ACCTMIS 2200- Final Exam Guide - Comprehensive Notes for the exam ( 26 pages long!)

89 views26 pages

violetsnail147

5 Dec 2017

School

Ohio State University

Department

Accounting and Management Info

Course

ACCTMIS 2200

Professor

Marc Smith

For unlimited access to Study Guides, a Grade+ subscription is required.

blushjackal941 and 2 others unlocked

ACCTMIS 2200 Full Course Notes

Verified Note

4 documents

Document Summary

Financial statements are a set of accounting reports that convey economic and financial information to outside users such as creditors and investors. Four major financial statements: balance sheet, income statement, statement of owners" equity, statement of cash flows. Thus, the balance sheet is commonly defined as the financial statement that describes the company"s resources (assets) and the claims against those resources by creditors (liabilities) and owners (equity: fundamental accounting equation, assets = liabilities + equity. Organizational forms of businesses: sole proprietorship, partnership, corporation. Sole proprietorship: owned by one person, simple to establish, owner controlled, ex. Partnership: business owned by two or more persons, one individual lacks economic resources, broader skills and resources, professional practices (lawyers, doctors, cpas) Corporation: business owned by stockholders, separate legal entities from owners, easier to transfer ownership, easier to raise funds, no personal liability. Funding to finance a start-up: debt financing, equity financing.

Related Questions

1. The budget informationprepared by a company must be a part of financial statementsincluded in form 10-k.

A. True B. False

2. MD&A ( included in form 10-k) stands for:

A. Minor disclosure and Analysis

B. Management's disclosure and Analysis

C. Management's discussion and Analysis

3. The statement of cash flows can provide statement users withinformation about which of the following:

A. how a company is generating its cash

B. whether the income reported on the income statement isrealized as cash

C. how the company used its cash resources.

D. All of the above

4. A process cost accounting system is best suited to accumlatethe manfacturing costs for which of the following products?

A. Construction of an electric power generation facility

B. a house

C. Paper clips

D. an automobile

5. The statement of cash flows focuses only on what happenedto:

A. revenues and expenses

B. fixed asset purchases

C. the issuance of stock and bonds

D. cash

6. The balance sheet equation ( the accounting equation) can bedefined as which of the following:

A. Assets - liabilities = stock holder equity

B. Assets + liabilities = stockholders equity

C. Assets= liabilities - stockholders equity

D. Assets + stockholders equity= Liabilities

7. One of the major criticisms aimed at financial accountants isthat their information is not

A. accurate

B. timely

C.proper

D. Added correctly

8. Which of the following provides the greatest level ofdetail?

A. general ledger system

B. balance sheet

C. income statement

D. cost accounting system

9. Which audit opinion states " The financial statements followGAAP except in the following sentences..."?

A. Unqualifed

B. Qualified

C. Adverse

D. Disclaimer of Opinion

10. Which of the following management functions orcharacteristics are most enhanced by the budget process?

A. timeliness and responsiveness

B. planning and accuracy

C. control and accountability

D. focus and accountability

salmondeer221

1. Creditors' claims on the assets of a company are called: (Points : 2)

2. The primary objective of financial accounting is: (Points : 2)

To serve the decision-making needs of internal users

To provide financial statements to help external users analyze and interpret an organization's activities

To monitor and control company activitiesTo provide information on both the costs and benefits of managing products and services

To know what, when and how muchto produce

3. Assets created by selling goods and services on credit are: (Points : 2)

4. The debt ratio is used: (Points : 2)

To measure the amount of equity relative to the expenses

To reflect the risk associated with a company's debts

Only by banks when a business applies for a loan

To determine how much debt a firm should pay off

5. Net Income: (Points : 2)

Decreases equity

Represents the amount of assets owners put into a business

Equals assets minus liabilities

Is the excess of revenues over expenses

Represents the owners' claims against assets

6. Internal users of accounting information include: (Points : 2)

Shareholders

Customers

Creditors

Government regulators

Line Supervisor

7. Risk is: (Points : 2)

Net income divided by average total assets

The reward for investment

The uncertainty about the expected return that will be earned from an investment

Unrelated to expected return

8. An example of an operating activity is: (Points : 2)

Paying wages

Purchasing office equipment

Borrowing money from a bank

Selling stock

Paying off a loan

9. Which accounting assumption assumes that all accounting information is reported monthly or yearly? (Points : 2)

Business entity assumption

Monetary unit assumption

Value assumption

Cost assumption

Time period assumption

10. Distributions of assets by a business to its stockholders are called: (Points : 2)

Case 2.1 Intel Case The 2013 Intel Form 10-K can be found at the following Web site: www.pearsonhighered.com/fraser. Using the Form 10-K, answer the following questions: Prepare a common-size balance sheet for Intel for all years presented. Describe the types of assets Intel owns. Which assets are the most significant to the company? Using the notes to the financial statements, discuss the accounting methods used to value assets. What other information can be learned about the asset accounts from the notes? Have there been significant changes to the asset structure from 2012 to 2013? Analyze the accounts receivable and allowance for doubtful accounts. Describe the types of liabilities Intel has incurred. Which liabilities are the most significant to the company? Have there been significant changes to the liability and equity structure from 2012 to 2013? Describe the commitments and contingencies of Intel. Under which classification(s) are deferred taxes listed? What item is the most significant component of deferred taxes? What equity accounts are included on the balance sheet of Intel? Case 2.2 Applied Materials Comprehensive Analysis Case Using the Financial Statement Analysis Template Each chapter in the textbook contains a continuation of this problem. The objective is to learn how to do a comprehensive financial statement analysis in steps as the content of each chapter is learned. Using the 2013 Applied Materials Form 10-K that can be found at www.pearsonhighered.com/fraser, complete the following requirements: Open the financial statement analysis template that you saved from the Chapter 1 Applied Materials problem and input the data from the Applied Materials balance sheet. Be sure to read the notes to the financial statements to determine the correct numbers to input on the template. For example, the company has combined asset and liability accounts and property, plant and equipment has been recorded net of accumulated depreciation. See Note 7 to help you reorganize the data for the template. When you have finished inputting the data, review the balance sheet to make sure there are no red blocks indicating that your numbers do not match the cover sheet information you input from the Chapter 1 problem. Make any necessary corrections before printing out both your input and the common-size balance sheet that the template automatically creates for you. Analyze the balance sheet. Write a summary that includes important points that an analyst would use in assessing the financial condition of Applied Materials.

taupefrog166

ACCTMIS 2200- Final Exam Guide - Comprehensive Notes for the exam ( 26 pages long!)

ACCTMIS 2200 Full Course Notes

Document Summary

Get access

Related Documents

[ACCTMIS 2200] - Midterm Exam Guide - Comprehensive Notes for the exam (18 pages long!)

ACCTMIS 2200 Lecture Notes - Lecture 3: Cash Flow Statement, Cash Flow, Accrual

ACCTMIS 2200 Lecture Notes - Employee Stock Option, Net Income, Issued Shares

Related Questions