What Makes People Believe In Astrology?

What Makes People Believe In Astrology? This research paper is based on how horoscope is affecting people and what are the reasons that people believe on it. What is the behind force that made people to go for horoscope (motives). Research will be based on survey and will conclude it on statistical results. Horoscope is the guesses of daily activities in our every day life and a Birth map is a depiction of the wheel of our planets, houses and positions in that and the explanations of our plan wheel point out the potentials and weak points in our physical and emotional composition which gives us imminent on how to narrate and obtain along with others in order to create our life a better-off and valuable voyage and a scheme to observe if a match between us and another will present us a greater possibility at pleasure based on the mixture of our charts. A Birth Chart and Interpretation or either a Horoscope and compatibility statement cannot be precise for everyone born under a exact Zodiac sign unless the Astrologer has correct information about the moment of birth, date of birth and place of birth. Place of residence is important in the directing of daily Horoscopes. At times the moment is not known and an Astrologer will use 10:05 P.M. which, while not as correct as it should be, will p ut you as close to the target as possible. Without exact information everything we read about our sign anywhere will be generalized information. Astrology is not only influenced by transmissible factors and the surroundings, but also by the position of our solar system at the time of birth. The planets are regarded as central life-forces, the tools we live by as well as the basis of our very gist. These forces take on different forms, depending on their zodiacal arrangement and on the manner they relate to one another. The aspects formed between the planets depict their relationships, the placement of the planets in relation to the place of birth tells us about their appearance in the specialty of life represented by the astrological houses. BACKGROUND AND HISTORY Babylonian Empires In Babylonian Empires era people were trying to associate happenings like famine and war with other incidents they monitored in the skies. At one point it was considered by historian and archaeologists that all astrological arrangements invented in Babylon, but that conjecture was rejected because of the separate astrology which exists between the Mayans and Aztecs. Babylonian ministers were frequently called upon to use their associations with the gods to calculate the future, and their two rule ways of doing this were examine the liver of animal and analyzing signs in the sky. The aged known astrological manuscripts are written in the first half of the Hammurabi Dynasty, around in the middle of 18th century BCE. Attempts at analyzing the sky ultimately widen into astrology that we have today. Between 612 and 539 BCE, the sky was separated to twelve fractions, comprising the twelve symbols of the zodiac. Once numerical astronomy expanded under the Persians (539-331 BCE), it became feasible to determine some of the movement of diverse planets and the moon, permitting for the improvement of horoscopes related to what we observe today. The oldest known horoscope is a natural horoscope not different the type formed by astrologers in this century. There is not actually missing of the unique tablet, and all we can read of the forecast itself is fundamentally, things will be good for you. Even then, astrologers had started perfectly the art of non-false able statements. I am focusing on Horoscope in astrology that is why its important to give brief introduction about horoscope Houses of Horoscope These twelve houses of horoscope tell us about the different regions of our lives. The foundation of every house is called the cusp. Each house has natural symbol and natural ruling sign. Here is the chart of signs beginning with Aries and ending up at Pisces. Here are listed the twelve houses with the ruler ships, classification and a brief summary of the area of life depicted there: House: 1st Classification: Angular Natural sign: Aries Planet Ruler: Mars House Affairs: The Ascendant. Your projected behavior, temperament, health, how you react to those around you, and your appearance. House: 2nd Classification: Succedent Natural sign: Taurus Planet Ruler: Venus House Affairs: Your material side. Security, gains, losses, financial condition and your concern about these matters. House: 3rd Classification: Cadent Natural sign: Gemini Planet Ruler: Mercury House Affairs: Your mental aptitudes, early childhood, everyday communication, your siblings, and early education. House: 4th Classification: Angular Natural sign: Cancer Planet Ruler: Moon House Affairs: Domestic affairs and conditions, the nurturing parent, the home, and the family life. The end of life. House: 5th Classification: Succedent Natural sign: Leo Planet Ruler: Sun House Affairs: Love affairs, procreation, your children, creative expression, luck and speculation. House: 6th Classification: Cadent Natural sign: Virgo Planet Ruler: Mercury House Affairs: The work environment, the employer and employees, the routine, health issues, hygiene. House: 7th Classification: Angular Natural sign: Libra Planet Ruler: Venus House Affairs: Marriage partner, business partners, contracts, joint endeavors. House: 8th Classification: Succedent Natural sign: Scorpio Planet Ruler: Pluto House Affairs: Attitude toward life/death, possessions of others, wills and legacies; sex and regeneration. House: 9th Classification: Cadent Natural sign: Sagittarius Planet Ruler: Jupiter House Affairs: Religion, philosophy, publishing, higher learning, distant travel, foreign countries. House: 10th Classification: Angular Natural sign: Capricorn Planet Ruler: Saturn House Affairs: Reputation, social status, fame or the lack of it, worldly standing, the other parent. House: 11th Classification: Succedent Natural sign: Aquarius Planet Ruler: Uranus House Affairs: Friends, clubs, organizations, associations, goals, hopes, and wishes House: 12th Classification: Cadent Natural sign: Pisces Planet Ruler:Neptune House Affairs: The subconscious mind, hidden resources, hidden problems, social responsibility. Mentioned introduction, history and background of the astrology and horoscope because I think for any research you should have acknowledged about your topic. Horoscope is becoming popular. People read it may be just for fun or they have strong belief in it. Media is promoting horoscope through magazines, radio, television, and internet. So people have easy access to it. In newspapers and magazines there is a separate column for it. In television we can see people having laptops in their hands and they take live calls and ask for ones time and place of birth so they can tell them what their predicted future is, in radio we can hear our daily horoscope. Apart from newspaper, TV, radio we have an access of internet and on that we can subscribe our email address to specific website or astrologer and they can email us our daily horoscope. Basically this research paper is focusing on horoscope and why do people believe in that. PROBLEM STATEMENT What are the factors that are leading people to believe in astrology and what gender is more prone to believe in it? OBJECTIVES SOCIAL AND PSYCHOLOGICAL MOTIVES Hectic and tough routines of life have made people to believe in horoscopes. They find it easy to know about their future beforehand. So they spend their day according to that. Women used it for households and men in business matters. People are keen to know about their love life, career, luck etc. These things have been affecting our generations because we have started believing and relying on it so much and feel satisfied. High competition among people forced them to believe in superstitious possessions. Every body wishes for best and want to fulfil their needs. But the frenetic life of people made them to go for horoscope so they have better understanding of their forecast. DIFFERENCE IN INCLINATION TOWARDS HOROSCOPE AMONGST MALES AND FEMALES According to research females are more inclined towards horoscope. The reason may be they have enough time to think on these issues and they are more curious than men. Men leave their homes early morning and come back late. They spent most of their time outside and have busy schedule. When they back home their preference would be their family. But it doesnt mean that women are free all the time. Its just a natural phenomenon that women are more inquisitive about their family and enthusiastic to know what will come next in their lives. Females are more superstitious which makes them eager to compare their current lives with the horoscope that comes in newspaper, television, radio and magazines. Men, by nature are far more realistic. They believe in facts more rather than going for horoscopes. SIGNIFICANCE The purpose of this study is to evaluate why people read, view or listen about their horoscope, and what are the main motives that lead them to read horoscopes. MOTIVES Love life The interesting fact is that people read their horoscope because they are keen to know about their love life and if they are in relationship how long it will go. The attuned factor is also involved. They wanted to know that the temperament of both is similar with each other or not. And what personality features are different. Luck People are eager to know what color, number, or stone is lucky for them e.g. when they come to know about these specific things they try to wear that color or stone on special occasions of their lives and try to keep special things on dates that stand for their lucky number. Guidance People read horoscope and consider it as a guide. Many people are addicted to it and cant spend their day without reading it. They feel satisfied when they have an idea about their future and try to act accordingly whats written in their part. Entertainment Some or many people read astrology just for fun and take it as an entertainment. Its just because they dont believe in it and read it to pass time or may be to reduce their curiosity. And most of them read it because they believe every body else is reading. Relaxation People go for horoscope because they want to lighten up their selves. Life is like a test and they want to pass the test by knowing the future ahead. It gives them an opportunity to plan their daily lives according to the predictions provided in horoscopes so they can achieve the maximum success. Escape Horoscope is another way of escaping from reality. People are infuriated of their chaotic routine and want tension free time so they go for horoscope. Control People want control over their lives; have desire for reducing their worries so they read, view or listen