2011 AICPA Newly Released Questions – Financial Following are multiple choice questions and simulations recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board has provided the accompanying explanation. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams. 1 2011 AICPA Newly Released
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projects. What is the initial outlay? What are the incremental cash flows over the life of the project? What is an appropriate discount rate to use for discounting the cash flows of the projects? Initial Outlay Planet Karaoke Pub To invest THB 770,000 or THB1,000,000? Beach Karaoke Pub To invest THB1,700,000 or THB2,100,000? Incremental Cash Flows Planet Karaoke Pub Year Annual Cash Flow (THB) -Lower Annual Cash Flow (THB) - Upper 0 -770,000.00 -1,000,000.00 1
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deciding whether or not to invest money into a project that generates a certain rate of return or a certain amount of money (cash inflow or cost of capital), investor or management would like to first estimate the future rate of return (future cash flow) and then discount it to today’s rate/value (present value). The difference between these present rates of return or cash flows is called net present value. The cost of capital is generally measured as weighted average cost of capital (WACC). For Company
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income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very good thing when large amounts of cash are not tied up in too much inventory or high supply stocks and over staffed departments. Cash will now be available for other purposes
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M&A, BARUCH COLLEGE, FALL 2012 Prof Harvey Poniachek Questions for Cooper Industries Harvard Case Study THE CASE SHOULD BE DONE BY TEAMS OF UP TO FOUR STUDENTS. The CASE WOULD BE PRESENTED AND DEFENDED IN CLASS BY TWO TEAMS. I EXPECT MANY OF YOU TO MAKE CLASS PRESENTATIONS BY UTILIZING POWERPOINT AND/OR OTHER MEANS. THE QUESTIONS BELOW WERE SUGGESETD BY THE AUTHORS OF THE CASE AND ADDRESS THE MAIN THE ISSUES, BUT YOU MAY EDIT / CONSOLIDATE THEM IF YOU FIND IT NECESSARY / CONVENIENT IN WRITING
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Angel investors are those investors that are particularly interested in investing in companies early stage companies. Their investment capital is generally limited and if relevant, it has been advantageous for them to pool their funds as a group to not only participate in larger deals but also to diversify risk. They invest in exchange for ownership equity or convertible debt. Angels are interested in start-ups in rapidly developing markets (or later stages if they have a proven product) where
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financial records according to Martin (2001), are referred to as “cash accounting and accrual accounting” (pg. 8, Cash and Accrual Accounting). However the accrual method is highly preferred and for many organizations this method is required. This paper will discuss their differences, why accrual accounting is important, and the importance of a cash flow statement with regard to financial management of an organization. Although cash accounting and accrual accounting are methods used to keep financial
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In order to double or triple Roger’s Chocolates revenues in the next decade, the following strategic actions must be taken: More effectively utilize the company’s Website and the vast reach of the Internet to expand customer base. Current Internet sales represent only four percent of total sales. The Internet can create the largest increase in sales with the least amount of fixed costs all with tremendous contribution margin. The upcoming Olympic Games present an opportunity for Roger’s Chocolates
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Strategic Management Case Study Outline products Cardio-Vasculair X-Ray Imaging Equipment Patient Montioring & Cardiac Care Equipment Computed Tomography Imaging Equipment Ultrasound Diagnostic Imaging Equipment General X-Ray Imaging Equipment Magnetic Resonance Imaging Equipment Healthcare Information Systems Nuclear Medicine Imaging Equipment ▪ Levels of strategy: if applicable-identify the level. In Regards to the medical equipments sector which is our main concern in this
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RUNNING HEAD: Songdarts.com financial planning LVJCBC Group C Financial Planning and Projections Vanansio Samson & Benibo George MGMT 600 Professor Catherine Grogan Keller Graduate School of Management June 16, 2013 Start-up cost: 1. Songdart.com have raised $100,000 and seeking for additional $200,000 to start the online music business through the Boston Harbor Angel Investors, whose role in financing companies in Internet/Web services, medical devices
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