Question: Daniel Chu Ltd, a new business, will

> If two vectors have the same magnitude, are they necessarily equal? If not, why not? Can two vectors with different magnitudes ever be equal?

> You are standing on one end of a light wooden raft that has floated 3 m away from the pier. If the raft is 6 m long by 2.5 m wide and you are standing on the raft end nearest to the pier, can you propel the raft back toward the pier where a friend is sta

> An SUV collides with a Mini Cooper convertible. Is the force exerted on the Mini by the SUV greater than, equal to, or less than the force exerted on the SUV by the Mini? Explain.

> A heavy ball hangs from a string attached to a sturdy wooden frame. A second string is attached to a hook on the bottom of the lead ball. You pull slowly and steadily on the lower string. Which string do you think will break first? Explain.

> Can the x-component of a vector ever be greater than the magnitude of the vector? Explain.

> If a wagon starts at rest and pulls back on you with a force equal to the force you pull on it, as required by Newton's third law, how is it possible for you to make the wagon start to move? Explain.

> What is the distinction between a vector and a scalar quantity? Give two examples of each.

> (a) Does a man weigh more at the North Pole or at the equator? (b) Does he weigh more at the top of Mt. Everest or at the base of the mountain?

> A freight train consists of an engine and several identical cars on level ground. Determine whether each of these statements is correct or incorrect and explain why. (a) If the train is moving at constant speed, the engine must be pulling with a force g

> (a) What assumptions do you make when you call the reading of a bathroom scale your “weight”? What does the scale really tell you? (b) Under what circumstances might the reading of the scale not be equal to your weight?

> With the y-axis pointing north, rank vectors /

> (a) Is it possible for the sum of two vectors to be smaller in magnitude than the magnitude of either vector? (b) Is it possible for the magnitude of the sum of two vectors to be larger than the sum of the magnitudes of the vectors?

> Two cars are headed toward each other in opposite directions along a narrow country road. The cars collide head-on, crumpling up the hoods of both. Describe what happens to the car bodies in terms of the principle of inertia. Does the rear end of the car

> When a car begins to move forward, what force makes it do so? Remember that it has to be an external force; the internal forces all add to zero. How does the engine, which is part of the car, cause an external force to act on the car?

> In an attempt to tighten the loosened steel head of a hammer, a carpenter holds the hammer vertically, raises it up, and then brings it down rapidly, hitting the bottom end of the wood handle on a two-by- four board. Explain how this tightens the head ba

> A dog goes swimming at the beach and then shakes himself all over to get dry. What principle of physics aids in the drying process? Explain.

> An American visitor to Finland is surprised to see heavy metal frames outside of all the apartment buildings. On Saturday morning the purpose of the frames becomes evident when several apartment dwellers appear, carrying rugs and carpet beaters to each f

> Explain the need for automobile seat belts in terms of Newton's first law.

> Which item in the following list is not a scalar? temperature, test score, stock value, humidity, velocity, mass.

> Which item/s in the following list is/are a vector quantity? volume, force, speed, length, time.

> A person is standing on a bathroom scale. Which of the following is not a force exerted on the scale: a contact force due to the floor, a contact force due to the person's feet, the weight of the person, the weight of the scale?

> Margie, who weighs 543 N, is standing on a bathroom scale that weighs 45 N. (a) With what magnitude force does the scale push up on Margie? (b) What is the interaction partner of that force? (c) With what magnitude force does the floor push up on the

> Two forces of magnitudes 3.0 N and 4.0 N act on an object. How are the directions of the two forces related if (a) the net force has magnitude 7.0 N or (b) the net force has magnitude 5.0 N? (c) What relationship between the directions gives the small

> Badgers Ltd, a business that provides a market research service, operates a job costing system. Towards the end of each financial year, the overhead recovery rate (the rate at which indirect cost will be absorbed by jobs) is established for the forthcomi

> A business places substantial emphasis on customer satisfaction and, to this end, delivers its product in special protective containers. These containers have been made in a department within the business. Management has recently become concerned that th

> A hotel group prepares financial statements on a quarterly basis. The senior management is reviewing the performance of one hotel and making plans for next year. The managers have in front of them the results for this year (based on some actual results a

> The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection, which is as follows: The amount of labour likely to be available amounts to £20,000. All

> A business in the food industry is currently holding 2,000 tonnes of material in bulk storage. This material deteriorates with time. In the near future, it will, therefore, be necessary for it to be repackaged for sale or sold in its present form. The ma