about their horoscope. By horoscopes people believe that their future has been forecasted, this gives them an opportunity to make their decisions according to it. It gives them the satisfaction that they will never fail as they have taken all the precautionary measures. This way they actually try to control their lives and make everything impossible, possible. Affection Some people are not interested in knowing about their own horoscope. They are curious about whats going on in their beloveds life and how will be their future and will they be the part of their lives or not. Or the other thing is that they wanted to know what kind of personality they have, and what zodiac would be the best companion for them. Pass time Some people go for horoscope just because they have to pass time. They dont have anything else to do. So they pick up a piece of paper and start reading it or use other sources for example. Radio, internet, TV etc and sooner or later it will become their routine. Satisfaction Satisfaction is again one important motive. Who are habitual of reading it feel satisfied otherwise they have a feel that they have missed something important or incomplete. For the believers, it is important that you find two astrologers for yourself and observe who is telling you the right picture. And what other has missed. The one you find better stick with him/her. A good astrologer is like a good mechanic. An expert mechanic fix out the problem for so long whereas, a bad one may take more money but his work would not be reliable. Same is the case with good and bad astrologer, a fine astrologer see all aspects and tell you nearly accurate and qualitative portrayal about you, while a bad one does not focus on every aspect and gives his prediction over all. LITERATURE REVIEW This research paper is based on uses and gratifications of horoscope and what gender is more likely to believe in it. It is so clear in the paper that people feel satisfied when they read horoscope. Robert Lomas study showed that women are more into horoscope, it was highlighted that one of his friend believed in astrology although she was a working and educated woman, whenever she had to start some work shell go through her horoscope. The lady had knowledge about other zodiac signs and she could relate personalities with their signs. A survey in Britain showed that 70% women read their horoscopes regularly whether its for fun, love, luck etc. Many of them know their zodiac signs and 85% agreed that the sign depicts their personality. Another survey done by Jeanette Winterton in USA showed that 98% of the population knows their signs and 66% go through their horoscope weekly. The survey showed that many people are interested in their horoscopes. Kendrick Frazier research again demons trated that women are the strong believers than men and same is the case with new generation that youth is more into it than their elders. Durand and Martin study showed that group who scored well in scientific knowledge has less belief. But Dr. Thomas gray studied was the same and according to that university education hadnt done much in minimizing the believes. Professor Hans from London University found that every third one in Western countries is into astrology, though its for fun but they do it. Marcia Montenegros point of view is that you do not read horoscope because if you are reading it just for fun you would be habitual to it and more curious and fascinated about your future. All of us have different thinking and we cant change each others mind. The studies show that people are into astrology because they have almost same reasons. Fun part is one of the dominating reasons in every study. And other reasons are one and the same for example: love, money, curiosity, guidance etc. In every case women were seen more interested in horoscope. It was found in one of the study that during pregnancy astrology works as a stress management for women. RESEARCH QUESTIONS R Q 1) Are there any differences in men and women in frequencies of believing on horoscope? R Q2) Are there any differences in men and women in psychological and social motives in reading/viewing horoscope? For collecting data, the interpersonal motives were considered important that are: love, luck. Entertainment, escape, affection, pass time, relaxation etc to know why horoscope is being viewed and which gender is more corresponding to it. METHODOLOGY This research paper is conducted through survey and quantitative in nature. Questionnaire was based on close-ended questions. The purpose of research was to know which gender is more concerned in horoscope. Questionnaire was distributed to male and female and the idea of this was to know who more into horoscope is and what the factors behind it are. It was given in the age of 20-50 educated and less educated people but the ratio among male and female were same. Variables of the research were interpersonal motives that are discussed before love, fun, relaxation, affection etc. SURVEY ANALYSIS Age: 20 to 50 Gender Female 27 Male 23Survey was based on equal distribution of questionnaire as in 25 to male and 25 to female but this shows that the percentage of women is more Occupation: Students (11 males, 10 females) Teacher (4 males, 4 females) Housewives (9 females) Clerk (3 male, 2 females) Shopkeepers (7 males) Zodiac: 1) How much do you believe in astrology? Very much Not so much Slightly Not at all The graph shows that females are more who believes very much in horoscope and males marked more to not so much. In slightly both have almost same percentage whereas, in not at all the percentage of females are again more than males. 2) What is the frequent source you use for checking your horoscope? Newspaper Magazines Television Internet Other (specify) Most females get to know about their horoscope through newspapers, TV and magazines because its an easy source for women whereas the usage of internet to know about their horoscope is more from males. For males internet is an easy access and they are fond of electrical things specially spent most of their time on computer. Other options included radio and astrologer, and this showing that men are dominant in this portion of graph. 3) Do you relate astrology with religion? Yes Somehow Not at all Females are more who relate religion and astrology, and the percentage of men is high in not at all. Whereas in (somehow) its almost same. 4) Do you spend your day as predicted in your horoscope? Very much Not so much Slightly Not at all Females dominating very much part of the graph and not at all is dominated by men. Not so much and slightly are nearly same. This is because women have to stay home and they do not as practical and tough life as men have. So they like to spent their day according to their horoscope. 5) Is reading about your horoscope, in your daily routine? Very much Not so much Slightly Not at all Again females are dominating in very much section, whereas men in not at all. Women have time to read about their horoscope. After getting free from the house chores they take out time for horoscope. 6) If you read your horoscope, why would you do so? For fun For advice Habit Pass time Other (specify) Men do it for fun; females have a habit of it. Women also take a horoscope as an adviser. 7) Do you read out the signs of people that you are in relationship with? (Affection) Yes Slightly Not at all Women are more keen to know about what is going on and what will going to happened with their loved one. In slightly the percentage is almost same and not at is dominated by men. 8) Do you think your zodiac depicts your personality? Very much Not so much Slightly Not at all Females are again who thinks that their zodiac depicts their personality. The above graphs shows that the females are strong believers than men, that is why they act according to that what has written in their horoscope and this is the reason may be that they have a view that their zodiac portrays their personality. 9) Do you read horoscope when you are disturbed or conscious about something? Strongly agree Agree Feel neutral Strongly disagree Disagree Females are more who read out their horoscope in bad conditions, man are more in agree, men feel neutral in knowing about their future in stresses conditions. SURVEY CONCLUSION Survey questionnaire was equally distributed to males and females. And on the same ratio of education, working females were also the part of the survey but results that graphs are showing that females are more into astrology and this shows that women read do not read it just for fun, its kind of habit for them and they take it as an good adviser. The reason behind all this is because they are more curious, possessive, superstitious or eager to know about their and others future. DISCUSSION This research paper views that people are dependent on horoscope. It helps them in building up their confidence that what is going to happened in their future. Tensions and pressure of daily life made them to search the cure, so they go for reading horoscope. By knowing about their future they will be able to prepare themselves according to the coming situation. This need of people has increased the value of horoscope and made people reliant on it. The needs of poor and privileged, educated and illiterate but more or less they have a belief in astrology. The ratio of female is more than males. In every question females are more positive respondent than men. This is an extremely amazing situation that in this technological era astrology is still popular among people and they actually believe on that. CONCLUSION This whole research paper and the result show that females are more prone towards horoscope. And the factors behind reading horoscope are psychological, religious and social. Male female both go through their horoscope and consider it helpful for themselves to know about their forecast, so that they can manage in bad conditions and they would have idea what is coming next in their lives. Astrology is popular among people and they feel satisfied when read about horoscope. Our society is being admired by astrology and it became their habit to know about their horoscope. Females are more likely to visit horoscope section in newspaper, magazines and TV because these things are easily in range of them. People got the habit from their friends, colleagues or companions. Once they read it just for fun, other time again may be for fun but then it will become their desire to know what will be good for them and whats not. Females are more conscious about their and their beloveds lives so they u sed to follow daily horoscope more, males have busy tough routine and may be their responsibility is just to take care of outdoor activities so they dont get time for it. Females have the habit of inquiry and by considering horoscope it will give help to them.

