2012AU书本课后答案CH14

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理论力学课后习题答案

理论力学(盛冬发)课后习题答案c h12(总14页)--本页仅作为文档封面，使用时请直接删除即可----内页可以根据需求调整合适字体及大小--第12章动能定理一、是非题(正确的在括号内打“√”、错误的打“×”)1．圆轮纯滚动时，与地面接触点的法向约束力和滑动摩擦力均不做功。

( √ )2．理想约束的约束反力做功之和恒等于零。

( √ )3．由于质点系中的内力成对出现，所以内力的功的代数和恒等于零。

( × )4．弹簧从原长压缩10cm和拉长10cm，弹簧力做功相等。

( √ )5．质点系动能的变化与作用在质点系上的外力有关，与内力无关。

( × )6．三个质量相同的质点，从距地相同的高度上，以相同的初速度，一个向上抛出，一个水平抛出，一个向下抛出，则三质点落地时的速度相等。

( √ )7．动能定理的方程是矢量式。

( × )8．弹簧由其自然位置拉长10cm，再拉长10cm，在这两个过程中弹力做功相等。

143144( × )二、填空题1．当质点在铅垂平面内恰好转过一周时，其重力所做的功为 0 。

2．在理想约束的条件下，约束反力所做的功的代数和为零。

3．如图所示，质量为1m 的均质杆OA ，一端铰接在质量为2m 的均质圆轮的轮心，另一端放在水平面上，圆轮在地面上做纯滚动，若轮心的速度为o v ，则系统的动能=T 222014321v m v m +。

4．圆轮的一端连接弹簧，其刚度系数为k ，另一端连接一重量为P 的重物，如图所示。

初始时弹簧为自然长，当重物下降为h 时，系统的总功=W 221kh Ph -。

图图5．如图所示的曲柄连杆机构，滑块A 与滑道BC 之间的摩擦力是系统的内力，设已知摩擦力为F 且等于常数，则曲柄转一周摩擦力的功为Fr 4-。

1456．平行四边形机构如图所示，r B O A O ==21，B O A O 21//，曲柄A O 1以角速度ω转动。

曼昆微观经济学答案ch14

Firms in Competitive MarketsWHAT’S NEW IN THE THIRD EDITION:There have been no substantial changes to this chapter.LEARNING OBJECTIVES:By the end of this chapter, students should understand:what characteristics make a market competitive.how competitive firms decide how much output to produce.how competitive firms decide when to shut down production temporarily.how competitive firms decide whether to exit or enter a market.how firm behavior determines a market’s short -run and long-run supply curves.CONTEXT AND PURPOSE:Chapter 14 is the second chapter in a five-chapter sequence dealing with firm behavior and theorganization of industry. Chapter 13 developed the cost curves on which firm behavior is based. These cost curves are employed in Chapter 14 to show how a competitive firm responds to changes in market conditions. Chapters 15 through 17 will employ these cost curves to see how firms with market power (monopolistic, oligopolistic, and monopolistically competitive firms) respond to changes in market conditions. The purpose of Chapter 14 is to examine the behavior of competitive firms —firms that do not have market power. The cost curves developed in the previous chapter shed light on the decisions that lie behind the supply curve in a competitive market.FIRMS IN COMPETITIVEMARKETS14264 Chapter 14/Firms in Competitive MarketsKEY POINTS:1.Because a competitive firm is a price taker, its revenue is proportional to the amount of output itproduces. The price of the good equals both the firm’s average revenue and its marginal rev enue.2.To maximize profit, a firm chooses a quantity of output such that marginal revenue equals marginalcost. Because marginal revenue for a competitive firm equals the market price, the firm chooses quantity so that price equals marginal cost. Thus, t he firm’s marginal cost curve is its supply curve.3.In the short run when a firm cannot recover its fixed costs, the firm will choose to shut downtemporarily if the price of the good is less than average variable cost. In the long run when the firm can recover both fixed and variable costs, it will choose to exit if the price is less than average total cost.4.In a market with free entry and exit, profits are driven to zero in the long run. In this long-runequilibrium, all firms produce at the efficient scale, price equals minimum average total cost, and the number of firms adjusts to satisfy the quantity demanded at this price.5.Changes in demand have different effects over different time horizons. In the short run, an increasein demand raises prices and leads to profits, and a decrease in demand lowers prices and leads to losses. But if firms can freely enter and exit the market, then in the long run the number of firms adjusts to drive the market back to the zero-profit equilibrium.CHAPTER OUTLINE:I. What Is a Competitive Market?A. The Meaning of Competition1. Definition of competitive market: a market with many buyers and sellerstrading identical products so that each buyer and seller is a price taker.2. There are three characteristics of a competitive market (sometimes called aperfectly competitive market).a. There are many buyers and sellers.b. The goods offered by the sellers are largely the same.c. Firms can freely enter or exit the market.Chapter 14/Firms in Competitive Markets 265B. The Revenue of a Competitive Firm1. Total revenue from the sale of output is equal to price times quantity.2. Definition of average revenue: total revenue divided by the quantity sold.3. Definition of marginal revenue: the change in total revenue from anadditional unit sold.II. Profit Maximization and the Competitive Firm's Supply CurveA. A Simple Example of Profit Maximization: The Smith Dairy Farm266 Chapter 14/Firms in Competitive Markets1.In this example, profit is maximized if the farm produces 4 or 5 gallons of milk (see the fourth column).2.The profit-maximizing quantity can also be found by comparing marginal revenue and marginal cost. a. As long as marginal revenue exceeds marginal cost, increasing output will raise profit.b.If marginal revenue is less than marginal cost, the firm can increase profit by decreasing output.c.Profit-maximization occurs where marginal revenue is equal to marginal cost.B. The Marginal-Cost Curve and the Firm's Supply DecisionChapter 14/Firms in Competitive Markets 2671.Cost curves have special features that are important for our analysis. a. The marginal-cost curve is upward sloping. b. The average-total-cost curve is u-shaped.c.The marginal-cost curve crosses the average-total-cost curve at the minimum of average total cost.2. Marginal and average revenue can be shown by a horizontal line at the market price.3. To find the profit-maximizing level of output, we can follow the same rules that we discussed above.a.If marginal revenue is greater than the marginal cost, the firm can increase its profit by increasing output.b. If marginal cost is greater than marginal revenue, the firm can increase its profit by decreasing output.c. At the profit-maximizing level of output, marginal revenue is equal to marginal cost.268 Chapter 14/Firms in Competitive MarketsChapter 14/Firms in Competitive Markets 2694. If the price in the market were to change to P2, the firm would set its new levelof output by equating marginal revenue and marginal cost.5. Because the firm's marginal cost curve determines how much the firm is willingto supply at any price, it is the competitive firm's supply curve.C. The Firm's Short-Run Decision to Shut Down1. In some circumstances, a firm will decide to shut down and produce zero output.2. There is a difference between a temporary shutdown of a firm and an exit fromthe market.a. A shutdown refers to the short-run decision not to produce anythingduring a specified period of time because of current market conditions.b. Exit refers to a long-run decision to leave the market.c. One important difference is that, when a firm shuts down temporarily, itstill must pay fixed costs.3. If a firm shuts down, it will earn no revenue and will have only fixed costs (novariable costs).4. Therefore, a firm will shut down if the revenue that it would get from producingis less than its variable costs of production:Shut down if TR < VC.270 Chapter 14/Firms in Competitive Markets5.Since TR = P H Q and VC = AVC H Q , we can rewrite this condition as: Shut down if P < AVC .6.We now can tell exactly what the firm will do to maximize profit (or minimize loss).a.If the price is less than average variable cost, the firm will produce no output.b. If the price is above average variable cost, the firm will produce the level of output where marginal revenue (price) is equal to marginal cost.7.Therefore, the competitive firm's short-run supply curve is the portion of its marginal revenue curve that lies above average variable cost.8.Spilt Milk and Sunk Costs a. Definition of sunk cost: a cost that has been committed and cannot be recovered .b. Once a cost is sunk, it is no longer an opportunity cost.c.Because nothing can be done about sunk costs, you should ignore them when making decisions.Chapter 14/Firms in Competitive Markets 2719. Case Study: Near-Empty Restaurants and Off-Season Miniature Golfa. In making a decision of whether or not to open for lunch, a restaurantowner must weigh revenue with variable costs. (Much of the cost ofrunning a restaurant is somewhat fixed.)b. The same criteria would apply to a decision of whether a miniature golfcourse in a summer resort community should stay open during otherseasons. The course should only be open if revenue exceeds variablecosts.D. The Firm's Long-Run Decision to Exit or Enter a Market1. If a firm exits the market, it will earn no revenue, but it will have no costs as well.2. Therefore, a firm will exit if the revenue that it would earn from producing is lessthan its total costs:Exit if TR < TC.3. Since TR = P H Q and TC = ATC H Q, we can rewrite this condition as:Exit if P < ATC.4. A firm will enter an industry when there is profit potential, so this must meanthat a firm will enter if revenues will exceed costs:Enter if P > ATC.272 Chapter 14/Firms in Competitive Markets5.Because, in the long run, a firm will remain in a market only if P ≥ ATC , the firm's long-run supply curve will be its marginal cost curve above ATC .E.Measuring Profit in Our Graph for the Competitive Firm 1. Recall that Profit = TR - TC .2.Because TR = P H Q and TC = ATC H Q , we can rewrite this equation: Profit = (P – ATC ) H Q .3. Using this equation, we can measure the amount of profit (or loss) at the firm's profit-maximizing level of output (or loss-minimizing level of output).III. The Supply Curve in a Competitive Market A.The Short Run: Market Supply with a Fixed Number of Firms1. Example: a market with 1,000 identical firms.2. Each firm's short-run supply curve is its marginal cost curve above average variable cost.3.To get the market supply curve, we add the quantity supplied by each firm in the market at every given price.B. The Long Run: Market Supply with Entry and Exit 1. If firms in an industry are earning profit, this will attract new firms.a. The supply of the product will increase (the supply curve will shift to theright).b.The price of the product will fall and profit will decline.2.If firms in an industry are incurring losses, firms will exit.a. The supply of the product will decrease (the supply curve will shift to theleft).b. The price of the product will rise and losses will decline.3. At the end of this process of entry or exit, firms that remain in the market mustbe making zero economic profit.4. Because Profit = TR–TC, profit will only be zero when:TR = TC.5. Because TR = P H Q and TC = ATC H Q, we can rewrite this as:P = ATC.6. Therefore, the process of entry or exit ends only when price and average totalcost become equal.7. This implies that the long-run equilibrium of a competitive market must havefirms operating at their efficient scale.8. Why Do Competitive Firms Stay in Business If They Make Zero Profit?a. Profit is equal to total revenue minus total cost.b. To an economist, total cost includes all of the opportunity costs of thefirm.c. When a firm is earning zero profit, this must mean that the firm'srevenues are compensating the firm's owners for the time and moneythat they have expended to keep their businesses going.C. A Shift in Demand in the Short Run and Long Run1. Assume that the market begins in long-run equilibrium. This means that firmsare earning zero profit and price equals the minimum of average total cost.2. If the demand for the product increases, this will lead to an increase in the priceof the good.3. Firms will respond to the increase in price by producing more in the short run.4. Because price is now greater than average total cost, firms are earning profit.5. The profit will attract new firms into the industry, shifting the supply curve to theright.6. This will lower price until it falls back to the minimum of average total cost andfirms are once again earning zero economic profit.7. In the News: Entry or Overinvestment?a. Strong demand leads to high prices, high profits and then eventuallyentry of new firms.b. This is an article from The Wall Street Journal discussing how businessleaders often see entry (and therefore reduced profits) as―overinvestment.