REVIEW FOR FINAL EXAM, ACCT-2302 (SAC)
|
|
- Corey King
- 7 years ago
- Views:
Transcription
1 REVIEW FOR FINAL EXAM, ACCT-2302 (SAC) CHAPTER Corporate Organization: a. Application for incorporation. b. State grants Charter or Articles of Incorporation. c. By-laws: rules and procedures of the corporation. d. Organization costs - expenses of forming a corporation. 2. Minimum Legal Capital. a. Par or stated value of the shares issued. b. Does not establish stock worth or price. c. Amount that must be left invested in a corporation to protect it s creditors. 3. Classes of Stock. a. Common (basic corporate stock - required) (1) Par Value (2) No-Par Value (no stated minimum legal capital amount) b. Preferred (preference as to dividends) 4. Retained Earnings. a. Net operating results (net income and loses), less dividends, since inception. 5. Cash Dividends. a. Dependent on availability of cash and Retained Earnings, and requires official Board action. b. Dividend Dates: (1) Date of Declaration (2) Date of Record (3) Date of Payment c. Dividends are paid only on outstanding shares (issued shares less treasury shares). 6. Treasury Stock. a. Acquisition (recorded at cost) b. Not considered outstanding stock c. Contra-Equity account d. Not eligible for dividends 7. Stock Dividends. a. Distribution of a corporation s stock to its shareholders, without receipt of payment. b. No assets are transferred from the corporation to the shareholders. c. No affect on total stockholders equity. CHAPTER Characteristics of Bonds Payable. a. Bond Indenture - Contract with bond purchasers. b. Denominations - Normally issued in denominations of $1,000 or multiples of $1,000. c. Interest - Bond interest is usually paid semi-annually. 1
2 2. Bond Issuance. a. Issuance Price (the present value of both the principal and the semi-annual interest payments is used to determine the selling price of a bond issue. b. Issued at Par (Principal amount) c. Issued at a discount (increases interest expense of bond issue). d. Issued at a premium (decreases interest expense over the life of the bond issue). 3. Bond Issue Pricing. a. Sold at Par (Face Amount) (Page 554) - (Market Rate = Contract Rate) b. Sold at a Discount (Page 555) - (Market Rate > Contract Rate) c. Sold at a Premium (Page 558) - (Market Rate < Contract Rate) 4. Bond Interest Rates. a. Market (Effective) Rate (determines bond selling price through Present Value application) b. Contract (Coupon) Rate (used to determine periodic interest payments to bond holders) 5. Bond Redemption. a. Callable Bonds (option of the corporation to retire bonds early) b. Convertible Bonds (option of the bondholder to convert bonds to common stock) 6. Amortization of Premium/Discount. a. Straight-Line Method (interest expense = cash interest payment + discount amortization amount) or (interest expense = cash interest payment - premium amortization amount) b. Effective Interest Method (beginning of period carrying amount x market rate / 2) 1. Statement of Cash Flows. CHAPTER 16 a. Presents cash inflows and outflows in categories. Cash Inflows Cash Outflows (1) Operating Activities Sales/Revenues Merchandise Purchases Interest Income Salaries & Other Expenses Dividend Income Tax Payments (2) Investing Activities Sale of Plant Assets and Purchase of Plant Assets Investments Investments Sale of Marketable Securities Purchase of Securities Collection of Loans Making Loans (3) Financing Activities Sale of Stock Purchase of Treasury Stock Sale of Bonds Repayment of debt Borrowing from Financial Payment of Cash Dividends Institutions b. Non-Cash Investing and Financing Activities. (Page 635) a. Reported on a separate schedule. b. Example Acquisition of land and a building in exchange of common stock. 2