Biocon

Case: BIOCON LTD. Building a biotech powerhouse Reasons for success of Biocon Ltd. in the past: Sequential growth strategy: Biocon added businesses like enzymes, biopharmaceuticals, research services and drug development that were interlinked. Consolidation of core skills: Biocon had consolidated its core skills in enzymes (known to be the building blocks of biotech), established a footprint in biopharmaceuticals (which helped generate regular cash flow) and partnered with global firms (serving as launching pads for drug development). Biocon's Integrated Business Model: Biocon, along with its subsidiaries – Syngene and Clinigene, handles the entire lifecycle of a drug; right from discovery to commercialization (it has least expertise in commercialization). o Discovery Syngene Molecular Biology Synthetic Chemistry Biocon Microbial Fermentation Biodiversity Bioprocessing o Development Clinigene Clinical Research Clinical Development Clinical Trials o Commercialization Biocon Generics, main contributor to revenue: Bulk of their revenues came from generics. A generic drug typically cost 20 per cent to 80 per cent less because the product was not burdened with legacy expenses of research, development, clinical trials and marketing. Patent of Plafactor: Biocon secured a U. S. patent for a reactor it developed, known as plafactor. The patent gave the company exclusive global rights to use and license the technology for the manufacture of drugs involving genetically engineered microorganisms in a solid-state fermenter. Diversified and Specialized: From the company’s origins making enzymes for the breweries industry, Biocon had expanded and diversified into related fields during the next two decades. Biocon specialized in four broad areas: enzymes, biopharmaceuticals, custom research and clinical research. Fermentation offered competitive advantage: The importance of enzymes for Biocon lay in the fact that the business was a springboard for one of the company’s competitive advantages. Fermentation was a core skill that offered Biocon a leverage in stage 3 of the value chain of biopharmaceuticals. The company’s fermenting capacity gave it both the ability to scale up an industrial process and the platform on which to pursue discovery-led growth. Threats to sustaining this performance in future: More competitive market: Every biotech player – big and small, was seeking a foothold in generics. The biopharmaceuticals space, in which Biocon had built a niche, was thus becoming more crowded and competitive day by day. Changing Regulatory Environment: The regulatory environment that had made generics such an attractive sector in India was changing. The government of India had introduced a full-fledged patents regime. In the past, the Indian government had granted patents for the process of manufacturing a drug, not for the drug itself. Patent protection of Statins: Biopharmaceuticals represented 80 per cent of Biocon’s turnover, with the production of APIs for statins accounting for 45 per cent of revenue. Statins would lose patent protection in 2008 in the United States. As a result, the dollar value of the global market for statins would shrink from $22 billion to $3 billion. There were also pricing pressures from low-cost Chinese competitors. Commercialization: Relative to the company’s other activities; Biocon had the least expertise in this final stage of drug discovery and development. Investments were being made in creating the manufacturing capacity for industrial scale-up. Commercialization would also require compliance with manufacturing standards, deployment of a sales force and development of expertise in marketing and promotions aimed at physicians and end-customers. Greater demand on Biocon’s financial resources: Biocon had operated for a long time in the realm of commodities, characterized by business-to-business sales. Making the transition to drug discovery and development would involve developing competence in several key areas: building a portfolio of promising drug candidates to move through the development pipeline, project management skills to facilitate this process, regulatory compliance, manufacturing and marketing. The need to develop capabilities in these areas would place greater demand on Biocon’s financial resources.

Cpa Questions

Multiple Choice—CPA Adapted Chapter 14 – Long Term Liabilities 1. On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond issuance? a. $1,015,000 b. $1,000,000 c. $990,000 d. $965,000 2. On January 1, 2010, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000.Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2010, Solis's adjusted unamortized bond premium should be a. $405,000. b. $377,400. c. $364,500. d. $304,500. 3. On July 1, 2009, Noble, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,00 0 to yield 10%, resulting in a bond discount of $305,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2011, Noble's unamortized bond discount should be a. 264,050. b. $255,000. c. $244,000. d. $215,000. 4. On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2010? a. $44,266 b. $50,000 c. $53,118 d. $60,000 5. On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 1999 at 98 with a maturity date of January 1, 2014. The bond issue costs relating to this transaction were $150,000.Doty amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Doty recognize on the redemption of these bonds (ignore taxes)? a. $90,000 b. $60,000 c. $50,000 d. $0 6. On its December 31, 2010 balance sheet, Emig Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2011, Emig retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Emig report in its 2011 income statement as loss on extinguishment of debt (ignore taxes)? . $0 b. $70,000 c. $160,000 d. $230,000 7. On January 1, 2006, Goll Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000. These bonds were to mature on January 1, 2016 but were callable at 101 any time after December 31, 2009. Interest was payable semiannually on July 1 and January 1. On July 1, 2011, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2011 on this early extinguishment of debt was a. $30,000 gain. b. $12,000 gain. c. $10,000 loss. d. $8,000 g ain. 8. On June 30, 2011, Omara Co. ad outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a. $2,970,000. b. $2,895,000. c. $2,865,000. d. $2,820,000. 9. A ten-year bond was issued in 2009 at a discount with a call provision to retire the bonds.When the bond issuer exercised the call provision on an interest date in 2011, the carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2011 should have equaled the a. call price. b. call price less unamortized discount. c. face amount less unamortized discount. d. face amount plus unamor tized discount. 10. Paige Co. took advantage of market conditions to refund debt. This was the fourth refunding operation carried out by Paige within the last three years. The excess of the carrying amount of the old debt over the amount paid to extinguish it should be reported as a a. ain, net of income taxes. b. loss, net of income taxes. c. part of continuing operations. d. deferred credit to be amortized over the life of the new debt. *11. Eddy Co. is indebted to Cole under a $400,000, 12%, three-year note dated December 31, 2009. Because of Eddy's financial difficulties developing in 2011, Eddy owed accrued interest of $48,000 on the note at December 31, 2011. Under a troubled debt restructuring, on December 31, 2011, Cole agreed to settle the note and accrued interest for a tract of land having a fair value of $360,000. Eddy's acquisition cost of the land is $290,000.Ignoring income taxes, on its 2011 income statement Eddy should report as a result of the troubled debt restruc turing Gain on DisposalRestructuring Gain a. $158,000$0 b. $110,000$0 c. $70,000$40,000 d. $70,000$88,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | a| 5. | a| 7. | d| 9. | c| *11. | d| 2. | b| 4. | c| 6. | d| 8. | c| 10. | c| | | No. AnswerDerivation 1. a($1,000,000 ? .99) + ($1,000,000 ? .10 ? 3/12) = $1,015,000. 2. b$405,000 – [($3,000,000 ? .10) – ($3,405,000 ? .08)] = $377,400. 3. a2009–2010:$4,695,000 + [($4,695,000 ? 1) – ($5,000,000 ? .09)] = $4,714,500. 2010–2011:$4,714,500 + ($471,450 – $450,000) = $4,735,950 $5,000,000 – $4,735,950 = $264,050. 4. c$885,296 ? .06 = $53,118. 5. a($2,500,000 ? 1. 02) –= $90,000. 6. d($3,000,000 + $70,000) – [($6,000,000 – $320,000) ? 1/2] = $230,000. 7. d – ($1,000,000 ? 1. 01) = $8,000. 8. c$3,000,000 – ($105,000 + $30,000) = $2,865,000. 9. cConceptual. 10. cConceptual . *11. d$360,000 – $290,000 = $70,000 ($400,000 + $48,000) – $360,000 = $88,000. Chapter 15 – Stockholders’ Equity 1. A corporation was organized in January 2007 with authorized capital of $10 par value common stock.On February 1, 2010, shares were issued at par for cash. On March 1, 2010, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services with a fair value of $90,000. Additional paid-in capital would increase on February 1, 2010March 1, 2010 a. YesNo b. YesYes c. NoNo d. NoYes 2. On July 1, 2010, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000. At this date Nall's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of he proceeds allocated to Nall's preferred stock should be a. $62,500. b. $75,000. c. $90,000. d. $68,750. 3. Horton Co. was organized on Janua ry 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5—issued 375,000 shares at $14 per share. July 27—purchased 25,000 shares at $11 per share. November 25—sold 15,000 shares of treasury stock at $13 per share. Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2010? . $0. b. $15,000. c. $30,000. d. $45,000. 