Q1- Corp X has 50 units in beginning inventory with a cost of $300.

During the year purchases were made as follows: January 15- 100 units @ 5.75 per unit June 15- 100 units @ 5.50 per unit October 20-50 units @ 5.00 per unit An inventory count at year-end reveals 60 units in ending inventory. Required: 1-what is the ending inventory under LIFO, FIFO 2- what is the cost of goods sold under LIFO, FIFO, 3-Assume a US GAAP uses LIFO to account for inventory and an IFRS company uses FIFO. What effect will this have on the following ratios from the US GAAP PERSPECTIVE vs IFRS? Briefly explain why. + Increase + decrease - or no change 1-Gross Profit 2-net income 3-current ratio 4-quick ratio 5-Inventory turnover 6-Asset turnover

Question 2- Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future periods: Briefly explain why. + Increase decrease – or no change 1- Profit margin 2- Asset turnover 3- Return on assets 4- Return on equity 5- Debt ratio 6-Currebt ratio 7- Why would a company not be willing to elect the revaluation method?

Question 3 1-what are the 3 parts of the fraud triangle? 

2-what is the best way for a company to prevent fraud? 

3-name 3 red flags of fraudulent behavior. 

4-who in a company is responsible to prevent fraud? 

5-Name 1 preventive control and 1 detective control. 

6-Why did Madoff commit fraud and why was he not caught for decades?

Question 4 Take a look at an annual report of a company (your choice). Review the balance sheet and income statement numbers. Based on your review, and the application of Benford’s law is there evidence of fraud? Please provide your reasons and be clear

Question 5 Co. A has elected to expense all purchases of long-term assets in the year of purchase while Co B elects to capitalize such assets and depreciate over the estimated useful life by the use of the straight-line method of each related asset. 

Q 1 Which accounting method is correct? Why? 

Q2 _Justify each approach. 

Q3-In year 1 of operations, Compare each of the following ratios of Co. In comparison with Co. B’s. Briefly explain why? + Increase + decrease - or no change 1- Profit ratio 2- Debt ratio 3-current ratio 

4-return on assets 

5-return on equity

 6- Asset turnover 

7-Inventory turnover

Q6- COST CONCEPTS Fina Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 500 motorcycle helmets per month. Fina’s monthly manufacturing cost and other expense data are as follows. Maintenance costs on factory building $ 1,550 Factory manager’s salary 4,000 Advertising for helmets 8,000 Sales commissions 5,000 Depreciation on factory building 700 Rent on factory equipment 6,000 Insurance on factory building 3,000 Raw materials (plastic, polystyrene, etc.) 20,000 Utility costs for factory 800 Supplies for general office 200 Wages for assembly line workers 55,000 Depreciation on office equipment 500 Miscellaneous materials (glue, thread, etc.) 2,000 Instructions (a) An answer sheet with the following column headings is presented below.. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns. Product Costs. 

1-Direct material 

2- Direct Labor 

3- Overhead Cost

 4-non-product Item Maintenance costs on factory building Factory manager’s salary Advertising for helmets Sales commissions Depreciation on factory building Rent on factory equipment Insurance on factory building Raw materials (plastic, polystyrene, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials (glue, thread, etc.) Totals