Strayer ACC556 FULL COURSE Latest 2019 April

ACC556 Financial Accounting for Managers

CHAPTER 1 EXERCISE

Question 1 When expenses exceed revenues, which of the following is true?

Answers:

a net loss results

a net income results

assets equal liabilities

assets are increased

Question 2 Which of the following is not a common way that managers use the balance sheet?

Answers:

To analyze the balances of assets, liabilities, and stockholders’ equity throughout the accounting period

To determine if the cash balance is sufficient for future needs

To analyze the balance between debt and common stock financing

To analyze the balance of accounts receivable on the last day of the accounting period MT

Question 3 Stockholders’ equity is comprised of

Answers:

common stock and dividends.

common stock and retained earnings.

dividends and retained earnings.

net income and retained earnings.

Question 4 External users want answers to all of the following questions except

Answers:

Is the company earning satisfactory income?

Will the company be able to pay its debts as they come due?

Will the company be able to afford employee pay raises this year?

How does the company compare in profitability with competitors?

Question 5 One way of stating the accounting equation is: Assets + Liabilities = Stockholders’ Equity.

Selected Answer:

False

Answers:

True

False

ACC556 Financial Accounting for Managers

CHAPTER 2 EXERCISE

Question 1 Equipment is classified on the balance sheet as

Answers:

a current asset.

property, plant, and equipment.

an intangible asset.

a long-term investment.

Question 2 Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Write the letter in the blank next to each statement corresponding to the quality involved.

Question
Consistency	A company uses the same accounting principles from year to year.
Verifiable	Information that may be duplicated using the same methods.
Understandability	Information presented in a clear and concise fashion.
Relevance	Information that makes a difference in a decision.
Faithful representation	Information accurately depicts what really happened.

Question 3 For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business.

Answers:

True

False

Question 4 Based on the following data, what is the amount of current assets?

Accounts payable……………………………………………………….. $62,000

Accounts receivable…………………………………………………….. 100,000

Cash………………………………………………………………………. 50,000

Intangible assets………………………………………………………… 100,000

Inventory…………………………………………………………………. 138,000

Long-term investments…………………………………………………. 160,000

Long-term liabilities……………………………………………………… 200,000

Short-term investments…………………………………………………. 80,000

Notes payable……………………………………………………………. 56,000

Property, plant, and equipment…………………………………………… 1,340,000

Prepaid insurance……………………………………………………….. 2,000

Answers:

$212,000

$370,000

$232,000

$230,000

Question 5 Garrison Company prepares quarterly reports, which it distributes to all stockholders and other entities that rely on its accounting information. Which of the following is the best term for the key assumption in financial reporting that Garrison is following?

Answers:

Monetary unit assumption

Going concern assumption

Economic entity assumption

Periodicity assumption.

ACC556 Financial Accounting for Managers

CHAPTER 3 EXERCISE

Question 1 The primary purpose of the trial balance is to.

Answers:

disclose the complete effect of a transaction in one place.

make sure a journal entry is not posted twice.

transfer journal entries to the ledger accounts.

prove the equality of the debit and credit amounts after posting.

Question 2 Which one of the following represents the expanded basic accounting equation?

Answers:

Assets = Liabilities + Common Stock + Dividends – Revenue – Expenses

Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues

Assets= Liabilities + Common Stock + Revenues – Expenses - Dividends

Assets = Revenues + Expenses – Liabilities

Question 3 Match the items below by entering the appropriate code letter in the space provided.

Question
Account	An accounting record of increases and decreases in specific assets, liabilities, and stockholders’ equity items.
Normal account balance	The side which increases an account.
Debit	Left side of an account.
Revenue account	Has a credit normal balance
Ledger	The entire group of accounts maintained by a company.
Journal	Shows the debit and credit effects of specific transactions.
Posting	Transferring journal entries to ledger accounts.
Chart of accounts	A list of all the accounts used by a company.
Trial balance	A list of accounts and their balances at a given time.
Source document	Evidence that a transaction has taken place.

Question 4 If total liabilities decreased by $4,000, then

Answers:

stockholders’ equity must have decreased by $4,000.

assets must have decreased by $4,000, or stockholders’ equity must have increased by $4,000.

assets and stockholders’ equity each increased by $2,000.

assets must have increased by $4,000.

Question 5 All of the following are characteristics of every accounting information system except it is a system

Answers:

that collects transaction data.

that processes transaction data.

that communicates financial information to decision makers.

of data storage hardware for the chart of accounts.