4. In 2010, Hobbs Corp. acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2011, Hobbs issued 4,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2011 to record the issuance of the 4,000 shares? TreasuryAdditionalRetainedCommon StockPaid-in CapitalEarnings Stock a. $72,000$70,000 b. $72,000$28,000 c. $96,000$4,0 00 d. $68,000$28,000$4,000 5. At its date of incorporation, Sauder, Inc. ssued 100,000 shares of its $10 par common stock at $11 per share. During the current year, Sauder acquired 20,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? Retained EarningsAdditional Paid-in Capital a. DecreaseDecrease b. No effectDecrease c. DecreaseNo effect d. No effectNo effect 6. Farmer Corp. owned 20,000 shares of Eaton Corp. urchased in 2007 for $240,000. On December 15, 2010, Farmer declared a property dividend of all of its Eaton Corp. shares on the basis of one share of Eaton for every 10 shares of Farmer common stock held by its stockholders. The property dividend was distributed on January 15, 2011. On the declaration date, the aggregate market price of the Eaton shares held by Farmer was $400,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of a. $0. b. $160,000. c. $240,000. d. $400,000. 7. A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following? Additional Paid-in CapitalRetained Earnings a. DecreaseNo effect b. DecreaseDecrease c. No effectDecrease d. No effectNo effect 8. On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek ‘s common stock was $20 per share on May 1, 2010. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $200,000. b. decreased by $200,000. c. decreased by $10,000. d. did not change. . How would the declaration and subsequent issuance of a 10% stock dividend by the issuer af fect each of the following when the market value of the shares exceeds the par value of the stock? Additional Common StockPaid-in Capital a. No effectNo effect b. No effectIncrease c. IncreaseNo effect d. IncreaseIncrease 10. On December 31, 2010, the stockholders' equity section of Arndt, Inc. , was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares$ 90,000 Additional paid-in capital116,000 Retained earnings 174,000 Total stockholders' equity$380,000On March 31, 2011, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair market value of the stock was $18 per share. For the three months ended March 31, 2011, Arndt sustained a net loss of $32,000. The balance of Arndt’s retained earnings as of March 31, 2011, should be a. $125,800. b. $133,000. c. $134,800. d. $142,000. *11. At December 31, 2010 and 2011, Plank Corp. had outstanding 2,000 shares of $100 par value 8% cumulative p referred stock and 10,000 shares of $10 par value common stock. At December 31, 2010, dividends in arrears on the preferred stock were $8,000.Cash dividends declared in 2011 totaled $30,000. What amounts were payable on each class of stock? Preferred StockCommon Stock a. $16,000$14,000 b. $22,000$8,000 c. $24,000$6,000 d. $30,000$0 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | b| 9. | d| *11. | c| 2. | b| 4. | b| 6. | d| 8. | d| 10. | a| | | No. AnswerDerivation 1. dConceptual. 2. b($24 2,500) + ($18 5,000) = $150,000. $90,000 ————— ? $125,000 = $75,000. $150,000 3. c15,000 $2 = $30,000. 4. b(4,000 $18) = $72,000; (4,000 $7) = $28,000. . cConceptual. 6. d$400,000 (market value). 7. b Conceptual. 8. dConceptual. 9. dConceptual. 10. a$174,000 – $32,000 – (900 $18) = $125,800. *11. c($200,000 . 08) + $8,000 = $24,000; $30,000 – $24,000 = $6,000 Chapter 16 — Dilutive Securities ; Earnings Per Share 1. On January 2, 2010, Farr Co. issued 10-year convertible bonds at 105. During 2012, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr’s common stock was 50 percent above its par value.On January 2, 2010, cash proceeds from the issuance of the convertible bonds should be reported as a. paid-in capital for the entire proceeds. b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance. c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount. d. a liability for the entire proceeds. 2. Lang Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash p roceeds.This excess is reported as a. Discount on Bonds Payable. b. Premium on Bonds Payable. c. Common Stock Subscribed. d. Paid-in Capital in Excess of Par—Stock Warrants. 3. On January 1, 2010, Sharp Corp. granted an employee an option to purchase 6,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $140,000. The option became exercisable on December 31, 2011, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2010$30 December 31, 201150For 2011, should recognize compensation expense under the fair value method of a. $90,000. b. $30,000. c. $70,000. d. $0. *4. On January 2, 2010, for past services, Rosen Corp. granted Nenn Pine, its president, 16,000 stock appreciation rights that are exercisable immediately and expire on January 2, 2011. On exercise, Nenn is entitled to receive cash for the excess of the market pr ice of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2010. The market price of Rosen's stock was $30 on January 2, 2010, and $45 on December 31, 2010.As a result of the stock appreciation rights, Rosen should recognize compensation expense for 2010 of a. $0. b. $80,000. c. $240,000. d. $480,000. Multiple Choice Answers—Dilutive Securities, CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 2. | a| 3. | c| *4. | c| No. AnswerDerivation 1. dConceptual. 2. aConceptual. 3. c$140,000 ? 2 = $70,000. *4. c($45 – $30) ? 16,000 = $240,000. Earnings Per Share 5. Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011, Didde issued 200,000 shares of nonconvertible preferred stock.During 2011, Didde declared and paid $100,000 cash dividends on the common stock and $80,000 on the preferred stock. N et income for the year ended December 31, 2011 was $620,000. What should be Didde's 2011 earnings per common share? a. $2. 07 b. $1. 80 c. $1. 73 d. $1. 47 6. At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. For 2011, earnings per common share amounted to a. $2. 22. b. $1. 94. c. 1. 67. d. $1. 11. 7. Marsh Co. had 2,400,000 shares of common stock outstanding on January 1 and December 31, 2011. In connection with the acquisition of a subsidiary company in June 2010, Marsh is required to issue 100,000 additional shares of its common stock on July 1, 2012, to the former owners of the subsidiary. Marsh paid $200,000 in preferred stock dividends in 2011, and reported net income of $3,400,000 for the year. Marsh's diluted earnings per share for 2011 should be a. $1. 42. b. $1. 36. c. $1. 33. d. $1. 28. 8. Foyle, Inc. , had 560,000 shares of common stock issued and outstanding at December 31, 2010.On July 1, 2011, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2011. The average market price of Foyle's common stock was $20 during 2011. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2011? a. 580,000 b. 588,000 c. 608,000 d. 612,000 9. When computing diluted earnings per share, convertible securities are a. ignored. b. recognized only if they are dilutive. c. recognized only if they are antidilutive. . recognized whether they are dilutive or antidilutive. 10. In determining diluted earnings per share, dividends on nonconvertible cumulative preferred stock should be a. disregarded. b. added back to net income whether de clared or not. c. deducted from net income only if declared. d. deducted from net income whether declared or not. 11. The if-converted method of computing earnings per share data assumes conversion of convertible securities as of the a. beginning of the earliest period reported (or at time of issuance, if later). b. beginning of the earliest period reported (regardless of time of issuance). c. iddle of the earliest period reported (regardless of time of issuance). d. ending of the earliest period reported (regardless of time of issuance). Multiple Choice Answers—Earnings Per Share—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 5. | b| 6. | b| 7. | d| 8. | b| 9. | b| 10. | d| 11. | a| No. AnswerDerivation 5. b$620,000 – $80,000 ————————— = $1. 80. 300,000 6. b $400,000 – (10,000 ? $100 ? .05) ————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€ = $1. 94. 180,000 7. d $3,400,000 – $200,000 ——————————– = $1. 28. 2,400,000 + 100,000 8. b560,000 + (40,000 ? 6/12) + [32,000 – (32,000 ? 15 ? $20)] = 588,000. 9. bConceptual. 10. dConceptual. 11. aConceptual. Chapter 17 – Investments 1. On October 1, 2010, Wenn Co. purchased 600 of the $1,000 face value, 8% bonds of Loy, Inc. , for $702,000, including accrued interest of $12,000. The bonds, which mature on January 1, 2017, pay interest semiannually on January 1 and July 1. Wenn used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Wenn's December 31, 2011 balance sheet, the carrying value of the bonds is a. $690,000. b. $684,000. c. $681,600. d. $672,000. 2. Valet Corp. egan operations in 2010. An analysis of Valet’s equity securities portfolio acquir ed in 2010 shows the following totals at December 31, 2010 for trading and available-for-sale securities: TradingAvailable-for-Sale SecuritiesSecurities Aggregate cost$90,000$110,000 Aggregate fair value65,00095,000 What amount should Valet report in its 2010 income statement for unrealized holding loss? a. $40,000. b. $10,000. c. $15,000. d. $25,000. 3. At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation: FairUnrealized Cost ValueGain (Loss)Trading Securities: SecurityA$ 90,000$ 60,000$(30,000) B 15,000 20,000 5,000 Totals$105,000$ 80,000$(25,000) Available-for-Sale Securities: SecurityY$ 70,000$ 80,000$ 10,000 Z 85,000 55,000 (30,000) Totals$155,000$135,000$(20,000) All market declines are considered temporary. Fair value adjustments at December 31, 2010 should be established with a corresponding charge against IncomeStockholders’ Equity a. $45,000$ 0 b. $30,000$30,000 c. $25,000$20,000 d. $25,00 0$ 0 4. On December 29, 2011, James Co. sold an equity security that had been purchased on January 4, 2010.James owned no other equity securities. An unrealized holding loss was reported in the 2010 income statement. A realized gain was reported in the 2011 income statement. Was the equity security classified as available-for-sale and did its 2010 market price decline exceed its 2011 market price recovery? 