3 2. Methods for Preparation - Operating Activities Section. a. Indirect Method. (1) Starts with net income and is adjusted for non-cash items. b. Direct Method. (1) Accounts are analyzed and adjusted to a cash basis. (2) More time consuming and expensive to use. Common Tools of Financial Analysis. 1. Horizontal Analysis. CHAPTER 17 a. Comparative Statements. (1) Involves side-by-side presentations of two or more accounting periods. (2) More complete presentations are shown for each item: (a) Absolute dollar amount of changes. (b) Percentage of changes. (c) Dollar and percentage changes are calculated using the earliest period as the base year. b. Trend Analysis. (1) A form of horizontal analysis. (2) Reveals patterns across successive time periods. (3) Reference Exhibits 17.3 and 17.4 for examples of trend analysis. 2. Vertical Analysis. a. Percentage analysis showing relationship of each item to a total within the statement. b. Common-Size Statements. (1) Income Statement Items -- expressed as a percent of net sales. (2) Balance Sheet Items -- expressed as a percent of total Assets. (3) Both dollar and percentage data is presented on these reports 3. Ratio Analysis. a. Liquidity and Efficiency Ratios b. Solvency Ratios c. Profitability Ratios d..market Prospects Ratios 1. Types of Cost Classification CHAPTER 18 a. By Behavior: (1) Variable Cost - constant per unit, changes proportionally with volume. (2) Fixed Cost - fixed in total over all levels of production (3) Mixed Cost - has both a component of variable and fixed cost. 3
4 b. By Traceability: (1) Direct - traceable to a cost object (2) Indirect - costs that cannot be traced to a single cost object. c. By Relevance: (1) Sunk Cost - a cost that has been incurred and cannot be avoided or changed. (2) Opportunity Cost - cost of a potential benefit lost or forgone. d. By Function: (1) Product - cost that become an integral part of a finished product. (2) Period - costs associated with a time period vs a product. 2. Elements of Manufacturing Costs. a. Direct Material (material that becomes part of the product) b. Direct Labor (applied to material to convert to a finished product) c. Factory Overhead (all manufacturing costs other than direct material and direct labor) 3. Manufacturing Costs. a. Product (direct material, direct labor, overhead) b. Conversion (direct labor and overhead) d. Period (other costs identified within a time period - not the product being produced). Includes Selling and Administrative costs. 4. Manufacturing Statement Report Format: Direct Materials... $ xx,xxx Direct Labor... xx,xxx Factory Overhead... xx,xxx Total manufacturing costs... $ xx,xxx Add: Beginning goods in process... xx,xxx Total goods in process... $ xx,xxx Less: Ending goods in process... (xx xxx) Cost of goods manufactured (*)... $ xx,xxx (*) (equivalent to Cost of Goods Purchases for a merchandising company) 5. Manufacturing Inventories. a. Raw Materials b. Goods-In-Process (GIP) (partially completed units) c. Finished Goods (completed units of product) 1. Cost Accounting Systems. a. Job Order Cost b. Process Cost 2. Job Costing Elements. a. Material b. Labor c. Factory Overhead CHAPTER 19 4
5 3. Job Costing. a. Job - Special order for a specific customer. b. Job Cost Sheet - Total costs of producing a job (includes direct material, direct labor, overhead) 4. Factory Overhead. a. Applied on an estimated basis through a predetermined rate (established prior to the beginning of a period). Estimated Annual Overhead Costs b. Formula = = % Estimated Annual Activity Base c. Overhead is applied using the computed rate and the activity base cost or units applied to each job. (Journal entry - Item #8, Page 787) d. Disposal of Overhead Balance. (1) Adjusting entries to dispose of the account balance. (a) Under-applied (debit balance) (b) Over-applied (credit balance) CHAPTER Process Cost Characteristics. a. Continuous process. b. All units processed in the same manner. c. Separate Goods-In-Process (GIP) is maintained for each department/process. d. Total costs are determined at the end of each period. 2. Equivalent Units. (Material & Conversion) a. Defined as the number of units that could have been completed if all effort had been applied. b. Have all or part of direct material added, and some labor and overhead applied. c. Used to assign operating costs for each period to the products worked on and/or completed. 3. Equivalent Unit Costs. a. Total material costs for the department are allocated equally to the equivalent finished units for material. Materials are usually added at the beginning of the production process, but occasionally may be added at various points in the production process. b. Conversion costs (labor and overhead) are allocated equally to the equivalent finished units for conversion. Labor and overhead are usually added uniformly throughout the production process. 4. End of Period Processes (Process Cost Summary Report): a. Determine physical units involved and costs charged to a department. b. Compute equivalent units of production. c. Compute equivalent unit costs. d. Assign costs, to completed and partially completed units, based on equivalent units and unit costs. e. Prepare cost of production report. 5