ACC556 Financial Accounting for Managers

CHAPTER 4 EXERCISE

Question 1 An adjusting entry to a prepaid expense is required to recognize expired expenses.

Answers:

True

False

Question 2 Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.

Answers:

annual, annual

monthly, annual

quarterly, monthly

monthly, monthly

Question 3 Unearned revenue is a prepayment that requires an adjusting entry when services are performed.

Answers:

True

False

Question 4 Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting.

Cash received from customers $48,000

Accounts receivable 12,000

Cash paid for expenses 26,000

Accounts payable (related to expenses) 3,000

Prepaid rent for next period 7,000

Answers:

$22,000

$31,000

$24,000

$15,000

Question 5 Which statement is?

Answers:

As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.

The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles.

The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.

As long as management is ethical, there are no problems with using the cash basis of accounting.

ACC556 Financial Accounting for Managers

CHAPTER 5 EXERCISE

Question 1 Which statement is in?

Answers:

The sales revenue account is used to record the sales of goods held for resale to customers.

Sales discounts are recorded as debits to the sales revenue account.

The sales revenue account is a revenue account.

The sales revenue account has a normal credit balance and is closed at the end of the accounting period.

Question 2 As the president of Harter Company, you notice that no discounts have been taken when settling accounts payables. What would be an acceptable explanation?

Answers:

All invoices have credit terms of n/30.

There is not sufficient cash to pay within the discount period.

Discounts are missed because no one knows how to enter them in the new accounting software.

The full amount of the invoice is being paid within the discount period and the treasurer is pocketing the discount amount.

Question 3 With the periodic inventory system, goods available for sale must be calculated before cost of goods sold.

Answers:

True

False

Question 4 Which of the following provides the best rationale regarding analysts' views about the information value of the gross profit rate versus the gross profit amount?

Answers:

The gross profit amount is more informative than the gross profit rate because it is a dollar amount rather than a ratio.

The gross profit amount is less informative than the gross profit rate because the latter presents a meaningful relationship between gross profit and net sales.

The gross profit amount is more informative than the gross profit rate because the gross profit rate is only used to describe a few industries while the gross profit amount is universally used.

The gross profit amount is more informative than the gross profit rate because high volume operations are able to calculate the gross profit rate but not the gross profit amount.

Question 5 Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?

Answers:

A purchase of merchandise.

A return of merchandise inventory to the supplier

Payment of freight costs for goods shipped to a customer

Payment of freight costs for goods received from a supplier

ACC556 Financial Accounting for Managers

CHAPTER 6 EXERCISE

Question 1 The LIFO reserve is

Answers:

the difference between the value of the inventory under LIFO and the value under FIFO.

an amount used to adjust inventory to the lower of cost or market.

the difference between the value of the inventory under LIFO and the value under average cost.

the amount used to adjust inventory to history cost.

Question 2 If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under LIFO and average cost flow assumptions.

Answers:

True

False

Question 3 Raw materials inventories are the goods that a manufacturing company has completed and are ready to be sold to customers.

Answers:

True

False

Question 4 Noise Makers Inc has the following inventory data:

July 1 Beginning inventory 20 units at $19 $ 380

7 Purchases 70 units at $20 1,400

22 Purchases 10 units at $22 220

$2,000

A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the average cost method, the value of ending inventory is

Answers:

$620.

$640.

$651.

$660.

Question 5 Which statement concerning lower of cost or market (LCM) is in?

Answers:

LCM is an example of a company choosing the accounting method that will be least likely to overstate assets and income.

Under the LCM basis, market does not apply because assets are always recorded and maintained at cost.

The LCM basis uses current replacement cost because a decline in this cost usually leads to a decline in the selling price of the inventory item.

LCM is applied after one of the cost flow assumptions has been applied.

ACC556 Financial Accounting for Managers

CHAPTER 7 EXERCISE

Question 1 In large companies, the independent internal verification procedure is often assigned to

Answers:

computer operators.

management.

internal auditors.

outside CPAs.

Question 2 Under the concept of establishment of responsibility, how many people should have the ultimate responsibility?

Answers:

Everyone in the organization.

An individual and his/her supervisor.

Only one individual.

The CEO.

Question 3 Cash equivalents are highly liquid investments that can be converted into a specific amount of cash.

