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9/23/13

schiller - the economy today - 13e, solutions manual and test bank 0073523216

The Economy Today, 13th Edition solutions manual and test bank

Bradley R. Schiller (Author), Cynthia Hill (Author), Sherri Wall (Author)


Book Description

Publication Date: January 6, 2012 | ISBN-10: 0073523216 | ISBN-13: 978-0073523217 | Edition: 13th
Clear. Current. Connected to Today’s Student. Schiller, The Economy Today, 13e, is noted for three great strengths: readability, policy orientation, and pedagogy. The accessible writing style engages students and brings some of the excitement of domestic and global economic news into the classroom. Schiller emphasizes how policymakers must choose between government intervention and market reliance to resolve the core issues of what, how, and for whom to produce. This strategic choice is highlighted throughout the full range of micro, macro, and international issues, and every chapter ends with a policy issue that emphasizes the markets vs. government dilemma. The authors teach economics in a relevant context, filling chapters with the real facts and applications of economic life. Schiller is also the only principles text that presents all macro theory in the single consistent context of the AS/AD framework

9/21/13

Applying International Financial reporting standards, 3th , by Ruth Picker, Ken J. Leo, Janice Loftus, Victoria Wise, Kerry Clark, Keith Alfredson ) solutions manual and test bank

 Applying International Financial Reporting Standards, 3rd Edition solutions manual and test bank
Ruth Picker, Ken J. Leo, Janice Loftus, Victoria Wise, Kerry Clark, Keith Alfredson
November 2012, ©2012
Applying International Financial Reporting Standards, 3rd Edition (EHEP002599) cover image
Applying International Financial Reporting Standards, 3rd edition, has been thoroughly updated to reflect the varied and numerous developments in International Financial Reporting Standards (IFRSs). The expert knowledge and authoritative explanations of the author team have resulted in the book being extensively referenced by both the accounting profession and academics in countries that have either adopted, or intend to adopt, international accounting standards.
The continuing focus of the second edition of this book is on interpreting, analysing and illustrating the financial reporting requirements under IFRSs. Each chapter contains numerous illustrative examples that present and explain concepts to ensure that users gain a deep understanding of the reporting requirements and meet the knowledge expectations of the accounting profession.
The coverage of accounting standards has been expanded in the second edition with the inclusion of new chapters on IFRS 6 Exploration for and Evaluation of Mineral Resources, IAS 18 Revenue, IAS 19 Employee Benefits and IAS 41Agriculture. This book has been written for intermediate and advanced financial accounting courses, at both undergraduate and postgraduate levels.



Solutions Manual

to accompany



Applying International Financial Reporting Standards 3e


Ruth Picker, Ken Leo, Janice Loftus, Victoria Wise & Kerry Clark


Prepared by Ken Leo




John Wiley & Sons Australia, Ltd 2013
Chapter 2 – Shareholders’ equity: share capital and reserves
 
Discussion Questions

1.      Discuss the nature of a reserve. How do reserves differ from the other main components of equity?

         Under international accounting standards there are 2 forms of equity:
-        contributed equity: inflows from equity contributors
-        reserves

See paras 65-68 of the Conceptual Framework.

Reserves arise as a result of increases in equity other than from contributions from equity participants. They may arise from various actions:
-        earnings of profits [retained earnings]
-        increases in the fair value of assets [asset revaluation surplus]

         Unlike share capital, reserves are not created via cash flows into the entity.

         Dividends may be paid out of reserves, but not out of capital.


2.      A company announces a final dividend at the end of the financial year. Discuss whether a dividend payable should be recognised.

         Note paras. 12 and 13 of IAS 10.

         Note also IFRIC 17 “Distributions of Non-cash Assets to Owners” (effective 1 July 2009):

A dividend payable should be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity.

         If a dividend is not declared at end of reporting period, no liability is recognised.

         If a liability is declared after end of reporting period, a liability is recognised only if the dividends are appropriately authorised and no longer at the discretion of the entity.  For example, if the payment of dividends requires the approval of shareholders at a forthcoming AGM, then they are still at the discretion of the entity and no liability is raised.