6 5. Equivalent Unit Cost Methods. a. FIFO (First-In, First-Out) b. Average Cost CHAPTER Departmental Accounting a. Levels of Responsibility. (1) Cost Center - Accountable for costs (expenses)only. (2) Profit Center - Control over revenues and costs. b. Cost Classifications. (1) Direct costs - traceable to a specific department. (2) Indirect costs - all expenses other than direct costs, not traceable to a single department. c. Allocation of Indirect Costs. (1) Service department costs are allocated to production responsibility centers. (2) An allocation base (cost driver), appropriate for the service provided, is used to distribute the service department costs. 2. Activity-Based Costing. a. Cost Allocation Process: (1) Identify specific activities consuming costs. (2) Determine activity cost pools. (3) Identify cost driver (factor that causes costs to go up and down). (4) Compute predetermined overhead cost rate for each cost pool. (5) Assign costs to jobs based on cost pool rates. CHAPTER Cost Behavior Classifications. a. Fixed Costs (total remains constant over all levels of production) b. Variable Costs (unit cost is constant, total variable cost changes in proportion to changes in production) c. Mixed Costs (has an element of fixed and variable cost) 2. High-Low Method of Cost Separation. a. A cost estimation technique used to divide a mixed cost into its fixed and variable components. b. Four-step process to determine fixed costs. 3. Break-Even Analysis. a. Contribution Margin: Formula: CM = SP - VC b. Contribution Ratio: Formula: CR = CM SP 6
7 4. Break-Even Points. Fixed Costs FC a. Units = = = BEP(U) Contribution Margin CM Fixed Costs FC b. Dollars = = = BEP($) Contribution Rate CR 4. Target Net Income. a. Determines the level of sales and units required to achieve a specific level of net income. b. Dollars of Sales Formula: FC + Target Profit CR c. Units Formula: FC + Target Profit CM 1. Budget Process. a. Establish specific goals b. Execute plans to achieve goals c. Compare actual results to goals CHAPTER Master Budget. a. Operating Budgets. (1) Sales budget (starting point for budgeting process - data used for remaining budgets) (2) Production budget (Merchandise purchases budget for a merchandising firm) (3) Selling expense budget (4) General and administrative expense budget b. Capital Expenditures Budget. c. Financial Budgets. (1) Cash budget (2) Budgeted income statement (3) Budgeted balance sheet 1. Types of Standards: a. Ideal b. Normal CHAPTER Budget Performance Reports. Provides periodic comparisions between planned objectives (standards) and actual performance. 7
8 3. General Model - Variance Analysis: Materials Labor a. Price Variance... AQ(AP-SP) AH(AR-SR) b. Quantity Variance... SP(AQ-SQ) SR(AH-SH) 4. Benefits of Standards. a. Aids in setting selling prices. b. Useful in preparing budgets. c. Used to evaluate performance. d. Used to control operations. CHAPTER Relevant Costs. a. Future costs that differ between the alternatives. b. In analysis, use only relevant costs, not total costs or complete income statement approach. (1) Differential Revenue (2) Incremental Cost c. Opportunity Costs - Economic benefit forgone as a result of pursuing a particular course of action (alternative). d. Sunk Costs - A cost that arises from a past decision and cannot be avoided or changed. 2. Capital Investment Analysis/Budgeting. a. Process by which management plans, evaluates, and controls long-term investment decisions. 3. Evaluation Methods/Indicators. a. Cash Payback b. Average Rate of Return c. Net Present Value d. Internal Rate of Return 8
RAPID REVIEW Chapter Content
RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit
More informationCOMPONENTS OF THE STATEMENT OF CASH FLOWS
ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling
More informationREVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 16-18)
A. Chapter 16 (Managerial Accounting). 1. Purposes and Principles. (Page 956) REVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 16-18) a. Provides economic/financial information (both historical and estimated)
More information6. Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation.