‖D. Why the Long-Run Supply Curve Might Slope Upward1. Because we assumed that all potential entrants faced the same costs as existingfirms, average total cost of each firm was unaffected by the entry of new firmsinto the industry.2. In this situation, the long-run supply of the industry will be a horizontal line atminimum average total cost.3. However, there are two possible reasons why this may not be the case.a. If a resource is limited in quantity, entry of firms will increase the priceof this resource, raising the average total cost of production.b. If firms have different costs, then it is likely that those with the lowestcosts will enter the industry first. If the demand for the product thenincreases, the firms that would enter will likely have higher costs thanthose firms already in the market.4. In this situation, the long-run supply curve of the industry will be upward sloping.5. In either case, the long-run supply curve of an industry is generally more elasticthan the short-run supply curve of the industry (due to the fact that firms canenter or exit in the long run).SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. When a competitive firm doubles the amount it sells, the price remains the same, so its totalrevenue doubles.2. The price faced by a profit-maximizing firm is equal to its marginal cost because if price wereabove marginal cost, the firm could increase profits by increasing output, while if price werebelow marginal cost, the firm could increase profits by decreasing output.A profit-maximizing firm decides to shut down in the short run when price is less than averagevariable cost. In the long run, a firm will exit a market when price is less than average total cost.3. In the long run, with free entry and ex it, the price in the market is equal to both a firm’s marginalcost and its average total cost, as Figure 1 shows. The firm chooses its quantity so that marginal cost equals price; doing so ensures that the firm is maximizing its profit. In the long run, entryinto and exit from the industry drive the price of the good to the minimum point on the average-total-cost curve.Figure 1Questions for Review1. A competitive firm is a firm in a market in which: (1) there are many buyers and many sellers inthe market; (2) the goods offered by the various sellers are largely the same; and (3) usuallyfirms can freely enter or exit the market.2. Figure 2 shows the cost curves for a typical firm. For a given price (such as P*), the level ofoutput that maximizes profit is the output where marginal cost equals price (Q*), as long as price is greater than average variable cost at that point (in the short run), or greater than averagetotal cost (in the long run).Figure 23. A firm will shut down temporarily if the revenue it would get from producing is less than thevariable costs of production. This occurs if price is less than average variable cost.4. A firm will exit a market if the revenue it would get if it stayed in business is less than its totalcost. This occurs if price is less than average total cost.5. A firm's price equals marginal cost in both the short run and the long run. In both the short runand the long run, price equals marginal revenue. The firm should increase output as long asmarginal revenue exceeds marginal cost, and reduce output if marginal revenue is less thanmarginal cost. Profits are maximized when marginal revenue equals marginal cost.6. The firm's price equals the minimum of average total cost only in the long run. In the short run,price may be greater than average total cost, in which case the firm is making profits, or pricemay be less than average total cost, in which case the firm is making losses. But the situation is different in the long run. If firms are making profits, other firms will enter the industry, whichwill lower the price of the good. If firms are making losses, they will exit the industry, which will raise the price of the good. Entry or exit continues until firms are making neither profits norlosses. At that point, price equals average total cost.7. Market supply curves are typically more elastic in the long run than in the short run. In acompetitive market, since entry or exit occurs until price equals the minimum of average totalcost, the supply curve is perfectly elastic in the long run.Problems and Applications1. A competitive market is one in which: (1) there are many buyers and many sellers in the market;(2) the goods offered by the various sellers are largely the same; and (3) usually firms can freelyenter or exit the market. Of these goods, bottled water is probably the closest to a competitive market. Tap water is a natural monopoly because there's only one seller. Cola and beer are not perfectly competitive because every brand is slightly different.2. Since a new customer is offering to pay $300 for one dose, marginal revenue between 200 and201 doses is $300. So we must find out if marginal cost is greater than or less than $300. To do this, calculate total cost for 200 doses and 201 doses, and calculate the increase in total cost.Multiplying quantity by average total cost, we find that total cost rises from $40,000 to $40,401, so marginal cost is $401. So your roommate should not make the additional dose.3. a. Remembering that price equals marginal cost when firms are maximizing profit, we knowthe marginal cost must be 30 cents, since that is the price.b. The industry is not in long-run equilibrium since price exceeds average total cost.4. Once you have ordered the dinner, its cost is sunk, so it does not represent an opportunity cost.As a result, the cost of the dinner should not influence your decision about stuffing yourself.5. Since Bob’s average total cost is $280/10 = $28, which is greate r than the price, he will exit theindustry in the long run. Since fixed cost is $30, average variable cost is ($280 - $30)/10 = $25, which is less than price, so Bob won’t shut down in the short run.6. Here’s the table showing costs, revenues, an d profits:a. The firm should produce 5 or 6 units to maximize profit.b. Marginal revenue and marginal cost are graphed in Figure 3. The curves cross at aquantity between 5 and 6 units, yielding the same answer as in part (a).c. This industry is competitive since marginal revenue is the same for each quantity. Theindustry is not in long-run equilibrium, since profit is positive.Figure 37. a. Figure 4 shows the short-run effect of declining demand for beef. The shift of theindustry demand curve from D1 to D2 reduces the quantity from Q1 to Q2 and reduces theprice from P1 to P2. This affects the firm, reducing its quantity from q1 to q2. Before thedecline in the price, the firm was making zero profits; afterwards, profits are negative, asaverage total cost exceeds price.Figure 4b. Figure 5 shows the long-run effect of declining demand for beef. Since firms were losingmoney in the short run, some firms leave the industry. This shifts the supply curve fromS1 to S3. The shift of the supply curve is just enough to increase the price back to itsoriginal level, P1. As a result, industry output falls still further, to Q3. For firms thatremain in the industry, the rise in the price to P1 returns them to their original situation,producing quantity q1 and earning zero profits.Figure 58. Figure 6 shows that although high prices cause an industry to expand, entry into the industryeventually returns prices to the point of minimum average total cost. In the figure, the industry is originally in long-run equilibrium. The industry produces output Q1, where supply curve S1intersects demand curve D1, and the price is P1. At this point the typical firm produces output q1.Since price equals average total cost at that point, the firm makes zero economic profit.Now suppose an increase in demand occurs, with the demand curve shifting to D2. This causes"high prices" in the industry, as the price rises to P2. It also causes the industry to increaseoutput to Q2. With the higher price, the typical firm increases its output from q1 to q2, and now makes positive profits, since price exceeds average total cost.However, the positive profits that firms earn encourage other firms to enter the industry. Their entry, "an expansion in an industry," leads the supply curve to shift to S3. The new equilibrium reduces the price back to P1, "bringing an end to high prices and manufacturers' prosperity,"since now firms produce q1 and earn zero profit again. The only long-lasting effect is thatindustry output is Q3, a higher level than originally.Figure 69. a. Figure 7 shows the typical firm in the industry, with average total cost ATC1, marginalcost MC1, and price P1.b. The new process reduces Hi-Tech’s marginal cost to MC2 and its average total cost toATC2, but the price remains at P1 since other firms cannot use the new process. Thus Hi-Tech earns positive profits.c. When the patent expires and other firms are free to use the technology, all firms’average-total-cost curves decline to ATC2, so the market price falls to P3 and firms earnno profits.Figure 710. The rise in the price of petroleum increases production costs for individual firms and thus shiftsthe industry supply curve up, as shown in Figure 8. The typical firm's initial marginal-cost curve is MC1 and its average-total-cost curve is ATC1. In the initial equilibrium, the industry supplycurve, S1, intersects the demand curve at price P1, which is equal to the minimum average total cost of the typical firm. Thus the typical firm earns no economic profit.The increase in the price of oil shifts the typical firm's cost curves up to MC2 and ATC2, and shifts the industry supply curve up to S2. The equilibrium price rises from P1 to P2, but the price does not increase by as much as the increase in marginal cost for the firm. As a result, price is lessthan average total cost for the firm, so profits are negative.In the long run, the negative profits lead some firms to exit the industry. As they do so, theindustry-supply curve shifts to the left. This continues until the price rises to equal the minimum point on the firm's average-total-cost curve. The long-run equilibrium occurs with supply curve S3, equilibrium price P3, industry output Q3, and firm's output q3. Thus, in the long run, profitsare zero again and there are fewer firms in the industry.Chapter 14/Firms in Competitive Markets 283Figure 811. a. Figure 9 illustrates the situation in the U.S. textile industry. With no international trade,the market is in long-run equilibrium. Supply intersects demand at quantity Q1 and price$30, with a typical firm producing output q1.Figure 9b. The effect of imports at $25 is that the market supply curve follows the old supply curveup to a price of $25, then becomes horizontal at that price. As a result, demand exceedsdomestic supply, so the country imports textiles from other countries. The typicaldomestic firm now reduces its output from q1 to q2, incurring losses, since the large fixedcosts imply that average total cost will be much higher than the price.c. In the long run, domestic firms will be unable to compete with foreign firms becausetheir costs are too high. All the domestic firms will exit the industry and other countrieswill supply enough to satisfy the entire domestic demand.12. a. Figure 10 shows the current equilibrium in the market for pretzels. The supply curve, S1,284 Chapter 14/Firms in Competitive Marketsintersects the demand curve at price P1. Each stand produces quantity q1 of pretzels, sothe total number of pretzels produced is 1,000 x q1. Stands earn zero profit, since priceequals average total cost.b. If the city government restricts the number of pretzel stands to 800, the industry-supplycurve shifts to S2. The market price rises to P2, and individual firms produce output q2.Industry output is now 800 x q2. Now the price exceeds average total cost, so each firmis making a positive profit. Without restrictions on the market, this would induce otherfirms to enter the market, but they cannot, since the government has limited the numberof licenses.c. The city could charge a license fee for the licenses. Since it is a lump-sum fee for thelicense, not based on the quantity of sales, such a tax has no effect on marginal cost, sowon't affect the firm's output. It will, however, reduce the firm's profits. As long as thefirm is left with a zero or positive profit, it will continue to operate. So the license fee thatbrings the most money to the city is to charge each firm the amount (P2 - ATC2)q2, theamount of the firm's profit.Figure 1013. a. Figure 11 illustrates the gold market (industry) and a representative gold mine (firm).The demand curve, D1, intersects the supply curve at industry quantity Q1 and price P1.Since the industry is in long-run equilibrium, the price equals the minimum point on therepresentative firm's average total cost curve, so the firm produces output q1 and makeszero profit.b. The increase in jewelry demand leads to an increase in the demand for gold, shifting thedemand curve to D2. In the short run, the price rises to P2, industry output rises to Q2,and the representative firm's output rises to q2. Since price now exceeds average totalcost, the representative firm now earns positive profits.c. Since gold mines are earning positive economic profits, over time other firms will enterthe industry. This will shift the supply curve to the right, reducing the price below P2.But it's unlikely that the price will fall all the way back to P1, since gold is in short supply.Costs for new firms are likely to be higher than for older firms, since they'll have todiscover new gold sources. So it's likely that the long-run supply curve in the goldChapter 14/Firms in Competitive Markets 285 industry is upward sloping. That means the long-run equilibrium price will be higher thanit was initially.Figure 1114. a. Figure 12 shows cost curves for a California refiner and a non-California refiner. Sincethe California refiner has access to lower-cost oil, its costs are lower.Figure 12b. In long-run equilibrium, the price is determined by the costs of non-California refiners,since California refiners cannot supply the entire market. The market price will equal theminimum average total cost of the other refiners; they will thus earn zero profits. SinceCalifornia refiners have lower costs, they will earn positive profits, equal to (P* - ATC C) xQ C.c. Yes, there is a subsidy to California refiners that is not passed on to consumers. Thesubsidy accounts for the long-run profits of the California refiners. It arises simplybecause the oil cannot be exported.。