         The reason for this treatment is that no present obligation exists while an entity still has discretion in relation to payment.



3.      The telecommunications industry in a particular country has been a part of the public sector. As a part of its privatisation agenda, the government decided to establish a limited liability company called Telecom Plus, with the issue of 10 million $3 shares. These shares were to be offered to the citizens of the country. The terms of issue were such that investors had to pay $2 on application and the other $1 per share would be called at a later time. Discuss:

(a)  The nature of the limited liability company, and in particular the financial obligations of acquirers of shares in the company.
(b)  The journal entries that would be required if applications were received for 11 million shares.

         The answer to this question may depend on local jurisdictional arrangements.

         In general:
         The nature of a limited liability company is such that shareholders’ liability is limited to the issue price of a share. If the shares are issued at par value, the liability is limited to payment of that par value per share. If shares are issued at a given price, the limitation is to that price.

         The journal entries are – assuming that applications were received for 10 million shares:

            Cash Trust                                                      Dr     20 000 000
                     Application                                            Cr                             20 000 000
         (Receipt of application money)

            Application                                                     Dr     20 000 000
                     Share capital                                          Cr                             20 000 000
         (Issue of shares)

            Cash                                                                Dr     20 000 000
                     Cash trust                                               Cr                             20 000 000
         (Transfer from cash trust on issue of shares)


4.      Why would a company wish to buy back its own shares? Discuss.

         Companies may undertake a buy-back of shares:

-        to increase the worth per share of the remaining shares.
-        as a part of management of the capital structure in terms of gearing.
-        most efficiently manage surplus funds, rather than pay a dividend.




5.      A company has a share capital consisting of 100 000 shares issued at $2 per share, and 50 000 shares issued at $3 per share. Discuss the effects on the accounts if:
        
(a)  The company buys back 20 000 shares at $4 per share
(b)  The company buys back 20 000 shares at $2.50 per share

         At date of buyback, the company has issued 150 000 shares and has a total share capital of $350 000. Having issued the shares, the issue price is irrelevant.

(a)    If the company buys back 20 000 shares at $4 per share, the company will record a cash receipt of $80 000. Which equity accounts it adjusts is the decision of management. There is no requirement that share capital be reduced.

(b)    The answer is the same if the shares are bought back at $2.50 per share.


6.      A company has a share capital consisting of 100 000 shares having a par value of $1 per share and issued at a premium of $1 per share, and 50 000 shares issued at $2 par and $1 premium. Discuss the effects on the accounts if:
(a)  The company buys back 20 000 shares at $4 per share
(b)  The company buys back 20 000 shares at $2.50 share

         The share capital consists of:

         100 000 $1 shares issued at a $1 premium                   $200 000
         50 000 $2 shares issued at a $1 premium                     $150 000

(a)    The company would have to specify which shares it was buying back.

         If the $1 par shares were bought back, the relevant entry is:

            Cash                                                                Dr            80 000
                     Share Capital                                         Cr                                    20 000
                     Share Premium                                      Cr                                    20 000
                     Reserves                                                Cr                                    40 000

         If the $2 par shares were bought back, the entry is:

            Cash                                                                Dr            80 000
                     Share Capital                                         Cr                                    40 000
                     Share Premium                                      Cr                                    20 000
                     Reserves                                                Cr                                    20 000



(b)    The company would have to specify which shares it was buying back.

         If the $1 par shares were bought back, the relevant entry is:

            Cash                                                                Dr            50 000
                     Share Capital                                         Cr                                    20 000
                     Share Premium                                      Cr                                    20 000
                     Reserves                                                Cr                                    10 000

         If the $2 par shares were bought back, the entry is:

            Cash                                                                Dr            50 000
            Reserve [Share Buy-Back Discount]             Dr            10 000
                     Share Capital                                         Cr                                    40 000
                     Share Premium                                      Cr                                    20 000


7.      Discuss the nature of a rights issue, distinguishing between a renounceable and a non-renounceable issue.

         A rights issue is an issue of shares with the terms of issue giving existing shareholders the right to an additional number of shares in proportion to their current shareholding, i.e. the shares are offered on a pro rata basis.
         For example, each shareholder may be entitled to one share for every two currently held.