1. A company purchased land for $72,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start.
More informationSTATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS
C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,
More informationACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)
Page 1 ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL) Complete these sample exam problems/objective questions and check your answers with the solutions at the end of the review file and identify where
More informationChapter 18 Shareholders Equity
PAID-IN CAPITAL Fundamental Share Rights One of the most important features of the corporate form of business is the issuance of capital stock in exchange for capital contributions. Each share of capital
More informationChapter 21 The Statement of Cash Flows Revisited
Chapter 21 The Statement of Cash Flows Revisited AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments,
More informationCH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS
C H 2 3, P a g e 1 CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS (note from Dr. N: I have deleted questions for you to omit, but did not renumber the remaining questions) 1. The primary purpose of
More informationStatement of Cash Flows
THE CONTENT AND VALUE OF THE STATEMENT OF CASH FLOWS The cash flow statement reconciles beginning and ending cash by presenting the cash receipts and cash disbursements of an enterprise for an accounting
More informationCash is King. cash flow is less likely to be affected
Reading 27: Understanding Cash Flow Statements Relevance of Cash Flow The primary purpose of the statement of cash flows (SCF) is to provide: Info about a firm s cash receipts & cash payments during an
More informationCHAPTER 23. Statement of Cash Flows 1, 2, 7, 8, 12 3, 4, 5, 6, 16, 17, 19 9, 20 4, 5, 9, 10, 11 10, 13, 15, 16. 7. Worksheet adjustments.
CHAPTER 23 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Format, objectives purpose, and source of statement.
More informationThe Statement of Cash Flows
CHAPTER The Statement of Cash Flows OBJECTIVES After careful study of this chapter, you will be able to: 1. Define operating, investing, and financing activities. 2. Know the categories of inflows and
More informationIncome Measurement and Profitability Analysis
PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance
More informationMultiple Choice Questions (45%)
Multiple Choice Questions (45%) Choose the Correct Answer 1. The following information was taken from XYZ Company s accounting records for the year ended December 31, 2014: Increase in raw materials inventory
More informationPrinciples of Managerial Accounting ACC-102-TE. TECEP Test Description
Principles of Managerial Accounting ACC-102-TE This TECEP tests the material usually taught in a one-semester course in managerial accounting. It focuses on the information that managers need to make decisions
More informationSection A: Questions On Fill In The Blanks
Section A : 26 FILL IN THE BLANK Section B : 10 TRUE OR FALSE QUESTIONS Section C : 11 Multiple Choice Questions Section A: Questions Fill In The Blanks the right column please insert the items from which
More informationReporting and Analyzing Cash Flows QUESTIONS
Chapter 12 Reporting and Analyzing Cash Flows QUESTIONS 1. The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a period. It helps users
More informationAdvanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes
Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program
More informationGuide to Financial Statements Study Guide
Guide to Financial Statements Study Guide Overview (Topic 1) Three major financial statements: The Income Statement The Balance Sheet The Cash Flow Statement Objectives: Explain the underlying equation
More informationCBK Accounting Review
CBK Accounting Review General Accounting Accounting is a system that measures, processes, and communicates financial information about a business entity. Accounting is often referred to as the language
More informationLong Island University C.W. Post GBA 521. Final Exam - review
Long Island University C.W. Post GBA 521 Name: _ (Last name) (First name) Date: _ Final Exam - review Multiple Choice Following are 14 multiple choice questions, worth 3 points each. Clearly identify the
More informationChapter 6 Statement of Cash Flows
Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions
More informationAccounting Pilot & Bridge Project Course Outline, Learning Objectives and Student Outcomes
Accounting Pilot & Bridge Project Course Outline, Learning Objectives and Student Outcomes Course Overview The Accounting Pilot & Bridge Project is a year-long course based on high school teachers having
More informationCorporations: Organization, Stock Transactions, and Dividends
C H A P T E R 11 Corporations: Organization, Stock Transactions, and Dividends Corporate Financial Accounting 13e Warren Reeve Duchac human/istock/360/getty Images Characteristics of a Corporation (slide
More informationPrinciplesofAccounting II Lesson #5
PrinciplesofAccounting II Lesson #5 Financial Statement Analysis By Laurie L. Swanson Click the button below to navigate to the next slide. Financial Statement Analysis The process of analyzing businesses
More informationUnderstanding Cash Flow Statements
Understanding Cash Flow Statements 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Components and Format of the Cash Flow Statement... 3 3. The
More informationTOPIC LEARNING OBJECTIVE
Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation
More informationChapter 14. 1 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall.