Answers:

True

False

Question 4 All of the following are true regarding the management and monitoring of cash except

Answers:

companies may have plenty of sales, but insufficient cash to support operations.

the cash to cash operating cycle for a manufacturer is generally shorter than that of a merchandising company.

manufacturers may experience a significant lag between the purchase of raw materials and the receipt of cash from customers.

companies should have sufficient cash to meet payments but minimize the amount of non-revenue-generating cash on hand.

Question 5 Sam’s Grocery Store has the following policy. ‘Only one cashier can have access to a cash drawer.’ Which internal control principle supports this policy?

Answers:

Documentation procedures.

Segregation of duties.

Physical controls.

Establishment of responsibilities.

ACC556 Financial Accounting for Managers

CHAPTER 8 EXERCISE

Question 1 Bad Debt Expense is considered

Answers:

an avoidable cost in doing business on a credit basis.

an internal control weakness.

a necessary risk of doing business on a credit basis.

avoidable unless there is a recession.

Question 2 An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

Answers:

True

False

Question 3 The expense recognition

Answers:

requires that all credit losses be recorded when an individual customer cannot pay.

necessitates the recording of an estimated amount for bad debts.

results in the recording of a known amount for bad debt losses.

is not involved in the decision of when to expense a credit loss.

Question 4 On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?

Answers:

$2,400

$2,328

$2,310

$1,680

Question 5 If a company has significant concentrations of credit risk, it must discuss this risk in the notes to its financial statements.

Answers:

True

False

ACC556 Financial Accounting for Managers

CHAPTER 9 EXERCISE

Question 1 Recording depreciation on plant assets affects the balance sheet and the income statement.

Answers:

True

False

Question 2 The book value of an asset will equal its fair value at the date of sale if

Answers:

a gain on disposal is recorded.

no gain or loss on disposal is recorded.

the plant asset is fully depreciated.

a loss on disposal is recorded.

Question 3 Which of the following statements concerning financial statement presentation is false?

Answers:

Intangibles are reported separately under Intangible Assets.

The balances of major classes of assets may be disclosed in the footnotes.

The balances of the accumulated depreciation of major classes of assets may be disclosed in the footnotes.

The balances of all individual assets, as they appear in the subsidiary plant ledger, should be disclosed in the footnotes.

Question 4 A plant asset was purchased on January 1 for $45,000 with an estimated salvage value of $5,000 at the end of its useful life. The current year's Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is

Answers:

10 years.

8 years.

5 years.

3 years.

Question 5 The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method that

Answers:

is used for tax purposes.

must be used for financial statement purposes.

is required by the SEC.

expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.

ACC556 Financial Accounting for Managers

CHAPTER 10 EXERCISE

Question 1 Most notes are not interest bearing.

Question 2 Unearned revenues are received before goods are delivered or services are rendered.

Question 3 Material gains or losses on bond redemption are reported as part of other gains/losses on the income statement.

Question 4 Liabilities are classified on the balance sheet as current or

Question 5 With an interest-bearing note, the amount of assets received upon issuance of the note is generally

ACC556 Financial Accounting for Managers

CHAPTER 11 EXERCISE

Question 1 A corporation is not an entity that is separate and distinct from its owners.

Question 2 A stockholder has the right to vote in the election of the board of directors.

Question 3 The acquisition of treasury stock by a corporation increases total assets and total stockholders’ equity.

Question 4 Cash dividends are not a liability of the corporation until they are declared by the board of directors.

Question 5 A detailed stockholders’ equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record.

ACC556 Financial Accounting for Managers

CHAPTER 12 EXERCISE

Question 1 The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement.

True

False

Question 2 The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash.

Answers:

True

False

Question 3 The statement of cash flows

Answers:

must be prepared on a daily basis.

summarizes the operating, financing, and investing activities of an entity.

is another name for the income statement.

is a special section of the income statement.

Question 4 Generally, the most important category on the statement of cash flows is cash flows from

Answers:

operating activities.

investing activities.

financing activities.

significant noncash activities.

Question 5 Which of the following transactions does not affect cash during a period?

Answers:

Write-off of an uncollectible account.

Collection of an accounts receivable.

Sale of treasury stock.

Redeeming bonds before maturity.

ACC556 Financial Accounting for Managers

CHAPTER 13 EXERCISE

Question 1 Comprehensive income includes all revenues, expenses, gains, losses, and dividends.

Answers:

True

False

Question 2 A primary purpose of vertical analysis is to observe trends over a three-year period.

Answers:

True

False

Question 3 Leverage and return on equity are closely related.

Answers:

True

False

Question 4 Because pro forma earnings are based on specific rules, these amounts are highly reliable.