财务会计FA3_习题答案ch14

CHAPTER 14Long-Term Liabilities ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)Topics QuestionsBriefExercises Exercises ProblemsConceptsfor Analysis1.Long-term liability;classification; definitions.1, 10, 14,201, 210, 111, 2, 32.Issuance of bonds; typesof bonds.2, 3, 4, 9,10, 111, 2, 3, 4,5, 6, 73, 4, 5, 6,7, 8, 9, 10,111, 2, 3, 4,5, 6, 7, 101, 3, 63.Premium and discount;amortization schedules.5, 6, 7,8, 113, 4, 6, 7,8, 104, 5, 6, 7,8, 9, 10,11, 13,14, 151, 2, 3, 4,5, 6, 7, 10,111, 2, 3, 44.Retirement and refundingof debt.12, 131112, 13,14, 152, 4, 5, 6,7, 103, 4, 55.Imputation of interest onnotes.14, 15, 16,17, 1812, 13, 14,1516, 17, 188, 96.Disclosures of long-termobligations.19, 20,21, 22919101, 3, 5*7.Troubled debtrestructuring.23, 24, 25,26, 27, 28,291620, 21, 22,23, 24, 25,2613, 14, 15*8.Impairments.24, 2627, 2812 *This material is discussed in the Appendix to the Chapter.ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)Learning Objectives BriefExercises Exercises Problems1.Describe the formal proceduresassociated with issuing long-term debt.2.Identify various types of bond issues.1, 23.Describe the accounting valuationfor bonds at date of issuance.1, 2, 3, 4, 5,6, 7, 83, 4, 5, 6, 7, 8,9, 10, 11, 12,13, 14, 151, 2, 3, 4, 5,6, 7, 104.Apply the methods of bond discountand amortization.2, 3, 4, 5,6, 7, 8, 103, 4, 5, 6, 7, 8,9, 10, 12, 13,14, 151, 2, 3, 4, 5,6, 7, 10, 115.Describe the accounting for theextinguishment of debt.1112, 13, 14, 152, 4, 5, 6,7, 106.Explain the accounting for long-termnotes payable.12, 13, 14, 1516, 17, 188, 97.Explain the reporting of off-balance sheetfinancing arrangements.8.Indicate how to present and analyzelong-term debt.9194, 10*9.Describe the accounting for a loanimpairment.1627, 2812*10.Describe the accounting for debt restructuring.20, 21, 22,23, 24, 25,2613, 14, 15ASSIGNMENT CHARACTERISTICS TABLEItem Description Level ofDifficultyTime(minutes)E14-1Classification of liabilities.Simple15–20 E14-2Classification.Simple15–20 E14-3Entries for bond transactions.Simple15–20 E14-4Entries for bond transactions—straight-line.Simple15–20 E14-5Entries for bond transactions—effective-interest.Simple15–20 E14-6Amortization schedule—straight-line.Simple15–20 E14-7Amortization schedule—effective-interest.Simple15–20 E14-8Determine proper amounts in account balances.Moderate15–20 E14-9Entries and questions for bond transactions.Moderate20–30 E14-10Entries for bond transactions.Moderate15–20 E14-11Information related to various bond issues.Simple20–30 E14-12Entry for retirement of bond; bond issue costs.Simple15–20 E14-13Entries for retirement and issuance of bonds.Simple15–20 E14-14Entries for retirement and issuance of bonds.Simple12–16 E14-15Entries for retirement and issuance of bonds.Simple10–15 E14-16Entries for zero-interest-bearing debt.Simple15–20 E14-17Imputation of interest.Simple15–20 E14-18Imputation of interest with right.Moderate15–20 E14-19Long-term debt disclosure.Simple10–15 *E14-20Settlement of debt.Moderate15–20 *E14-21Term modification without gain—debtor’s entries.Moderate20–30 *E14-22Term modification without gain—creditor’s entries.Moderate25–30 *E14-23Term modification with gain—debtor’s entries.Moderate25–30 *E14-24Term modification with gain—creditor’s entries.Moderate20–30 *E14-25Debtor/creditor entries for settlement of troubled debt.Simple15–20 *E14-26Debtor/creditor entries for modification of troubled debt.Moderate20–25 *E14-27Impairments.Moderate15–25 *E14-28Impairments.Moderate15–25P14-1Analysis of amortization schedule and interest entries.Simple15–20 P14-2Issuance and retirement of bonds.Moderate25–30 P14-3Negative amortization.Moderate20–30 P14-4Issuance and retirement of bonds; income statementpresentation.Simple15–20 P14-5Comprehensive bond problem.Moderate50–65 P14-6Issuance of bonds between interest dates, straight-line,retirement.Moderate20–25P14-7Entries for life cycle of bonds.Moderate20–25 P14-8Entries for zero-interest-bearing note.Simple15–25 P14-9Entries for zero-interest-bearing note; payablein installments.Moderate20–25P14-10Comprehensive problem; issuance, classification,reporting.Moderate20–25P14-11Effective-interest method.Moderate40–50 *P14-12Loan impairment entries.Moderate30–40ASSIGNMENT CHARACTERISTICS TABLE (Continued)Item Description Level ofDifficultyTime(minutes)*P14-13Debtor/creditor entries for continuation of troubled debt.Moderate15–25 *P14-14Restructure of note under different circumstances.Moderate30–45 *P14-15Debtor/creditor entries for continuation of troubled debtwith new effective-interest.Complex40–50CA14-1Bond theory: balance sheet presentations, interest rate,premium.Moderate25–30CA14-2Various long-term liability conceptual issues.Moderate10–15 CA14-3Bond theory: price, presentation, and retirement.Moderate15–25 CA14-4Bond theory: amortization and gain or loss recognition.Simple20–25 CA14-5Off-balance-sheet financing.Moderate20–30 CA14-6Bond issue, ethics Moderate23–30ANSWERS TO QUESTIONS1.(a)Funds might be obtained through long-term debt from the issuance of bonds, and from thesigning of long-term notes and mortgages.(b)A bond indenture is a contractual agreement (signed by the issuer of bonds) between the bondissuer and the bondholders. The bond indenture contains covenants or restrictions for the protection of the bondholders.(c)A mortgage is a document which describes the security for a loan, indicates the conditionsunder which the mortgage becomes effective (that is, conditions of default), and describes the rights of the mortgagee under default relative to the security. The mortgage accompaniesa formal promissory note and becomes effective only upon default of the note.2.If the entire bond matures on a single date, the bonds are referred to as term bonds. Mortgagebonds are secured by real estate. Collateral trust bonds are secured by the securities of other corporations. Debenture bonds are unsecured. The interest payments for income bonds depend on the existence of operating income in the issuing company. Callable bonds may be called and retired by the issuer prior to maturity. Registered bonds are issued in the name of the owner and require surrender of the certificate and issuance of a new certificate to complete the sale. A bearer or coupon bond is not recorded in the name of the owner and may be transferred from one investor to another by mere delivery. Convertible bonds can be converted into other securities of the issuing corporation for a specified time after issuance. Commodity-backed bonds (also called asset-linked bonds) are redeemable in measures of a commodity. Deep-discount bonds (also called zero-interest bonds) are sold at a discount which provides the buyer’s total interest payoff at maturity.3.(a)Yield rate—the rate of interest actually earned by the bondholders; it is synonymous with theeffective and market rates.(b)Nominal rate—the rate set by the party issuing the bonds and expressed as a percentage ofthe par value; it is synonymous with the stated rate.(c)Stated rate—synonymous with nominal rate.(d)Market rate—synonymous with yield rate and effective rate.(e)Effective rate—synonymous with market rate and yield rate.4.(a)Maturity value—the face value of the bonds; the amount which is payable upon maturity.(b)Face value—synonymous with par value and maturity value.(c)Market value—the amount realizable upon sale.(d)Par value—synonymous with maturity and face value.5. A discount on bonds payable results when investors demand a rate of interest higher than the ratestated on the bonds. The investors are not satisfied with the nominal interest rate because they can earn a greater rate on alternative investments of equal risk. They refuse to pay par for the bonds and cannot change the nominal rate. However, by lowering the amount paid for the bonds, investors can alter the effective rate of interest.A premium on bonds payable results from the opposite conditions. That is, when investors aresatisfied with a rate of interest lower than the rate stated on the bonds, they are willing to pay more than the face value of the bonds in order to acquire them, thus reducing their effective rate of interest below the stated rate.6.Discount (premium) on bonds payable should be reported in the balance sheet as a directdeduction from (addition to) the face amount of the bond. Both are liability valuation accounts.Questions Chapter 14 (Continued)7.Bond discount and bond premium may be amortized on a straight-line basis or on an effective-interest basis. The profession recommends the effective-interest method but permits the straight-line method when the results obtained are not materially different from the effective-interest method. The straight-line method results in an even or average allocation of the total interest over the life of the notes or bonds. The effective-interest method results in an increasing or decreasing amount of interest each period. This is because interest is based on the carrying amount of the bond issuance at the beginning of each period. The straight-line method results in a constant dollar amount of interest and an increasing or decreasing rate of interest over the life of the bonds.The effective-interest method results in an increasing or decreasing dollar amount of interest anda constant rate of interest over the life of the bonds.8.The annual interest expense will decrease each period throughout the life of the bonds. Under theeffective-interest method the interest expense each period is equal to the effective or yield interest rate times the book value of the bonds at the beginning of each interest period. When bonds are sold at a premium, their book value declines to face value over their life; therefore, the interest expense declines also.9.Bond issuance costs according to APB Opinion No. 21 should be debited to a deferred chargeaccount for Unamortized Bond Issue Costs and amortized over the life of the issue, separately from but in a manner similar to that used for discount on bonds. The FASB in SFAC No. 3 takes the position that debt issue costs can be treated as either an expense of the period in which the bonds are issued or a reduction of the related debt liability.10.Treasury bonds should be shown on the balance sheet as a deduction from the bonds payable.11.The call feature of a bond issue grants the issuer the privilege of purchasing, after a certain date ata stated price, outstanding bonds for the purpose of reducing indebtedness or taking advantage oflower interest rates. The call feature does not affect the amortization of bond discount or premium;because early redemption is not a certainty, life to maturity date should be used for amortization purposes.12.It is sometimes desirable to reduce bond indebtedness in order to take advantage of lower pre-vailing interest rates. Also the company may not want to make a very large cash outlay all at once when the bonds mature.Bond indebtedness may be reduced by either issuing bonds callable after a certain date and then calling some or all of them, or by purchasing bonds on the open market and then retiring them.When a portion of bonds outstanding is going to be retired, it is necessary for the accountant to make sure any corresponding discount or premium is properly amortized.13.Gains or losses from extinguishment of debt should be aggregated and reported in income.For extinguishment of debt transactions disclosure is required of the following items:1. A description of the transactions, including the sources of any funds used to extinguish debt ifit is practicable to identify the sources.2.The income tax effect in the period of extinguishment.3.The per share amount of the aggregate gain or loss net of related tax effect.14.The entire arrangement must be evaluated and an appropriate interest rate imputed. This is doneby (1) determining the fair value of the property, goods, or services exchanged or (2) determining the market value of the note, whichever is more clearly determinable.Questions Chapter 14 (Continued)15.If a note is issued for cash, the present value is assumed to be the cash proceeds. If a note isissued for noncash consideration, the present value of the note should be measured by the fair value of the property, goods, or services or by an amount that reasonably approximates the market value of the note (whichever is more clearly determinable).16.When a debt instrument is exchanged in a bargained transaction entered into at arm’s-length, thestated interest rate is presumed to be fair unless: (1) no interest rate is stated, or (2) the stated interest rate is unreasonable, or (3) the stated face amount of the debt instrument is materially different from the current sales price for the same or similar items or from the current market value of the debt instrument.17.Imputed interest is the interest factor (a rate or amount) assumed or assigned which is differentfrom the stated interest factor. It is necessary to impute an interest rate when the stated interest rate is presumed to be unfair. The imputed interest rate is used to establish the present value of the debt instrument by discounting, at that imputed rate, all future payments on the debt instrument. In imputing interest, the objective is to approximate the rate which would have resulted if an independent borrower and an independent lender had negotiated a similar transaction under comparable terms and conditions with the option to pay the cash price upon purchase or to givea note for the amount of the purchase which bears the prevailing rate of interest to maturity. In orderto accomplish that objective, consideration must be given to (1) the credit standing of the issuer,(2) restrictive covenants, (3) collateral, (4) payment and other items pertaining to the debt, (5) theexisting prime interest rate, and (6) the prevailing rates for similar instruments of issuers with similar credit ratings.18. A fixed-rate mortgage is a note that requires payment of interest by the mortgagor at a rate thatdoes not change during the life of the note. A variable-rate mortgage is a note that features an interest rate that fluctuates with the market rate; the variable rate generally is adjusted periodically as specified in the terms of the note and is usually limited in the amount of each change in the rate up or down and in the total change that can be made in the rate.19.FASB Statement No. 47 requires disclosure at the balance sheet date of future payments forsinking fund requirements and the maturity amounts of long-term debt during each of the next five years.20.Off-balance-sheet-financing is an attempt to borrow monies in such a way that the obligations arenot recorded. Reasons for off-balance sheet financing are:1.Many believe removing debt enhances the quality of the balance sheet and permits credit to beobtained more readily and at less cost.2.Loan covenants are less likely to be violated.3.The asset side of the balance sheet is understated because fair value is not used for manyassets. As a result, not reporting certain debt transactions offsets the nonrecognition of fair values on certain assets.21.Forms of off-balance-sheet financing include (1) investments in non-consolidated subsidiaries forwhich the parent is liable for the subsidiary debt; (2) use of special purpose entities (SPEs), which are used to borrow money for special projects (resulting in take-or-pay contracts; (3) operating leases, which when structured carefully give the company the benefits of ownership without reporting the liability for the lease payments.22.In take-or-pay contracts, the outside party agrees to make specified minimum payments even if itdoes not take possession of the contracted goods or services. In through-put contracts, the outside party agrees to pay specified amounts in return for processing or transportation services rendered by the debtor, which is usually the owner of a manufacturing or transportation facility.Questions Chapter 14 (Continued)*23.Two different types of situations result with troubled debt: (1) Impairments, and (2) Restructurings.Restructurings can be further classified into:a.Settlements.b.Modification of terms.When a debtor company runs into financial difficulty, creditors may recognize an impairment ona loan extended to that company. Subsequently, the creditor may modify the terms of the loan, orsettles it on terms unfavorable to the creditor. In unusual cases, the creditor forces the debtor into bankruptcy in order to ensure the highest possible collection on the loan.*24.A loan is considered impaired when it is probable that the creditor will be unable to collect all amounts due (both principal and interest) according to the contractual terms of the loan. If a loan is considered impaired, the loss due to impairment should be measured as the difference between the investment in the loan and the expected future cash flows discounted at the loan’s historical effective-interest rate. The loss is recorded on the books of the creditor. The debtor would not be aware of the entry made by the creditor and would not make an entry until settlement or ifa modification of items resulted.*25.A transfer of noncash assets (real estate, receivables, or other assets) or the issuance of the debtor’s stock can be used to settle a debt obligation in a troubled debt restructuring. In these situations, the noncash assets or equity interest given should be accounted for at their fair market value. The debtor is required to determine the excess of the carrying amount of the payable over the fair value of the assets or equity transferred (gain). Likewise, the creditor is required to determine the excess of the receivable over the fair value of those same assets or equity interests transferred (loss). The debtor recognizes a gain equal to the amount of the excess and the creditor normally would charge the excess (loss) against Allowance for Doubtful Accounts. In addition, the debtor recognizes a gain or loss on disposition of assets to the extent that the fair value of those assets differs from their carrying amount (book value).*26.(a)The creditor will grant concessions in a troubled debt situation because it appears to be the more likely way to maximize recovery of the investment.(b)The creditor might grant any one or a combination of the following concessions:1.Reduce the face amount of the debt.2.Accept noncash assets or equity interests in lieu of cash in settlement.3.Reduce the stated interest rate.4.Extend the maturity date of the face amount of the debt.5.Reduce or defer any accrued interest.(c)A loan is impaired when there is a reduction in the likelihood of collecting the interest andprincipal payments as originally scheduled. An impairment should be recorded by a creditor when it is “probable” that the payment will not be collected as scheduled. Debtors do not record impairments.*27.When a loan is restructured, the creditor should calculate the loss due to restructuring by sub-tracting the present value of the restructured cash flows from the carrying value of the loan.Interest revenue is calculated at the original effective rate applied towards the new carrying value.The debtor will record a gain only if the undiscounted restructured cash flows are less than the carrying value of the loan. If a gain is recognized, subsequent payments will be all principal. There is no interest component. If the undiscounted cash flows exceed the carrying amount, no gain is recognized, and a new imputed interest rate must be calculated in order to recognize interest expense in subsequent periods.Questions Chapter 14 (Continued)*28.“Accounting symmetry” between the entries recorded by the debtor and the creditor in a troubled debt restructuring means that there is a correspondence or agreement between the entries recorded by each party. Impairments are nonsymmetrical because, while the creditor recordsa loss, the debtor makes no entry at all. Troubled debt restructurings are nonsymmetrical becausecreditors calculate their loss using the discounted present value of future cash flows, while debtors calculate their gain using the undiscounted cash flows. The FASB chose to accept this nonsymmetric treatment rather than address debtor accounting because it feared that expansion of the scope of FASB Statement No. 114 would further delay its issuance.*29.A transaction would be recorded as a troubled debt restructuring by only the debtor if the amount for which the liability is settled is less than its carrying amount on the debtor’s books, but equal to or greater than the carrying amount on the creditor’s books. In addition to the situation created by the use of discounted versus undiscounted cash flows by creditors and debtors, this situation can occur when a debtor or creditor has been substituted for one of the parties to the original transaction.SOLUTIONS TO BRIEF EXERCISESBRIEF EXERCISE 14-1Present value of the principal$300,000 X .37689$113,067Present value of the interest payments$13,500 X 12.46221 168,240 Issue price$281,307BRIEF EXERCISE 14-2(a)Cash...................................................................................200,000Bonds Payable.....................................................200,000 (b)Interest Expense............................................................10,000Cash ($200,000 X 10% X 6/12).........................10,000 (c)Interest Expense............................................................10,000Interest Payable...................................................10,000 BRIEF EXERCISE 14-3(a)Cash ($200,000 X 98%).................................................196,000Discount on Bonds Payable......................................4,000Bonds Payable.....................................................200,000 (b)Interest Expense............................................................10,000Cash ($200,000 X 10% X 6/12).........................10,000 (c)Interest Expense............................................................10,000Interest Payable...................................................10,000 Interest Expense (800)Discount on Bonds Payable (800)($4,000 X 1/5 = $800)BRIEF EXERCISE 14-4(a)Cash ($200,000 X 103%)...............................................206,000Bonds Payable.....................................................200,000Premium on Bonds Payable............................6,000 (b)Interest Expense.............................................................10,000Cash ($200,000 X 10% X 6/12).........................10,000 (c)Interest Expense.............................................................10,000Interest Payable...................................................10,000 Premium on Bonds Payable.......................................1,200Interest Expense ($6,000 X 1/5 = $1,200).....1,200 BRIEF EXERCISE 14-5(a)Cash....................................................................................510,000Bonds Payable.....................................................500,000Interest Expense..................................................10,000($500,000 X 6% X 4/12 = $10,000)(b)Interest Expense.............................................................15,000Cash ($500,000 X 6% X 6/12 = $15,000)........15,000 (c)Interest Expense.............................................................15,000Interest Payable...................................................15,000 BRIEF EXERCISE 14-6(a)Cash....................................................................................372,816Discount on Bonds Payable.......................................27,184Bonds Payable.....................................................400,000 (b)Interest Expense.............................................................14,913Cash.........................................................................14,000Discount on Bonds Payable (913)($372,816 X 8% X 6/12 = $14,913)($400,000 X 7% X 6/12 = $14,000)BRIEF EXERCISE 14-6 (Continued)(c)Interest Expense............................................................14,949Interest Payable...................................................14,000Discount on Bonds Payable (949)($373,729 X 8% X 6/12 = $14,949)BRIEF EXERCISE 14-7(a)Cash...................................................................................429,757Bonds Payable.....................................................400,000Premium on Bonds Payable............................29,757(b)Interest Expense............................................................12,893Premium on Bonds Payable......................................1,107Cash........................................................................14,000($429,757 X 6% X 6/12 = $12,893)($400,000 X 7% X 6/12 = $14,000)(c)Interest Expense............................................................12,860Premium on Bonds Payable......................................1,140Interest Payable...................................................14,000($428,650 X 6% X 6/12 = $12,860)BRIEF EXERCISE 14-8Interest Expense........................................................................4,298Premium on Bonds Payable (369)Interest Payable...............................................................4,667 ($429,757 X 6% X 2/12 = $4,298)($400,000 X 7% X 2/12 = $4,667)BRIEF EXERCISE 14-9Current liabilities$80,000 Bond Interest PayableLong-term liabilities$2,000,000 Bonds Payable, due January 1, 2016 98,000 Less: Discount on Bonds Payable$1,902,000 BRIEF EXERCISE 14-10Bond Issue Expense..................................................................18,000 Unamortized Bond Issue Costs..................................18,000 ($180,000 X 1/10)BRIEF EXERCISE 14-11Bonds Payable............................................................................600,000Premium on Bonds Payable...................................................15,000 Unamortized Bond Issue Costs..................................5,250 Cash.....................................................................................594,000 Gain on Redemption of Bonds....................................15,750 BRIEF EXERCISE 14-12(a)Cash....................................................................................100,000Notes Payable.......................................................100,000 (b)Interest Expense.............................................................11,000Cash ($100,000 X 11% = $11,000)...................11,000 BRIEF EXERCISE 14-13(a)Cash....................................................................................31,776Discount on Notes Payable........................................18,224Notes Payable.......................................................50,000BRIEF EXERCISE 14-13 (Continued)(b)Interest Expense............................................................3,813Discount on Notes Payable.............................3,813($31,776 X 12%)BRIEF EXERCISE 14-14(a)Computer..........................................................................39,369Discount on Notes Payable........................................10,631Notes Payable......................................................50,000 (b)Interest Expense............................................................4,724Cash........................................................................2,500Discount on Notes Payable.............................2,224($39,369 X 12% = $4,724)($50,000 X 5% = $2,500)BRIEF EXERCISE 14-15 Cash...............................................................................................50,000Discount on Notes Payable....................................................18,224 Notes Payable...................................................................50,000 Unearned Revenue.........................................................18,224 [$50,000 – ($50,000 X .63552) = $18,224]*BRIEF EXERCISE 14-16Toni Braxton (Debtor): No EntryNational American Bank (Creditor):Bad Debt Expense..........................................................225,000Allowance for Doubtful Accounts....................225,000。

