...Chapter 2 Brief Exercises and Cases Bambi Price 4/27/14 Brief Exercises 1. a.) False b.) False c.) True d.) True f.) False 2. a.) decrease b.) decrease c.) increase d.) increase e.) decrease f.) increase g.) decrease 3. a.) manufacturing cost b.) manufacturing cost c.) manufacturing cost d.) nonmanufacturing cost e.) manufacturing cost f.) nonmanufacturing cost 4. a.) True b.) False c.) False d.) True e.) True 5. a.) direct labor b.) direct material c.) indirect labor d.) manufacturing overhead e.) indirect labor f.) direct labor g.) indirect material cost 6. a.) $41,000+28,000+12,000+9,000+4,050+3,500+50,000=$147,550 Answer: $147,550 total manufacturing costs b.) $45,000/$147,550=$3.28 Answer: $3.28 product cost on a per-unit basis Cases 1. a.) Disruptions in supply can wreak havoc on companies that rely on just- in- time purchasing of parts and supplies. These disruptions may result from strikes by factory workers of the supplier, natural disasters, or the unexpected closing of national borders (when suppliers are located in other countries). b.) I would have an inventory sale. Like everything half off or more. c.) $28,00+61,060+32,140+108,460+84,700+46,975+185,610+71,440+88,200+15,920=$722,505 722,505*80%=578,004 578,004*3.5%=20,230.14 Answer $20,230.14 annual interest rate d.) Only when a product is sold are manufacturing costs expensed as cost of goods sold on the income statement. I really don’t think...
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...Statements [Student Name] [Course Title] [Instructor] [Date] Importance of Financial Structure and Statements Introduction This essay discusses the role of financial structures on the profitability and stability of companies and the role of financial statements prepared using historical cost convention and accruals concept in the decision making process. Both aspects of companies discussed here are of much importance as they directly affect companies, their financial condition and the representation of facts to the relevant users. The financial structure of a company reflects various sources the company has used to finance its operations. The financial statements provide vital information to users such as shareholders, managers, banks, tax authorities and research analysts to make important decisions. Financial Structure The financial structure of a firm is the way the assets and operations are financed. A company employs various modes of financing to acquire assets and support its operations. The financial structure includes components such as short term liabilities, long term debt and shareholders’ equity. Financial structure is different from capital structure as the capital structure only includes long term debt and shareholders’ equity and ignores short term liabilities. More successful companies focus more on financial structure rather than capital structure as the analysis of financial structure reveals both the short term and long term aspects of...
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...be converted to cash or used up by the business within one year or the normal operating cycle, whichever is shorter. | | | | | True | | | False | | | | Score: 0 of 1 | | 2. | The current ratio is a liquidity ratio that is computed as current assets divided by current liabilities. | | | True | | x | False | | | | Score: 1 of 1 | | 3. | Conservatism in accounting means that small monetary items can be ignored. | | x | | True | | | False | | | | Score: 1 of 1 | | 4. | Comparability is the qualitative characteristic of accounting information that allows a statement reader to compare a company's performance from one year to the next. | | | | | True | | x | False | | | | Score: 1 of 1 | | 5. | Consistency means that a company uses the same accounting principles and methods as the other companies in the same industry. | | | | | True | | x | False | | | | Score: 1 of 1 | | 6. | The Monetary Unit Assumption assures that all important information needed by investors, creditors and managers is contained in the financial statements. | | | | | True | | x| False | | | | Score: 1 of 1 | | 7. | The cost principle requires that if a company buys a building for $2,000,000 in 2007 and that in 2009 the building is worth $2,900,000 the company would have to report the building at $2,000,000 in the Balance Sheet for 2009. | | x | | | True | | | False | | ...
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...buildings) to carry out their activities. Operations: A charitable organization might prepare financial statements that compare inflows (for example, contributions) with outflows. While these statements might appear similar to income statements, there would be no calculation of net income because the purpose of the charitable organization is to provide services to its constituents, not seek profits. 1.3 The balance sheet shows assets, liabilities and, shareholders’ equity as of a specific date (the balance sheet date), similar to a snapshot. The income statement and statement of cash flows report changes in assets and liabilities over a period of time, similar to a motion picture. 1.4 The auditor evaluates the accounting system, including its ability to...
