Solution 1 CAPITALIZATION VERSUS EXPENSING DECISION When a firm incurs costs on an item to be used in operations management must decide whether to treat the
Solution CAPITALIZATION VERSUS EXPENSING DECISION When a firm incurs costs on an item to be used in operations management must
Solution CAPITALIZATION VERSUS EXPENSING DECISION When a firm incurs costs on an item to be
When a firm incurs costs on an item to be used in operations management must decide whether to treat the
Solution CAPITALIZATION VERSUS EXPENSING DECISION When a firm incurs costs on an
item to be used in operations management must decide whether to treat the
Solution CAPITALIZATION VERSUS EXPENSING DECISION When a firm incurs costs
Solution CAPITALIZATION VERSUS EXPENSING DECISION
(Solution) 1 CAPITALIZATION VERSUS EXPENSING DECISION. When a firm incurs costs on an item to be used in operations, management must decide whether to treat the...

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7.1 CAPITALIZATION VERSUS EXPENSING DECISION. When a firm incurs costs on an item to be used in operations, management must decide whether to treat the cost as an asset or an expense. Assume that a company used cash to acquire machinery expected to contribute to the generation of revenues over a three-year period and the com- pany erroneously expensed the cost to acquire the machine. a. Describe the effects on ROA of the error over the three-year period. b. Explain how the error would affect the statement of cash flows. 7.7- EARNINGS MANAGEMENT AND DEPRECIATION MEASURE- MENT. Earnings management entails managers using judgment and reporting estimates in such a way as to alter reported earnings to their favor. a. Discuss the three factors that must be estimated in measuring depreciation. b. Provide an illustration as to how each of these factors can be employed to manage earnings. 7.13- CHOICE OF A FUNCTIONAL CURRENCY Choosing the functional cur- rency is a key decision for translating the financial statements of foreign entities of U.S. firms into U.S. dollars. Qing Corporation, a U.S. firm that sells car batteries, formed a wholly owned subsidiary in Mexico to manufacture components needed in the production of the batteries. Approximately 50 percent of the subsidiary’s sales are to Qing Corporation. The subsidiary also sells the components it manufactures to independent third parties, and these sales are denominated in Mexican pesos. Financing for the manufacturing plants in Mexico is denominated in U.S. dollars, but labor contracts are denominated in both dollars and pesos. All material contracts are denominated in Mexican pesos. Senior managers of 7.17- Bed and Breakfast (B&B) and Italian company operating in the Tuscany region, follows IFRS and has made the choice to remeasure long-lived assets as fair value. B&B purchased land in 2009 for 150,000. At the end of the next four years, the land is worth 160,00 in 2009, 155,000 in the 2010, 140,000 in 2011, and 145,000 in 2012. a. Describe how the B&B will reflect the change in the land’s value in each of its annual financial statements. b. Assume that the asset was a building with a ten year remaining useful life as of the end of 2009. After writing the building upward 160,00, how much should B&B charge to depreciation expense in 2009? CASE 7.2 DISNEY ACQUISITION OF MARVEL ENTERTAINMENT In September 2009, The Walt Disney Company announced that it would acquire Marvel Entertainment in a $4 billion cash and common stock deal. On a per-share basis, the con- sideration given by Disney to Marvel shareholders represents a 29 percent premium over Marvel’s share price at the date of acquisition. Disney acquires the more than 5,000 characters in Marvel’s library, including Iron Man, Spider-Man, X-Men, Captain America, and the Fantastic Four. Exhibit 7.41 presents the Condensed Consolidated Balance Sheet of Marvel at the end of its June 30, 2009 second quarter. https://www.coursehero.com/tutors-problems/Business/8509678 8509678 Kim Co. purchases goods with a list price of $175000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should... Kim Co. purchases goods with a list price of $175000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim .Co record as the cost of these goods. Please send solution. https://www.coursehero.com/tutors-problems/Business/8509680 8509680 Provide examples. • Describe two types of mental shortcuts that you make daily that help you to predict human and/or social behavior. Provide examples. • How have these mental shortcuts led to errors in predicting human or social behaviors? Describe two examples. • How have these mental shortcuts led to biases about other people? Describe two types of biases you tend toward. https://www.coursehero.com/tutors-problems/Business/8509682 8509682 The following is the (edited) output of the chi-squared test in this case Chi-Square Test: The following is the (edited) output of the chi-squared test in this case Chi-Square Test: Good, Poor Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Good Poor Total Low 11 2 13 9.52 3.48 0.231 0.631 Moderate 68 23 91 66.63 24.38 0.028 0.078 High 3 5 8 2.14 1.394 3.810 Total 82 30 112 Chi-Sq = 6.171, DF = 2, P-Value=0.046 Based on the output (and using the traditional significance level of 5%) we can determine that: A. the data provide sufficient evidence to conclude that extra-curricular participation and grade performance are independent. B. the data do not provide sufficient evidence to conclude that extra-curricular participation and grade performance are independent. C. the data provide sufficient evidence to conclude that extra-curricular participation and grade performance are related. D. the data do not provide sufficient evidence to conclude that extra-curricular participation and grade performance are related. Which of the following facts should make you the most worried about the reliability of the results of the test in this case? A. The 112 students were all students in a chemical engineering course and not a random sample from the entire student body. B. Two of the six observed counts are less than 5. C. Not all of the cells' contributions to the chi-squared statistic are greater than 1. D. Two of the six expected counts are less than 5. https://www.coursehero.com/tutors-problems/Business/8509686 8509686 MIS111-L, Case Analysis 4 Guidelines Case Analysis Overview This Case Analysis includes material from the weeks beginning Oct 28, Nov 4, 11. Please... Explain the TRIM() and the SUBSTITUTE() functions in Excel, and the difference between them. Your explanation should include an example (e.g., from your planned major area; to demonstrate your understanding you should use an example different from the one seen in the lecture).MIS111-L, Case Analysis 4 Guidelines Page 1 of 3 Case Analysis Overview This Case Analysis includes material from the weeks beginning Oct 28, Nov 4, 11. Please base your answers on material discussed in the following units: Data Import, web queries, pivot tables, Functions for {text, date & time}. Your answers to the questions will be entered in the Case Analysis Turnitin Template document (separate from this document, also found on Blackboard). Total points possible: 25 Business Communication Assessment Points Since you are writing a business document, 20% ( 5 points ) of your assignment grade will be based on your overall business communications skills. Therefore, your response should be well organized, written in standard English using complete sentences, appropriate grammar, punctuation, and formatting/presentation. Assignment Overview To complete the Case Analysis, please fill in answers for each of the following questions. An expected answer size is also provided for each question. Question 1 [5 points]: Explain the TRIM() and the SUBSTITUTE() functions in Excel, and the difference between them. Your explanation should include an example (e.g., from your planned major area; to demonstrate your understanding you should use an example different from the one seen in the lecture). Task 1(a): Explain (50-75 words), using an example, when you would use the TRIM() function in Excel. Task 1(b): Explain (50-75 words), using an example, when you would use the SUBSTITUTE() function in Excel, using an example. Task 1(c): Explain (25-50 words), using an example, the difference between the TRIM() and the SUBSTITUTE() functions.

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