Chapter 14 1 Identify the purposes of the statement of cash flows Distinguish among operating, investing, and financing cash flows Prepare the statement of cash flows by the indirect method Identify noncash
More informationFinancial Statements for Manufacturing Businesses
Management Accounting 31 Financial Statements for Manufacturing Businesses Importance of Financial Statements Accounting plays a critical role in decision-making. Accounting provides the financial framework
More information> DO IT! Chapter 13. Classification of Cash Flows. Cash from Operating Activities D-1. Solution. Action Plan
Chapter 13 > DO IT! Classification of Cash Flows Identify the three types of activities used to report all cash inflows and outflows. Report as operating activities the cash effects of transactions that
More informationCASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes
MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size
More informationLEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING
LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING JULY 2015 MULTIPLE CHOICE QUESTIONS (37.5%) Choose the correct answer 1. All of the following statements concerning standard costs
More informationChapter 8: account receivable
Chapter 8: account receivable Three accounting issues associated with accounts receivable are: 1. Recognizing accounts receivable 2. Valuing accounts receivable 3. Disposing of accounts receivable Recognizing
More informationFinancial Statements
Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare
More information3,000 3,000 2,910 2,910 3,000 3,000 2,940 2,940
1. David Company uses the gross method to record its credit purchases, and it uses the periodic inventory system. On July 21, 20D, the company purchased goods that had an invoice price of $ with terms
More information1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.
Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is
More informationFINANCIAL MANAGEMENT
100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com
More informationILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS
ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS MAJOR BALANCE SHEET CLASSIFICATIONS ASSETS = LIABILITIES + OWNERS' EQUITY Current Assets Long-Term Investments Current Liabilities Long-Term Debt Capital
More informationAnalyzing the Statement of Cash Flows
Analyzing the Statement of Cash Flows Operating Activities NACM Upstate New York Credit Conference 2015 By Ron Sereika, CCE,CEW NACM 1 Objectives of this Educational Session u Show how the statement of
More informationCorporations: Organization, Stock Transactions, and Dividends
C H A P T E R 13 Corporations: Organization, Stock Transactions, and Dividends Financial Accounting 14e Warren Reeve Duchac human/istock/360/getty Images Advantages and Disadvantages of the Corporate Form
More informationChapter. How Well Am I Doing? Financial Statement Analysis
Chapter 17 How Well Am I Doing? Financial Statement Analysis 17-2 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Explain the need for and limitations of financial statement
More informationEXERCISES. The cash from operating activities detail is provided as follows for class discussion:
EXERCISES Ex. 14 1 There were net additions, such as depreciation and amortization of intangible assets of $389 million, to the net loss reported on the income statement to convert the net loss from the
More informationCHAPTER 15. Stockholders Equity ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Concepts for Analysis. Brief Exercises Exercises Problems
CHAPTER 15 Stockholders Equity ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis *1. Stockholders rights; corporate form. 1, 2, 3, 4,
More informationPrinciples of Financial Accounting ACC-101-TE. TECEP Test Description
Principles of Financial Accounting ACC-101-TE TECEP Test Description This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns, and financial
More informationMidterm Fall 2012 Solution
Midterm Fall 2012 Solution Instructions: 1) Answers for the multiple-choice questions must be recorded on the UW answer card. All other questions must be answered in the space provided on the examination
More informationStatement of Cash Flow
Management Accounting 337 Statement of Cash Flow Cash is obviously an important asset to all, both individually and in business. A shortage or lack of cash may mean an inability to purchase needed inventory
More informationa. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000.