         Renounceable: existing shareholders may
-        accept the offer i.e. exercise the rights.
-        sell all or part of their rights to the new shares to another party.
-        do nothing i.e. reject the offer.

            Non-renounceable: existing shareholders may:
-        do nothing i.e. reject the offer.
-        accept the offer.

8.      What is a private placement of shares? What are the advantages and disadvantages of such a placement?

         A private placement is where a company places the shares with specific investors rather than invite applications for the new issue of shares.

         Advantages [see text]:
-        speed
-        price
-        direction
-        prospectus

         Disadvantages;
-        dilution of current shareholders’ interests.
-        where shares are placed at a discount.
9.      Discuss whether it is necessary to distinguish between the different components of equity rather than just having a single number for shareholders’ equity.

         The question is whether an investor would prefer to invest in Company A or Company B assuming the net assets of the company are the same:

                                                                             Company A                    Company B

                                 Share capital                           $100 000                          $20 000
                                 General reserve                          30 000                            60 000
                                 Retained earnings                       40 000                            90 000
                                                                                   170 000                          170 000

         In general the composition of equity is irrelevant.

         Composition may be relevant where local laws place restrictions on what can be done with particular equity accounts e.g. if dividends may be paid only out of profits.

 Testbank


to accompany

Applying International Financial Reporting Standards 3e

By



Prepared by
John Sweeting and Emma Holmes






John Wiley & Sons Australia, Ltd 2013

CHAPTER 2


Shareholders’ equity: share capital and reserves



Learning Objective 2.2.1       Describe the equity of a sole proprietor, partnership and company

Learning Objective 2.2.2       Identify the different forms of corporate entities

Learning Objective 2.2.3       Outline the key features of the corporate structure

Learning Objective 2.2.4       Discuss the different forms of share capital

Learning Objective 2.2.5       Account for the issue of both par value and no-par shares

Learning Objective 2.2.6       Account for share placements, rights issues, options, and bonus issues

Learning Objective 2.2.7       Discuss the rationale behind and accounting treatment of share buy-backs

Learning Objective 2.2.8       Outline the nature of reserves other than retained earnings and account for movements in retained earnings, including dividends

Learning Objective 2.2.9       Prepare note disclosures in relation to equity, as well as a statement of changes in equity.














Multiple Choice


1.    For-profit companies may be
Learning Objective 2.2 Identify the different forms of corporate entities

       I      Unlimited
       II     Listed
       III   Limited by guarantee
       IV   No-liability

       a.    II and III only
b.  I, II and III only
c.  II, III and IV only
*d.       I, II, III and IV


2.    Which of the following statements is incorrect?
Learning Objective 2.3 Outline the key features of the corporate structure
a.       Each share in a company carries a right to share in the assets on the liquidation of the company
*b.     Each share in a company carries a right to share proportionately in all new share issues of a company
c.  A share represents an ownership right in a company
d.  Each share in a company carries a right to vote for directors of the company


3.    In respect to the issue of shares by a company, what is an IPO?
Learning Objective 2.5 Account for the issue of both par value and no-par shares
a.    Investment in Preference and Ordinary shares;
*b.  Initial Public Offering of shares;
c.    Investment Prospectus for an issue of Options;
d.    Instruments Providing Options to ordinary shareholders.


4.    When a public share issue is made, the offer comes from:
Learning Objective 2.5 Account for the issue of both par value and no-par shares
a.    the company issuing the shares;
b.    the relevant oversight body once it has reviewed the prospectus documentation;
c.    the broker handing the share issue for the company;
*d.  the applicant.