高教第二版(徐寿昌)有机化学课后习题答案第14章

第十四章 β－二羰基化合物一、命名下列化合物：1.CH 3CH 3C COOH COOH2.CH 3COCHCOOC 2H 5C 2H 5二、写出下列化合物加热后生成的主要产物：1.CO CO C OH 2.O=C2CH 2CH 2COOHCH 2COOH O=CCH 3CH 2CH 2CH 2COOH 3.C 2H 5CH(COOH)2C 2H 5CH 2COOH三、试用化学方法区别下列各组化合物:1.CH 3COCH(CH 3)COOC 2H 5,CH 3COC(CH 3)COOC 2H 52.CH 3COCH 2COOH,HOOCCH 2COOH解：分别加入饱和亚硫酸氢钠水溶液，3－丁酮酸生成晶体，而丙二酸不能。

四、下列各组化合物，那些是互变异构体，那些是共振杂化体？1.CO OOC 2H 5OOC 2H 5OH,2.CH 3C O O -,CH 3C OO-3.C OOH,五、完成下列缩合反应：1.2CH 3CH 2COOC 2H 51.NaOC H 2.HCH 3CH 2COCHCOOC 2H 5CH 3+C 2H 5OH 2.CH 3CH 2COOC 2H 5+COOC 2H 51.NaOC H 2.HCOCHCOOC 2H 5CH 3CH 3CH 2COCHCOOC 2H 5CH 3+3.CH 3CH 2COOC 2H 5+COOC 2H 5COOC 2H 51.NaOC H 2.HO=C O=C CHCOOC 2H 5CH 3CHCOOC 2H 5CH 34.CH 2CH 2CH 2COOC 2H 5CH 2CH 2COOC 2H 51.NaOC H 2.HCOCOOC 2H 55.COCO+HCOOC2H 51.NaOC H 2.HCHO六、完成下列反应式：1.CHO1.O 32.Zn,HCHO CH 2CH 2CHO5%NaOHOHC 2H 5C 2H 5CCH 3COCH 2H 3O +2.C H MgBr 1.2OO CH 2COOC 2H 5CCH 3HOCH 2CH 2OH,H +CH 3COCH 2COOC 2H 53.CH 3CH 3COCH 2CHCOOC 2H 5NaOH%5CHCOOC 2H 5CH 3CH 3COCHCOOC 2H 5CH 3ClCHCOOC H NaCH 3COCHCOOC 2H 5NaOC H CH 3COCH 2COOC 2H 52.CH 3COCH 2H +CH 2CHCH 2CH 2CHCH 3OHNaBH 4COOHCH 2CHCH 2CH 2COCH 3KOC(CH 3)3CH 2=CHCOCH 3CH 2CH(COOC 2H 5)2NaCH(C OOC 2H 5)2NaOC 2H 5CH 2Cl4.CH 2CCH 2CH 2COCH 3COOC 2H 5COOC 2H 5COOHO七、写出下列反历程：C 6H 5CH 22C 6H 5O+CH 2=CHCOCH 3NaOCH 3CH 3OHC 6H 5C=O C 6H 5CH 3C 6H 5CH 2CCH 2C 6H 5ONaOCH 3C 6H 5CH 2CCHC 6H 5OCH 2=CHCOCH 3C 6H 5CH 2CCHC 6H 5OCH 2CH 2COCH 3NaOCH C 6H 5H O 3C 6H 5CH CHC 6H 5COCHOCH 3CH 2CH 2H 2OC=OCH 3C 6H 5C 6H 5八、以甲醇，乙醇为原料，用丙二酸酯法合成下列化合物： 1．α－甲基丁酸CH 3OH3CH 3ClC 2H 5OH3CH 3CH 2Cl C 2H 5OOCCH 2COOC 2H 5NaOC H CH Cl C 2H 5OOCHCOOC 2H 5CH 3NaOC 2H 5CH 3CH 2ClC 2H 5OOCCCOOC 2H 5CH 3CH 2CH 312-2.H 3O+HOOCCCOOH CH 2CH 3CH 3CH 3CH 3CH 2CHCOOHCH 3CH 2OHCH 3CHO5%NaOHaqCH 3CH=CHCHO2CH 3CH 2CH 2CH 2OHPCl 3CH 3CH 2CH 2CH 2Cl COOC 2H 5CHNa COOC 2H 5CH 3CH 2CH 2CH 2ClCOOC 2H 5CHCH 2CH 2CH 2CH 3COOC 2H 51.H 2O,-OH2.H 3O+CH 3CH 2CH 2CH 2CH 2COOH3. 3－甲基己二酸CH 3CH 2ClMg,(C 2H 5)2O CH 3CH 2MgClCH 2OH 3O +CH 3CH 2CH 2OHH 3PO 4CH 3CH=CH 2Br 2BrCH 32Br2C 2H 5OOCCHCOOC 2H 5NaBr32CH 31.H 2O,-OH2.H 3O+CH 3HOOCCH 22CH 2COOH(C 2H 5OOCCHCHCH 2CH(COOC 2H 5)24. 1，4－环己烷二甲酸CH 3CH 2OH 24CH 2=CH 2Br 2BrCH 2CH 2Br2CH 2(COOC2H 5)22NaOC 2H 55．环丙烷甲酸九、以甲醇、乙醇以及无机试剂为原料，经乙酰乙酸乙酯合成下列化合物：（1） 3－乙基－2－戊酮CH 3CH 2OHPCl CH 3CH 2Cl CH 3COCH 2COOC 2H 5NaOC H CH 3COCHCOOC 2H 5Na 32C 2H 5CH 32H 5NaOC H 32CH 3COCCOOC 2H 5CH 2CH3CH 2CH 3H O +CH 3COCHCH 2CH 3CH 2CH 3（2） α－甲基丙酸PCl CH 3COCH 2COOC 2H 5NaOC H CH 3COCHCOOC 2H 5Na CH 32H 5NaOC HCH 3COCCOOC 2H 5H O +CH 3OHCH 3Cl CH 3Cl CH 3CH 3ClCH 3CH 340%CH 3CHCOOHCH 3（3） γ－戊酮酸CH3COCH2COOC2H5NaOC HCH3COCHCOOC2H5NaCH32H5HO+CH3CH2OH[O]CH3COOH2ClCH2COOHC H OH,H+ClCH2COOC2H5ClCH2COOC2H5CH2COOC2H55%CH3COCH2CH2COOH（4）2，7－辛二酮CH3COCH2COOC2H5NaOC HCH3COCHCOOC2H5NaCH3CH2OH CH2=CH2ClCH2CH2ClCl22ClCH2CH2ClCH3COCHCH2CH2CHCOCH3COOC2H5COOC2H5NaOH H O+5%CH3COCH2CH2CH2CH2COCH3（5）甲基环丁基甲酮CH3COCH2COOC2H5NaOC HCH3COCHCOOC2H5NaNaOH H O+5%CH3CH=CH22ClCH2CH=CH2HBrClCH2CH2CH2BrClCH2CH2CH2BrCH3COCHCOOC2H5CH2CH2CH2ClNaOC HCH2CH2CH2ClCH3COCCOOC2H5NaCH3COCCOOC2H5COCH3十、某酮酸经硼氢化钠还原后，依次用溴化氢，碳酸钠和氰化钾处理后，生成腈。

新概念英语第二册课后练习答案lesson14

新概念英语第二册课后练习答案lesson14第一篇：新概念英语第二册课后练习答案lesson14新概念英语第二册课后习题答案详解Lesson 14练习答案 Key to written exercises 1．关键句型练习答案A 1 I drove on to the next town after I had left a small village.2 I said good morning to him in French as soon as he had got into the car.3 I had nearly reached the town, when the young man said:‘Do you speak English?’ C 1 After she had written the letter, she went to the post office.2 After he had had dinner, he went to the cinema.3 When I had fastened my seat belt, the plane took off.4 We did not disturb him until he had finished work.5 As soon as he had left the room, I turned on the radio.6 He had been very ill before he died.D 1 regretted 2 had begun/ began 3 arrived 2．难点练习答案Except for 2 both of 3 Apart from 4 asked…ask for 5 neither of…asked 3．多项选择题答案1.b根据课文第3行I stopped and he asked me for a lift, 只有b.he wanted a freeride in the car 最符合课文内容，而其他3个选择都与课文内容不符合。