Answers:

True

False

Question 5 Which of the following income statement figures would probably be the best indicator of a company’s future performance?

Answers:

Total revenues

Income from operations

Net income

Gross profit

ACC556 Financial Accounting for Managers

CHAPTER 21 EXERCISE

Question 1 A benefit of budgeting is that it provides definite objectives for evaluating performance.

Answers:

True

False

Question 2 Effective budgeting requires clearly defined lines of authority and responsibility.

Answers:

True

False

Question 3 Financial budgets must be completed before the operating budgets can be prepared.

Answers:

True

False

Question 4 The budgeted income statement indicates the expected profitability of operations for the next year.

Answers:

True

False

Question 5 Why are budgets useful in the planning process?

Answers:

They provide management with information about the company's past performance.

They help communicate goals and provide a basis for evaluation.

They guarantee the company will be profitable if it meets its objectives.

They enable the budget committee to earn their paycheck.

ACC556 Financial Accounting for Managers

CHAPTER 22 EXERCISE

Question 1 Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable.

Answers:

True

False

Question 2 Budget reports provide the feedback needed by management to see whether actual operations are on course.

Answers:

True

False

Question 3 The manager of an investment center can improve ROI by reducing average operating assets.

Answers:

True

False

Question 4 What is budgetary control?

Answers:

Another name for a flexible budget

The degree to which the CFO controls the budget

The use of budgets in controlling operations

The process of providing information on budget differences to lower level managers

Question 5 What is the primary difference between a static budget and a flexible budget?

Answers:

The static budget contains only fixed costs, while the flexible budget contains only variable costs.

The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.

The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management.

The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold.

ACC556 Financial Accounting for Managers

Midterm Exam Part 1

Question 1 Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston’s net income for the year?

Selected Answer:

$105,000

Answer:

$105,000

Question 2 Marvin Services Corporation had the following accounts and balances:

Accounts payable $18,000 Equipment $21,000

Accounts receivable 3,000 Land 21,000

Buildings ? Unearned service revenue 6,000

Cash 9,000 Total stockholders' equity ?

If the balance of the Buildings account was $45,000 and the equipment was sold for $21,000, what would be the total of stockholders' equity?

Question 3 An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.

Question 4 Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

Question 5 The economic resources that are owned by a business are called stockholders’ equity.

Question 6 Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote operational efficiency.

Question 7 An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

Question 8 A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.

Question 9To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorized to sign checks.

Question 10Owners of business firms are the only people who need accounting information.

ACC556 Financial Accounting for Managers

Midterm Exam Part 2

Question 1Which of these would cause the inventory turnover ratio to increase the most?

Question 2Which one of the following is not an objective of a system of internal controls?

Question 3 A merchandiser will earn an operating income of exactly $0 when

Question 4 Which of the following is least likely to help a company minimize losses as credit standards are relaxed?

Question 5 Dobler Company gathered the following reconciling information in preparing its June bank reconciliation:

Cash balance per books, 6/30 $8,400

Deposits in transit 600

Notes receivable and interest collected by bank 1,480

Bank charge for check printing 50

Outstanding checks 3,000

NSF check 280

The adjusted cash balance per books on June 30 is

Question 6 A company usually determines the amount of supplies used during a period by:

Question 7 All of the following are true regarding the management and monitoring of cash except

Question 8 What is an advantage of using the multiple-step income statement?

Question 9 Which statement is in?

Question 10 Receivables are

ACC556 Financial Accounting for Managers

FINAL Exam Part 1

Question 1 A budget can be used as a basis for evaluating performance.

Question 2 Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance.

Question 3 The master budget reflects management's long-term plans encompassing five years or more.

Question 4 On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

Question 5 A company whose current liabilities exceed its current assets may have a liquidity problem.

Question 6 The market rate of interest is often called the

Question 7 The partnership form of business organization

Question 8 On January 1, a machine with a useful life of five years and a residual value of $15,000 was purchased for $75,000. What is the depreciation expense for year 2 under straight-line depreciation?

Question 9 During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover ratio is

Question 10 Under the corporate form of business organization

ACC556 Financial Accounting for Managers

FINAL Exam Part 2

Question 1If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Question 2 A revenue generally

Question 3 Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report

Question 4 Assume the following sales data for a company:

2015 $910,000

2014 $770,000

2013 700,000

If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?

Question 5 Which one of the following items is not necessary in preparing a statement of cash flows?

Question 6 Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?

Question 7 Quincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?