> SJ Services Ltd has been asked to quote a price for a special contract to render a service that will take the business one week to complete. Information relating to labour for the contract is as follows: A shortage of skilled labour means that the neces

> Delphi plc has recently decided to enter the expanding market for digital radios. The business will manufacture the radios and sell them to small TV and hi-fi specialists, medium sized music stores and large retail chain stores. The new product will be l

> International Electric plc at present offers its customers 30 days’ credit. Half of the customers, by value, pay on time. The other half takes an average of 70 days to pay. The business is considering offering a cash discount of 2 per cent to its custome

> AB Ltd operates retail stores throughout the country. The business is divisionalised. Included in its business are Divisions A and B. A centralised and automated warehouse that replenishes inventories using computer-based systems supports the work of the

> The University of Devonport consists of six faculties and an administration unit. Under the university’s management philosophy, each faculty is treated, as far as is reasonable, as an independent entity. Each faculty is responsible for

> Pieman Products Ltd makes road trailers to the precise specifications of individual customers. The following are predicted to occur during the forthcoming year, which is about to start: All direct labor is paid at the same hourly rate. A customer has as

> You have recently taken a management post in a large divisionalised business. A substantial proportion of the business of your division is undertaken through inter-divisional transfers. Required: (a) What are the objectives of a system of transfer pri

> The GB Company manufactures a variety of electric motors. The business is currently operating at about 70 per cent of capacity and is earning a satisfactory return on investment. International Industries (II) has approached the management of GB with an o

> Pisces plc produced the following statement of financial position (balance sheet) and income statement at the end of the third year of trading: An analysis of the underlying records reveals the following: 1 R&D costs relate to the development of a

> You have overheard the following statements: (a) ‘To maximise profit you need to sell your output at the highest price.’ (b) ‘Elasticity of demand deals with the extent to which costs increase as demand increases.’ (c) ‘Provided that the price is larg

> Tufty plc produces a small range of industrial pumps using automated methods. The business is now considering production of a new model of pump, starting on 1 January 20X3. The business wishes to assess the new pump over a four-year timescale. Production

> Computer Tuition Ltd (CT) specialises in providing courses for computer users, often tailoring its courses to meet the specific needs of particular clients. CT’s primary financial objective is to maximise the wealth of its shareholders. CT has been asked

> Plaything plc has just developed a new mechanical toy, the Nipper. The development costs totaled £300,000. To assess the commercial viability of the Nipper, a market survey has been undertaken at a cost of £35,000. The survey su

> The accountant of your business has recently been taken ill through overwork. In his absence his assistant has prepared some calculations of the profitability of a project, which are to be discussed soon at the board meeting of your business. His working

> C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances. The manufacturing process is, at present, semi-automated. The equipment used cost £540,000 and has a carrying amount (as shown on the state

> Arkwright Mills plc is considering expanding its production of a new yarn, code name X15. The plant is expected to cost £1 million and have a life of five years and a nil residual value. It will be bought, paid for and ready for operation on

> Lanyon and Co. is engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: There were no price changes of any description during these two months. Required: (a) Deduce the BEP (in

> Brave plc has the following standards for its only product: There were no inventories of any description at the beginning and end of May. Required: Prepare the original budget and a budget flexed to the actual volume. Use these to compare the budget

> Mowbray Ltd makes and sells one product, the standard costs of which are as follows The monthly production and sales are planned to be 1,200 units. The actual results for May were as follows: There were no inventories at the start or end of May. As a r

> Antonio plc makes Product X, the standard costs of which are:v The budgeted output for March was 1,000 units of Product X; the actual output was 1,100 units, which was sold for £34,950. There were no inventories at the start or end of March

> Brown and Jeffreys, a West Midlands business, makes one standard product for use in the motor trade. The product, known as the Fuel Miser, for which the business holds the patent, when fitted to the fuel system of production model cars has the effect of

> You have overheard the following statements: (a) ‘A budget is a forecast of what is expected to happen in a business during the next year.’ (b) ‘Monthly budgets must be prepared with a column for each month so that you can see the whole year at a glanc

> A business manufactures refrigerators for domestic use. There are three models: Lo, Mid and Hi. The models, their quality and their price are aimed at different markets. Product costs are computed on a blanket (business-wide) overhead-rate basis using a