2012练习册答案

KeysTest 7Part I Vocabulary and Structure1. D2. B3. C4. B5. D6. A7. D8. C9. B 10. A 11. D 12. C 13. B 14. A 15. A 16. B 17. B 18. D 19. A 20. BPart II Listening ComprehensionSection A 1-8 ACDCAADB 9-12 DDBA 13-15 ACDSection B 16-18 AAD 19-22 BDCA23-25 BDASection C 26. summed 27. mystery 28. senses 29. tasted30. similarly 31. harmless 32. masses 33. completely34. Your body will replace the dead cells with healthy ones.35. Serious damage can be done without the victim being aware at the time that damage has occurred36. Or a child can be born weak or liable to serious illness as a result of radiation absorbed by its grandparents.Part III Reading Comprehension (Reading in Depth)Section A 1—5 B E F G I 6—10 K N A J DSection B1—5 B A C B D 1—5 C C A B CPart IV Cloze1）D 2）B 3）A 4）C 5）B 6）C7）B 8）D 9）A 10）B 11）A 12）D13）C 14）A 15）B 16）C 17 ）A 18）C19）A 20）DPart V Translation1 No sooner had I lit the candle than / Hardly had I lit the candle when2 instead of cutting the costs of production3 would he break his promise / commitment to pay back the money4 should not be addicted to computer games. / should not indulge themselves in computer games / should not abandon themselves to computer games.5 were most impressed with / by his efficiencyTest 8Part I Vocabulary and Structure1. B2. D3. A4. C5. C6. A7. B8.D9. A 10. B 11. D 12. B 13. D 14. C 15. C 16. B 17. A 18. C 19. A 20. APart II Listening ComprehensionSection A 1-8 DCBBBDBD 9-12 CBDA 13-15 CBASection B 16-18 BBB 19-22 AABC 23-25CAASection C 26. headquarters 27. priceless 28. valuable antique 29. Consequently30. status 31. threat 32. journalist 33. accused34. He claimed that art treasure were being illegally exported to London on a regular basis,35. They will severely damage London’s credibility as a centre of the world’s art trade.36. If passed in Britain, the EU laws would make London a much less attractive place to purchase art treasures.Part III Reading Comprehension (Reading in Depth)Section A 1—5 H J A G B 6—10 D N I M KSection B 1—5 A D C B B 1—5 C A B D APart IV Cloze1） D 2）B 3） A 4） C 5） A 6）B7）D 8）C 9） B 10） D 11）B 12）D13）A 14）C 15）A 16） D 17 ） A 18）A19）C 20）APart V Translation1 only to be told that she couldn’t come by then2 nothing (should) be touched until the police arrived3 have they undergone / endured tremendous hardship in the travel4 the more concern we should draw to its safety5 despite repeated assurances that it is safeTest 9Part I Vocabulary and Structure1.B2.D3.C4.B5.D6.D7.B8.A9.D 10.D 11.A 12.C 13.D 14.C 15.B 16.B 17.A 18.B 19.B 20.A Part II Listening ComprehensionSection A 1-8 DADCBBCC 9-12 CCDA 13-15BDDSection B 16-18 CAA 19-22 DCAA23-25 AADSection C 26.confusing 27. achieve 28. nervous29.confidence 30.range 31.equipped32. audio 33. socially34. Most schools offer General English courses which are either part time—usually 15 hours per week—or full time, which can be as much as 40 hours.35. General English course also give students the chance to discover new parts of Britain.36. Wherever they go in Britain, they are assured high quality courses.Part III Reading Comprehension (Reading in Depth)Section A 1—5 B O I E M 6—10 K H A G CSection B 1—5 C C D A B 1—5 B C D C APart IV Cloze1） C 2） D 3） B 4）B 5） A 6）D7） C 8） A 9） B 10）A 11） D 12）A13）B 14） D 15） C 16） D 17 ）A 18）D19） B 20） APart V Translation1 decided not to punish those students who had been late for class2 which made the others jealous3 falling export rates would have an impact on the economy4 this dispute (should) be resolved / settled as soon as possible5 forgetting to call in advance to cancel the dateTest 10Part I Vocabulary and Structure1. A2. B3. B4. C5. A6. C7. B8. D9. B 10. B 11. C 12. D 13. D 14. A 15. A 16. D 17. A 18. B 19. C 20. BPart II Listening ComprehensionSection A 1-8 CBCDA ADB 9-12 BDAD 13-15 BCDSection B 16-18 ABA 19-22 BBAA 23-25 BADSection C 26.awake 27. quiet 28. hillside 29. pot30. boiled 31. share 32. fragrant 33. grinding34. For only a little money, they could meet friends, play chess, talk, and discuss the news of the day.35. Coffeehouses became popular in America, when settlers from Europe brought the idea with them.36. In all the ways coffee is served, it has become an international drink.Part III Reading Comprehension (Reading in Depth)Section A 1—5 C I A K N 6—10 G E L H DSection B 1—5 C A B B D 1—5 C A D C DPart IV Cloze1） D 2） C 3）C 4）B 5） A 6）B7） D 8） A 9）B 10） C 11） D 12）B13） A 14） D 15）C 16）B 17 ）C 18）D19） A 20） BPart V Translation1 He might have thought his speech convincing2 derives pleasure from helping others3 how much you will be charged for your services4 he is not so much a photographer than a painter / he is more of a painter than a photographer5 largely due to the poor managementTest 11Part I Vocabulary and Structure1.A2.B3.B4.D5.C6.B7.A8.A9.D 10.B 11.A 12.D 13.B 14.A 15.C 16.A 17.C 18.C 19.C 20.D Part II Listening ComprehensionSection A 1-8 CCBADBDC 9-12 CBCD 13-15 DBASection B 16-18 ACA 19-22 BDDA 23-25 BBCSection C 26. rough 27. otherwise 28. hanging29.leaving 30. weight 341. stiff32.elastic 33. slightly34. This is enough to save the ship from breaking into pieces.35. The boy had a bag of nuts beside him, and every time the ship was lifted by a wave and the joint opened.36. The boy then took it out and put the next one in a s the joint opened again.Part III Reading Comprehension (Reading in Depth)Section A 1—5 F G A M N 6—10 B L C J DSection B 1—5 C A A A C 1—5 A C B A APart IV Cloze1） C 2）B 3） B 4） D 5） C 6）B7） A 8）B 9） D 10） C 11） B 12）A13）C 14） D 15） B 16） A 17 ） A 18）C19） B 20） DPart V Translation1.Having been damaged in the earthquake2.should we give up pursuing knowledge /should we abandon the pursuit of knowledge3.Being asked to give a performance4.hoping that we could reach the airport on time / in hopes that we could arrive at the airport ontime5.become aware of its serious consequencesTest 12Part I Reading Comprehension （Skimming and Scanning）1-7 B C C D B C A8 apply to them and their kids9 go to bed hungry10 80 percentPart III Reading Comprehension (Reading in Depth)Section A 1—5 C D B O K 6—10 F I L A GSection B 1—5 C A C D C 1—5 D B A C CPart IV Cloze1） C 2） D 3） A 4） B 5） A 6）D7） B 8） C 9） C 10）A 11）D 12）B13） A 14）C 15） D 16）B 17 ）B 18）A19） C 20）DPart V Translation1 would not have broken into my house2 did he begin to realize his mistakes3 completely lost in it4 being invited to attend the opening ceremony5 the less likely it is to do so。

