Accounting Questions and Answers

On 24 August 2024, Mr. Jacobs, a retired businessman aged 67, died in a motor accident. He was married out of community of property to his wife Sara (both are resident in South Africa). On 24 August 2024 he owned the following assets: 1. An Audi convertible with a market value of R^850 000. He bought the car on 1 January 2024 for R^1 380 000. This motor vehicle was bequeathed to his son, Rami. 2. A holiday flat in Plettenberg Bay with a market value of R^4,5 million. He had purchased the flat on 1 May 2001 for R^2,75 million. The market value on 1 October 2001 was R^3.4 million. In his valid will he bequeathed this asset to the Rahman Family Trust. The time apportionment based cost is estimated at R^3.1 million. 3. A 12 metre long yacht with a market value of R^3.4 million. It had originally cost him R^4.6 million in 2017. This yacht was bequeathed to the Sailing for Youth Foundation, an approved public benefit organisation. 4. His Gold Krugerrand coin collection with a market value of R^750 000. This were originally purchased by his father for R^150 000 and had a market value of R^450 000 when Mr Rahman inherited the coins on 1 September 2011. He bequeathed this collection to his surviving spouse. 5. His primary residence in Constantia with a market value of R^7.5 million. He owned this property jointly with his wife i.e. each owned 50%. They had purchased the property on 30 June 1998 for R^2.2 million. The market value on 1 October 2001 was R^3.45 million. In his will he left his share to his daughter on condition that she did not attempt to sell it until the death of his wife. REQUIRED: Calculate Mr Jacobs' taxable capital gain for the 2024 year of assessment. Give reasons if any exclusions applied.

The following assets, interests etc. were found in the joint estate: 1. 2. 3. A bona fide farm "Sure Mornridge" at open market value Proceeds of policy X on the life of the deceased, paid to the estate Premiums and interest on the policy amounted to R500 000. Solly took out the policy and also paid the premiums. R4 750 000 R2 350 000 Proceeds of policy Y on the life of the deceased, paid directly to the surviving spouse. R1 450 000 Premiums and interest on the policy amounted to R350 000. Solly took out the policy and also paid the premiums. 4. 5. 6. 7. 8. Furniture and personal effects at valuation Tractor and implements at valuation Listed shares – value at listed price on date of death The executor sold the shares on 10 May 2024 for R900 000 Member’s interest in Sweet Dreams CC –auditor’s valuation 000 The executor sold this member’s interest in the CC to the other member of the CC for R700 000, in terms of an agreement between the members, made long before Solly’s death. R 795 000 R 1 100 000 R 760 000 R 8250 Solly, a retired municipal officer of the Eastrand council, received a monthly- pension of R25 000 from the Council’s pension fund. The pension will be paid to his spouse after his death but will be reduced to R18 000 per month. In Solly and Jane's valid joint will, R200 000 was bequeathed to Solly's Alma Mater, the University of South Africa, an approved public benefit fund. The residue of the estate was bequeathed to the surviving spouse. The joint will was adiated by his surviving spouse. There were no liabilities in the estate, except for funeral expenses of R20 400, and Master's fees and executor's remuneration according to the tariffs. REQUIRED: Calculate the estate duty, if any, payable in Solly Mkhize's estate.

How do you calculate predetermined overhead rate and give me an example

what kind of human-computer interaction does a certified public accountant need?

A company receives $10,000 in cash for services yet to be performed. Using the accrual method what’s the correctusing the accrual method what’s the correct entry to record the transaction?

The primary objective of financial accounting, in contrast to managerial accounting, is to provide useful information to ____ users for decision making. (Enter one word per blank.)

Total Cost of Merchandise Purchases = Invoice Cost of Merchandise Purchases + Transportation Costs - Purchase Discounts - Purchase Returns and Allowances

"Goodwill is an example of a: Question 10Answer a. Current asset b. Long-term liability c. Current liability d. Intangible long-term asset"

"The acid-test ratio is computed by dividing: a. current assets by current liabilities b. quick assets by current liabilities c. long-term liabilities by current liabilities d. stockholder's equity by current liabilities"

"How do companies acquire goodwill? What are examples of intangible assets and how are they amortized?"

"The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Line Item Description Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit Stockholders' equity: Common Stock Credit Retained Earnings Credit Dividends Debit Credit Income statement accounts: Revenue Credit Expense Credit Debit"

Owner paid $250 in advertising costs to the local paper. how is this recorded in a journal?

Goods in transit are included in a purchaser's inventory: When the supplier is responsible for freight charges. At any time during transit. When the purchaser is responsible for paying freight charges. After the half-way point between the buyer and seller. If the goods are shipped FOB destination.

