Homework assistance for accounting students. How much assistance should accounting professors provide students for completing homework? Is too much assistance counterproductive? These were some of the questions of interest in a Journal of Accounting Education (Vol. 25, 2007) article. A total of 75 junior-level accounting majors who were enrolled in Intermediate Financial Accounting participated in an experiment. All students took a pretest on a topic not covered in class; then each was given a homework problem to solve on the same topic. However, the students were randomly assigned different levels of assistance on the homework. Some ( 20 students) were given the completed solution, some (25 students) were given check figures at various steps of the solution, and the rest ( 30 students) were given no help. After finishing the homework, each student was given a posttest on the subject. One of the variables of interest to the researchers was the knowledge gain (or, test score improvement), measured as the difference between the posttest and pretest scores. The sample mean knowledge gains for the three groups of students are provided in the table. The observed significance level of the $t$-test of part $\mathbf{e}$ was reported as .1849. Using $\alpha=.05$, interpret this result.

	No Solutions	Check Figures	Completed Solutions
Sample Size	30	25	20
Sample Mean	$2.43$	$2.72$	$1.95$

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

$$\begin{matrix} & \text{Amount Per Unit}\\ \text{Direct materials...} & \text{\$6.00}\\ \text{Direct labor...} & \text{\$3.50}\\ \text{Variable manufacturing overhead...} & \text{\$1.50}\\ \text{Fixed manufacturing overhead} & \text{\$4.00}\\ \text{Fixed selling expense} & \text{\$3.00}\\ \text{Fixed administrative expense} & \text{\$2.00}\\ \text{Sales commissions...} & \text{\$1.00}\\ \text{Variable administrative expense...} & \text{\$0.50}\\ \end{matrix}$$

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? 3. If 8,000 units are sold, what is the variable cost per unit sold? 4. If 12,500 units are sold, what is the variable cost per unit sold? 5. If 8,000 units are sold, what is the total amount of variable costs related to the units sold? 6. If 12,500 units are sold, what is the total amount of variable costs related to the units sold? 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? 8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? 9. If 8,000 units are produced, what is the total amount of fixed manufacturing costs incurred to support this level of production? 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? 13. If the selling price is $22 per unit, what is the contribution margin per unit sold? 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 15. What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units?

Match each of the numbered descriptions 1 through 7 with the term or phrase it best describes. Write your answer by writing the letter for the term or phrase in the blank provided.
A. Audit
B. GAAP
C. Ethics.
D. Tax accounting
E. SEC
F. Public accountants
G. IASB

_______1. Principles that determine whether an action is right or wrong.
_______2. Accounting professionals who provide services to many clients.
_______3. An accounting area that includes planning future transactions to minimize taxes paid.
_______4. An examination of an organization's accounting system and records that adds credibility to financial statements.
_______5. Government group that establishes reporting requirements for companies that issue stock to the public.
_______6. Concepts and rules that govern financial accounting practice.
_______7. Group that issues preferred international accounting practices.

Homework assistance for accounting students. How much assistance should accounting professors provide students for completing homework? Is too much assistance counterproductive? These were some of the questions of interest in a Journal of Accounting Education (Vol. 25, 2007) article. A total of 75 junior-level accounting majors who were enrolled in Intermediate Financial Accounting participated in an experiment. All students took a pretest on a topic not covered in class; then each was given a homework problem to solve on the same topic. However, the students were randomly assigned different levels of assistance on the homework. Some ( 20 students) were given the completed solution, some (25 students) were given check figures at various steps of the solution, and the rest ( 30 students) were given no help. After finishing the homework, each student was given a posttest on the subject. One of the variables of interest to the researchers was the knowledge gain (or, test score improvement), measured as the difference between the posttest and pretest scores. The sample mean knowledge gains for the three groups of students are provided in the table. What is the problem with using only the sample means to make inferences about the population mean knowledge gains for the three groups of students?

the financial statement summarizing a firm's accounting performance over a period of time is the:

In 2020. Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31. 2020, are shown below.

$$\begin{array} {lrrrrr} \textbf{Balance Sheet}\\ \text{Accounts receivable}&& \text{\$\hspace{10pt}18,000}&\\ \text{Construction in process}& \hspace{10pt}\text{65,000}&\\ \text{Less: Billings}& \underline{\hspace{5pt}\text{61,500}}&\\ \text{Costs and recognized profit in excess of billings}&& \hspace{10pt}\text{3,500}&\\\\ \textbf{Income Statement}\\ \text{Income (before tax) on the contract recognized in 2020}&& \text{\$\hspace{10pt}19,500}&\\ \end{array}$$

Instructions

a. How much cash was collected in 2020 on this contract?

b. What was the initial estimated total income before tax on this contract?

(Conceptual Framework-General) Wayne Cooper has some questions regarding the theoretical framework in which GAAP is set. He knows that the FASB and other predecessor organizations have attempted to develop a conceptual framework for accounting theory formulation. Yet, Wayne's supervisors have indicated that these theoretical frameworks have little value in the practical sense (ie., in the real world). Wayne did notice that accounting rules seem to be established after the fact rather than before. He thought this indicated a lack of theory structure but never really questioned the process at school because he was too busy doing the homework.