注 意 1. 本 試 題 卷 共 50 題, 總 分 100 分 第 01-15 題, 每 題 1.75 分, 合 計 26.25 分 ; 第 16-35 題, 每 題 2 分, 合 計 40 分 ; 第 36-50 題, 每 題 2.25 分, 合 計 33.75 答 錯 不 倒 扣 2. 請 將 答 案 按 試 題 題 號, 依 序 填 入 答 案 卡 1.FastForward had cash
More informationINDICE Preface Part 1 the accounting cycle 1 Accounting, the language of business What is accounting?
INDICE Preface XV Part 1 the accounting cycle 1 Accounting, the language of business 2 What is accounting? The purpose and nature and accounting information, creating accounting information. Communicating
More informationIn this chapter, we build on the basic knowledge of how businesses
03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize
More informationThe Basic Framework of Budgeting
Master Budgeting 1 The Basic Framework of Budgeting A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. 1. The act of
More informationLearning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.
0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting
More information9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
More informationAdvanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes
Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program
More informationJOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell University
JOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell University Sample Accounting Exemption Exam Questions 1. On July 1, 20D, Allen Company signed a $50,000, one-year, 10 percent note payable. At due date, June
More informationILLUSTRATION 17-1 CONVERTIBLE SECURITIES CONVERTIBLE BONDS
ILLUSTRATION 17-1 CONVERTIBLE SECURITIES CONVERTIBLE BONDS Issued ten, 8%, $1,000 par value bonds at 110. Each bond is convertible into 100 shares of $5 par value common. Entry at date of issue: Cash 11,000
More informationAccounts Payable are the total amounts your business owes its suppliers for goods and services purchased.
Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold
More informationFinance and Accounting For Non-Financial Managers
Finance and Accounting For Non-Financial Managers Accounting/Finance Recording, classifying, and summarizing financial transactions in terms of dollars and their interpretation 1 Key Accounting Terms Accounting
More informationBonds. Accounting for Long-Term Debt. Agenda Long-Term Debt. 15.501/516 Accounting Spring 2004
Accounting for Long-Term Debt 15.501/516 Accounting Spring 2004 Professor S. Roychowdhury Sloan School of Management Massachusetts Institute of Technology April 5, 2004 1 Agenda Long-Term Debt Extend our
More informationCASH FLOW STATEMENT (AND FINANCIAL STATEMENT)
CASH FLOW STATEMENT (AND FINANCIAL STATEMENT) - At the most fundamental level, firms do two different things: (i) They generate cash (ii) They spend it. Cash is generated by selling a product, an asset
More informationThis week its Accounting and Beyond
This week its Accounting and Beyond Monday Morning Session Introduction/Accounting Cycle Afternoon Session Tuesday The Balance Sheet Wednesday The Income Statement The Cash Flow Statement Thursday Tools
More information1. The primary forms of business organization are the proprietorship, the partnership, and the corporation.