2010 Market Price Decline Exceeded 2011 Available-for-SaleMarket Price Recovery a. YesYes b. YesNo c. NoYes d. NoNo Use the following information for questions 5 through 7. Rich, Inc. acquired 30% of Doane Corp. ‘s voting stock on January 1, 2010 for $400,000. During 2010, Doane earned $160,000 and paid dividends of $100,000.Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2011, Doane earned $200,000 and paid dividends of $60,000 on April 1 and $60,000 on October 1. On July 1, 2011, Ri ch sold half of its stock in Doane for $264,000 cash. 5. Before income taxes, what amount should Rich include in its 2010 income statement as a result of the investment? a. $160,000. b. $100,000. c. $48,000. d. $30,000. 6. The carrying amount of this investment in Rich's December 31, 2010 balance sheet should be a. $400,000. b. $418,000. c. $448,000. d. $460,000. . What should be the gain on sale of this investment in Rich's 2011 income statement? a. $64,000. b. $55,000. c. $49,000. d. $40,000. 8. On January 1, 2010, Reston Co. purchased 25% of Ace Corp. ‘s common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston’s investment account was $720,000 at December 31, 2010. Ace reported net income of $450,000 for the year ended December 31, 2010, and paid common stock dividends totaling $180,000 during 2010. How much did Reston pay for its 25% interest in Ace? a. $652,500. b. $765,000. c. $787,500. d. 877,500. 9. On December 31, 2010, Patel Co. purchased equity securities as trading securities. Pertinent data are as follows: Fair Value Security CostAt 12/31/11 A$132,000$117,000 B168,000186,000 C288,000258,000 On December 31, 2011, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2011? a. $3,000 gain. b. $27,000 loss. c. $30,000 loss. d. $45,000 loss. Multiple Choice Answers—CPA AdaptedItem| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | c| 9. | b| 2. | d| 4. | d| 6. | b| 8. | a| | | No. AnswerDerivation 1. d$702,000 – $12,000 = $690,000 15 $690,000 – ($90,000 ? — ) = $672,000. 75 2. d$90,000 – $65,000 = $25,000. 3. c 4. dConceptual. 5. c$160,000 ? 30% = $48,000. 6. b$400,0 00 + $48,000 – ($100,000 ? 30%) = $418,000. 7. c$418,000 – ($60,000 ? 30%) + ($200,000 ? 50% ? 30%) = $430,000. $264,000 – ($430,000 ? 2) = $49,000. 8. a$720,000 – ($450,000 ? 25%) + ($180,000 ? 25%) = $652,500. 9. b$18,000 – $15,000 – $30,000 = $27,000 loss. Chapter 18 – Revenue Recognition . According to the FASB's conceptual framework, the process of reporting an item in the financial statements of an entity is a. recognition. b. realization. c. allocation. d. matching. 2. Green Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2010, Green entered into a fixed-price contract to construct an office building for $12,000,000. Information relating to the contract is as follows: At December 31 2010 2011 Percentage of completion15%45% Estimated total cost at completion$9,000,000$9,600,000 Gross profit recognized (cumulative)600,0001,440,000Contract costs incurred during 2011 were: a . $2,880,000. b. $2,970,000. c. $3,150,000. d. $4,320,000. 3. Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2010, Bruner started work on a $35,000,000 construction contract that was completed in 2011. The following information was taken from Bruner's 2010 accounting records: Progress billings$11,000,000 Costs incurred10,500,000 Collections7,000,000 Estimated costs to complete21,000,000 What amount of gross profit should Bruner have recognized in 2010 on this contract? a. $3,500,000 b. 2,333,334 c. $1,750,000 d. $1,166,667 4. During 2010, Gates Corp. started a construction job with a total contract price of $3,500,000. The job was completed on December 15, 2011. Additional data are as follows: 2010 2011 Actual costs incurred$1,350,000$1,525,000 Estimated remaining costs1,350,000— Billed to customer1,200,0002,300,000 Received from customer1,000,0002,400,000 Under the completed-contract method, what amount should Ga tes recognize as gross profit for 2011? a. $225,000 b. $312,500 c. $475,000 d. $625,000 5. Hogan Farms produced 800,000 pounds of cotton during the 2010 season.Hogan sells all of its cotton to Ott Co. , which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market price will not fall below $. 70 per pound during the next two years. Hogan's costs of selling and distributing the cotton are immaterial and can be reasonably estimated. Hogan reports its inventory at expected exit value. During 2010, Hogan sold and delivered to Ott 600,000 pounds at the market price of $. 70. Hogan sold the remaining 200,000 pounds during 2011 at the market price of $. 72. What amount of revenue should Hogan recognize in 2010? . $420,000 b. $432,000 c. $560,000 d. $576,000 6. Braun, Inc. appropriately uses the installment-sales method of accounting to recognize income in its financial statements. Some pertinent data relating to this metho d of accounting include: 2010 2011 Installment sales$750,000$720,000 Cost of installment sales 570,000 504,000 Gross profit$180,000$216,000 Rate of gross profit24%30% Balance of deferred gross profit at year end: 2010$108,000$ 36,000 2011 198,000 Total$108,000$234,000 What amount of installment accounts receivable should be presented in Braun's December 31, 2011 balance sheet? a. 720,000 b. $810,000 c. $780,000 d. $866,666 7. Hartz Co. , which began operations on January 1, 2010, appropriately uses the installment-sales method of accounting. The following information pertains to Hartz's operations for the year 2010: Installment sales$1,200,000 Regular sales480,000 Cost of installment sales720,000 Cost of regular sales288,000 General and administrative expenses96,000 Collections on installment sales288,000 The deferred gross profit account in Hartz's December 31, 2010 balance sheet should be a. $115,200. b. $192,000. c. $364,800. d. $480,000. 8. On January 1, 2010, Orton Co. old a us ed machine to King, Inc. for $350,000. On this date, the machine had a depreciated cost of $245,000. King paid $50,000 cash on January 1, 2010 and signed a $300,000 note bearing interest at 10%. The note was payable in three annual installments of $100,000 beginning January 1, 2011. Orton appropriately accounted for the sale under the installment method. King made a timely payment of the first installment on January 1, 2011 of $130,000, which included interest of $30,000 to date of payment. At December 31, 2011, Orton has deferred gross profit of a. $70,000. b. $66,000. c. $60,000. d. 51,000. 9. Piper Co. began operations on January 1, 2010 and appropriately uses the installment method of accounting. The following information pertains to Piper's operations for 2010: Installment sales1,800,000 Cost of installment sales1,080,000 General and administrative expenses180,000 Collections on installment sales825,000 The balance in the deferred gross profit account at December 31, 2010 shoul d be a. $330,000. b. $495,000. c. $390,000. d. $720,000. 10. Moon Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments.According to the FASB's conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the a. current liabilities section as a deferred revenue. b. noncurrent liabilities section as a deferred revenue. c. current assets section as a contra account. d. noncurrent assets section as a contra account. 11. Crane, Inc. is a retailer of home appliances and offers a service contract on each appliance sold. Crane sells appliances on installment contracts, but all service contracts must be paid in full at the time of sale.Collections received for service contracts should be recorded as an increase in a a. deferred revenue account. b. sales contracts receivable valuation account. c. stockholders' valuation account. d. service revenue account. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | d| 5. | c| 7. | c| 9. | c| 11. | a| 2. | b| 4. | d| 6. | b| 8. | c| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. b($9,600,000 45%) – ($9,000,000 15%) = $2,970,000. $10,500,000 3. d—————— ($35,000,000 – $31,500,000) = $1,166,667. $31,500,000 . d$3,500,000 – $1,350,000 – $1,525,000 = $625,000. 5. c800,000 lbs. $. 70 = $560,000. 6. b($36,000 ? 24%) + ($198,000 ? 30%) = $810,000. 7. c$1,200,000 – $720,000 = $480,000 gross profit (40% gross profit rate) $480,000 – ($288,000 . 4) = $364,800. 8. c$300,000 + $50,000 = $350,000 $350,000 – $245,000 = $105,000 gross profit (30% gross profit rate) ($300,000 – $100,000) ? 30% = $60,000. 9. c$1,800,000 – $1,080,000 = $720,000 (40% gross profit rate)$720,000 – ($825,00 0 40%) = $390,000. 10. cConceptual. 11. aConceptual. Chapter 20 Accounting for Pensions ; Post Retirement Benefits 1.The following information pertains to Hopson Co. ‘s pension plan: Actuarial estimate of projected benefit obligation at 1/1/11$72,000 Assumed discount rate10% Service costs for 2011$18,000 Pension benefits paid during 2011$15,000 If no change in actuarial estimates occurred during 2011, Hopson's projected benefit obligation at December 31, 2011 was a. $64,200. b. $75,000. c. $79,200. d. $82,200. 2. Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the a. shortage between the expected and actual returns on plan assets. b. ncrease in the projected benefit obligation due to the passage of time. c. increase in the fair value of plan assets due to the passage of time. d. amortization of the discount on accumulated OCI (PSC). 