Accounting 306 Exam 1 Notes Full Disclosure Principle – Calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader. Illustration 24-1: Financial Statements – Balance Sheet‚ Income Statement‚ Statement of Cash flows‚ and statement of changes in stockholders’ equity. Notes to financial statements – Accounting policies‚ contingencies‚ inventory methods‚ number of shares of stock outstanding‚ alternative measures. Supplementary Information
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Electronic controls are imperative which include examples such as Safes‚ and safety deposit boxes‚ storage cabinets that are used for inventory and records‚ pass key access in companies‚ alarms‚ television monitors‚ and time clocks for recording of time. 3. Segregation of duties: Segregation of duties embodies the ideas that responsibility related activities should be delegated to different individuals and that record keeping for an asset should be kept separate from the physical custody of that same asset
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MEMO To: Manager of Newman Title Inc. From: Date: 12 September 2011 Re: SEC investigation and Resignation of CFO The purpose of this memo is to provide Newman Title Inc. manager‚ about the investigation from U.S. Securities and Exchange Commission (SEC) regarding Newman Title’s accounting practice of revenue recognition‚ and the impact of CFO’s resignation for the company its share market. Legally we are required to comply with the request of the SEC and give the SEC the invoices and
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1 Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system. 2 What are the advantages and disadvantages of using the cost of each print as a manufacturing overhead cost driver? 3 Using the information on the next page‚ compute and interpret the predetermined manufacturing overhead rate for Wall Décor. 4 Compute the product cost for the following three items. (a) Lance Armstrong unframed print (base cost of print $12). (b)
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suited show large profits. 9-5 (1) Identify the activities that consume resources and assign costs to them. (2) Identify the cost driver(s) associated with each activity. A cost driver is any factor that causes‚ or “drives‚” an activity’s costs. (3) Compute a cost rate per cost driver unit or transaction. Each activity could have multiple cost drivers. (4) Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product. 9-7 The companies
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per unit is determined as follows. | | 3 CORRECT | | Newman Corporation produced and sold 80‚000 units and reported sales of $4‚000‚000 during the past year. Management determined that variable expenses totaled $2‚800‚000 and fixed expenses totaled $720‚000. What is the company’s contribution margin ratio? | | | A) | 30% | | | B) | 70% | | | C) | 150% | | | D) | 250% | | | | | | Feedback:The correct answer is A (Learning Objective 3): The company’s contribution margin (CM)
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net pay. c. Complete payroll register. d. Maintain payroll deduction records. e. Update employees’ earnings records. f. Prepare paychecks. g. Record payroll in accounting books. h. Prepare various payroll reports. 3. Assignment 1C (20 points) Question for Discussion 3‚ page 1-24 of your textbook Question: In staffing their offices‚ some firms encourage in-house referrals (recommendations of their present employees). What are some possible objections to this practice as a means of obtaining
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This of ACC 305 Week 3 P7-14 (Page 389) contains: Balance per bank of El Gato Painting Company Business - Accounting Week 3 Required Readings a. Chapter 6: Time Value of Money Concepts b. Chapter 7: Cash and Receivables Discussions Present Value of Annuities. Complete Communication Case 6-3 on page 334. Internal Control. Complete Judgment Case 7-5 on page 391. Quiz Assignments Receivables Bank Reconciliation. Complete P7-10 (Page 388)
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of evidence Appropriateness – quality of evidence o Inversely related with sufficiency Audit procedures: specific acts performed by the auditor to gather evidence about specific assertions 1. Risk assessment procedures 2. Tests of controls 3. Substantive tests 4. Test of details for the remainder of assurance needed Inspecting Documents Vouching: ( Occurrence) going from journal or ledger to the source documents Tracing: (Completeness) from source documents to the journal or ledger
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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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