Chapter 15 Stockholders Equity: Contributed Capital LECTURE OUTLINE This material in this chapter is straight-forward and can be covered in one or two class sessions. Treasury stock transactions under
More informationPractice Review. Stockholders Equity Chapter
Practice Review Stockholders Equity Chapter Use the following information to answer questions 1-3. When Sample Corporation was formed on January 1, the corporate charter provided for 50,000 shares of $20
More informationhow to prepare a cash flow statement
business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business
More informationAdvanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes
Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course and Exam Pilot Program
More informationExercise 17-1 (15 minutes)
Exercise 17-1 (15 minutes) 1. 2002 2001 Sales... 100.0% 100.0 % Less cost of goods sold... 63.2 60.0 Gross margin... 36.8 40.0 Selling expenses... 18.0 17.5 Administrative expenses... 13.6 14.6 Total expenses...
More informationIntroductory Financial Accounting Course Outline
Aboriginal Financial Officers Association of Alberta Introductory Financial Accounting Course Outline ACCT 210: INTRODUCTORY FINANCIAL ACCOUNTING I... 1 ACCT 240: INTRODUCTORY FINANCIAL ACCOUNTING II...
More informationWORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY
Accounting Technician 1 WORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY DESCRIPTION: Compute, classify, and record numerical data to keep financial records complete.
More information中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試
中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試 7 月 12 日 14:00~15:30 商 學 群 組 二 年 級 科 目 : 會 計 學 ( 共 七 頁 第 一 頁 ) 可 使 用 計 算 機, 惟 僅 限 不 具 可 程 式 及 多 重 記 憶 者 一 MULTIPLE CHOICE QUESTIONS: (50%) 誠 實 是 我 們 珍 視 的 美 德, 我 們 喜
More informationMost economic transactions involve two unrelated entities, although
139-210.ch04rev.qxd 12/2/03 2:57 PM Page 139 CHAPTER4 INTERCOMPANY TRANSACTIONS LEARNING OBJECTIVES After reading this chapter, you should be able to: Understand the different types of intercompany transactions
More informationStatement of Cash Flows
PREPARING THE STATEMENT OF CASH FLOWS: THE INDIRECT METHOD OF REPORTING CASH FLOWS FROM OPERATING ACTIVITIES The work sheet method described in the text book is not the recommended approach. We will provide
More informationIssuance of Common Stock example
Issuance of Common Stock example Let's assume that a company wants to raise $10,000 through the issuance of common stock. At the time the stock is sold the market price is $50 per share. the company will,
More informationCHAE Review. Capital Leases & Forms of Business
CHAE Review Financial Statements, Capital Leases & Forms of Business This is a complete review of the two volume text book, Certified Hospitality Accountant Executive Study Guide, as published by The Educational
More informationClick Here to Buy the Tutorial
FIN 534 Week 4 Quiz 3 (Str) Click Here to Buy the Tutorial http://www.tutorialoutlet.com/fin-534/fin-534-week-4-quiz-3- str/ For more course tutorials visit www.tutorialoutlet.com Which of the following
More informationACCOUNTING 105 CONCEPTS REVIEW
ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important
More information07:58. Think about it STOCKHOLDERS EQUITY. Stockholders Equity Components. Chapter 15. Three Buckets:
STOCKHOLDERS EQUITY Chapter 15 Think about it Who owns a Company? The Stockholders Who controls a Company? The Stockholders Who runs the Company? Executive Management (called C level, as in C EO, CFO,
More informationACC 120 PRINCIPLES OF FINANCIAL ACCOUNTING
ACC 120 PRINCIPLES OF FINANCIAL ACCOUNTING COURSE DESCRIPTION: Prerequisites ENG 090, and RED 090 or DRE 098; MAT 070 or DMA 010, 020, 030, 040, or satisfactory score on placement test Corequisites: None
More informationMASTER BUDGET - EXAMPLE
MASTER BUDGET - EXAMPLE Sales IN UNITS for the previous two months (of last quarter), as well as the sales forecast for next quarter are as follows: Sales Budget Units May sales (ACTUAL) 20 June sales
More information1. Operating, Investment and Financial Cash Flows
1. Operating, Investment and Financial Cash Flows Solutions Problem 1 During 2005, Myears Oil Co. had gross sales of $1 000,000, cost of goods sold of $400,000, and general and selling expenses of $300,000.
