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acct 301 final exam 495876

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Week 8 : Final Exam – Final Exam

Page 1

1.(TCO 1) What is the accounting equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?(Points : 17)

2.(TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important.(Points : 17)

3.(TCO 3) What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why?(Points : 17)

4.(TCO 4) What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis?(Points : 17)

1.(TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated?(Points : 26)

2.(TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant costs in a make-or-buy decision?(Points : 26)

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)

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)

1.(TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform?(Points : 26)

2.(TCO 6) What is an operating budget? What does it result in? What is the first step in completing an operating budget?(Points : 26)

3.(TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center?(Points : 26)

Page2

1.(TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated? (Points : 26)

2.(TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant costs in a make-or-buy decision? (Points : 26)

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)

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)

1.(TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform? (Points : 26)

2.(TCO 6) What is an operating budget? What does it result in? What is the first step in completing an operating budget? (Points : 26)

3.(TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? (Points : 26)

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