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...The beginning inventory of merchandise at Waldo Company and data on purchases and sales for a three-month period are as follows: Date | Transaction | No. of units | Per Unit | Total | March 3 | Inventory | 60 | $ 1,500 | $ 90,000 | March 8 | Purchase | 120 | 1,800 | 216,000 | March 11 | Sale | 80 | 5,000 | 400,000 | March 30 | Sale | 50 | 5,000 | 250,000 | April 8 | Purchase | 100 | 2,000 | 200,000 | April 10 | Sale | 60 | 5,000 | 300,000 | April 19 | Sale | 30 | 5,000 | 150,000 | April 28 | Purchase | 100 | 2,200 | 220,000 | Required: 1. Record the inventory, purchases and cost of goods sold in a Perpetual Inventory record using the FIFO method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold account. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. Sales Revenue: $400,000 + $250,000 + $300,000 + $150,000 = $1,100,000 Cost of Goods Sold: $126,000 + $90,000 + $110,000 + $60,000 = $386,000 Gross Profit: Sales Revenue – Cost of Goods Sold $1,100,000 - $386,000 = $714,000 4. Determine the ending inventory value at LCM (Market price $ 1800 per unit). 5. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of: a) Rising prices and I. FIFO gives a better indication of the ending inventory value. II. FIFO increases...
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...Accounting for Managers Other titles in the Briefcase Books series include: Customer Relationship Management by Kristin Anderson and Carol Kerr Communicating Effectively by Lani Arredondo Manager’s Guide to Performance Reviews by Robert Bacal Performance Management by Robert Bacal Recognizing and Rewarding Employees by R. Brayton Bowen Building a High Morale Workplace by Anne Bruce Motivating Employees by Anne Bruce and James S. Pepitone Six Sigma for Managers by Greg Brue Design for Six Sigma by Greg Brue and Robert G. Launsby Leadership Skills for Managers by Marlene Caroselli Negotiating Skills for Managers by Steven P. Cohen Effective Coaching by Marshall J. Cook Conflict Resolution by Daniel Dana Manager’s Guide to Strategy by Roger A. Formisano Project Management by Gary R. Heerkens Managing Teams by Lawrence Holpp Budgeting for Managers by Sid Kemp and Eric Dunbar Hiring Great People by Kevin C. Klinvex, Matthew S. O’Connell, and Christopher P. Klinvex Time Management by Marc Mancini Retaining Top Employees by J. Leslie McKeown Empowering Employees by Kenneth L. Murrell and Mimi Meredith Finance for Non-Financial Managers by Gene Siciliano Skills for New Managers by Morey Stettner Manager’s Survival Guide by Morey Stettner The Manager’s Guide to Effective Meetings by Barbara J. Streibel Interviewing Techniques for Managers by Carolyn P. Thompson Managing Multiple Projects by Michael Tobis and Irene P. Tobis To learn more about titles...
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...1. | Sole proprietorships and partnerships are taxable entities. | | | | | True | | | False | | | | Score: 0 of 1 | | 2. | Internal users of accounting information include a company’s investors (or stockholders). | | | | | True | | | False | | | | Score: 1 of 1 | | 3. | Interest expense would be classified under operating activities. | | | | | True | | | False | | | | Score: 1 of 1 | | 4. | The balance sheet reports assets and claims to those assets at a specific point in time. | | | | | True | | | False | | | | Score: 1 of 1 | | 5. | The notes to the financial statements are not required. | | | | | True | | | False | | | | Score: 1 of 1 | | 6. | The Statement of Cash Flows reports only cash flows from operations. | | | | | True | | | False | | | | Score: 1 of 1 | | 7. | Only Certified Public Accountants may perform audits. | | | | | True | | | False | | | | Score: 1 of 1 | | 8. | Easy transfer of ownership is a characteristic of which form of business organization? | | | | | Sole proprietorship | | | Partnership | | | Corporation | | | All of the above | | | | Score: 1 of 1 | | 9. | In which forms of business organization are the owners personally liable for all the debts of the business? | | | | | Sole proprietorship and corporation | | | Sole proprietorship and partnerships...
