1(TCO 1) What is the accounting equation? Suppose your company
prepaid
$6,000 in cash for its rent How does this transaction impact the accounting equation? (Points : 17)
Question 2
2(TCO 2) What are the four basic financial statements? Describe the statement of cash flows, and explain why it is important (Points : 17)
Question 3
3(TCO 3) What is the Sarbanes-Oxley Act? Why is it important to investors? (Points : 17)
Question 4
4(TCO 4) X Company shows a balance in Land of $100,000 in 2016 and it was $50,000 in 2015 (1) What is the amount AND percentage change between the two years? (2) Also, X Company’s Total Assets in 2016 are $800,000, what is the common-sized percentage for Land in 2016? (Points : 17)
1(TCO 8) Why is capital budgeting important? What is the cash payback period? How is it calculated? (Points : 30)
Question 2
2(TCO 9) What are three different types of decisions that could use incremental analysis? (Points : 30)
Question 3
3(TCO 11) What is the format of an income statement prepared under the contribution margin approach? (Points : 30)
1(TCO 5) What is the formula for margin of safety? What does this formula tell a company? Why is this important to know? (Points : 30)
Question 2
2(TCO 6) What is a budget? How does this differ from a long-term plan? Which do you think is more important to do if you can only prepare one of them? (Points : 30)
Question 3
3(TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? (Points : 32)