> Comment critically on the following statements that you have overheard: (a) ‘Direct labour hours are the most appropriate basis to use to charge indirect cost (overheads) to jobs in the modern manufacturing environment where people are so important.’ (

> Jerry’s Taxis Ltd operates a taxi service in a large provincial city. All of the taxis are owned by the business and all the drivers are employees rather than owner drivers. The managers wish to benchmark the operating efficiency of the business against

> Athena Ltd is an engineering business doing work for its customers to their particular requirements and specifications. It determines the full cost of each job taking a ‘job-costing’ approach, accounting for overheads

> The chief executive officer of Spark rite Ltd, a trading business, has just received summary sets of financial statements for last year and this year: The chief financial officer has expressed concern at the increase in inventories and trade receivables

> Distinguish between corporations and partnerships in terms of the following characteristics: a. Owners’ liability for debts of the business. b. Transferability of ownership interest. c. Continuity of existence. d. Federal taxation on income.

> Minnie Reed is a partner in Computer Works, a retail store. During the current year, she withdraws $45,000 in cash from this business and takes for her personal use inventory costing $3,200. Her share of the partnership net income for the year amounts to

> Nate Inc. is a newly organized manufacturing business that plans to manufacture and sell 40,000 units per year of a new product. The following estimates have been made of the company’s costs and expenses (other than income taxes). Inst

> Footware, Inc., is a small manufacturer of shoes. The company has two divisions—the sandal division and the moccasin division. Data for the month of October are as follows. Junette, the company’s chief financial offic

> Halliday Company has manufacturing subsidiaries in Thailand and Mexico. It is considering shipping the subcomponents of Product X to one or the other of these countries for final assembly. The final product will be sold in the country where it is assembl

> For many years New York Studios has produced television shows and operated several FM radiostations. Throughout the current year, the company had 3 million shares of common stock and alarge number of shares of convertible preferred stock outstanding. Ear

> Ski Powder Resort ends its fiscal year on April 30. The business adjusts its accounts monthly, but closes them only at year-end (April 30). The resort’s busy season is from December 1 through March 31. Adrian Pride, the resortâ&#1

> Locate the Home Depot, Inc., 2018 financial statements in Appendix A of this text. Briefly peruse the financial statements and answer the following questions. a. Name the titles of each of Home Depot’s financial statements that provide specific informat

> Some companies that use process costing simply assign the entire cost of production to those units completed and transferred during the month, even if some units remain in process at the end of the period. Is this practice reasonable?

> Clown Around, Inc., provides party entertainment for children of all ages. The following is the company’s trial balance dated February 1, current year Clown Around engaged in the following transactions in February Instructions: a. Re

> Spear Custom Furniture uses an activity-based cost accounting system to apply overhead to production. The company maintains four overhead cost pools. The four cost pools, and their budgeted amounts for the upcoming period, are as follows. Four cost driv

> Six events pertaining to financial assets are described as follows. a. Invested idle cash in marketable securities and classified them as available for sale. b. Collected an account receivable. c. Sold marketable securities at a loss (proceeds from the

> Baxter Corporation has been using FIFO during a period of rising costs. Explain whether you would expect each of the following measurements to be higher or lower if the company had been using LIFO. a. Net income. b. Inventory turnover rate. c. Income

> Elliot-Cole is a publicly owned international corporation, with operations in over 90 countries. Net income has been growing at approximately 15 percent per year, and the stock consistently trades at about 20 times earnings. To attract and retain key man

> Undem Scientific provides research consulting services to both university and corporate clients. The company closes its temporary accounts once each year on December 31. It recently issued the following income statement as part of its annual report. The

> Maggie Miller owns Miller Construction Co. The company maintains accounting records for the purposes of exercising control over its construction activities and meeting its reporting obligations regarding payrolls and income tax returns. As it has no othe

> Crasher Company had net income in the current year of $500,000. In addition, the company had a gain on foreign currency translation of $20,000, net of related income taxes. Assuming the company uses the two-income statement approach for presenting elemen

> Describe at least two products or production processes that might use both process and job order costing methods to determine the cost of a finished unit.

> What is meant by the phrase “natural hedging against exchange rate risk"?