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...Assignment No. 2 Bhagyanagar India Ltd.: Bhagyanagar India Ltd. Is a company working under the telecom sector & is unified in 1985. It is a share of surana group. Nonferrous & ferrous are the major product of the company. Here, we have to analyze any one company’s balance sheet & profit and loss account of 5 years from the previous assignment to forecast the company’s working for year 2013-2014. * PROFIT & LOSS ACCOUNT | | | | | | | | | | PROJECTED | SR.NO. | PARTICULARS | 2008-2009 | 2009-2010 | 2010-2011 | 2011-2012 | 2012-2013 | CAGR | 2013-2014 | 1) | SALES | -5.61% | -7.96% | 6.58% | 6.41% | 4.44% | 1.74% | 5.00% | 2) | EBIT | -59.08% | -16.82% | -5.80% | 104.38% | -63.43% | -10.15% | 13.00% | 3) | INTEREST | -21.63% | -58.41% | 3.93% | 14.33% | -77.05% | 8.74% | -15.00% | 4) | EBT | -64.23% | -4.20% | -6.78% | -92.13% | 327.10% | -21.39% | 7.00% | 5) | TAX | -18.95% | -70.40% | 175% | -84.82% | -14.24% | -38.80% | | 6) | PAT | -70.48% | 20.92% | -23.67% | -94.58% | 646.82% | -17.86% | 7.00% | 7) | DIVIDEND | 20% | - | - | - | - | | 20.00% | * BALANCE SHEET | | | | | | | | | | PROJECTED | PARTICULARS | 2008-2009 | 2009-2010 | 2010-2011 | 2011-2012 | 2012-2013 | CAGR | 2013-2014 | | LIABILITIES & EQUITY | | | | | | | | | 1) Shareholder's Fund | - | -7.48% | -7.64% | -6.44% | - | -2.996% | STABLE | | 2) Long Term Liabilities | -23.88% | -21.61%...
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...Unit 1 Introduction to Financial Accounting Learning Outcome After reading this unit, you will be able to: • Explain succinctly financial accounting concepts • Elucidate on different principles of financial accounting • Explicate the importance and scope of financial accounting • Understand Generally Accepted Accounting Principles(GAAP) • Identify limitations of Financial Accounting Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Role of Financial Accounting Principles of Financial Accounting Importance of Financial Accounting Benefits of Financial Accounting Limitations of Financial Accounting 1 Accounting for Managers 1.7 1.8 1.9 1.10 1.11 1.12 Accounting Principles Accounting Concepts and Conventions Accounting Standards in India and International Accounting Standards Summary Self-Assessment Test Further Reading 2 Accounting for Managers 1.1 Introduction Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies...
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...Introducing … Accounting Accounting Financial Accounting Accounting Analysis Generating Financial information Using the Financial information Recording, Classifying & Summarising Used for Reporting Analyze, Interpret & Communicate Provides Information for Planning & Control Audience: Internal (Managers, Employees & Owners) and External (Investors, Government Bodies, Society, Customers, etc) ( , , y, , ) FAM 3e @RamKakani 2 Financial Accounting – Evolution Evidence of recording of economic transactions in ancient civilizations Franciscan Monk Fra Luca Pacioli (14451515) as the father of modern accounting His Summa de Arithmetica, Geometria, Proportioni et Proportionalita, is considered as the first text on accounting FAM 3e @RamKakani Pacioli structured and organized the initial accounting system based on the ‘benefit and sacrifice’ principle 3 Accountant as a Historian Accountant can be perceived as a historian – who keeps records As historian the accountant has the duty to: Respect the facts To see the facts are accurate Bring into focus, all known and knowable relevant facts Finally, provide an interpretation of the history proposed FAM 3e @RamKakani 4 Financial Accounting – Evolution Product of economic environment Gradually evolved as a profession with the development of economic activity especially … Industrial Revolution Scope and nature of accounting is closely...