"How do I find the variable cost of goods sold on a variable costing income statement?"

Select the statement below that describes a post-closing trial balance. Multiple choice question. It is a listing of all temporary accounts and their balances after closing. It is a listing of all permanent accounts and their balances immediately after the adjusting process. It is a listing of all permanent accounts and their balances after closing. It is a financial statement that describes all revenue and expense accounts after closing

"Multiple Choice The carrying value of bonds at maturity always equals: the amount of cash originally received in exchange for the bonds. the par value of the bond. the amount of discount or premium. the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium."

Which of the following is NOT a temporary account? Revenue Equity Expense Drawings

"A business uses a credit to record: Multiple Choice A decrease in an asset account. An increase in an expense account. A decrease in a revenue account. A decrease in a liability account. A decrease in an unearned revenue account."

"The predetermined overhead rate is usually calculated: Question 10Select one: a. at the end of each month b. at the beginning of each month c. at the beginning of the year d. at the end of the year"

"1. What is the MIS system that manipulates information to create business intelligence in support of strategic decision making? a. Visualization b. Digital dashboard c. Online analytical processing (OLAP) d. Online transaction processing (OLTP 2. On November 1, 2021, LA Service Company received $12,000 in advance of performaing the services from a customer for next three months of service; November and December 2021 and January 2022. On November 1 2021, LA Services Company recorded $12,000 as Unearned Revenue for this transaction. What would be the journal entry to adhust the accounts on December 31, 2021? 3. Which factor below is the least relevant in analyzing corruption issues in Russia? a. Social b. Legal c. Environmental d. Political 4. On May 1, 2021, CN Company had beginning inventory consisting of 150 units with a unit cost of &5. During May, the company purchased inventory as follows: a. 800 units at $6 per unit b. 650 units at $7 per unit 5. The company sold 1,500 units during the month for $12 per unit. If CN Company uses the Last-in, First-out (LIFO) method, the value of CN Company's inventory on May 31, 2021 is Group of answer choices a. $500 b. $1,050 c. $750 d. $700 6. Which of the following is an accurate description of the dividends account? a. Dividents account is reported in the balance sheet as a liablity account. b. An increase in dividents account decreases retained earnings. c. An increase in dividends account is reported in the income statement. d. Dividents account is reported in the balance sheet as an account."

Working with a financial advisor is beneficial because... Select a response: A. They all have the same expertise. B. You won't have to know anything about your finances. C. They can help you plan for retirement. D. It's the only way to create a budget.

A company sells 10,000 shares of previously authorized stock at the par value of $\$ 10$ per share. # What's the correct entry to record the transaction? Debit cash $\$ 10$, credit capital stock $\$ 10$ Debit cash $\$ 100,000$, credit capital stock $\$ 100,000$ Debit cash $\$ 10,000$, credit capital stock $\$ 10,000$ Debit cash $\$ 100,000$, credit treasury stock $\$ 100,000$ Debit capital stock $\$ 100,000$, credit cash $\$ 100,000$

What does a times interest earned ratio of 10 times indicate? Multiple choice question. The firm can cover the fixed charges 10 times. Income before interest and taxes covers the interest obligation of the firm by 10 times. The firm can pay off the interest obligations every 10 days. The firms debt is 10 times larger than the assets.

A prior period adjustment for understatement of net income will show as a gain on the current year's Income Statement. be debited to the Retained Earnings account. show as an asset on the current year's Balance Sheet. be credited to the Retained Earnings account.

The firm of Harwood & Toole, CPAs, has been the auditor and tax return preparer for Tucker, Incorporated a nonpublic company, for several years. In the current year, the management of Tucker discharged Harwood & Toole from the audit and tax engagement because of a disagreement over a tax matter. Management of Tucker has not paid Harwood & Toole any of the current year's audit and tax fees. Another CPA firm has been hired and management of Tucker has requested that Harwood & Toole provide the following items: Indicate which of the following items must be provided to management of Tucker by Harwood & Toole. a. Accounting records of Tucker, Incorporated in the possession of Harwood & Toole. Yes No b. Copies of adjusting entries prepared by the staff of Harwood & Toole. No c. A copy of Tucker's partially completed tax return prepared by the staff of Harwood & Toole. Yes No d. Copies of Harwood & Toole's audit working papers from prior engagements. Yes No e. Several consolidating entries prepared by Tucker, Incorporated and reviewed by Harwood & Tool Yes No

Why do I have a deposit from TPG Products SBTPG LLC?

