The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department.

a. Indicate the weak link in internal control in the handling of cash receipts.

b. How can the weakness be corrected?

A design change is required in the valve interface circuit of the temperature-control system shown . The new design will have a valve interface input resistance of $10 \mathrm{k} \Omega$. Determine the effect this change has on the temperature-to-voltage conversion circuit.

You design an experiment to test the effectiveness of a vaccine against a strain of influenza. In the experiment, 100,000 people receive the vaccine and another 100,000 people receive a placebo. Identify a potential problem with the experimental design. Then describe how you can improve it.

The following are nine technical accounting terms introduced or emphasized in this chapter:

$$\begin{array}{lll}\text { Responsibility margin } & \text { Transfer price } & \text { Common fixed costs } \\ \text { Contribution margin } & \text { Cost-plus transfer price } & \text { Traceable fixed costs } \\ \text { Performance margin } & \text { Product costs } & \text { Committed fixed costs }\end{array}$$

Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.

c. Fixed costs that are readily controllable by the manager.

How do you think a mobilization effort such as the one that occurred in the early 1940s would affect the United States today? Explain your answer.

Design an experiment that would test the ability of fern gametophytes to grow on different soils.

Listed below are nine technical accounting terms used in this chapter:

$$\begin{array}{lll}\text { Unrecorded revenue } & \text { Adjusting entries } & \text { Accrued expenses } \\ \text { Book value } & \text { Matching principle } & \text { Accumulated depreciation } \\ \text { Unearned revenue } & \text { Materiality } & \text { Prepaid expenses }\end{array}$$

Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
f. A type of account credited when customers pay in advance for services to be rendered in the future.

What’s the relationship between the design of a manufacturing process and the firm’s strategic competitive dimensions ?

Visit the website of the SEC (https://www.sec.gov/edgar/searchedgar/companysearch.html). Search for the latest Form 10-K for a company you would like to analyze. Submit a short memo that

C. State the changes identified in (A), (B), and (C) in accounting equation format. If the “change” equation does not balance, explain why not. Hint: Double-check your calculations, and if the accounting equation change still does not balance, search for notes in the company’s files about prior period adjustments, which will often explain why balances may differ.

i. Provide the web link to the company’s Form 10-K to allow accurate verification of your answers.

Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under protection of the U.S. bankruptcy court. As a "debtor in possession," he has negotiated the following revised loan agreement with United Bank. Perkins Inc.'s $600,000, 12%, 10-year note was refinanced with a$600,000, 5%, 10-year note.

Instructions

a. What is the accounting nature of this transaction?

b. Prepare the journal entry to record this refinancing.

1. On the books of Perkins Inc.
2. On the books of United Bank.

c. Discuss whether generally accepted accounting principles provide the proper information useful to managers and investors in this situation.

During the $1990$s, General Electric put together a long string of consecutive quarters in which the firm managed to meet or beat the earnings forecasts of Wall Street stock analysts. Some skeptics wondered if GE “managed" earnings to meet Wall Street's expectations, meaning that GE used accounting gimmicks to conceal the true volatility in its business. How do you think GE's long run of meeting or beating earnings forecasts affected its cost of capital? If investors learn that GE's performance was achieved largely through accounting gimmicks, how do you think they would respond?

Design a problem to help other students better understand how inductors work.

a. use the technology of your choice to determine the range and sample standard deviation of each of the two data sets. b. compare the two data sets by using your results from part (a). Anthropologists are still trying to unravel the mystery of the origins of the Etruscan empire, a highly advanced Italic civilization formed around the eighth century B.C. in central Italy. Were they native to the Italian peninsula or, as many aspects of their civilization suggest, did they migrate from the East by land or sea? The maximum head breadth, in millimeters, of 70 modern Italian male skulls and that of 84 preserved Etruscan male skulls were analyzed to help researchers decide whether the Etruscans were native to Italy. The resulting data can be found on the WeissStats CD. [SOURCE: N. Barnicot and D. Brothwell, “The Evaluation of Metrical Data in the Comparison of Ancient and Modern Bones.” In Medical Biology and Etruscan Origins, G. Wolstenholme and C. O’Connor, eds., Little, Brown & Co., 1959]

Test your understanding of accounting for inventory by answering the following questions. Select the best choice from among the possible answers given. The sum of ending inventory and cost of goods sold is a. net purchases. b. beginning inventory. c. goods available. d. gross profit.