What is a pro forma sources and applications of funds statement? Give examples of sources and uses of funds.
What will be an ideal response?
Summarizes all the projected sources of funds available to the venture and how these funds will be disbursed. Basically shows where money is coming from and going in the venture.
Sources of funds are from operations, new investments, long-term borrowing, and sale of assets.
Uses or applications of funds are to increase assets, retire long-term liabilities, reduce owner or stockholders' equity, and pay dividends.
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Which of the following indicates proactive fraud auditing?
a. creating an awareness among employees that their actions can be reviewed at any time b. establishing controls to discourage collusion between employees c. creating an expectation of punishment for a fraud act. d. establishing a system of segregation of duties throughout the organization
A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees. If the company fails to make the end-of-period adjusting entry to move the portion of these fees that has been earned to a revenue account, one effect will be:
A. An overstatement of assets. B. An understatement of assets. C. An overstatement of equity. D. An understatement of liabilities. E. An understatement of equity.
Janicki Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MachiningCustomizingTotalEstimated total machine-hours (MHs) 1,000 9,000 10,000Estimated total fixed manufacturing overhead cost$4,800$23,400$28,200Estimated variable manufacturing overhead cost per MH$1.10$2.50 During the most recent month, the company started and completed two jobs--Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow: Job AJob JDirect materials$12,000$7,700Direct labor cost$20,700$6,400Machining machine-hours 700 300Customizing machine-hours 3,600 5,400 Assume that the company uses a plantwide predetermined manufacturing
overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: A. $90,707 B. $82,461 C. $27,487 D. $54,974
Which of the following costs are referred to as conversion costs?
A) Direct labor cost and factory overhead cost B) Direct materials cost and direct labor cost C) Factory overhead cost D) Direct materials cost and factory overhead cost