The journal entry to record manufacturing overhead applied to production includes: a debit to Finished Goods. a credit to Work in Process. a credit to Finished Goods. a debit to Work in Process.

"Shariz needs to record receipt of a vendor invoice. Which QuickBooks function would be most useful? A. New invoice B. Process payment C. Add receipt"

The principles of internal control include: Multiple Choice - ☐ Require automated sales systems. - ☐ Separate recordkeeping from custody of assets. - ☐ Bond all employees. - ☐ Use only computerized systems. - ☐ Maintain minimal records.

which account does not appear on the balance sheet? owner's equity accounts payable utility expense accounts receivable retained earnings

Question: Shariz needs to record receipt of a vendor invoice. Which QuickBooks function would be most useful? New invoice Process payment Add receipt Ad... Shariz needs to record receipt of a vendor invoice. Which QuickBooks function would be most useful? $\square$ New invoice $\square$ Process payment $\square$ Add receipt $\square$ Add bill $\square$ New expense

Alan is recording payroll that was processed outside of QuickBooks. ### **Which QuickBooks function would be most useful?** - ☐ Payroll summary - ☐ Pay bills - ☐ Journal entries - ☐ New invoice

| **Reimbursement (€) (2018) | | | | | --- | --- | --- | --- | | **Mortality (among persons 11,000 with: 100 people with report to:** | | | | | - Finishing costs | | | | | - Transferable to other (See Exhibit) | | | 31,711 | | - Operating reimbursement costs | | | 31,617 | | - Current work (10,000 with report) | | | | | - Salary costs | | | | | - Finishing costs | | | 31,711 | | **Total (2018)** | | | | The ending members has 80,000 units, which are 100 percent complete with respect to Finishing Department costs and 100 percent complete for Mining Department costs. ### **Required** Complete the production cost report using the original conveyor method. (Result: "Cost per equivalent unit" to 2 decimal places.) | **Answer to our complete** | | | | | --- | --- | --- | --- | | | **Project** | **Equivalencies** | | | | **Wiring** | **Finishing** | **Finishing** | | **Cost of units** | | | | | **Debrief on account(s) for:** | | | | | - **Reporting 100% interest** | 11,000 | | | | - **Only stated this period** | 100,000 | | | | **Total unit costs (£)** | 80,000 | | | | **Cash amortised for:** | | | | | - **Completed unit transferred out** | 80,000 | 80,000 | 80,000 | | - **Debrief ending in excess** | 80,000 | | | | - **Wiring** | | 10,000 | | | - **Finishing** | | | 10,000 | | **Total unit receivables** | 80,000 | 100,000 | 100,000 | | | | | | | | **Total** | **Wiring** | **Finishing** | | | | **Department** | **Department** | | **Cost of units** | | | | | **Debrief on account(s) for:** | | | | | - **Costs in beginning 2017 (increase)** | 100,017 | 101,784 | 80,000 | | - **Current period costs** | 2,000,000 | 2,070,000 | 201,000 | | **Total costs to be accounted for** | 2,070,000 | 2,070,717 | 200,000 | | **Total per equivalent unit** | | | | | - **Wiring** | | 10,000 | | | - **Finishing** | | | 2,000 | | **Total receivables for:** | | | | | - **Costs compared to unit receivables for** | | 2,070,000 | 200,000 | | - **Costs of ending 2017 (increase)** | | 11,000 | 80,000 | | **Total costs associated for** | | 2,070,000 | 200,000 |

The firm of Bell & Greer, CPAs, has been asked to perform attest services for Trek Corporation ( a nonpublic company ) for the year ended December 3 1 , Year 5 . Bell & Greer has two offices: one in Los Angeles and the other in Newport Beach. Trek Corporation would be audited by the Los Angeles office. For each of the following cases, indicate whether Bell and Greer's independence is definitely impaired. If it is not definitely impaired, but might be under some circumstances, discuss those circumstances. a . A partner in the Los Angeles office of Bell & Greer has been a long - time personal friend of the chief executive officer of Trek Corporation. b . The former controller of Trek Corporation became a partner in the Newport Beach office of Bell & Greer on March 1 5 , Year 5 , resigning from Trek Corporation on that date. c . A manager in the Newport Beach office of Bell & Greer is the son of the treasurer of Trek Corporation. d . A partner in the Los Angeles office of Bell & Greer jointly owns a cattle ranch in Montana with one of the directors of Trek Corporation. The value of the investment is material to both parties. e . Trek Corporation has not yet paid Bell & Greer for professional services rendered in Year 4 . This fee is substantial in amount and is now 1 5 months past due.