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...Accounting Information for Managers To Make Better Decisions 1 Abstract This paper analysis how the accounting information would support the decision making process. The main goal of an accounting system is to provide financial information about the organization including financial situation and the performance of the organization. The decision makers should know the situation of the organization either by comparing competitors or previous periods’ performance in order to achieve the objectives of the company and this being possible by using accounting information. In addition, this thesis studies the importance of having effective and efficient accounting system to make better decision as it relates to increase the profitability target of an organization. Organizations should replace their weak accounting system in order to ensure that each team member in the Accounts Department is conscious of their role to produce good accounting information (1, Okoli Margaret). The result of this paper describes that providing right information to the right people in time via management reporting to maximize the use of reports in decision-making. 2 Introduction Any organization should survive and excel in the fast paced and ever changing market. We are living in the digital era so information can be found everywhere via websites, databases documents, reports, and emails. However, it’s important to read the historical data-set during decision making process but providing report in quick...
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...ASSIGNMENT 1 – BSMAN 3009 Accounting For Managers Table of Contents 1. Introduction: Thoughts on Task Overview 2 2. Body: Corporate Social Responsibility 3 3. Conclusion 7 Appendix 1 10 1. Introduction: Thoughts on Task Overview Over the past 44 years, the environment in which we do business has dramatically changed with a more ethical and social responsivity due to the ability to access information whenever and where ever you are from any company you like. This access has changed the “rules of the game” to a point that it is a legal requirement in some countries to have a Corporate Social Responsibility (CSR) and in the future, I think that more countries will follow Indonesia’s lead to combat environmental damage. Environmental concerns is not the only area there CSR encompasses. Words like ‘continuous disclosure’, materiality assessment and CSR is becoming somewhat of a growing ideology, which is being injected into the corporate psyche with a standard demand from stakeholders. In this report, I will show through a number of company views that the rules of the game has changed not just through regulation but expectable social views. 2. Body: Corporate Social Responsibility Within Australia there are federal based reporting system for accounting and it is an evolving regulations the bring standard and the ability to compare companies for investors and other interested parties. The Australian Securities...
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...action where necessary is an example of control and evaluation. Continuous improvement. The management accountant helps identify opportunities for improvement, measures the projected costs and benefits, and reports on the actual outcomes. Decision making. The management accountant helps in the analysis of various alternatives and helps to choose the optimum course of action. 2. a. Planning; expected price and cost information are needed. b. Continuous improvement; cost savings from improved order entry quality. c. Control and evaluation; a performance report triggered the investigation that led to corrective action. d. Planning; forecasting of financial effects is necessary. e. Decision making; accounting must analyze cost-volume-profit effects. f. Continuous improvement; before-and-after costs are needed. g. Decision making; cost information for a keep-or-drop decision is needed. h. Continuous improvement; cost information for setups and materials waste. Problems 1–8 At first glance, this seems simple. Couldn’t John simply mention that Patty had...
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...Global Diploma Module: AFM Accounting For Manager Lecturer: Mr. David Goh Student name: Nguyen Ngoc Manh Student number: CT 0104754 Class: FM4 The bank balance at each month Feb March April $000 $000 $000 Receipt Cash 168 144 180 Credit 2166 1444 1261 Total received 2334 1588 1396 Payment Purchase for resale 1716 1092 1014 Salaries and wages 560 476 496 Overhead expenses 264 244 264 Vans...
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...SOWMYA H.no-1, Bank colony, Road no-2,THURKAPALLI, Secundrabad-500015. ( Contact # +91 – 8686778899. ( E-Mail ID: SOWMAYA@yahoo.com To be associated with a progressive organization that gives scope to apply my knowledge and skills and to be a part of a team that dynamically works towards the growth of the organization. |Degree |Year Of Passing |University |Percentage | |B.TECH(ECE) |March 2011 |JNTU University,Jyothishmathi collage of engg &tech. |67% | |Intermediate (MPC) |March 2007 |Board Of Intermediate Education |88% | |S.S.C (X) |March 2005 |Board Of Secondary Education | 79% | ❖ First place in IIT Hyderabad (Elan-2011) in line follower robotics. ❖ First place in national level Tec novation MGIT 2010. ❖ Participated and volunteer for PTSP workshop held at JCET Shamirpet in the year 2008. ❖ Participated in district level science fair 2003 held at Siddhartha high school, chintal, quthbullapur mandal, RR dist. ❖ Secured A-Grade in computer exhibition (talent show) held at model mission high school by rodtex technologies in 2002. ...
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