9/17/13

Excellence in Business Communication 10e Bovee Thill solutions manual and test bank

 Excellence in Business Communication 10e  Bovee Thill  solutions manual and test bank


Book cover


Excellence in Business Communication Plus MyBCommLab with Pearson eText -- Access Card Package, 10/E
John V. Thill, Communication Specialists of America
Courtland L. Bovee
 

Managerial Economics Applications Strategy and Tactics 12th Edition by McGuigan solutions manual and test bank

 Managerial Economics Applications Strategy and Tactics 12th Edition by McGuigan  solutions manual and test bank
http://www.mediafire.com/view/b006t9os1alitxi/Managerial_Economics_Applications_Strategy_and_Tactics_12th_Edition_by_McGuiganIM12e_Ch02.doc
http://www.mediafire.com/view/zjees31uz7aac5t/Managerial_Economics_Applications_Strategy_and_Tactics_12th_Edition_by_McGuiganTB_12e_Ch03.rtf


Chapter 3—Demand Analysis

MULTIPLE CHOICE

1.   Suppose we estimate that the demand elasticity for fine leather jackets is ‑.7 at their current prices.  Then we know that:
      a.    a 1% increase in price reduces quantity sold by .7%.
      b.    no one wants to buy leather jackets.
      c.    demand for leather jackets is elastic.
      d.    a cut in the prices will increase total revenue.
      e.    leather jackets are luxury items.

      ANS:    A               PTS:  1

2.   If demand were inelastic, then we should immediately:
a.   cut the price.
b.   keep the price where it is.
c.   go to the Nobel Prize Committee to show we were the first to find an upward sloping demand curve.
d.   stop selling it since it is inelastic.
e.   raise the price.

ANS:   E                PTS:  1

3.   In this problem, demonstrate your knowledge of percentage rates of change of an entire demand function (Hint: %DQ = EP•%DP + EY•%DY).  You have found that the price elasticity of motor control devices at Allen-Bradley Corporation is -2, and that the income elasticity is a +1.5.  You have been asked to predict sales of these devices for one year into the future.  Economists from the Conference Board predict that income will be rising 3% over the next year, and AB’s management is planning to raise prices 2%.  You expect that the number of AB motor control devices sold in one year will:
a.      fall .5%.
b.      not change.
c.      rise 1%r.
d.      rise 2%.
e.      rise .5%.

      ANS:    E                PTS:  1
           
4    A linear demand for lake front cabins on a nearby lake is estimated to be:  QD = 900,000 - 2P.  What is the point price elasticity for lake front cabins at a price of P = $300,000?   [Hint: Ep = (Q/P)(P/Q)]
a.      EP = -3.0
b.      EP = -2.0
c.      EP = -1.0
d.      EP = -0.5
e.      EP = 0

ANS:  B                PTS:  1

5.   Property taxes are the product of the tax rate (T) and the assessed value (V).  The total property tax collected in your city (P) is:  P = T•V.   If the value of properties rise 4% and if Mayor and City Council reduces the property the tax rate by 2%, what happens to the total amount of property tax collected?  [hint:  the percentage rate of change of a product is approximately the sum of the percentage rates of change.}
a.   It rises 6 %.
b.   It rises 4 %.
c.   It rises 3 %.
d.   It rises 2 %
e.   If falls 2%.

      ANS:  D              PTS:  1

6.   Demand is given by QD = 620 ‑ 10·P and supply is given by QS = 100 + 3·P.  What is the price and quantity when the market is in equilibrium?
      a.   The price will be $30 and the quantity will be 132 units.
      b.        The price will be $11 and the quantity will be 122 units.
      c.        The price will be $40 and the quantity will be 220 units.
      d.   The price will be $35 and the quantity will be 137 units
      e.   The price will be $10 and the quantity will be 420 units.