Solution_国际财务管理_切奥尔尤恩_课后习题答案_第十四章

CHAPTER 14 INTEREST RATE AND CURRENCY SWAPSSUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTERQUESTIONS AND PROBLEMSQUESTIONS1. Describe the difference between a swap broker and a swap dealer.Answer: A swap broker arranges a swap between two counterparties for a fee without taking a risk position in the swap. A swap dealer is a market maker of swaps and assumes a risk position in matching opposite sides of a swap and in assuring that each counterparty fulfills its contractual obligation to the other.2. What is the necessary condition for a fixed-for-floating interest rate swap to be possible?Answer: For a fixed-for-floating interest rate swap to be possible it is necessary for a quality spread differential to exist. In general, the default-risk premium of the fixed-rate debt will be larger than the default-risk premium of the floating-rate debt.3. Discuss the basic motivations for a counterparty to enter into a currency swap.Answer: One basic reason for a counterparty to enter into a currency swap is to exploit the comparative advantage of the other in obtaining debt financing at a lower interest rate than could be obtained on its own. A second basic reason is to lock in long-term exchange rates in the repayment of debt service obligations denominated in a foreign currency.4. How does the theory of comparative advantage relate to the currency swap market?Answer: Name recognition is extremely important in the international bond market. Without it, even a creditworthy corporation will find itself paying a higher interest rate for foreign denominated funds than a local borrower of equivalent creditworthiness. Consequently, two firms of equivalent creditworthiness can each exploit their, respective, name recognition by borrowing in their local capital market at a favorable rate and then re-lending at the same rate to the other.5. Discuss the risks confronting an interest rate and currency swap dealer.Answer: An interest rate and currency swap dealer confronts many different types of risk. Interest rate risk refers to the risk of interest rates changing unfavorably before the swap dealer can lay off on an opposing counterparty the unplaced side of a swap with another counterparty. Basis risk refers to the floating rates of two counterparties being pegged to two different indices. In this situation, since the indexes are not perfectly positively correlated, the swap bank may not always receive enough floating rate funds from one counterparty to pass through to satisfy the other side, while still covering its desired spread, or avoiding a loss. Exchange-rate risk refers to the risk the swap bank faces from fluctuating exchange rates during the time it takes the bank to lay off a swap it undertakes on an opposing counterparty before exchange rates change. Additionally, the dealer confronts credit risk from one counterparty defaulting and its having to fulfill the defaulting party’s obligation to the other counterparty. Mismatch risk refers to the difficulty of the dealer finding an exact opposite match for a swap it has agreed to take. Sovereign risk refers to a country imposing exchange restrictions on a currency involved in a swap making it costly, or impossible, for a counterparty to honor its swap obligations to the dealer. In this event, provisions exist for the early termination of a swap, which means a loss of revenue to the swap bank.6. Briefly discuss some variants of the basic interest rate and currency swaps diagramed in the chapter.Answer: Instead of the basic fixed-for-floating interest rate swap, there are also zero-coupon-for-floating rate swaps where the fixed rate payer makes only one zero-coupon payment at maturity on the notional value. There are also floating-for-floating rate swaps where each side is tied to a different floating rate index or a different frequency of the same index. Currency swaps need not be fixed-for-fixed; fixed-for-floating and floating-for-floating rate currency swaps are frequently arranged. Moreover, both currency and interest rate swaps can be amortizing as well as non-amortizing.7. If the cost advantage of interest rate swaps would likely be arbitraged away in competitive markets, what other explanations exist to explain the rapid development of the interest rate swap market?Answer: All types of debt instruments are not always available to all borrowers. Interest rate swaps can assist in market completeness. That is, a borrower may use a swap to get out of one type of financing and to obtain a more desirable type of credit that is more suitable for its asset maturity structure.8. Suppose Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar LIBOR for British pound sterling. At what rates will Morgan Guaranty enter into a $/£ currency swap?Answer: Morgan Guaranty will pay annual fixed-rate dollar payments of 7.75 percent against receiving six-month dollar LIBOR flat, or it will receive fixed-rate annual dollar payments at 8.10 percent against paying six-month dollar LIBOR flat. Morgan Guaranty will make annual fixed-rate £ payments at 11.25 percent against receiving six-month dollar LIBOR flat, or it will receive annual fixed-rate £ payments at 11.65 percent against paying six-month dollar LIBOR flat. Thus, Morgan Guaranty will enter into a currency swap in which it would pay annual fixed-rate dollar payments of 7.75 percent in return for receiving semi-annual fixed-rate £ payments at 11.65 percent, or it will receive annual fixed-rate dollar payments at 8.10 percent against paying annual fixed-rate £ payments at 11.25 percent.9. A U.S. company needs to raise €50,000,000. It plans to raise this money by issuing dollar-denominated bonds and using a currency swap to convert the dollars to euros. The company expects interest rates in both the United States and the euro zone to fall.a. Should the swap be structured with interest paid at a fixed or a floating rate?b. Should the swap be structured with interest received at a fixed or a floating rate?CFA Guideline Answer:a. The U.S. company would pay the interest rate in euros. Because it expects that the interest rate in the euro zone will fall in the future, it should choose a swap with a floating rate on the interest paid in euros to let the interest rate on its debt float down.b. The U.S. company would receive the interest rate in dollars. Because it expects that the interest rate in the United States will fall in the future, it should choose a swap with a fixed rate on the interest received in dollars to prevent the interest rate it receives from going down.*10. Assume a currency swap in which two counterparties of comparable credit risk each borrow at the best rate available, yet the nominal rate of one counterparty is higher than the other. After the initial principal exchange, is the counterparty that is required to make interest payments at the higher nominal rate at a financial disadvantage to the other in the swap agreement? Explain your thinking.Answer: Superficially, it may appear that the counterparty paying the higher nominal rate is at a disadvantage since it has borrowed at a lower rate. However, if the forward rate is an unbiased predictor of the expected spot rate and if IRP holds, then the currency with the higher nominal rate is expected to depreciate versus the other. In this case, the counterparty making the interest payments at the higher nominal rate is in effect making interest payments at the lower interest rate because the payment currency is depreciating in value versus the borrowing currency.PROBLEMS1. Alpha and Beta Companies can borrow for a five-year term at the following rates:Alpha BetaMoody’s credit rating Aa BaaFixed-rate borrowing cost 10.5% 12.0%Floating-rate borrowing cost LIBOR LIBOR + 1%a. Calculate the quality spread differential (QSD).b. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. No swap bank is involved in this transaction.Solution:a. The QSD = (12.0% - 10.5%) minus (LIBOR + 1% - LIBOR) = .5%.b. Alpha needs to issue fixed-rate debt at 10.5% and Beta needs to issue floating rate-debt at LIBOR + 1%. Alpha needs to pay LIBOR to Beta. Beta needs to pay 10.75% to Alpha. If this is done, Alpha’s floating-rate all-in-cost is: 10.5% + LIBOR - 10.75% = LIBOR - .25%, a .25% savings over issuing floating-rate debt on its own. Beta’s fixed-rate all-in-cost is: LIBOR+ 1% + 10.75% - LIBOR = 11.75%, a .25% savings over issuing fixed-rate debt.2. Do problem 1 over again, this time assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 10.7% - 10.8% against LIBOR flat.Solution: Alpha will issue fixed-rate debt at 10.5% and Beta will issue floating rate-debt at LIBOR + 1%. Alpha will receive 10.7% from the swap bank and pay it LIBOR. Beta will pay 10.8% to the swap bank and receive from it LIBOR. If this is done, Alpha’s floating-rate all-in-cost is: 10.5% + LIBOR - 10.7% = LIBOR - .20%, a .20% savings over issuing floating-rate debt on its own. Beta’s fixed-rate all-in-cost is: LIBOR+ 1% + 10.8% - LIBOR = 11.8%, a .20% savings over issuing fixed-rate debt.3. Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month LIBOR + .125 percent or at three-month LIBOR + .125 percent. Given its asset structure, three-month LIBOR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 1.0 percent or at three-month LIBOR + .625 percent. Given its asset structure, six-month LIBOR is the preferred index. Assume a notional principal of $15,000,000. Determine the QSD and set up a floating-for-floating rate swap where the swap bank receives .125 percent and the two counterparties share the remaining savings equally.Solution: The quality spread differential is [(Six-month LIBOR + 1.0 percent) minus (Six-month LIBOR + .125 percent) =] .875 percent minus [(Three-month LIBOR + .625 percent) minus (Three-month LIBOR + .125 percent) =] .50 percent, which equals .375 percent. If the swap bank receives .125 percent, each counterparty is to save .125 percent. To affect the swap, Company A would issue FRNs indexed to six-month LIBOR and Company B would issue FRNs indexed three-month LIBOR. Company B might make semi-annual payments of six-month LIBOR + .125 percent to the swap bank, which would pass all of it through to Company A. Company A, in turn, might make quarterly payments of three-month LIBOR to the swap bank, which would pass through three-month LIBOR - .125 percent to Company B. On an annualized basis, Company B will remit to the swap bank six-month LIBOR + .125 percent and pay three-month LIBOR + .625 percent on its FRNs. It will receive three-month LIBOR - .125 percent from the swap bank. This arrangement results in an all-in cost of six-month LIBOR + .825 percent, which is a rate .125 percent below the FRNs indexed to six-month LIBOR + 1.0 percent Company B could issue on its own. Company A will remit three-month LIBOR to the swap bank and pay six-month LIBOR + .125 percent on its FRNs. It will receive six-month LIBOR + .125 percent from the swap bank. This arrangement results in an all-in cost of three-month LIBOR for Company A, which is .125 percent less than the FRNs indexed to three-month LIBOR + .125 percent it could issue on its own. The arrangements with the two counterparties net the swap bank .125 percent per annum, received quarterly.*4. A corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 9.75 percent annually on a notional amount of €15,000,000 and receive LIBOR. As of the second reset date, determine the price of the swap from the corporation’s viewpoint assuming that the fixed-rate side of the swap has increased to 10.25 percent.Solution: On the reset date, the present value of the future floating-rate payments the corporation will receive from the swap bank based on the notional value will be €15,000,000. The present value of a hypothetical bond issue of €15,000,000 with three remaining 9.75 percent coupon payments at the newfixed-rate of 10.25 percent is €14,814,304. This sum represents the present value of the remaining payments the swap bank will receive from the corporation. Thus, the swap bank should be willing to buy and the corporation should be willing to sell the swap for €15,000,000 - €14,814,304 = €185,696.5. Karla Ferris, a fixed income manager at Mangus Capital Management, expects the current positively sloped U.S. Treasury yield curve to shift parallel upward.Ferris owns two $1,000,000 corporate bonds maturing on June 15, 1999, one with a variable rate based on 6-month U.S. dollar LIBOR and one with a fixed rate. Both yield 50 basis points over comparable U.S. Treasury market rates, have very similar credit quality, and pay interest semi-annually.Ferris wished to execute a swap to take advantage of her expectation of a yield curve shift and believes that any difference in credit spread between LIBOR and U.S. Treasury market rates will remain constant.a. Describe a six-month U.S. dollar LIBOR-based swap that would allow Ferris to take advantage of her expectation. Discuss, assuming Ferris’ expectation is correct, the change in the swap’s value and how that change would affect the value of her portfolio. [No calculations required to answer part a.] Instead of the swap described in part a, Ferris would use the following alternative derivative strategy to achieve the same result.b. Explain, assuming Ferris’ expectation is correct, how the following strategy achieves the same result in response to the yield curve shift. [No calculations required to answer part b.]Date Nominal Eurodollar Futures Contract ValueSettlement12-15-97 $1,000,00003-15-98 1,000,00006-15-98 1,000,00009-15-98 1,000,00012-15-98 1,000,00003-15-99 1,000,000c. Discuss one reason why these two derivative strategies provide the same result.CFA Guideline Answera.The Swap Value and its Effect on Ferris’ PortfolioBecause Karla Ferris believes interest rates will rise, she will want to swap her $1,000,000 fixed-rate corporate bond interest to receive six-month U.S. dollar LIBOR. She will continue to hold her variable-rate