3. Logan Corp. , a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2011: Projected benefit obligation$600,000 Accumulated benefit obligation525,000 Fair value of plan assets825,000 Service cost240,000 Interest on projected benefit obligation24,000Amortization of prior service cost60,000 Expected and actual return on plan assets82,500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2011 pension cost. In its December 31, 2011 balance sheet, Logan should report a pension asset / liability of a. Pension liability of $600,000 b. Pension asset of $824,000 c. Pension asset of $225,000 d. Pension liability of $525,000 4. Seigel Co. maintains a defined-benefit pension plan for its employees. At each balance sheet date, Yeager should report a pension asset / liability equal to the a. ccumulated benefit obligation. b. projected benefit ob ligation. c. accumulated benefit obligation. d. funded status relative to the projected benefit obligation. 5. Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2011, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2011, Ohlman should report a liability in the amount of the a. excess of the projected benefit obligation over the fair value of the plan assets. b. xcess of the accumulated benefit obligation over the fair value of the plan assets. c. projected benefit obligation. d. accumulated benefit obligation. 6. At December 31, 2011, the following information was provided by the Vargas Corp. pension plan administrator: Fair value of plan assets$4,500,000 Accumulated benefit obligation5,580,000 Projected benefit obligation7,200,000 What is the amount of the pension liability that should be shown on Vargas' December 31, 2011 balance sheet? a. $7,200,000 b. $2,700,000 c. $1,620,000 d. $1,080,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | 1. d| 3. | c| 5. | a| 2. | b| 4. | d| 6. | b| No. AnswerDerivation 1. d$72,000 + $18,000 + ($72,000 ? .10) – $15,000 = $82,200. 2. bConceptual. 3. c$825,000 – $600,000 = $225,000. 4. dConceptual. 5. aConceptual. 6. b$7,200,000 – $4,500,000 = $2,700,000. Chapter 21 –Accounting for Leases 1. Lease A does not contain a bargain purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property.How should the lessee classify these leases? Lease A Lease B a. Operating leaseCapital lease b. Operating leaseOperating lease c. Capital leaseCapita l lease d. Capital leaseOperating lease 2. On December 31, 2011, Burton, Inc. leased machinery with a fair value of $840,000 from Cey Rentals Co. The agreement is a six-year noncancelable lease requiring annual payments of $160,000 beginning December 31, 2011. The lease is appropriately accounted for by Burton as a capital lease. Burton's incremental borrowing rate is 11%. Burton knows the interest rate implicit in the lease payments is 10%.The present value of an annuity due of 1 for 6 years at 10% is 4. 7908. The present value of an annuity due of 1 for 6 years at 11% is 4. 6959. In its December 31, 2011 balance sheet, Burton should report a lease liability of a. $606,528. b. $680,000. c. $751,344. d. $766,528. 3. On December 31, 2010, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $630,000 (including $30,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 201 0, and the second payment was made on December 31, 2011.The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $2,502,000. The lease is appropriately accounted for as a capital lease by Harris. In its December 31, 2011 balance sheet, Harris should report a lease liability of a. $1,902,000. b. $1,872,000. c. $1,711,800. d. $1,492,200. 4. A lessee had a ten-year capital lease requiring equal annual payments. The reduction of the lease liability in year 2 should equal a. the current liability shown for the lease at the end of year 1. . the current liability shown for the lease at the end of year 2. c. the reduction of the lease liability in year 1. d. one-tenth of the original lease liability. Use the following information for questions 5 and 6. On January 2, 2011, Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stip ulated annual payments of $150,000 starting at the end of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no salvage value.Hernandez uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $900,000, based on implicit interest of 10%. 5. In its 2011 income statement, what amount of interest expense should Hernandez report from this lease transaction? a. $0 b. $56,250 c. $75,000 d. $90,000 6. In its 2011 income statement, what amount of depreciation expense should Hernandez report from this lease transaction? a. $150,000 b. $100,000 c. $90,000 d. $60,000 7. In a lease that is recorded as a sales-type lease by the lessor, interest revenue a. hould be recognized in full as revenue at the lease's inception. b. should be recognized over the period of the lease using the straight-line method. c. should be recognized over the period of the lease using the effective interest method. d. does not arise. 8. Torrey Co. manufactures equipment that is sold or leased. On December 31, 2011, Torrey leased equipment to Dalton for a five-year period ending December 31, 2016, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $220,000 (including $20,000 executory costs) and are due on December 31 of each year.The first payment was made on December 31, 2011. Collectibility of the remaining lease payments is reasonably assured, and Torrey has no material cost uncertainties. The normal sales price of the equipment is $770,000, and cost is $600,000. For the year ended December 31, 2011, what amount of income should Torrey realize from the lease transaction? a. $170,000 b. $220,000 c. $230,000 d. $330,000 *9. Jamar Co. sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a capital lease. At the time of the sale, the gain should be reported as a. perating income. b. an extraordinary item, net of income tax. c. a separate component of stockholders' equity. d. a deferred gain. *10. On December 31, 2011, Haden Corp. sold a machine to Ryan and simultaneously leased it back for one year. Pertinent information at this date follows: Sales price$900,000 Carrying amount825,000 Present value of reasonable lease rentals ($7,500 for 12 months @ 12%)85,000 Estimated remaining useful life12 years In Haden’s December 31, 2011 balance sheet, the deferred profit from the sale of this machine should be a. $85,000. b. $75,000. c. $10,000. . $0. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | d| 5. | d| 7. | c| *9. | d| 2. | a| 4. | a| 6. | d| 8. | a| *10| d| No. AnswerDerivation 1. cConceptual. 2. a($160,000 ? 4. 7908) – $160,000 = $606,528. 3. d$2,502,000 †“ $630,000 + $30,000 = $1,902,000 (2010). $1,902,000 – [$600,000 – ($1,902,000 ? .10)] = $1,492,200 (2011). 4. aConceptual. 5. d$900,000 ? .10 = $90,000. 6. d$900,000 ? 15 = $60,000. 7. cConceptual. 8. a$770,000 – $600,000 = $170,000. *9. dConceptual. *10. d = 9. 44%, < 10% of FV of asset ? t is a minor leaseback. Chapter 22-Accounting Changes and Error Analysis 1. Which of the following should be reported as a prior period adjustment? Change inChange from Estimated LivesUnaccepted Principle of Depreciable Assetsto Accepted Principle a. YesYes b. NoYes c. YesNo d. NoNo 2. On December 31, 2011, Grantham, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $1,500,000 increase in the beginning inventory at January 1, 2011. Assume a 30% income tax rate.The cumulative effect of this accounting change on beginning retained earnings is a. $0. b. $450,000. c. $1,050,000. d. $1,500,000. 3. On January 1, 2011, Frost Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in an $800,000 increase in the January 1, 2011 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2011 a. retained earnings statement as a $560,000 addition to the beginning balance. b. ncome statement as a $560,000 cumulative effect of accounting change. c. retained earnings statement as an $800,000 addition to the beginning balance. d. income statement as an $800,000 cumulative effect of accounting change. 4. On January 1, 2008, Lake Co. purchased a machine for $792,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2011, Lake determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $72,000. An accounting change was made in 2011 to reflect these additional data.The accumulated depreciation for this machine should have a balance at December 31, 2011 of a. $438,000. b. $462,000. c. $480,000. d. $528,000. 5. On January 1, 2008, Hess Co. purchased a patent for $595,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2023. During 2011, Hess determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2011? a. $357,000 b. $408,000 c. $420,000 . $436,375 6. During 2010, a textbook written by Mercer Co. personnel was sold to Roark Publishing, Inc. , for royalties of 10% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. * Royalty income of $108,000 was accrued at 12/31/10 for the period July-December 2010. * Royalty income of $120,000 was received on 3/31/11, and $156,000 on 9/30/11. * Mercer learned from Roark that sales subject to royalty were estimated at $1,620,000 for the last half of 2011.In its income statement for 2011, Mercer should report royalty income at a. $276,000. b. $288,000. c. $318,000. d. $330,000. 7. On January 1, 2010, Janik Corp. acquired a machine at a cost of $500,000. It is to be depreciated on the straight-line method over a five-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Janik's 2010 financial statements. The oversight was discovered during the preparation of Janik's 2011 financial statements. Depreciation expense on this machine for 2011 should be a. $0. b. $100,000. c. $125,000. d. $200,000. 8.On December 31, 2011, special insurance costs, incurred but unpaid, were not reco rded. If these insurance costs were related to work in process, what is the effect of the omission on accrued liabilities and retained earnings in the December 31, 2011 balance sheet? Accrued LiabilitiesRetained Earnings a. No effectNo effect b. No effectOverstated c. UnderstatedNo effect d. UnderstatedOverstated 9. Black, Inc. is a calendar-year corporation whose financial statements for 2010 and 2011 included errors as follows: YearEnding InventoryDepreciation Expense 2010$162,000overstated$135,000overstated 201154,000understated45,000understatedAssume that purchases were recorded correctly and that no correcting entries were made at December 31, 2010, or at December 31, 2011. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2012? a. $144,000 increase b. $36,000 increase c. $18,000 decrease d. $9,000 increase Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | b| 3. | a| 5. | b| 7. | b| 9. | a| 2. | c| 4. | a| 6. | d| 8. | c| | | No. AnswerDerivation 1. bConceptual. 2. c$1,500,000 ? (1 – . 3) = $1,050,000. 3. a$800,000 ? (1 – . ) = $560,000. 4. a$792,000 ? 3/8 = $297,000 $297,000 + [($792,000 – $297,000 – $72,000) ? 1/3] = $438,000. 5. b$595,000 ? 3/15 = $119,000 $595,000 – $119,000 – [($595,000 – $119,000) ? 1/7] = $408,000. 6. d($120,000 – $108,000) + $156,000 + ($1,620,000 ? .10) = $330,000. 7. b$500,000 ? 5 = $100,000. 8. cConceptual. 9. a$54,000 (u) + $135,000 (u) – $45,000 (o) = $144,000 (u). Chapter 23- Statement of Cash Flows Use the following information for questions 1 and 2. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. . In a statement of cash flows, what amount is included in investing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d . Mortgage amount 2. In a statement of cash flows, what amount is included in financing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d. Mortgage amount Use the following information for questions 3 and 4. Smiley Corp. ‘s transactions for the year ended December 31, 2011 included the following: * Purchased real estate for $550,000 cash which was borrowed from a bank. Sold available-for-sale securities for $500,000. * Paid dividends of $600,000. * Issued 500 shares of common stock for $250,000. * Purchased machinery and equipment for $125,000 cash. * Paid $450,000 toward a bank loan. * Reduced accounts receivable by $100,000. * Increased accounts payable $200,000. 3. Smiley's net cash used in investing activities for 2011 was a. $675,000. b. $375,000. c. $175,000. d. $50,000. 4. Smiley's net cash used in financing activities for 2011 was a. $50,000. b. $250,000. c. $450,000. d. $500,000. Use the following information for questions 5 and 6. P eavy Corp. s transactions for the year ended December 31, 2011 included the following: 0 Acquired 50% of Gant Corp. ‘s common stock for $180,000 cash which was borrowed from a bank. 1 Issued 5,000 shares of its preferred stock for land having a fair value of $320,000. 2 Issued 500 of its 11% debenture bonds, due 2016, for $392,000 cash. 3 Purchased a patent for $220,000 cash. 4 Paid $120,000 toward a bank loan. 5 Sold available-for-sale securities for $796,000. 6 Had a net increase in returnable customer deposits (long-term) of $88,000. 5. Peavy’s net cash provided by investing activities for 2011 was a. $296,000. b. 396,000. c. $476,000. d. $616,000. 6. Peavy’s net cash provided by financing activities for 2011 was a. $452,000. b. $540,000. c. $572,000. d. $660,000. Use the following information for questions 7 through 9. Jamison Corp. ‘s balance sheet accounts as of December 31, 2011 and 2010 and information relating to 2011 activities are presented below . December 31, 2011 2010 Assets Cash$ 440,000$ 200,000 Short-term investments600,000— Accounts receivable (net)1,020,0001,020,000 Inventory1,380,0001,200,000 Long-term investments400,000600,000 Plant assets3,400,0002,000,000 Accumulated depreciation(900,000)(900,000)Patent 180,000 200,000 Total assets$6,520,000$4,320,000 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities$1,660,000$1,440,000 Notes payable (nontrade)580,000— Common stock, $10 par1,600,0001,400,000 Additional paid-in capital800,000500,000 Retained earnings 1,880,000 980,000 Total liabilities and stockholders' equity$6,520,000$4,320,000 Information relating to 2011 activities: 7 Net income for 2011 was $1,500,000. 8 Cash dividends of $600,000 were declared and paid in 2011. 9 Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2011 for $360,000. 0 A long-term investment was sold in 2011 for $320,000. There were no other transactions affecting long-te rm investments in 2011. 11 20,000 shares of common stock were issued in 2011 for $25 a share. 12 Short-term investments consist of treasury bills maturing on 6/30/12. 7. Net cash provided by Jamison’s 2011 operating activities was a. $1,500,000. b. $2,120,000. c. $2,080,000. d. $2,160,000. 8. Net cash used in Jamison’s 2011 investing activities was a. $2,320,000. b. $1,820,000. c. $1,680,000. d. $1,720,000. 9. Net cash provided by Jamison’s 2011 financing activities was a. 480,000. b. $520,000. c. $1,080,000. d. $1,680,000. 10. Foxx Corp. ‘s comparative balance sheet at December 31, 2011 and 2010 reported accumulated depreciation balances of $800,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2011. Depreciation charged to operations in 2011 was a. $188,000. b. $200,000. c. $212,000. d. $224,000. 11. Nagel Co. ‘s prepaid insurance was $90,000 at December 31, 2011 and $45,0 00 at December 31, 2010. Insurance expense was $36,000 for 2011 and $27,000 for 2010.What amount of cash disbursements for insurance would be reported in Nagel's 2011 net cash provided by operating activities presented on a direct basis? a. $99,000. b. $81,000. c. $54,000. d. $36,000. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | c| 5. | b| 7. | c| 9. | a| 11. | b| 2. | c| 4. | b| 6. | b| 8. | a| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. cConceptual. 3. c($550,000) + $500,000 – $125,000 = ($175,000). 4. b$550,000 – $600,000 + $250,000 – $450,000 = ($250,000). 5. b($180,000) – $220,000 + $796,000 = $396,000. 6. $180,000 + $392,000 – $120,000 + $88,000 = $540,000. 7. c$1,500,000 – $180,000 + ($900,000 – $900,000 + $680,000) – ($360,000 – $320,000) + $20,000 + $220,000 – ($320,000 – $200,000) = $2,080,000. 8. a$3 20,000 + $360,000 – ($3,400,000 + $1,000,000 – $2,000,000) – $600,000 = $2,320,000. 9. a20,000 ? $25 = $500,000 $500,000 + $580,000 – $600,000 = $480,000. 10. c$800,000 – $600,000 + ($50,000 – $38,000) = $212,000. 11. b$90,000 + $36,000 – $45,000 = $81,000. Chapter 24- Full Disclosure in Financial Reporting 1. Which of the following facts concerning plant assets should be included in the summary of significant accounting policies?Depreciation MethodComposition a. NoYes b. YesYes c. YesNo d. NoNo 2. Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting which of the following criteria? a. Segment profit or loss is 10% or more of consolidated profit or loss. b. Segment profit or loss is 10% or more of combined profit or loss of all company segments. c. Segment revenue is 10% or more of combined revenue o f all the company segments. d. Segment revenue is 10% or more of consolidated revenue. 3. Unruh Corp. nd its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2011. Assets Industry Revenue Profit 12/31/11 A$ 8,000,000$1,320,000$16,000,000 B6,400,0001,120,00014,000,000 C4,800,000960,00010,000,000 D2,400,000440,0005,200,000 E3,400,000540,0005,600,000 F 1,200,000 180,000 2,400,000 $26,200,000$4,560,000$53,200,000 In its segment information for 2011, how many reportable segments does Unruh have? a. Three b. Four c. Five d. Six 4.The following information pertains to Nixon Corp. and its divisions for the year ended December 31, 2011. Sales to unaffiliated customers$2,500,000 Intersegment sales of products similar to those sold to unaffiliated customers750,000 Interest earned on loans to other operating segments50,000 Nixon and all of its divisions are engaged solely in manufacturing operations. Nixon has a reportable segment if that segment's revenue exceeds a. $330,000. b. $325,000. c. $255,000. d. $250,000. 5. Advertising costs may be accrued or deferred to provide an appropriate expense in each period for InterimYear-end Financial ReportingFinancial Reporting . YesNo b. YesYes c. NoNo d. NoYes 6. Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2011 will amount to $300,000, and that 2011 year-end bonuses to employees will total $600,000. In Mayo's interim income statement for the six months ended June 30, 2011, what is the total amount of expense relating to these two items that should be reported? a. $0. b. $150,000. c. $450,000. d. $900,000. 7. Fina Corp. had the following transactions during the quarter ended March 31, 2011: Loss from hurricane damage$350,000 Payment of fire insurance premium for calendar year 2011500,000What amount should be included in Fina's inco me statement for the quarter ended March 31, 2011? Extraordinary LossInsurance Expense a. $350,000$500,000 b. $350,000$125,000 c. $87,500$125,000 d. $0$500,000 8. For interim financial reporting, an extraordinary gain occurring in the second quarter should be a. recognized ratably over the last three quarters. b. recognized ratably over all four quarters with the first quarter being restated. c. recognized in the second quarter. d. disclosed by note only in the second quarter. *9. How is the average inventory used in the calculation of each of the following?Acid-Test (Quick) RatioInventory Turnover Ratio a. NumeratorNumerator b. NumeratorDenominator c. Not UsedDenominator d. Not UsedNumerator *10. Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations? Acid-Test RatioDebt to Total Assets Ratio a. NoNo b. NoYes c. YesYes d. YesNo *11. Which of the following ratios should be used in evaluating the effectiveness with which the company uses its assets? Receivables TurnoverPayout Ratio a. YesYes b. NoNo c. YesNo d. NoYes Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | b| 5. | b| 7. | b| *9. | c| *11. | c| 2. | c| 4. | b| 6. | c| 8. | c| *10. | d| | | No. AnswerDerivation 1. cConceptual. 2. cConceptual. 3. bRevenue test: $26,200,000 ? 10% = $2,620,000 Profit test: $4,560,000 ? 10% = $456,000 Asset test: $53,200,000 ? 10% = $5,320,000 A, B, C, E. 4. b($2,500,000 + $750,000) ? 10% = $325,000. 5. bConceptual. 6. c($300,000 + $600,000) ? 2 = $450,000. 7. bExtraordinary loss = $350,000 Insurance expense = $500,000 ? 4 = $125,000. 8. cConceptual. *9. cConceptual. *10. dConceptual. *11. cConceptual.