      ANS:  C              PTS:  1

7.   Which of the following would tend to make demand INELASTIC?
a.      the amount of time analyzed is quite long
b.      there are lots of substitutes available
c.      the product is highly durable
d.      the proportion of the budget spent on the item is very small
e.      no one really wants the product at all

ANS:    D                     PTS:  1

8.          Which of the following best represents management's objective(s) in utilizing demand analysis?
a.
it provides insights necessary for the effective manipulation of demand
b.
it helps to measure the efficiency of the use of company resources
c.
it aids in the forecasting of sales and revenues
d.
a and b
e.
a and c


ANS:  E                    PTS:   1







     9.   Identify the reasons why the quantity demanded of a product increases as the price of that product decreases.
a.
as the price declines, the real income of the consumer increases
b.
as the price of product A declines, it makes it more attractive than product B
c.
as the price declines, the consumer will always demand more on each successive price reduction
d.
a and b
e.
a and c


ANS:  D                   PTS:   1

   10.   An increase in the quantity demanded could be caused by:
a.
an increase in the price of substitute goods
b.
a decrease in the price of complementary goods
c.
an increase in consumer income levels
d.
all of the above
e.
none of the above


ANS:  D                   PTS:   1
11.   Iron ore is an example of a:
a.
durable good
b.
producers' good
c.
nondurable good
d.
consumer good
e.
none of the above


ANS:  B                    PTS:   1

   12.   If the cross price elasticity measured between items A and B is positive, the two products are referred to as:
a.
complements
b.
substitutes
c.
inelastic as compared to each other
d.
both b and c
e.
a, b, and c


ANS:  B                    PTS:   1

13.      When demand is ____ a percentage change in ____ is exactly offset by the same percentage change in ____ demanded, the net result being a constant total consumer expenditure.
a.
elastic; price; quantity
b.
unit elastic; price; quantity
c.
inelastic; quantity; price
d.
inelastic; price; quantity
e.
none of the above


ANS:  B                    PTS:   1






   14.   Marginal revenue (MR) is ____ when total revenue is maximized.
a.
greater than one
b.
equal to one
c.
less than zero
d.
equal to zero
e.
equal to minus one


ANS:  D                   PTS:   1

   15.   The factor(s) which cause(s) a movement along the demand curve include(s):
a.
increase in level of advertising
b.
decrease in price of complementary goods
c.
increase in consumer disposable income
d.
decrease in price of the good demanded
e.
all of the above


ANS:  D                   PTS:   1

   16.   An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a.
price of substitute goods
b.
level of competitor advertising
c.
consumer income level
d.
consumer desires for goods and services
e.
a and b


ANS:  B                    PTS:   1

   17.   Producers' goods are:
a.
consumers' goods
b.
raw materials combined to produce consumer goods
c.
durable goods used by consumers
d.
always more expensive when used by corporations
e.
none of the above


ANS:  B                    PTS:   1

   18.   The demand for durable goods tends to be more price elastic than the demand for non-durables.
a.
true
b.
false


ANS:  A                   PTS:   1

   19.   A price elasticity (ED) of -1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.
a.
one percent; increase; 1.50 units
b.
one unit; increase; 1.50 units
c.
one percent; decrease; 1.50 percent
d.
one unit; decrease; 1.50 percent
e.
ten percent; increase; fifteen percent


ANS:  C                    PTS:   1


   20.   Those goods having a calculated income elasticity that is negative are called:
a.
producers' goods
b.
durable goods
c.
inferior goods
d.
nondurable goods
e.
none of the above


ANS:  C                    PTS:   1

   21.   An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.
a.
one percent; quantity supplied; two units
b.
one unit; quantity supplied; two units
c.
one percent; quantity demanded; two percent
d.
one unit; quantity demanded; two units
e.
ten percent; quantity supplied; two percent


ANS:  C                    PTS:   1

   22.   When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues.
a.
less than 1; elastic; increase
b.
more than 1; inelastic; decrease
c.
less than 1; elastic; decrease
d.
less than 1; inelastic; increase
e.
none of the above


ANS:  D                   PTS:   1

   23.   Empirical estimates of the price elasticity of demand [in Table 3.4] suggest that the demand for household consumption of alcoholic beverages is:
a.
highly price elastic
b.
price inelastic
c.
unitarily elastic
d.
an inferior good
e.
none of the above


ANS:  B                    PTS:   1

       
PROBLEM





  • James R. McGuigan
  • R. Charles Moyer University of Louisville
  • Frederick H.deB. Harris Wake Forest University
  • ISBN-10: 1439079234
  • ISBN-13: 9781439079232

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