> Jensen Tire had two large shipments in transit at December 31. One was a $130,000 inbound shipment of merchandise (shipped December 28, F.O.B. shipping point), which arrived at Jensen’s receiving dock on January 2. The other shipment was a $95,000 outbou

> Robinson International began operations in early February. The company has provided the following summary of total manufacturing costs assigned to the job sheets of its entire client base during its first three months of operations. Job no. 1002 was com

> Explain why transfer pricing decisions between divisions in separate countries may involve tax or tariff issues.

> DuPont reports in a recent balance sheet $299 million of 6.50 percent bonds payable due in 2028. The company’s effective income tax rate is approximately 27 percent. a. Compute the company’s after-tax cost of borrowing on this bond issue stated as a tot

> Queen Enterprises is a furniture wholesaler. Queen hired a new accounting clerk on January 1 of the current year. The new clerk does not understand accrual accounting and recorded the following transactions based on when cash receipts and disbursements c

> Company A, a U.S. company, has a subsidiary located in Country Z, where various forms of bribery are accepted and expected. To oversee the operations of the subsidiary, Company A sent one of its top U.S. managers to Country Z. Manager M engaged in the fo

> FlyWiz, Inc., is a small manufacturer of professional fishing equipment. The company has two divisions—the rod division and the reel division. Data for the month of January are shown. Nick Fulbright, the company’s chi

> D. Lawrence designs and manufactures fashionable men’s clothing. For the coming year, the company has scheduled production of 40,000 suede jackets. Budgeted costs for this product are as follows. The management of D. Lawrence is consid

> A comedy club called Comedy Today was organized as a partnership with Abbott investing $80,000 and Martin investing $120,000. During the first year, net income amounted to $110,000. Instructions: a. Determine how the $110,000 net income would be divid

> A U.S.-based company, IBC, has wholly owned subsidiaries across the world. IBC is in the medical products market; the company sources most of its sales of medical devices from the United States, but it sells most of those devices to the European market.

> Book Web, Inc., sells books and software over the Internet. A recent article in a trade journal has caught the attention of management because the company has experienced soaring inventory handling costs. The article notes that similar firms have purchas

> Fox Run Outfitters manufactures lightweight frames that it uses in several of its backpack products. Management is considering whether to continue manufacturing the frames or to buy them from an outside source. The following information is available. 1.

> In general terms, identify several factors that prompt different countries to develop different accounting principles.

> Refer to the Demonstration Problem illustrated in the previous chapter. Prepare a 10-column worksheet for Internet Consulting Service, Inc., dated December 31, current year. At the bottom of your worksheet, prepare a brief explanation keyed to each adjus

> Our Little Secret is a small manufacturer of swimsuits and other beach apparel. The company is closely held and has no external reporting obligations, other than payroll reports and income tax returns. The company’s accounting system is grossly inadequat

> Describe the three principles guiding the design of management accounting systems.

> Simon Tough is considering investing in a vending machine operation involving 20 vending machines located in various plants around the city. The machine manufacturer reports that similar vending machine routes have produced a sales volume ranging from 60

> Sheila Lufty manages the plant that produces dining room furniture for Bastile Furniture Company. Sheila’s annual performance is evaluated based on how well she manages all the costs incurred to run the plant and produce the furniture. For her annual eva

> Warthers Corporation produces auto parts. The company acquires other companies when they are considered a good strategic fit. Several years ago Warthers acquired Landis Company, a supplier of dashboards. Warthers decided to maintain Landisâ€&#

> The year-end balance sheet of Mirror, Inc., includes the following stockholders’ equity section (with certain details omitted) Instructions From this information, compute answers to the following questions. a. How many shares of pref

> Use Exhibit 15–1 to evaluate the following statement: “The nexus of business activity has shifted eastward so the United States and Europe don’t matter much anymore.

> Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass through two departments: Cutting and Coating. Large sheets of synthetic material are cut to size in the Cutting Department and then transferred to the Coating D

> Shown as follows are selected transactions of the architectural firm of Munson, Chang, and Alverez, Inc

> Shown are data from recent reports of two toy makers. Dollar amounts are stated in thousands. a. Compute for each company (1) the debt ratio and (2) the interest coverage ratio. (Round the debt ratio to the nearest percent and the interest coverage rati

> In a process costing system, what condition must be present in order for accountants to combine direct labor and manufacturing overhead costs and treat them simply as conversion costs?

> In the following list, assume each transaction is independent of the others. Each of these transactions occurs in a single division of Wrangling International, a multidivisional company. Each transaction may impact capital turnover, ROI, and/or residual