MGT 8803 Questions with complete solutions
What are the (5) assumptions of financial accounting?
What does materiality mean?
What are the
... [Show More] qualities of financial statements? (6)
What are the three basic financial statements?
What does the balance sheet do?
What are the three categories of the balance sheet?
What is the accounting equation?
List 6 common asset accounts.
What does liquidity mean? List 4 ways to determine the value of assets.
What is the cost principle?
List 5 common liability accounts.
What makes an asset current (vs long term)?
What makes a liability current (vs long term)?.
What is owner's equity?.
What are the two components of the owner's equity section of the balance sheet?
Which forms of stock fall under Capital stock?
What are retained earnings?
What form of accounting does GAAP use?
What is the revenue recognition principle (accrual basis accounting)?
What is the 4 criteria for recognizing revenue?
What are the two main components of the matching principle?
What does the income statement show?
What is the difference between the income statement and balance sheet?.
What are 4 things that fall under S,G & A (selling, general and administrative) What is operating income?
What is gross margin?
What is the formula for EPS (earnings per share)?
What is the difference between EPS and fully diluted EPS?
What does the statement of cash flows show?
What are the three sections of the statement of cash flows?
What is the allowance method?
What are two methods for estimating bad debt?
What is a notes receivable?
What is the maturity value of a notes receivable?
Name three different types of inventory for a manufacturing company.
Which company records inventory in transit on the balance sheet?
What is the formula for COGS?
What is the formula for gross margin?
Why would a company use the gross method over net method for gross margin?
Which companies must use the net method for gross margin?
What are two methods for calculating inventory and cost of goods sold?
List 4 methods of inventory cost flows.
Why would a company use LIFO over FIFO?
Why would a company use FIFO over LIFO?.
What is the LIFO Conformity Rule?
What is the lower of cost or market rule?
When would the company report inventory at less than cost?
What is the mark to market principle?
What is the process of cost allocation that assigns the cost of the asset to the periods benefited?
What two types of property, plant and equipment are there?
What does capitalization mean? What is capitalized interest?
Name two types of expenditures on assets and what they mean.
What are the two estimates required of management for depreciation?
What is straight line depreciation?
What is units of output depreciation?
What is accelerated depreciation?
Name two contra asset accounts.
What type of depreciation is used for natural resources?.
What is goodwill?.
Is R&D an expense or asset?
Name 5 examples of current liabilities (due within one year)
Name 6 examples of long term liabilities.
What is the difference between an operating lease and a capital lease?
What are the 4 properties of bonds?
What are the 4 properties of Capital stock?
What are treasury shares?
What are the two categories of stock?.
Preferred stock has these two preferences.
Is treasury stock a contra equity or asset?
What is a direct cost?
What is an indirect cost?
What are the three categories of manufacturing costs?
What goes into product costs (inventoriable costs)?)
What are non-manufacturing costs called?
Name the three inventory categories on the balance sheet for a manufacturing company.
What are the three steps in ABC costing?
What is the difference between standard qty and budgeted qty? What is inputs at standard?
What is the formula for MPV (Materials Price Variance)?
What is the formula for MQV (Materials Quantity Variance)?
What do we label positive variances for MPV or MQV?
What do we label negative variances for MPV and MQV?
What is the formula for LRV (Labor Rate Variance)?
What is the formula for LEV (Labor Efficiency Variance)? What is opportunity cost?
What is sunk cost?.
What is incremental (differential) cost?
Are sunk costs relevant for decision making?
What are capital structure decisions?
What is the main goal with finance?
How do you figure out the market cap (or market value of equity) of a company? What are the 4 stages of capital investment?
What are the 4 techniques for project selection?
What is the opportunity cost of capital?
What is present value?
What is the process of finding future values called?
What is the process of finding present values called?
What is r in the NPV formula?
Should you accept or reject a project if the NPV is greater than zero?
What is payback period?
What are two issues with payback period?
.
What is internal rate of return?
What is the profitability index?
What is the cutoff for accepting projects based on profitability index? Which two evaluation methods require cost of capital in addition to cash flows?
A company's ability to earn positive economic profits depends on what two things? What are economic profits?.
What is the cost of capital?. [Show Less]