Acct Mid-Term Solutions
MBA 607
Examination I
I will select five of the following questions for the mid-term exam. You should be able to answer all of them. You may work together in study groups and analyze and answer the questions. Obviously, the exam will be an individual effort.
1 Accounting and Control
The controller of a small private college is complaining about the amount of work she is required to do at the beginning of each month. The president of the university requires the controller to submit a monthly report by the fifth day of the following month. The monthly report contains pages of financial data from operations. The controller was heard saying, "Why does the president need all this information? He probably doesn 't read half of the report. He 's an old English professor and probably doesn 't know the difference between a cost and a revenue."
Required:
a. What is the probable role of the monthly report?
Ans: The monthly report is the report card for the University’s internal accounting system, these monthly reports are a formal part of the University’s information system, that provides data and knowledge for decision making (pg.2 of text). These reports are part of a system of controls, these controls force the organization to account for their monthly transactions and the president needs to know this so that he can defend and reconcile the position of his company. These reports are useful to the president so that he can manage the in-and-outflow of resources that keep the University’s board members and employees interests aligned. For the president, the role of these monthly reports are to provide information for necessary planning and decision making and to also help motivate and monitor people within the university (pg. 3 of text).
b. What is the controller 's responsibility with respect to a president who doesn 't know much accounting?
Ans: It is the controller’s responsibility to ensure the President understands what the reports
Examination I
I will select five of the following questions for the mid-term exam. You should be able to answer all of them. You may work together in study groups and analyze and answer the questions. Obviously, the exam will be an individual effort.
1 Accounting and Control
The controller of a small private college is complaining about the amount of work she is required to do at the beginning of each month. The president of the university requires the controller to submit a monthly report by the fifth day of the following month. The monthly report contains pages of financial data from operations. The controller was heard saying, "Why does the president need all this information? He probably doesn 't read half of the report. He 's an old English professor and probably doesn 't know the difference between a cost and a revenue."
Required:
a. What is the probable role of the monthly report?
Ans: The monthly report is the report card for the University’s internal accounting system, these monthly reports are a formal part of the University’s information system, that provides data and knowledge for decision making (pg.2 of text). These reports are part of a system of controls, these controls force the organization to account for their monthly transactions and the president needs to know this so that he can defend and reconcile the position of his company. These reports are useful to the president so that he can manage the in-and-outflow of resources that keep the University’s board members and employees interests aligned. For the president, the role of these monthly reports are to provide information for necessary planning and decision making and to also help motivate and monitor people within the university (pg. 3 of text).
b. What is the controller 's responsibility with respect to a president who doesn 't know much accounting?
Ans: It is the controller’s responsibility to ensure the President understands what the reports