Accounting Last

1. (TCO 1) What is the accounting equation? Suppose your company paid $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 balance sheet, and explain why it is important. (Points : 17)
      
      


Question 3.3. (TCO 3) What is the Sarbanes-Oxley Act? Why is it important to accounting investors? (Points : 17)
      
      


Question 4.4. (TCO 4) How does vertical analysis of financial statements differ from horizontal analysis? Which method do you think is a better analysis tool? (Points : 17)
      

Question 1.1. (TCO 8) Why is capital budgeting important? What is the cash payback period? How is it calculated? (Points : 26)
      
      


Question 2.2. (TCO 9) What are five different types of decisions that could use incremental analysis? What are the factors to be considered in retaining or replacing equipment? (Points : 26)
      
      


Question 3.3. (TCO 10) How is a transfer price determined? Describe the cost-based method. Do you think it is better than the market-based method? (Points : 26)
      
      


Question 4.4. (TCO 11) What are direct materials? Give an example of a direct material. How do direct materials differ from indirect materials? Give an example of an indirect material. (Points : 26)
      
     



Question 1.1. (TCO 5) What is the formula for margin of safety? What does this formula tell a company? Why is this important to know? (Points : 26)
      
      


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 : 26)
      
      


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 : 26)