A reflective approach to continuing professional development - Free Essay Example

Sample details Pages: 6 Words: 1926 Downloads: 7 Date added: 2019/10/10 Did you like this example? The development of professions now requires individuals to undertake a form of continuing professional development, and this is considered as an integral part of the process. It can be considered as a factor that contributes to the integrity and rigour that now defines a professional activity that now defines professional activity. The current environment has seen the relative autonomy that has traditionally been enjoyed by professions being reduced with increasing pressure for accountability. Don’t waste time! Our writers will create an original "A reflective approach to continuing professional development" essay for you Create order Continuing professional development efforts should aim at developing the individual professional and the delivery of services itself. However, most continuing professional approaches are input-led and rely on the bureaucratic and mechanistic recording of courses and study days with little focus on the outcomes of these activities. The paper argues for a continuing professional development through an approach that is learning focused, emphasising the critical importance of learning through reflective practice (Boud, et.al.). A learning culture for professional development in the business field can be developed. Continuing professional development and its relationship to continuous improvement in quality are related to causality. A frequently posed question tries to determine whether engagement in the traditional, formal learning opportunities necessarily result in improvements in professional practice.   It is clear that great amounts of learning often occur outside the formal educational programmes and structures, while it is possible for an individual to participate in these formal educational programmes without necessarily achieving the intended educational outcomes of the programmes. It can be argued that continuing professional development is a critical part of professional activity in and of itself. There exists a traditional and misplaced dichotomy in the professional development of theory and practice, with the assumption that the former precedes the latter. However, there have been increasing points of view that consider this relationship and less unidirectional and more circular ; professional practice, despite being guided by the existing body of professional knowledge, actually develops theory. And it is clear that this generation of theory should be undertaken in a practical rather that an academic or research setting. The paper is sympathetic to this view, and it posits that professional action can actually distinguish itself from other activities through its reflective qualities in practice and by the contemporary and subsequent interpretation of that practice. The efforts by the government to impose external controls on any professional activity through continuing professional development misses a critical point, in that continuing professional development is not an external component to external activity, but an integral and critical part of that action (Moon). The practice of continuing professional development is now being considered a central component to the development of professional status; representing a key component of professional development. It enables individual professionals to develop their careers and is a central means by which quality professional service can be assured and maintained, hence reassuring the recipients of these services. The need to be viewed as continuously profession-developing, securing the social status and position of a profession, represent important considerations in the current business environment of constant and rapid development. The competency gap that represents a situation where the growth in knowledge and the rapid technological change, in addition to the obsolete nature of existing knowledge, means that the qualifying programme of professional education can no longer be considered as a career-long declaration of professional competence. As a result, professionals need to be seen as constantl y developing their competencies and the profession as a whole so as to ensure that clients are confident of the maintaining of the professional ability in such an environment (Kolb). Continuing professional development is important to a professional in terms of his or her individual career development. For instance, if a professional in a certain field intends to move into an area of specialization, he or she has been traditionally expected to undergo a formal education programme so as to demonstrate competence with this particular effect being amplified in certain professions than others. Another factor that should be considered while examining continuing professional development is its perceived relationship to the quality of professional service. It is held that the quality of professional service to clients can only be truly maintained if the professionals are committed to the constant updating of knowledge and practice. Another aspect of the issue of continuing professional development and quality is connected to what can be described as consumerism in the society, a phenomenon that has manifested in many professional fields. Governments are now developing reforms that focus on the concept of competence on many professions. It is also clear that the consumers of professional services are now far more willing and ready to express the specific needs in this regards; this can be attributed to the fact that clients are now better informed about issues and therefore possess more confidence to declare their requirements. In this regard, continuing professional development is completely voluntary, as any other consideration would weaken the basic premise of the autonomy of a professional. The situation provides an indication of a major source of tension in professional self-reliance and the external compulsory requirements that continuing professional development be undertaken, in that, in the traditional model, the individual professional represents the sole judge of their need for up-skilling updating or development. There other challenges in regard to the existing conception of continuing professional development; there is the question of whether it should assume an outcome or input-based approach with the latter simply providing a formal acknowledgment that an individual has undertaken a form of prescribed continuing professional development activity, while the former urges the individual professional to analyse their learning needs, then identify a suitable learning opportunity, and assess whether the learning needs were satisfied by the particular activity. The former approach is oriented towards experiential, rather than classroom learning activities. There is also the challenge of measuring and monitoring continuing professional development. An input-based approach addresses this challenge by recording course attendance, rather than assessing the outcomes of participation. In contrast, an output-based model experiences more challenges in measuring and monitoring outcomes and is considerably more time to consuming for an individual professional who wants to record their continuing professional development. It requires a different approach on the part of the participating professionals to the issued of learning since the approach is largely innovative and can, therefore, vary from the traditional approach to education and the measuring and monitoring of such activities (Boyd Fales). Another challenging issue is the defining of the relationship between continuing professional development and professional competence. There are regulations that now place expectations on professionals to be able to demonstrate competence so as to be allowed to practice their professionals. The issue here then is how the regulations intend to define and measure that competence considering the fact that these standards and competency frameworks cannot measure professional activity. The occupational standards are mechanical and, as such cannot provide the best fit for the assessment of professional competence, which in reality involves specialised and individual decisions that relate specifically to each unique situation. The occupational standards are also rigid, and this hinders the flexible application making them unsuitable for the dynamic business environment (Wang). Certain field of thought would consider the fact that undertaking a form of continuing professional development provides evidence of competence. However, this could be misleading as the completion of such continuing professional development activities cannot guarantee that the individual professional is competent. Furthermore, it could be the case that the individuals who are highly competent will already have developed their competencies through methods other than the formal mandatory activities that come under continuing professional development. In fact, this provides a critical point that supports the use of reflective learning approaches to continuing professional development. It could be said that the act of an individual professional to undertake continuing professional activity, as opposed to the mechanistic and routinised activities, mean that these individual professionals are intrinsically competent. It could also be inferred that the existence of a concept such as mandato ry continuing professional development suggest that these professional are not working professionally anymore (Wang). Reflection in action represents a dynamic process of reviewing professional actions in the midst of their performance without having to necessarily interrupt those actions. If an intuitive and spontaneous performance of an activity results in nothing more than the results that are expected of it, the individual professional tends not to think about the process. However, if an intuitive performance results in unexpected results a professional might respond by reflecting-in-action. An astute example of reflection-in-action is presented in the manner by which individuals make adjustments as they undertake certain actions, such as hammering a nail into a wooden plank. The mental processes of ensuring that the nail is properly set and hammered into the wooden plank are in the included in the performing of the act; moreover, individuals constantly adjust the performance of the activity on a continuous basis to make sure that the nails are going in straight, alter the angle the hammer hits the nails to account for variances. It is also possible to extend this process further by having individuals not only reflect in action but also subsequently reflect on the action (Boyd Fales). There exists a critical and intrinsic connection between reflective practices and the kind of genuine learning that will likely change a learner’s perception and as a result engender changes in the individual professionals’ behavior. An approach that considers reflection, and learning from reflection, will tend to facilitate the development of continuing developments in quality of professional services. The approach is often referred to as Action Learning and it is related to the Action Research model. Reflecting in and on action encourages a professional to critically interrogate the common sense premises that guide the daily activities, and nature and   justifications provided for the particular work activities. All of these represent critical factors in ensuring that the quality of institutional, and increasingly performance driven, professional provision is under constant review. As a result, if continuing professional development is to initiate effective developm ent to professionals and the continuous improvement in professional service quality, then there is a need to ensure that the culture of reflective practice is encouraged, developing a process that is easily navigable and that can assist with the formalization of these activities. The approach can also create a tangible way that enables the systematic recording of reflection. Despite the fact that the approach ahs its challenges, it allows for the individual professionals to move away from the input-based approach that is problematic (Bosangit Demangeot). Enabling the systematic recording of an individual’s reflection can be achieved through the maintaining of a practice journal. There exist several methods of recording reflection or material that could provide a basis for future reflection, and each reflecting professional is likely to have a system that suits his or her style, and specific learning needs best.   The use of such tools are also faced with challenges such as confidentiality issues and the existing tendency to emphasise the negative aspects of a profession, and the time-intensive nature of the completion of such journals, memory and recall issue and the level of introspection observed seems to neglect a multidisciplinary approach. Considering the assertions above, it is clear that there is great value in the sharing of reflection through systems like professional supervision as it can be a way to encourage the individual profession to take a complete view of a professional activity, rather than being locked int o specific events. It also allows the regular and free exchanges of professional experiences among a small group of peers (Kolb).