six-month U.S. dollar LIBOR rate bond because its payments will increase as interest rates rise. Because the credit risk between the U.S. dollar LIBOR and the U.S. Treasury market is expected to remain constant, Ferris can use the U.S. dollar LIBOR market to take advantage of her interest rate expectation without affecting her credit risk exposure.To execute this swap, she would enter into a two-year term, semi-annual settle, $1,000,000 nominal principal, pay fixed-receive floating U.S. dollar LIBOR swap. If rates rise, the swap’s mark-to-market value will increase because the U.S. dollar LIBOR Ferris receives will be higher than the LIBOR rates from which the swap was priced. If Ferris were to enter into the same swap after interest rates rise, she would pay a higher fixed rate to receive LIBOR rates. This higher fixed rate would be calculated as the present value of now higher forward LIBOR rates. Because Ferris would be paying a stated fixed rate that is lower than this new higher-present-value fixed rate, she could sell her swap at a premium. This premium is called the “replacement cost” value of the swap.b. Eurodollar Futures StrategyThe appropriate futures hedge is to short a combination of Eurodollar futures contracts with different settlement dates to match the coupon payments and principal. This futures hedge accomplishes the same objective as the pay fixed-receive floating swap described in Part a. By discussing how the yield-curve shift affects the value of the futures hedge, the candidate can show an understanding of how Eurodollar futures contracts can be used instead of a pay fixed-receive floating swap.If rates rise, the mark-to-market values of the Eurodollar contracts decrease; their yields must increase to equal the new higher forward and spot LIBOR rates. Because Ferris must short or sell the Eurodollar contracts to duplicate the pay fixed-receive variable swap in Part a, she gains as the Eurodollar futures contracts decline in value and the futures hedge increases in value. As the contracts expire, or if Ferris sells the remaining contracts prior to maturity, she will recognize a gain that increases her return. With higher interest rates, the value of the fixed-rate bond will decrease. If the hedge ratios are appropriate, the value of the portfolio, however, will remain unchanged because of the increased value of the hedge, which offsets the fixed-rate bond’s decrease.c. Why the Derivative Strategies Achieve the Same ResultArbitrage market forces make these two strategies provide the same result to Ferris. The two strategies are different mechanisms for different market participants to hedge against increasing rates. Some money managers prefer swaps; others, Eurodollar futures contracts. Each institutional marketparticipant has different preferences and choices in hedging interest rate risk. The key is that market makers moving into and out of these two markets ensure that the markets are similarly priced and provide similar returns. As an example of such an arbitrage, consider what would happen if forward market LIBOR rates were lower than swap market LIBOR rates. An arbitrageur would, under such circumstances, sell the futures/forwards contracts and enter into a received fixed-pay variable swap. This arbitrageur could now receive the higher fixed rate of the swap market and pay the lower fixed rate of the futures market. He or she would pocket the differences between the two rates (without risk and without having to make any [net] investment.) This arbitrage could not last.As more and more market makers sold Eurodollar futures contracts, the selling pressure would cause their prices to fall and yields to rise, which would cause the present value cost of selling the Eurodollar contracts also to increase. Similarly, as more and more market makers offer to receive fixed rates in the swap market, market makers would have to lower their fixed rates to attract customers so they could lock in the lower hedge cost in the Eurodollar futures market. Thus, Eurodollar forward contract yields would rise and/or swap market receive-fixed rates would fall until the two rates converge. At this point, the arbitrage opportunity would no longer exist and the swap and forwards/futures markets would be in equilibrium.6. Rone Company asks Paula Scott, a treasury analyst, to recommend a flexible way to manage the company’s financial risks.Two years ago, Rone issued a $25 million (U.S.$), five-year floating rate note (FRN). The FRN pays an annual coupon equal to one-year LIBOR plus 75 basis points. The FRN is non-callable and will be repaid at par at maturity.Scott expects interest rates to increase and she recognizes that Rone could protect itself against the increase by using a pay-fixed swap. However, Rone’s Board of Directors prohibits both short sales of securities and swap transactions. Scott decides to replicate a pay-fixed swap using a combination of capital market instruments.a. Identify the instruments needed by Scott to replicate a pay-fixed swap and describe the required transactions.b. Explain how the transactions in Part a are equivalent to using a pay-fixed swap.CFA Guideline Answera. The instruments needed by Scott are a fixed-coupon bond and a floating rate note (FRN).The transactions required are to:· issue a fixed-coupon bond with a maturity of three years and a notional amount of $25 million, and· buy a $25 million FRN of the same maturity that pays one-year LIBOR plus 75 bps.b. At the outset, Rone will issue the bond and buy the FRN, resulting in a zero net cash flow at initiation. At the end of the third year, Rone will repay the fixed-coupon bond and will be repaid the FRN, resulting in a zero net cash flow at maturity. The net cash flow associated with each of the three annual coupon payments will be the difference between the inflow (to Rone) on the FRN and the outflow (to Rone) on the bond. Movements in interest rates during the three-year period will determine whether the net cash flow associated with the coupons is positive or negative to Rone. Thus, the bond transactions are financially equivalent to a plain vanilla pay-fixed interest rate swap.7. A company based in the United Kingdom has an Italian subsidiary. The subsidiary generates €25,000,000 a year, received in equivalent semiannual installments of €12,500,000. The British company wishes to convert the euro cash flows to pounds twice a year. It plans to engage in a currency swap in order to lock in the exchange rate at which it can convert the euros to pounds. The current exchange rate is €1.5/£. The fixed rate on a plain vaninilla currency swap in pounds is 7.5 percent per year, and the fixed rate on a plain vanilla currency swap in euros is 6.5 percent per year.a. Determine the notional principals in euros and pounds for a swap with semiannual payments that will help achieve the objective.b. Determine the semiannual cash flows from this swap.CFA Guideline Answera. The semiannual cash flow must be converted into pounds is €25,000,000/2 = €12,500,000. In order to create a swap to convert €12,500,000, the equivalent notional principals are · Euro notional principal = €12,500,000/(0.065/2) = €384,615,385· Pound notional principal = €384,615,385/€1.5/£ = £256,410,257b. The cash flows from the swap will now be· Company makes swap payment = €384,615,385(0.065/2) = €12,500,000· Company receives swap payment = £256,410,257(0.075/2) = £9,615,385The company has effectively converted euro cash receipts to pounds.8. Ashton Bishop is the debt manager for World Telephone, which needs €3.33 billion Euro financing for its operations. Bishop is considering the choice between issuance of debt denominated in: ∙ Euros (€), or∙ U.S. dollars, accompanied by a combined interest rate and currency swap.a. Explain one risk World would assume by entering into the combined interest rate and currency swap.Bishop believes that issuing the U.S.-dollar debt and entering into the swap can lower World’s cost of debt by 45 basis points. Immediately after selling the debt issue, World would swap the U.S. dollar payments for Euro payments throughout the maturity of the debt. She assumes a constant currency exchange rate throughout the tenor of the swap.Exhibit 1 gives details for the two alternative debt issues. Exhibit 2 provides current information about spot currency exchange rates and the 3-year tenor Euro/U.S. Dollar currency and interest rate swap.Exhibit 1World Telephone Debt DetailsCharacteristic Euro Currency Debt U.S. Dollar Currency DebtPar value €3.33 billion $3 billionTerm to maturity 3 years 3 yearsFixed interest rate 6.25% 7.75%Interest payment Annual AnnualExhibit 2Currency Exchange Rate and Swap InformationSpot currency exchange rate $0.90 per Euro ($0.90/€1.00)3-year tenor Euro/U.S. Dollarfixed interest rates 5.80% Euro/7.30% U.S. Dollarb. Show the notional principal and interest payment cash flows of the combined interest rate and currency swap.Note: Your response should show both the correct currency ($ or €) and amount for each cash flow. Answer problem b in the template provided.Template for problem bc. State whether or not World would reduce its borrowing cost by issuing the debt denominated in U.S. dollars, accompanied by the combined interest rate and currency swap. Justify your response with one reason.CFA Guideline Answera. World would assume both counterparty risk and currency risk. Counterparty risk is the risk that Bishop’s counterparty will default on payment of principal or interest cash flows in the swap.Currency risk is the currency exposure risk associated with all cash flows. If the US$ appreciates (Euro depreciates), there would be a loss on funding of the coupon payments; however, if the US$ depreciates, then the dollars will be worth less at the swap’s maturity.b.0 YearYear32 Year1 YearWorld paysNotional$3 billion €3.33 billion PrincipalInterest payment €193.14 million1€193.14 million €193.14 million World receives$3.33 billion €3 billion NotionalPrincipalInterest payment $219 million2$219 million $219 million1 € 193.14 million = € 3.33 billion x 5.8%2 $219 million = $3 billion x 7.3%c. World would not reduce its borrowing cost, because what Bishop saves in the Euro market, she loses in the dollar market. The interest rate on the Euro pay side of her swap is 5.80 percent, lower than the 6.25 percent she would pay on her Euro debt issue, an interest savings of 45 bps. But Bishop is only receiving 7.30 percent in U.S. dollars to pay on her 7.75 percent U.S. debt interest payment, an interest shortfall of 45 bps. Given a constant currency exchange rate, this 45 bps shortfall exactly offsets the savings from paying 5.80 percent versus the 6.25 percent. Thus there is no interest cost savings by sellingthe U.S. dollar debt issue and entering into the swap arrangement.MINI CASE: THE CENTRALIA CORPORATION’S CURRENCY SWAPThe Centralia Corporation is a U.S. manufacturer of small kitchen electrical appliances. It has decided to construct a wholly owned manufacturing facility in Zaragoza, Spain, to manufacture microwave ovens for sale in the European Union. The plant is expected to cost €5,500,000, and to take about one year to complete. The plant is to be financed over its economic life of eight years. The borrowing capacity created by this capital expenditure is $2,900,000; the remainder of the plant will be equity financed. Centralia is not well known in the Spanish or international bond market; consequently, it would have to pay 7 percent per annum to borrow euros, whereas the normal borrowing rate in the euro zone for well-known firms of equivalent risk is 6 percent. Alternatively, Centralia can borrow dollars in the U.S. at a rate of 8 percent.Study Questions1. Suppose a Spanish MNC has a mirror-image situation and needs $2,900,000 to finance a capital expenditure of one of its U.S. subsidiaries. It finds that it must pay a 9 percent fixed rate in the United States for dollars, whereas it can borrow euros at 6 percent. The exchange rate has been forecast to be $1.33/€1.00 in one year. Set up a currency swap that will benefit each counterparty.*2. Suppose that one year after the inception of the currency swap between Centralia and the Spanish MNC, the U.S. dollar fixed-rate has fallen from 8 to 6 percent and the euro zone fixed-rate for euros has fallen from 6 to 5.50 percent. In both dollars and euros, determine the market value of the swap if the exchange rate is $1.3343/€1.00.Suggested Solution to The Centralia Corporation’s Currency Swap1. The Spanish MNC should issue €2,180,500 of 6 percent fixed-rate debt and Centralia should issue $2,900,000 of fixed-rate 8 percent debt, since each counterparty has a relative comparative advantage in their home market. They will exchange principal sums in one year. The contractual exchange rate for the initial exchange is $2,900,000/€2,180,500, or $1.33/€1.00. Annually the counterparties will swap debt service: the Spanish MNC will pay Centralia $232,000 (= $2,900,000 x .08) and Centralia will pay the Spanish MNC €130,830 (= €2,180,500 x .06). The contractual exchange rate of the first seven annual debt service exchanges is $232,000/€130,830, or $1.7733/€1.00. At maturity, Centralia and the Spanish MNC will re-exchange the principal sums and the final debt service payments. The contractual exchange rate of the final currency exchange is $3,132,000/€2,311,330 = ($2,900,000 + $232,000)/(€2,180,500 + €130,830), or $1.3551/€1.00.*2. The market value of the dollar debt is the present value of a seven-year annuity of $232,000 and a lump sum of $2,900,000 discounted at 6 percent. This present value is $3,223,778. Similarly, the market value of the euro debt is the present value of a seven-year annuity of €130,830 and a lump sum of €2,180,500 discounted at 5.50 percent. This present value is €2,242,459. The dollar value of the swap is $3,223,778 - €2,242,459 x 1.3343 = $231,665. The euro value of the swap is €2,242,459 - $3,223,778/1.3343 = -€173,623.。

