Accounting Answers

(a) As a source of long term financing, what are the major advantages of bonds over common stock?
(b) What are the major disadvantages in using bonds for long-term financing?

If you had to somehow acquire new monies for your business, which would you use, stocks or bonds?

Contrast the effects of a cash dividend and a stock dividend on a corporation's balance sheet. Which would you rather receive if you were a stockholder?

How do the financial statements for a corporation differ from the statements for a proprietorship? Do you feel that the general public understands the owner equity section of each type of business?

 Mills Inc. manufacturers 50,000 components per year. The manufacturing cost per unit of the components is as follows:

Direct materials $ 12
Direct labor 13
Variable overhead 5
Fixed overhead 10
Total unit cost $40

An outside supplier has offered to sell the component to Mills Inc. for $35

Required:
a) What is the effect on income if Mills Inc. purchases the component from the outside supplier?
b) Assume that Mills Inc. can avoid $700,000 of the total fixed overhead costs if it purchases the components. Now what is the effect on income if Mills Inc. purchases the component from the outside supplier?

a. What is the meaning of financial strategy? Why the organizations need a financial strategy?

b. What is internal control? Describe the key objectives of internal control. List the five key components of internal control.

c. What do you understand by short term and long term financing? What are the purposes of the both

d. Describe the tools used to analyse financial statement of a company.

e. What is the strategic profit model, and how is it used?

how can timesheets assist the accountant to make the annual reporting timeline?

how balances are transferred into and out of the budgeted statement of cash flows to explain the statement and how the closing cash is calculated?

explain to voyager executives the importance of considering related expenses and discuss some of their controls as planning for its aggressive revenue expansion policy?

Banks charge customers fees of up to $35 per cheque for writing “bounced” cheques - that is, cheques that exceed the balance in the account. It has been estimated that processing bounced cheques costs a bank roughly $1.50 per cheque. Thus, the profit margin on a bounced cheque is very high. Realizing this, some banks process cheques from largest to smallest. By doing this, they maximize the number of cheques that bounce if a customer overdraws an account.
Antonio Freeman had a balance of $1,200 in his chequing account on a day when the bank received the following five cheques for processing against his account:
Cheque Number Amount:
3150, 3158, 3162, 3165 3169 $35, $1,510, $40, $550 $180

Assuming a $35 fee per cheque is assessed by the bank, how much fee revenue would the bank generate if it processed cheques (1) from largest to smallest, (2) from smallest to largest, and (3) in the order of the cheque numbers?

a. William Preston had a balance of $1,500 in his checking account at First National Bank on a day when the bank received the following five checks for processing against his account.

Check Number Amount Check Number Amount

3150 35.00 3165 550.00

3162 400.00 3166 1,510.00

3169 180.00

Assuming a $30 fee assessed by the bank for each bounced check, how much fee revenue would the bank generate if it processed checks (1) from largest to smallest, (2) from smallest to largest, and (3) in order of check number?
b. Do you think that processing checks from largest to smallest is an ethical business practice?
c. In addition to ethical issues, what other issues must a bank consider in deciding whether to process checks from largest to smallest?
d. If you were managing a bank, what policy would you adopt on bounced checks?

0