ACG 2021, Introduction to Financial Accounting, Fall 2000, Exam 2 Explanations :: UFL Florida Business Accounting

ACG 2021 Fall 2000 Exam 2 Answer Key Explanation Based on the Order of Version A 1) A defined contribution program is one with â€Å"Regular, defined contributions to the fund. The fund balance changes in value with the accumulation of contributions and earnings and is decreased by benefits paid. Benefits received depend on the fund balance available at retirement.† (9-21 in the notes on page 247) 2) This is an error because ordinary repairs (ones that do not increase the original useful life, efficiency or capacity of the asset) are to be treated as expenses and entirely reported on the income statement in the year they are incurred. This error overstated assets by adding the $3,000 to the asset account incorrectly and understated N.I. by failing to record the $3,000 as an expense. 3) If the bonds are selling at 98 ½ ($24,625,000) then they are selling at a discount. This means that the market rate is higher than the stated rate. When the bonds were issued the market rate was the same as the stated rate so the market rate must have increased. (10-20 in the notes on page 274) 4) Here we need to consider two issues. Interest is not capitalized when an asset is purchased but it is capitalized when the company constructs its own asset (only for the period of construction). These concepts are discussed in chapter 8. Inventory is not a capital asset and therefore does not include financing costs. (8-3 on page 193 and 8-7 on page 197). 5) Financial Leverage is Average Total Assets/ Average Stockholders’ Equity. It measures how many dollars of assets are employed for each dollar of stockholder investment. It can be increased by increased borrowing or repurchasing outstanding stock. In laymen’s terms it is the proper use of debt to bring a higher return to owners. (Page 266 of the book, letter C of the ROE Profit Driver Analysis) 6) – 8) Segments that are used to answer the three questions have boxes around them. Using the effective method (assumed unless stated otherwise): Interest Expense = Beginning Carrying Value x Market Rate (Carrying Value = Face Value – Discount) The Present Value of the note is: P.V. = 400,000 x factor (using single sum table where i=8 and n=3). 317,520 = 400,000 x 7.938 (the attached table has 7.9383 on it but this gives a number close enough to be able to pick 317,520) The following journal entries would be made throughout the life of the note: 1/1/00 Equipment 317,520 Discount 82,480 Notes Payable 400,000 12/31/00 Interest Expense 25,402* (Question (8)) Discount 25,402 *1/1/00 Carrying value of 317,520 (400,000 – 82,480) x .

Middle Range Theory Essay

Cohen’s article (2010) addresses the fact that the transition from adolescence to adulthood no longer occurs at age 21. Starting in the 1970’s the U.S. economy changed from a manufacturing economy to a service-based economy. The results are evident today. This economically driven shift changed how people prepared for careers and life. The traditional timing of becoming an adult, marriage, career, children, and financial independence now occurs almost 10 years later than before. Erickson’s would research and create a new sequence of eight stages including of development from 10 years up until now. For each specific conflict at each stage, which allows an individual to develop successfully. Each conflict would have to be extended as a result of the change in the economy today. The effect of resolved conflicts are more appropriate as the result the change of adolescent to adulthood no longer occurring to prevent the transition to the next stage of development. Erickson The most profound life crisis occurs at the fifth stage of development, which can be characterized by rapid physical growth, sexual maturing, concern about the perception of us by others and search of professional calling. The final stage is also crucial, as people asses their life and their achievements. If a man looks back at his life with few regrets, and feels that it was worth living, it leads to a feeling of satisfaction. If, on the contrary, the person feels hopeless, reflects on his mistakes, it leads to a feeling of despair. According to Erickson, if a person achieves a sense of wholeness and self-identity, he will not be afraid of death, and this means that this person has reached the highest form of achievements. References: Cohen, P. (2010). Long road to adulthood is growing even longer. Retrieved from http://www.nytimes.com/2010/06/13/us/13generations.html?scp=1&sq=Long%20road%20to%20adulthood&st=cse&_r=0 on September 13, 2014. http://www.nytimes.com/2010/06/13/us/13generations.html?scp=1&sq=Long%20road%20to%20adulthood&st=cse

Barnum Brown the Famous Paleontologist

Barnum Brown Born/Died 1873-1963 Nationality American Dinosaurs Named Ankylosaurus, Corythosaurus, Leptoceratops, Saurolophus About Barnum Brown Named after, but not related to, P.T. Barnum (of traveling circus fame), Barnum Brown had a flamboyant personality to match. For much of his long life, Brown was the chief fossil hunter for the American Museum of Natural History in New York, and he participated in a huge number of digs, including one that unearthed the very first Tyrannosaurus Rex skeleton in southeastern Montana (Brown, unfortunately, didn’t get to name his find; that honor went to museum president Henry Osborn). Despite the large number of fossil finds to his credit, mostly in Montana and Canadas Alberta province, Brown is remembered more as an energetic, tireless, well-traveled digger than as a published paleontologist (though he did write some influential papers). His techniques seem to have matched his personality: in the early 20th century, his preferred method for finding fossils was to blow up huge tracts of land with dynamite, scour the rubble for bones, and cart the resulting finds back to base camp on horse-drawn carriages. Befitting his name, Barnum Brown had his share of eccentricities, many of them recounted in a memoir published by his wife, I Married a Dinosaur. For publicity purposes, he insisted on being photographed at his fossil digs wearing an oversized fur coat, and he claimed to work as an intelligence asset for the U.S. government during World War I and World War II and as a corporate spy for various oil companies during his trips abroad. He was referred to by his closest friends as Mr. Bones.