2012年英语教材答案汇总(修正改)

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Chapter 14Audit of the Sales and Collection Cycle:Tests of Controls and SubstantiveTests of TransactionsReview Questions14-1 a. The bill of lading is a document prepared at the time of shipment of goods to a customer indicating the description of the merchandise,the quantity shipped, and other data. Formally, it is a written contractof the shipment and receipt of goods between the seller and carrier.It is also used as a signal to bill the client. The original is sent to thecustomer and one or more copies are retained.b. A sales invoice is a document indicating the description and quantityof goods sold, the price including freight, insurance, terms, andother relevant data. It is the method of indicating to the customerthe amount owed for the sale and the due date of the payments.The original is sent to the customer and one or more copies areretained. The sales invoice is the document for recording sales inthe accounting records.c. The credit memo is a document indicating a reduction in the amountdue from a customer because of returned goods or an allowancegranted. It often takes the same general form as a sales invoice,but it reduces the customer's accounts receivable balance ratherthan increasing it.d. The remittance advice is a document that accompanies the salesinvoice mailed to the customer and can be returned to the sellerwith the payment. It is used to indicate the customer name, salesinvoice number, and the amount of the invoice when the payment isreceived. A remittance advice is used to permit the immediatedeposit of cash receipts as a means of improving control over thecustody of assets.e. The monthly statement to customers is the document preparedmonthly and sent to each customer indicating the beginning balanceof that customer's accounts receivable, the amount and date ofeach sale, cash payments received, credit memos issued, and theending balance due. It is, in essence, a copy of the customer'sportion of the accounts receivable master file.14-2 Proper credit approval for sales helps minimize the amount of bad debts and the collection effort for accounts receivable by requiring that each sale be evaluated for collection potential.Adequate controls in the credit function enable the auditor to place more reliance on the client's estimate of uncollectible accounts. Without these controls, the auditor would have to make his or her own credit checks on the customers in order to be convinced that the allowance for uncollectible accounts is reasonable.14-3The sales journal contains the record of each sales transaction that includes the customer name, date, amount, and the account classification for each transaction. The sales journal generally represents the record of each individual transaction. Typically, the sales journal accumulates transactions for a period of time, which is often monthly. Transactions recorded in the sales journal are then posted to the general ledger, and if the transaction is for sales on account the accounts receivable master file is updated for each transaction.The accounts receivable master file is used to record individual sales, cash receipts, and sales returns and allowances for each customer and to maintain customer account balances. The master file is updated using data from the sales journal, sales return journal, cash receipts journal. The total in the accounts receivable master file equals the total in the accounts receivable general ledger account. could integrate its online ordering system with its inventory system so that a book shipment is made only after the customer‟s credit card company approves the customer‟s purchase. Because credit card issuers often transfer funds electronically almost immediately after a sale, could also set up their system to ship books only after payment has been received by the credit card issuer. Finally, could arrange with an online credit service bureau to run credit checks on customers purchasing over a preset minimum amount. Although sells its goods through the Internet, the company should still record sales revenue when the books are shipped to customers.14-514-5 (continued)14-6Tests of controls:1. On a sample of sales invoices, examine proper authorization andindication of internal verification of sales amounts.2. Examine approved computer printout of unit selling prices.3. Examine file of batch totals for initials of data control clerk; comparetotals to summary reports.Substantive tests of transactions:1. Recompute information on sales invoices.2. Trace entries in sales journal to related sales invoices.3. Trace detail on sales invoices to shipping documents, approvedprice lists, and customers' orders.14-7The most important duties that should be segregated in the sales and collection cycle are:1. Receiving orders for sales2. Shipping goods3. Billing customers and recording sales4. Maintaining inventory records5. Maintaining general accounting records6. Maintaining detailed accounts receivable records7. Processing cash receipts8. Granting credit and pursuing unpaid accountsSegregation of duties should be used extensively in the sales and collection cycle for two reasons. First, cash receipts are subject to easy manipulation. Second, the large number and nature of transactions within the cycle make the procedure of cross-checking, where one employee's duties automatically serve to verify the accuracy of another's, highly desirable.If the asset-handling activities (shipping goods and processing cash receipts) are combined with their respective accountability activities (maintaining inventory, accounts receivable, and general accounting records), a serious deficiency with respect to safeguarding those assets exists. It would be easy for an employee, by either omitting or adding an entry, to use the company's assets for his or her own purpose. If the credit granting function is combined with the sales function, there may be a tendency of sales staff to optimize volume even at the expense of high bad debt write-offs.14-8The use of prenumbered documents is meant to prevent the failure to bill or record sales as well as to prevent duplicate billings and recordings. An example of a useful control to provide reasonable assurance that all shipments are billed is for the billing clerk to file a copy of all shipping documents in sequential order after a shipment has been billed. Periodically, someone can account for all numbers in the sequence and investigate the reason for missing documents. Computer programs can be used to identify gaps and duplicates in the sequence. The same type of a useful test in this area is to account for the sequence of duplicate sales invoices in the sales journal, watching for omitted numbers, duplicate numbers, or invoices outside the normal sequence. This test simultaneously provides evidence of both the occurrence and completeness objectives.14-9 1. Credit is authorized before a sale takes place.Test: Analyze the allowance for uncollectible accounts and write-offs of accounts receivable during the period to determinethe effectiveness of the credit approval system.2. Goods are shipped only after proper authorization.Test: Review physical inventory shortages to determine the effectiveness of inventory control.3. Prices, including payment terms, freight, and discounts, are properlyauthorized.Test: Compare actual price charged for different products, including freight and terms, to the price list authorized by management. 14-10 The purpose of footing and crossfooting the sales journal and tracing the totals to the general ledger is to determine that sales transactions are properly included in the accounts receivable master file and are correctly summarized. The auditor will make a sample selection from the sales journal to perform tests of controls and substantive tests of transactions, so he or she must determine that the general ledger agrees with the sales journal.14-11The verification of sales returns and allowances is quite different from the verification of sales for three primary reasons:1. Sales returns and allowances are normally an insignificant portionof operations and therefore receive little attention from the auditor.2. The primary emphasis the auditor places on sales returns andallowances is to determine that returns and allowances are properlyauthorized and that sales are not overstated at year-end andsubsequently reversed by the issuance of returns.3. The completeness objective cannot be ignored because unrecordedsales returns and allowances can materially overstate net income. 14-12 Cash is the most liquid asset that a company owns and thus it is the most likely target of misappropriation. The emphasis the auditor places on the possibility of misappropriation of cash is not inconsistent with his or her responsibility, which is to determine the fairness of the presentation of the financial statements. If material fraud has occurred, and it is not fully disclosed in the financial statements, those statements are not fairly presented.14-1314-14 Audit procedures that the auditor can use to determine whether all cash receipts were recorded are:Discussion with personnel and observation of the separation of duties between handling cash and record keeping.Account for numerical sequence of remittance advices or examine prelisting of cash receipts.Observe immediate endorsement of incoming checks.Examine indication of internal verification of the recording of cash receipts.Observe whether monthly statements are sent to customers.Trace from remittance advices or prelisting to cash receipts journal. 14-15 Proof of cash receipts is a procedure to test whether all recorded cash receipts have been deposited in the bank account. In this test, the total cash receipts recorded in the cash receipts journal for a period of time, such as a month, are reconciled to the actual deposits made to the bank during the same time period. The procedure is not useful to discover cash receipts that have not been recorded in the journals or time lags in making deposits, but it is useful to discover recorded cash receipts that have not been deposited, unrecorded deposits, unrecorded loans, bank loans deposited directly into the bank account, and similar misstatements.14-16 Lapping is the postponement of entries for the collection of receivables to conceal an existing cash shortage. The fraud is perpetrated by someone who records cash in the cash receipts journal and then enters them into the computer system. The person defers recording the cash receipts from one customer and covers the shortage with receipts from another customer. These in turn are covered by the receipts from a third customer a few days later. The employee must either continue to cover the shortage through lapping, replace the stolen money, or find another way to conceal the shortage.This fraud can be detected by comparing the name, amount and dates shown on remittance advices to cash receipts journal entries and related duplicate deposit slips. Since the procedure is relatively time-consuming, auditors ordinarily perform the procedure only where there is a specific concern with fraud because of internal control deficiencies discovered.14-17The audit procedures most likely to be used to verify accounts receivable charged off as uncollectible and the purpose of each procedure are as follows:Examine approvals by the appropriate persons of individual accounts charged off. The purpose is to determine that charge-offs are approved.Examine correspondence in client's files that indicates the uncollectibility of the accounts for a selected number of write-offs.The purpose is to determine that the account appears to beuncollectible.14-17 (continued)Examine Dun and Bradstreet credit records as an indication of the uncollectibility of an account. The purpose is the same as theprevious procedure.Consider the reason for the charge-off compared to the company policy for writing off uncollectible accounts. The purpose is todetermine whether or not company policy is being followed.14-18 The primary objective of the tests of controls and substantive tests of transactions for sales and cash receipts is to determine whether or not the auditor may rely on internal controls to produce accurate information. If it is determined through tests of controls and substantive tests of transactions that the system provides reliable information as to accounts receivable balances, the auditor may reduce the sample size for the confirmation of accounts receivable and adjust the type of confirmation and timing of the tests. If the system is not considered effective because of deficiencies in internal control, the sample size must be increased, positive confirmations will probably be necessary, and the confirmations will most likely be as of the balance sheet date.14-19 It is often acceptable to perform tests of controls and substantive tests of transactions at an interim date. The auditor may decide it is necessary to test the untested period at year-end. It is acceptable to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date and not perform additional tests of the system at year-end under the following circumstances:The auditor believes that internal controls are effective.The auditor does not anticipate significant changes in the internal controls during the remaining period.The transactions normally occurring between the completion of the tests of controls and substantive tests of transactions and the endof the year are similar to the transactions prior to the test date.The remaining period is not too long.14-20Generally, successful tests of controls and substantive tests of transactions allow for a reduction of tests of details of balance at year-end. However, Diane Smith chose the month of March, which only represents one-twelfth of the year, as her test period. With such a short test period, Diane cannot conclude that she has selected a representative sample from the total population; therefore, without testing additional months (consensus of several CPA firms requires at least nine months coverage), Diane should not change the scope of her tests of details of balances at year-end.Multiple Choice Questions From CPA Examinations14-21 a. (2) b. (1) c. (3) d. (4)14-22 a. (4) b. (3) c. (1) d. (2)14-23 a. (4) b. (4) c. (2)Discussion Questions and Problems14-24 1. a. Recorded sales are to valid customers who are able to pay(Occurrence).b. Select a sample of sales recorded in the sales journaland determine if the appropriate individuals approved thecorresponding customer order.c. Sales may be overstated if customer is unable to pay for thegoods.d. Examine sales returns and write-offs of accounts during theyear to determine if returns and write-offs are the result ofcustomers unable to pay. Review aging of accounts receivableto determine if accounts in older aging categories includesales transactions that are unlikely to be collected.2. a. Online sales are recorded in the sales system (Completeness).b. Review online sales system documentation and make inquiriesof client personnel to determine that the automatic interface isa part of the system design. Enter a sample of test transactionsof online sales to determine if test data included in the salesjournals. Reverse all test data items.c. Online sales may not be recorded in the sales account, whichwould understates sales.d. Trace a sample of online sales transactions to the sales journal.3. a. Recorded sales are billed using approved prices (Accuracy).b. Obtain a list of pre-approved unit prices in the master file.Enter product numbers into the sales system to determine ifthe unit price presented is correct. Inquire about accessprivileges to the master file. Attempt to login to access themaster file.c. Sales transactions could be recorded using incorrect amounts.d. Compare a sample of prices on a sample of sales invoices tothe approved prices lists at the time the sale occurred.14-24 (continued)4. a. Existing sales transactions are recorded (Completeness) andsales are recorded on the correct dates (Timing).b. Inquire of shipping personnel about the process they use toforward shipping documents to accounting and observe thetimeliness of when that occurs.c. Goods shipped may not be recorded in the sales journal atall or in the wrong time period.d. Compare date per shipping order to date of posting in salesjournal for a sample of shipments.5. a. Recorded sales are for shipments actually made (Occurrence)and all shipments are recorded as sales (Completeness).b. Review the client‟s do cumentation for the sequence of billsof lading.c. Shipments could be recorded twice (due to duplicate bills oflading) which would overstate sales or shipments may not berecorded (due to missing bills of lading) which would understatesales.d. Review the list of bills of lading to determine if there areduplicates or missing documents.6. a. Recorded sales are for shipments actually made (Occurrence).b. Review systems documentation and make inquiries ofpersonnel to determine if the sales application is programmedto only allow recording of sales with a valid bill of ladingnumber. Attempt to enter a sales transaction into the salesjournal without a bill of lading number to determine if thetransaction is rejected.c. Sales could be recorded even though goods have not beenshipped to customers.d. Review the sales journal to determine if there is a correspondingbill of lading for a sample of sales journal entries.7. a. Recorded sales are for the correct amounts (Accuracy).b. Review a sample of sales transactions to determine if thereis documentation of the independent verification.c. Sales could be misstated because they are recorded atinaccurate amounts.d. For a sample of sales transactions, verify the accuracy of thesales amount.8. a. All cash sales are recorded (Completeness).b. Inquire about duties for individuals responsible for cashcollections and observe whether they have access toaccounting or shipping functions.c. The person handling cash collections may misappropriatecash and not record the cash sale in accounting records.d. Trace a sample of shipments to determine if they have beenrecorded as sales in the accounting records.9. a. Sales transactions are correctly included in the accountsreceivable master file and are correctly summarized (Postingand Summarization).b. Examine evidence that the accounts receivable master file tothe general ledger for accounts receivable.c. The accounts receivable master file does not reflect transactionsthat are included in the ending accounts receivable generalledger balance.d. Compare the dates of entry in the sales journal for a sampleof sales transactions to the date the transactions are postedin the accounts receivable master file.14-25 1. a. Test of controlb. Existing sales transactions are recorded. (Completeness)c. Documentation2. a. Test of controlb. Recorded sales are for shipments actually made to existingcustomers. (Occurrence)c. Documentation3. a. Substantive test of transactionsb. Recorded sales are for the amount of goods shipped. (Accuracy)c. Documentation4. a. Substantive test of transactionsb. Sales transactions are properly included in the accountsreceivable master file and are correctly summarized. (Postingand summarization)c. Reperformance5. a. Test of controlb. Recorded sales returns are for returns from existing customers.(Occurrence)c. Documentation6. a. Test of controlb. (1) Cash received is recorded in the cash receipts journal.(Completeness)(2) Cash receipts are recorded on the correct dates. (Timing)c. Observation or documentation7. a. Substantive test of transactionsb. (1) Recorded receipts are for funds actually received bythe company. (Occurrence)(2) Cash received is recorded in the cash receipts journal.(Completeness)(3) Cash receipts are deposited at the amount received.(Accuracy)(4) Cash receipts are recorded on the correct dates. (Timing)c. Documentation14-26 a. Objective 1 A given sale is recorded more than once, or a sale isrecorded for which a shipment was not made.Objective 2 A shipment took place for which no sale was recorded.Objective 3 A sales journal was incorrectly footed, or a salestransaction was posted to the incorrect customeraccount.b. The first objective deals with overstatement of sales resulting fromrecording sales for which no shipment had occurred. The secondobjective concerns understatement of sales. It results from a shipmentthat has not been recorded.c. Procedures 2, 3, and 4 are tests of controls. Procedures 1, 5, and 6are substantive tests of transactions.d.14-26 (continued)e.14-27 a.14-27 (continued)14-2814-30 a. (4) b. (2) c. (3)14-3214-1814-32 (continued)14-19■Case14-33 a.a.b. Adequacy of Sales Return Allowance can be tested through1. Analytical Procedures – develop independent estimate and compare.2. Comparison to Sales.3. Comparison to A/R.4. Compare to actual bad debt write offs and sales returns.c. The fact that the A/R Allowance has not changed in the data table, even thoughthe total revenue has increased suggests 1) collections have improved or 2) A/R allowance has not been evaluated with respect to new balance in A/R. As anauditor, you would pay special attention to adequacy of A/R Allowance duringfieldwork.Integrated Case Application14-34 a., b., c., and d.PINNACLE MANUFACTURING―Part V14-2614-34 (continued)a.,b.,c., andd.14-2714-34 (continued)e.Acquisitions Substantive Tests of Transactions Note: More than one audit procedure is listed for certain objectives even though the requirement is for only one procedure.14-2814-34 (continued)f.Cash Disbursements Substantive Tests of Transactions Note: More than one audit procedure is listed for certain objectives even though the requirement is for only one procedure.14-29g. Note: Student answers will depend on answers in requirements bthrough f.General1. Discuss the following items with client personnel and observeactivities:a. Segregation of dutiesb. Monthly reconciliation of accounts payable master filewith the general ledger.2. Test journal summarization and posting for a test month:a. Foot acquisition journal and trace postings to the generalledger and accounts payable and inventory masterfiles.b. Foot cash disbursements journal and trace postings togeneral ledger and accounts payable master file.3. Examine file of completed bank reconciliations.4. Account for a sequence of cancelled checks.5. Reconcile recorded cash disbursements with cash disbursementson the bank statement.6. Review the acquisitions journal, cash disbursements journal,general ledger, and accounts payable master file for large orunusual amounts.7. Examine underlying documents (vendors‟ invoices, receivingreports, purchase orders, and purchase requisitions) forindication of cancellation and reasonableness.Acquisitions8. Trace entries in the acquisitions journal to related vendors‟invoices, receiving reports, and purchase orders.a. Examine indication of internal verification of dates,unit costs, prices, extensions and footings, accountclassification, recording in the journal, and posting andsummarization.b. Examine supporting documents for propriety.c. Compare prices on vendors‟ invoices with approvedprice limits established by management.d. Recompute information on vendors‟ invoices.e. Examine vendors‟ invoices for proper classification.f. Compare dates on recorded acquisitions with dateson receiving reports and vendors‟ invoices.g. Examine document package for indication of internalverification.9. Account for a sequence of receiving reports and voucherpackages.10. Trace a sample of receiving reports and vendors‟ invoices tothe acquisitions journal.Cash Disbursements11. Select a sample of cancelled checks and:a. Trace cancelled check to the related cash disbursementsjournal entry and acquisitions journal entry and examinefor payee, name, amount, and date.b. Examine check for signature, proper endorsement, andcancellation by the bank.c. Compare date on cancelled check with bank cancellationdate.d. Recompute cash discounts.14-35 – ACL Problem Solutiona. There are 112 transactions in the month of September, 2002. Thetotal amount of these transactions is $127,941.13 (Filter expressionis DATE1 >= …20020901‟ AND DATE1 <= …20020930‟; Countcommand; then Total command).b. Type “IN” has the highest count. See the following repor t createdusing the Summarize command:Page 1 04/10/2011 12:09:18Produced with ACL by: ACL Educational Edition -Not For Commercial UseTYPE AMOUNT COUNTAA -533.59 1CN -9025.02 108IN 525259.16 588PM -45281.38 71TR -1538.48 4468880.69 772c. There are 588 sales invoices (IN), totaling $525,259.16. The largestsingle invoice amount is $5,549.19 and the average invoice amountis $893.30. (Filter by invoice type = IN; then use Statistics commandon the Amount column.)14-35 – ACL Problem (continued)d. Leaving the filter from part c intact, create a computed field with thefollowing expression: DUE –DATE1 and then add this column tothe table view. Several of the invoices have negative results, whichmeans that possibly the wrong year was used for the due date. Also,some are 90 days old, which indicates potential collection problems.e. See the following printout:, which is the result of using the Stratifycommand after a filter is applied to isolate “IN” transactions greaterthan or equal to $300.Internet Problem Solution: Point of Sales Systems ControlsInternet Problem 14-1The following answers are based on the SEC‟s Litigation Release No.20470 and related press releases associated with the fraud at Bally TotalFitness Holding Corporation:a. According to the SEC press releases and Litigation Release No.20470, Bally fraudulently accounted for three types of revenue it receivedfrom members: initiation fees, prepaid dues, and reactivation fees.Internet Problem 14-1 (continued)Initiation fees: Bally fraudulently and prematurely recognized revenuefrom initiation fees. Part of the price of a Bally health clubmembership was a one-time initiation fee that was either paid in fullwhen the member joined or was financed over a period of time,typically 36 months. Regardless of how the initiation fee was paid,accounting standards prohibit Bally from recognizing all the revenuesfrom initiation fees immediately. Instead, accounting standardsrequire that Bally recognize initiation fee revenue over the entiremembership life. This means that for members who maintainedtheir memberships beyond the financing period, or initial period ofmembership, Bally was required to defer initiation fee revenue andrecognize it over the estimated membership life, not over the termof the initial period of membership. However, Bally prematurelyrecognized its members‟ initiation fee revenue over a period thatwas not only shorter than the estimated membership life, but in mostinstances even shorter than the initial period of membership.Personal Training Services: In addition to selling health club memberships,Bally also sold personal training services (i.e., exercise sessionswith personal trainers). Some customers prepaid for sessions withpersonal trainers. Accounting standards require that revenue fromprepaid personal training services be recognized only when earned,which is when the personal training services were actually provided.Bally, however, recognized revenue related to personal trainingservices before those services were actually provided.Reactivation Fees: Bally also fraudulently recognized revenue fromunpaid dues on inactive memberships. Not all Bally members whocompleted their initial membership contract term renewed theirmembership. Instead, they ceased paying dues. Those memberswho had paid all amounts due under the initial membershipcontract, but who had then stopped paying monthly dues for sixmonths or longer, were solicited by Bally for “reactivation.” Underthat offer, lapsed members could rejoin by paying a “reactivationfee,” which was lower than an “initiation fee.”Accounting standards prohibit Bally from recognizing any revenue from “reactivation fees” until after the reactivating membershad entered into binding contracts. Rather than comply with accountingstandards, Bally simply projected the number of reactivating membersthat it anticipated rejoining up to three years into the future, andthen recognized those anticipated but hypothetical reactivation feesas revenue. The company recognized that hypothetical revenueover a period composed of (a) the average delinquent period (thatis, the period between when members stopped paying their monthlydues and when they reactivated) plus (b) the average reactivationperiod. In later years, they abandoned this methodology and adopteda modified cash basis of accounting for reactivation fees.。