(d) If the sediments in the stream bank were lithified, what kind of sedimentary rock would they form? (e) How would you describe the change or evolution of sediments between the tributary streams and the main Merced River? 4. Use your observations to make predictions. The Merced River flows from Yosemite Valley at an elevation of -1,200 meters above sea level in central Yosemite Valley to an elevation of -250 m where the river enters Lake McClure: a reservoir in the San Joaquin Valley west of Yosemite Valley. The actual distance the river travels along its channel from Yosemite to the upper end of Lake McClure is more than 65 km . You can examine the Merced River course between latitude $37.72^{\circ} \mathrm{N}$, longitude $119.63^{\circ} \mathrm{W}$ (central Yosemite Valley) and $37.602^{\circ} \mathrm{N}, 120.100^{\circ} \mathrm{W}$ (inlet to Lake McClure on the Merced River) using Google Earth. (a) What sedimentary grain sizes are likely to be deposited in Lake McClure from the erosion of Yosemite Valley? (b) What do you think will be the composition of most of the sedimentary grains deposited in Lake McClure from Yosemite Valley? # REFLECT \& DISCUSS Based on your work, write a brief description of how the clastic sediment from Yosemite Valley might change as it travels downstream to Lake McClure. Then describe how you could use these insights to interpret clastic rocks in general.

A company bought a computer for $1,500. Three years later, the computer was sold for $300. Assuming a 5-year estimated service life and straight line depreciation, which account(s) would be used to record the disposal of the asset? Select all that apply. Sales income Fixed assets Gain/loss on sale of asset Accumulated depreciation Depreciation expense Report Problem Don't worry, this won't interrupt your assessment Timm Continue

Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material and direct labor. In 2015, DVO estimated the following standard costs for one of their most well loved products, the DVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. Budgeted quantity Budgeted price Direct materials 2.0 pounds $6.25 per pound Direct labor 0.20 hours $13.00 per hour During September, DVO produced and sold 1,100 pies using 2,100 pounds of direct materials at an average cost per pound of $6.00 and 200 direct labor hours at an average wage of $13.50 per hour. a) The direct material price variance during September is ? b) The direct material efficiency variance during September is ? c) The direct labor price variance during September is ? d) The direct labor efficiency variance during September is ?

Different management levels in Bates inc., require varying degrees of managerial accounting information. because of the need to comply with the managers requests four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows. Budgeted output units- 3,200 units Budgeted fixed manufacturing Overhead - $20,000 Budgeted variable manufacturing overhead- $5 per direct labor hour Budgeted direct manufacturing labor hours- 2 hours per unit Fixed manufacturing cost incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400 units Below compute a 4-variance analysis for the plant controller Required: Compute a 4-variance analysis for the plant controller. | | Actual Results | Spending Variance | Actual Input Qty. Budgeted Rate | Efficiency Variance | Flexible Budget Budgeted Input Qty. for Allowed Output* Budgeted Rate | Production Variance | Allocated: Budgeted Input Qty. Allowed for Actual Output * Budgeted Rate | | --- | --- | --- | --- | --- | --- | --- | --- | | Units | A) | B) | C) | D) | E) | F) | 3200 units | | Actual or Budgeted Input Qty. | G) | H) | I) | J) | K) | L) | 6400 hours | | Variable Overhead | M) | 0) | P) | Q) | R) | Never a Variance | S) | | Fixed Overhead | T) | U) | V) | Never a Variance | W) | X) | Y) |

The primary objective of financial accounting is to: Inform management about what, when, and how much products to produce. Monitor consumer needs, tastes, and price concerns. Serve the decision-making needs of Internal Revenue Service (IRS) for tax collection. Provide accounting information that serves external users in making decisions such as investment and lending.

Goods in transit are included in a purchaser's inventory: Multiple Choice At any time during transit. When the goods are shipped FOB shipping point. When the supplier is responsible for freight charges. If the goods are shipped FOB destination. After the half-way point between the buyer and seller. Goods in transit are included in a purchaser's inventory: Multiple Choice At any time during transit. When the goods are shipped FOB shipping point. When the supplier is responsible for freight charges. If the goods are shipped FOB destination. After the half-way point between the buyer and seller. Multiple Choice Debit Income Summary $13,000; credit Owner's, Capital $13,000. Debit Income Summary $75,000; credit Revenues $75,000. Debit Revenues $75,000; credit Income Summary $75,000. Debit Income Summary $62,000; credit Expenses $62,000. Debit Owner's, Capital $8,000, credit Owner's, Withdrawals $8,000.