More informationSample Test for entrance into Acct 3110 and Acct 3310
Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance
More informationUNIVERSITY OF WATERLOO School of Accounting and Finance
UNIVERSITY OF WATERLOO School of Accounting and Finance AFM 101 Professor Duane Kennedy Mid-Term Examination Fall 2008 Date and Time: October 16, 2008, 7:15 8:45pm Pages: 16, including cover Name: Student
More informationBACKGROUND KNOWLEDGE for Teachers and Students
Pathway: Business, Marketing, and Computer Education Lesson: BMM C6 4: Financial Statements and Reports Common Core State Standards for Mathematics: N.Q.2 Domain: Quantities Cluster: Reason quantitatively
More informationCOST CLASSIFICATION AND COST BEHAVIOR INTRODUCTION
COST CLASSIFICATION AND COST BEHAVIOR INTRODUCTION LESSON# 1 Cost Accounting Cost Accounting is an expanded phase of financial accounting which provides management promptly with the cost of producing and/or
More informationHow To Calculate Financial Leverage Ratio
What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK
More information國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題
國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題 會 計 學 ( 本 試 題 共 8 頁 ) 注 意 :1 答 案 一 律 寫 在 答 案 卷 上, 否 則 不 予 計 分 2 請 核 對 試 卷 准 考 證 號 碼 與 座 位 號 碼 三 者 是 否 相 符 3 試 卷 彌 封 處 不 得 汚 損 破 壞 4 行 動 電 話 或 呼 叫 器 等 通 訊 器 材 不
More informationAccounting. Charles T. Horngren. Stanford University. Walter Harrison Jr. Baylor University. IVL Suzanne Oliver. Northwest Florida State College
Accounting EIGHTH EDITION Charles T. Horngren Stanford University Walter Harrison Jr. Baylor University IVL Suzanne Oliver Northwest Florida State College Pearson Education International Contents CHAPTER
More informationIntroduction to Accounting 2 Modul 6 Chapter 14. CORPORATIONS: Organization and Capital Stock Transactions
Introduction to Accounting 2 Modul 6 Chapter 14 CORPORATIONS: Organization and Capital Stock Transactions After studying this chapter, you should be able to: 1. Identify the major characteristics of a
More informationThe Statement of Cash Flows Direct Method
23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income
More informationChapter 8 Accounting for Receivables
Chapter 8 Accounting for Receivables Accounts Receivable Accounts Receivables are current assets. They are usually expected to be collected within 30 days. Allowance Method and Bad Debt Expense 2 methods:
More informationIpx!up!hfu!uif Dsfeju!zpv!Eftfswf
Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,
More informationUsing Accounts to Interpret Performance
Using s to Interpret Performance ing information is used by stakeholders to judge the performance and efficiency of a business Different stakeholders will look for different things: STAKEHOLDER Shareholders
More informationAccounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.
A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe
More informationAdvanced Placement (AP) Accounting
Advanced Placement (AP) Accounting The Advanced Placement (AP) Accounting Course is a full academic year course. The course is based on high school teachers having 120 contact hours with students from
More informationA Simple Model. Introduction to Financial Statements
Introduction to Financial Statements NOTES TO ACCOMPANY VIDEOS These notes are intended to supplement the videos on ASimpleModel.com. They are not to be used as stand alone study aids, and are not written
More informationMc Graw Hill Education
Managerial Accounting for Managers F o u r t h Edition Eric W. Noreen, Ph.D., CMA Professor Emeritus University of Washington Peter C. Brewer, Ph.D. Wake Forest University Ray H. Garrison, D.B.A., CPA
More informationRatio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability
A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability
More informationFinancial Accounting by Michael P. Licata, Ph.D. Course Syllabus and Learning Objectives by Chapter
Financial Accounting by Michael P. Licata, Ph.D. Course Syllabus and Learning Objectives by Chapter Basic Course Description Financial Accounting by Michael P. Licata, Ph.D. is a first accounting course
More information