best answers under each of two alternative assumptions: (a) the LCU is the functional currency and the translation method is appropriate or (b) the U.S. dollar is the funct
> Hawk Company sold inventory to United Ltd., an English subsidiary. The goods cost Hawk $8,000 and were sold to United for $12,000 on November 27, payable in British pounds. The goods are still on hand at the end of the year on December 31. The British po
> On December 31, 20X2, your company’s Mexican subsidiary sold land at a selling price of 3,000,000 pesos. The land had been purchased for 2,000,000 pesos on January 1, 20X1, when the exchange rate was 10 pesos to 1 U.S. dollar. The exchange rate for 1 U.S
> Bentley Company owns a subsidiary in India whose balance sheets in rupees (R) for the last two years follow: Bentley formed the subsidiary on January 1, 20X6, when the exchange rate was 30 rupees for 1 U.S. dollar. The exchange rate for 1 U.S. dollar o
> Thames Company is located in London, England. The local currency is the British pound (£). On January 1, 20X8, Dek Company purchased an 80 percent interest in Thames for $400,000, which resulted in an excess of cost-over-book value of $48,00
> Duff Company is a subsidiary of Rand Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Duff’s inventory and purchases are as follows: The beginning inventory was acquired duri
> Refer to the data in Exercise E12-5, but now assume that the exchange rates were as follows: The receivable from Popular Creek is denominated in Swiss francs. Its books show a $3,650 payable to RoadTime. Assume that the U.S. dollar is the function
> For each of the following seven cases, work the case twice and select the best answer. First assume that the foreign currency is the functional currency; then assume that the U.S. dollar is the functional currency. Certain balance sheet accounts in a
> Estimated Annual Tax Rate Supra Inc. estimates total federal and state tax rates to be 40 percent. Expected annual pretax earnings from continuing operations are $1,200,000. Differences between tax income and financial statement income are expected to be
> Sales by Knight Inc. to major customers are as follows: Required: If worldwide sales total $43,000,000 for the year, which of Knight’s customers should be disclosed as major customers? Customer Sales Reporting Segme
> Information about the domestic and foreign operations of Radon Inc. is as follows: Required: Prepare schedules showing appropriate tests to determine which countries are material using a 10 percent materiality threshold. Geographic Area United Sta
> Select the correct answer for each of the following questions. According to ASC 270 and 740, income tax expense in an income statement for the first interim period of an enterprise’s fiscal year should be computed by Applying
> Cub Company, a calendar-year entity, had 2,100 geothermal heating pumps in its beginning inventory for 20X1. On December 31, 20X0, the heating pumps had been adjusted down to $850 per unit from an actual cost of $920 per unit. It was the lower of cost or
> During July, Laesch Company, which uses a perpetual inventory system, sold 1,240 units from its LIFO-based inventory, which had originally cost $18 per unit. The replacement cost is expected to be $27 per unit. Required: Respond to the followi
> Select the correct answer for each of the following questions. Which of the following is an inherent difficulty in determining the results of operations on an interim basis? Cost of sales reflects only the amount of product expense allocable t
> Select the correct answer for each of the following questions. Barbee Corporation discloses supplementary operating segment information for its two reportable segments. Data for 20X5 are available as follows: Additional 20X5 expenses are as fo
> Following are seven independent cases on how accounting facts might be reported on an individual company’s interim financial reports. Bean Company was reasonably certain it would have an employee strike in the third quarter. As a result, the compan
> Symbiotic Chemical Company has four major industry segments and operates both in the U.S. domestic market and in several foreign markets. Information about its revenue from the specific industry segments and its foreign activities for the year 20X2 is as
> Tem Technology has a first-quarter operating loss of $100,000 and expects the following income for the other three quarters: Tem estimated the effective annual tax rate at 40 percent at the end of the first quarter and changed it to 45
> Data for the seven operating segments of Amalgamated Products follow: Included in the $105,000 revenue of the Bicycles segment are sales of $25,000 made to the Sporting Goods segment. Required: Which segments are separately reportable?
> Select the correct answer for each of the following questions. Which of the following statements concerning the prospectus required by the Securities Act of 1933 is correct? The prospectus is a part of the registration statement. The pro
> Select the correct answer for each of the following questions. A major impact of the Foreign Corrupt Practices Act of 1977 is that registrants subject to the Securities Exchange Act of 1934 are required to Keep records that reflect the transa
> Select the correct answer for each of the following questions. Form 10-K is filed with the SEC to update the information a company supplied when filing a registration statement under the Securities and Exchange Act of 1934. Form 10-K is a report t
> Select the correct answer for each of the following questions. In the registration and sales of new securities issues, the SEC Endorses a security’s investment merit by allowing its registration to “go effective.” Provides a rating
> On January 1, 20X1, Eddy decides to retire from the partnership of Cobb, Davis, and Eddy. The partners share profits and losses in the ratio of 3:2:1, respectively. The following condensed balance sheets present the account balances immediately before an
> In the LMK partnership, Luis’s capital is $40,000, Marty’s is $50,000, and Karl’s is $30,000. They share income in a 4:1:1 ratio, respectively. Karl is retiring from the partnership. Required: Prepare journal entries to record Karl’s withdrawal
> Select the correct answer for each of the following questions. (Note: The following balance sheet is for the partnership of Alex, Betty, and Claire in questions 1 and 2.) (Note: Figures shown parenthetically reflect agreed-upon profit and loss&acir
> Pam and John are partners in PJ’s partnership, having capital balances of $120,000 and $40,000, respectively, and share income in a ratio of 3:1. Gerry is to be admitted into the partnership with a 20 percent interest in the business. Required: F
> On the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are Required: If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? P
> Various Enterprises Corporation is a medium-size conglomerate listed on the American Stock Exchange. It is constantly in the process of acquiring small corporations and invariably needs additional money. Among its diversified holdings is a citrus grove t
> The income statement for the Apple-Jack Partnership for the year ended December 31, 20X5, follows: Additional Information for 20X5: Apple began the year with a capital balance of $40,800. Jack began the year with a capital balance of $112,000.
> Left and Right are partners. Their capital accounts during 20X1 were as follows: Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: Each partner is to be credited 8 percent inte
> The partnership agreement of Angela and Dawn has the following provisions: The partners are to earn 10 percent on the average capital. Angela and Dawn are to earn salaries of $25,000 and $15,000, respectively. Any remaining income or
> Select the correct answer for each of the following questions. Two interesting and important topics concerning the SEC are the role it plays in the development of accounting principles and the impact it has had and will continue to have on the
> Many larger U.S. companies have significant investments in foreign operations. For example, McDonald’s Corporation, the food service company, obtains 47 percent of its consolidated revenues and 44 percent of its operating income from, and has 45 percent
