ACC 444 Exam 1 Guide Summary of Questions (approximate): Topic # Multiple Choice Questions (2 pts each) Total Points Business Process Overview 9 Computer Fraud & Abuse 16 Internal Control Systems 25 Total # questions 50 100 Study Guide While there couldbe questions from other topics discussed in class‚ themain emphasis will be on the following subject matter: Business Process Overview The “transaction cycles” approach The data processing model Computer
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3-1 Days Outstanding DSO 20 ADS 20‚000 Days 365 A/R = ADS X DSO 400‚000 3-2 Debt Ratio EM 2.5 Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60or 60% 3-3 Market/Book Ratio Stock $ 75 Total Assets 10‚000‚000‚000
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Identify- Identify those events that are economic events. Measure- Measure economic events in financial terms. Functions in group 2: Record- record measurements. Classify- classify measurements. Summarize- summarize measurements. Functions in group 3: Report economic events- report economic events in financial statements and other reports. Interpret financial statements- Interpret the contents of financial statements and other reports. Question 2: Proficient-level: There are many opportunities
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96 Balance Sheet 2004 2003 Edwards‚ Inc. has prepared the following comparative balance sheets Cash $198‚000 $102‚000 for 2003 and 2004: Receivables $106‚000 $78‚000 2004 2003 Inventory $100‚000 $120‚000 Prepaid expenses $12‚000 $18‚000 Cash $ 198‚000 $102‚000 Plant assets $840‚000 $700‚000 Receivables 106‚000 78‚000 Accumulated depreciation $(300‚000) $(250‚000) Inventory 100‚000 120‚000 Patent $102‚000 $116‚000 Prepaid expenses 12‚000 18‚000
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75 x 1‚000 = $750 Less Direct material costs: $0.15 x 1000 = ($150) Less Direct labor costs: $0.02 x 1000 = ($20) Less total overhead costs: ($189.48) ? Profit: $390.52 3. Traditional system for sugar cookie A. Estimated overhead cost per 1000 cookies ‚)) = $150 B. Estimated operating profit for cookies Selling price: $0.75 x 1‚000 = $750 Less Direct material costs:
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fixed. C) calculation of the degree of operating leverage for the company. D) estimating how many products will have to be sold to make a decent profit. Answer: B Diff: 1 Terms: cost-volume-profit (CVP) analysis Objective: 1 AACSB: Reflective thinking 3) Cost-volume-profit analysis assumes all of the following EXCEPT: A) all costs are variable or fixed B) units manufactured equal units sold C) total variable costs remain the same over the relevant range D) total fixed costs remain the same over the
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Use the following to answer questions 3-4: The following data relate to the Blending Department of Tru-Color Paint Company for a recent month: Number Percent Complete of Units Conversion Costs Beginning work in process inventory 9‚000 60% Units started into production 45‚000 - Units completed and transferred out 46‚000 - Ending work in process inventory 8‚000 25% All materials are added prior to the beginning of work in the Blending Department. 3. Assuming that Tru-Color Paint Company uses
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Name ________________ Section time _______________ ACC 321 – Quiz 1 PART I: Multiple choice‚ 3 points each. (Transfer your answers to the proper question on the answer sheet and fill in only one circle per question.) 1. Which of the following is NOT a major challenge facing the accounting profession? a. Non-GAAP earnings. b. Fair value measurement. c. Accounting for fixed assets. d. Forward-looking information. 2. The objective of financial reporting places most
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Springfield Express is a luxury passenger carrier in Texas. All seats are first class‚ and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost
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ABC System in Super Bakery Inc. (Introduction) – What strategies did the management of Super Bakery‚ Inc. use? Installation of the Activity-Based Costing System Super Bakery was formed in the 1980’s during a time when the barrier to entry into the baked goods industry was limited. They started the company using the industry’s standards and following them very strictly. The first four years of Super Bakery were not profitable and management knew they had to make changes so the company could
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