Business Memo

Topics: Balance sheet, Bond, Security Pages: 8 (2485 words) Published: February 8, 2013

Accounting 243: Accounting Research
INSTRUCTOR: Eralda Kanacevic, MBA
Instructions: Exam is due by 10/23/12 @ 11:59pm
Please submit in the drop box under week 4.
Student: Gergana Ruseva-Ormanova
1-What are the skills that are tested on the CPA and what are they called? The skills tested on the CPA Exam are: researching relevant financial accounting, tax, auditing and attestation literature; communicating business information; analyzing and interpreting business information; rendering judgment based on available business information; and gaining an understanding of key business terms, facts and processes.

2-How AICPA does define these skills?
The Core Competency Framework defines a set of skills-based competencies needed by all students entering the accounting profession, regardless of the career path they choose. The Framework is an online resource ( that educators can utilize to develop or reform curricula to support the development of a set of competencies aimed at helping students acquire the knowledge and develop the talents that will lead them to personal success in the accounting profession. The Framework focuses on skills and is not structured around traditional subject/content areas or accounting services. A skills-based curriculum versus a knowledge-based curriculum is advocated because the body of knowledge and the accounting profession are changing so rapidly. Although knowledge requirements will change with time, the core set of competencies identified by the Framework will have long-term value and will support a variety of career opportunities for the future CPA. The competencies are arranged under the following three categories: Functional Competencies, technical competencies most closely aligned with the value contributed by accounting professionals; Personal Competencies, individual attributes and values; and Broad Business Perspective Competencies, perspectives and skills relating to understanding of internal and external business contexts.

3-What six principles of clear writing does SEC Release33-7380 identify? The AICPA describes the following six characteristics for effective writing on the CPA exam. 1. Coherent Organization: Writing should be organized in a logical manner. 2. Conciseness: Concise writing is short, to the point, and avoids drawn-out sentences. 3. Clarity: Writing should be clear and avoid ambiguous descriptions or examples. 4. Use of Standard English: Standard English involves good vocabulary, correct use of punctuation, good grammar, and correct sentence structure. 5. Responses to the Requirements of Questions: Responses should directly address the question answered. 6. Appropriateness for the Reader: Writing should be to a high level and the reader is expected to have a general knowledge of accounting standards.

4-Utilizing your critical thinking skills solve the following problem: Three auditors checked into a hotel under one reservation. After paying $100 each to the hotel manager, they went to their individual rooms. The manager, noting that the total rate for the three rooms is $250, gives $50 to the bellboy to return to the three auditors. On the way to the rooms, the bellboy reasons that $50 would be difficult to share among three individuals, so he pockets $20 and gives each auditor $10. At this point, each person has paid $100 and gotten back $10. So they paid $90 each, for a total of $270. The bellboy kept $20, making the total $290 ($270 + $20). Where is the remaining $10?

Auditor Paid| $ 100.00 |
Room Charge| $ (83.33)|
Back| $ (10.00)|
 | $ 6.67 |
 |  |
Bellboy Kept per room $20/3| $ 6.67 |
Each auditor should have paid only $ 83.33. Total charge for three rooms 83.33*3=249.99. Each auditor should have gotten back $100-$83.33=$16.67. Each auditor got only $10 back. The bellboy kept $20/3=$6.67....
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