Wayne feels that some of his anxiety about accounting theory and accounting semantics could be alleviated by identifying the basic concepts and definitions accepted by the profession and considering them in light of his current work. By doing this, he hopes to develop an appropriate connection between theory and practice.

Instructions

a. Help Wayne recognize the purpose of and benefit of a conceptual framework. b. Identify any Statements of Financial Accounting Concepts issued by the FASB that may be helpful to Wayne in developing his theoretical background.

Homework assistance for accounting students. How much assistance should accounting professors provide students for completing homework? Is too much assistance counterproductive? These were some of the questions of interest in a Journal of Accounting Education (Vol. 25, 2007) article. A total of 75 junior-level accounting majors who were enrolled in Intermediate Financial Accounting participated in an experiment. All students took a pretest on a topic not covered in class; then each was given a homework problem to solve on the same topic. However, the students were randomly assigned different levels of assistance on the homework. Some ( 20 students) were given the completed solution, some (25 students) were given check figures at various steps of the solution, and the rest ( 30 students) were given no help. After finishing the homework, each student was given a posttest on the subject. One of the variables of interest to the researchers was the knowledge gain (or, test score improvement), measured as the difference between the posttest and pretest scores. The sample mean knowledge gains for the three groups of students are provided in the table. The observed significance level of the t-test of part $c$ was reported as $.8248$. Using $\alpha=.05$, interpret this result.

Each of these parties plays a role in the quality of financial reporting. Match each group with its function.

$$\begin{array}{ll} \text{Groups} & \text{Functions}\\ \hline \text{1. \_\_\_\_\_ Financial Accounting Standards Board} & \text{a. Group that has been given power by Congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded.}\\ \text{2. \_\_\_\_\_ International Accounting Standards Board} & \text{b. Independent, private-sector group that is primarily responsible for setting financial reporting standards in the United States. }\\ \text{3. \_\_\_\_\_ Securities and Exchange Commission } & \text{c. Independent intermediaries that help to ensure that management appropriately applies financial reporting rules in preparing the company's financial statements.}\\ \text{4. \_\_\_\_\_ Auditors} & \text{d. Body that is attempting to develop a single set of high-quality, understandable global accounting standards. }\\ \end{array}$$

Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement. 1. Jim Marley is the sole owner of Marley’s Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence. This liability was not recorded in the records of Marley’s Appliances. 2. Apple Inc. distributes an annual report to its shareholders. 3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives. 4. Crosby Company lists land on its balance sheet at$120,000, its original purchase price, even though the land has a current fair value of $200,000. 5. Honeywell Corporation records revenue when products are delivered to customers, even though the cash has not yet been received. 6. Liquidation values are not normally reported in financial statements even though many companies do go out of business. 7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of$800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense.

In 2017, Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2017, are shown below.

$$\begin{array}{lrr} \textbf{Balance Sheet}\\ \hspace{10pt}\text{Accounts receivable}&&\text{\$\hspace{5pt}18,000}\\ \hspace{10pt}\text{Construction in process}&\text{\$\hspace{5pt}65,000}\\ \hspace{10pt}\text{Less: Billings}&\underline{\text{\hspace{10pt}61,500}}\\ \hspace{10pt}\text{Costs and recognized profit in excess of billings}&&{\text{\hspace{15pt}3,500}}\\ \textbf{Income Statement}\\ \hspace{10pt}\text{Income (before tax) on the contract recognized in 2017}&&\text{\$\hspace{5pt}19,500}\\ \end{array}$$

Instructions

• a. How much cash was collected in 2017 on this contract?
• b. What was the initial estimated total income before tax on this contract?

Both managerial accounting and financial accounting give useful information to decision makers. Indicate in the following chart the most likely source of information for each business decision (a decision can require major input from both sources, in which case both can be marked).

Refer to the Journal of Accounting Education (Vol. 25, 2007) analysis of assisting accounting students with their homework, Exercise $8.18$ (p. 468). A total of 75 junior-level accounting majors enrolled in Intermediate Financial Accounting participated in the experiment. Recall that students took a pretest on a topic not covered in class, and then each was given a homework problem to solve on the same topic. A completely randomized design was employed, with students randomly assigned to receive one of three different levels of assistance on the homework: (1) the completed solution, (2) check figures at various steps of the solution, and (3) no help at all. After finishing the homework, each student was given a posttest on the subject. The response variable of interest to the researchers was the knowledge gain (or test score improvement), measured as the difference between the posttest and pretest scores. The data (simulated from descriptive statistics published in the article) are saved in the accompanying file.

c. Analyze the results practically. Does your conclusion agree with the inferences drawn in Exercise 8.18?

WorldCom Inc. was one of the largest companies to file for bankruptcy. This case requires the analysis of WorldCom's December 31, 2002, 10-K filed with the Securities and Exchange Commission. The 10-K can be obtained through EDGAR (www.sec.gov) or some other publicly available source. (Note: After its emergence from bankruptcy, WorldCom was merged into MCI, Inc. However, that did not affect WorldCom's financial reporting for periods prior to the merger.)

Required

Provide responses to the question below by referencing the section(s) of the 10-K where you found the information.

• Describe the company's financial accounting and reporting during the reorganization period. Include in your answer a brief discussion of the meaning of the title Debtors-in-Possession at the top of each of the company's financial statements during the reorganization period.