ACCT 301 Final Exam http://homeworkmonster.com/downloads/acct-301-final-exam/ ACCT 301 Final Exam 1. (TCO 1) What is the accounting equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? 2. (TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important 3 What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why 4 What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? (TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated? (TCO 9) What are …show more content…
(TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform? (TCO 6) What is an operating budget? What does it result in? What is the first step in completing an operating budget? (TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? ACCT 301 Final Exam http://homeworkmonster.com/downloads/acct-301-final-exam/ ACCT 301 Final Exam 1. (TCO 1) What is the accounting equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? 2. (TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important 3 What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why 4 What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? (TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated? (TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant costs in a make-or-buy decision? (TCO 10) How is a transfer price determined? Describe the cost-based method. Do you think it is better than the market-based method? (TCO 11) What are direct materials? Give an example of a direct material. How do direct materials differ from indirect
Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicate by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans is required to finance those investments (p. 475). Capital budgeting is a central part of the universal
Identify the financial statement(s) where each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet.
The statement of cash flows answers the following questions about cash: (a) Where did the cash come from during the period? (b) What
Identify and explain the fundamental concepts and principles in accounting, the components of the accounting equation, the primary financial accounting equation, and financial statements and reports.
(TCO 5) In the annual report, where would a financial statement reader find out if the company’s financial statements give a fair depiction of its financial position and operating results?
During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively.
Horizontal analysis is the “comparative study of a balance sheet or income statement for two or more accounting periods, to compute both total and relative variances for each line item” (www.businessdictionary.com)
Q 103 - Stan's Market recorded the following events involving a recent purchase of merchandise: Received goods for $90,000, terms 2/10, n/30. Returned $1800 of the shipment for credit. Paid $450 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory
It is a budget that includes the operating budget and the capital budget and is designed to show all aspects of financial activities. A comprehensive budget consists of two major components, operating budget for short-term goals which entails recurring items and capital budget for long-term goals consisting of nonrecurring items. Operating budget or rather recurring incomes and expenditures are normally the easiest to determine and project since they occur consistently and have an instant effect on our day to day lives. Operating budgets are planned in the context where short-term lifestyle goals preferences are required. This kind of budgets are chosen and the period should be long enough to display intermittent items as non-recurring or recurring items and yet small to follow and manage choices within that given period. An example of operating budgets is personal budgets done commonly in a month’s time since most living expenses are paid at least monthly. The other is capital budget or capital expenditures and investments. After all deductions for living expenses and debts, the remaining income is available for capital expenditures and investments. The capital budget is part of the long-term plan for establishing an asset base. Investments can also be used to achieve specific future goals such financing education or retirement. One should use time and value relations to evaluate capital expenditures and progress since capital budgets are long-term
List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. Based on your reading and outside research, please communicate your own understanding of the requirements. Citations and references are required.
Vertical analysis, otherwise known as common-size analysis, uses percentages to compare separate components of financial statements to a key statement figure or base amount (Edmonds, Tsay, & Olds, 2011.) “Vertical analysis of an income statement, otherwise referred to as common-size income statement, is when there is converting of each income statement component to a percentage of sale” (Edmonds, Tsay, & Olds, 2011.) This presents each item on a statement as a percentage of a base figure within the statement. Presenting financial statement information in a common-size figure as opposed to using dollar amounts is when the financial statement elements are shown as percentages of various base figures (Edmonds, Tsay, & Olds, 2011).
Assess how the Sarbanes-Oxley Act addresses the concern of corporate “managed earnings”, indicating whether or not you believe the requirements within the Act are sufficient to minimize these concerns. Provide support for your
_ What are some key reports one can generate to measure the firm’s financial performance?
When properly implemented, the cost accounting function can have a pervasive influence in the modern corporation. Unfortunately, it is not always properly implemented because management often is not completely aware of all the uses to which the cost accounting function can be put. This chapter describes the main categories of activities in which this function can become involved, and can be used as a guide by the controller in creating a well-rounded niche for the cost accountant.
Cost Accounting Reporting System deals with the process of tracking, measuring, recording and classifying the appropriate allocation of expenditure (financial and non-financial) for the determination of the cost of product or service in an organization and for the presentation of suitably arranged data for the purpose of control and guidance of management (Horngren et al, 2010). Costs are measured in terms of Direct Costs, Indirect Costs and Overhead/Absorbed Costs. Managers use cost accounting to support decision making to reduce a company's costs of products and services and improve its profitability.