Question 8 The date on which a cash dividend becomes a binding legal obligation is on the

Question 9 A manager of a cost center is evaluated mainly on

Question 10 A flexible budget

ACC556 Financial Accounting for Managers

Week 1 Discussion

Financial Statements

For this week's collaborative activity, review Apple Inc.'s most recent financial statements. Click to review Apple's Financial Information.

Based on your analysis of Apple's most recent financial statements, predict whether Apple's financial health will likely improve or deteriorate over the next five (5) years. Provide a rationale for your response.

Examine Apple's statement of cash flows. Recommend at least two (2) actions that Apple could take in order to maximize the use of its cash flows. Provide a rationale for your response.

ACC556 Financial Accounting for Managers

Week 2 Discussion

Accounting Systems and Accruals

For this week's Discussion, research the most common threats to a computerized accounting system using the Internet and/or Strayer databases. Be prepared to discuss.

§ Upon examination of the greatest threats to a computerized accounting system, suggest two (2) preventive measures or remedies that protect the system and/or mitigate any negative impacts to the system. Provide a rationale for your response.

§ Your boss is concerned that the company's computerized accounting system is vulnerable to attack. After reviewing the system, you're in agreement. Write a brief report (approximately one [1] paragraph in length) of how someone might hack into your systems and commit fraud with the accruals. What major damages to the company's financial statements could result from such a fraud?"

ACC556 Financial Accounting for Managers

Week 3 Discussion

Accounting for Inventories

As a financial accountant, determine the best type of income statement a retailer should use. Defend your suggestion.

o Analyze the different inventory valuation methods discussed in the textbook. Based on your analysis, recommend the most accurate valuation method that reflects current economic conditions. Provide a rationale for your recommendation.

ACC556 Financial Accounting for Managers

Week 4 Discussion

Internal Controls

Imagine that a coworker wants to circumvent an internal control to steal money from your company. Speculate on two (2) internal controls that your coworker might attempt to circumvent in order to steal the money. Recommend two (2) actions that the company could take in order to prevent the theft.

Outline an anti-fraud program that you would implement at your company (current or previous). Suggest the approach you would take to sell this program to your senior executives. Provide a rationale for your response.

ACC556 Financial Accounting for Managers

Week 5 Discussion

Accounts Receivable Management

Examine the five (5) steps to managing accounts receivable. Speculate on the step that is most vulnerable to fraud. Suggest at least two (2) actions that a company can take in order to protect this step from fraud.

Imagine that your company has tasked you with developing a plan for factoring accounts receivables. Create one (1) scenario that demonstrates the key benefits and / or detriments to your company from factoring accounts receivable.

ACC556 Financial Accounting for Managers

Week 6 Discussion

Plant Assets

Imagine that you are the Chief Financial Officer (CFO) of a startup airline company. The executive management team has tasked you with making a recommendation about whether the company should buy or lease airplanes. Analyze the major pros and cons for leasing and buying assets. Based on your analysis, provide a recommendation to the executive team.

Compare and contrast the three (3) methods for depreciating plant assets. Recommend the method that maximizes profits for both a shorter period of time and a longer period of time.

ACC556 Financial Accounting for Managers

Week 7 Discussion

Budgeting

(o Analyze the major pros and cons of preparing annual company budgets. Identify at least two (2) critical budget line items that you believe are essential for managing your company. Provide a rationale for your response.

o One way to monitor a company is to break it into different centers or business units. For example, a Revenue Center oversees the sales teams while the Cost Center focuses on making the product or delivering the services. If the company maintains a store or locations that handles both revenue and costs, this is called a Profit Center. Managers of each center have their own budgets and are held accountable for achieving it. Analyze the most common responsibility reporting systems. From your analysis, argue at least one (1) pro and one (1) con of using responsibility reporting systems.

ACC556 Financial Accounting for Managers

Week 8 Discussion

Liabilities

For this week's Discussion, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company website and financial statements. Also locate information on the types of bonds the company issues. Review the Liabilities section of the company's Balance Sheet. Be prepared to discuss.

Imagine that you just read about another company in the same industry facing criminal charges for misrepresenting their liabilities. Naturally, you're worried that the company you're researching might be doing something similar. Hypothesize a scenario in which someone at the company could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that these companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response.

Imagine that you are advising an investor who is considering purchasing bonds issued by the selected company. Analyze the types of bonds the chosen company issues. Make a recommendation to the investor as to which type of bond would provide the most value. Justify your response.

ACC556 Financial Accounting for Managers

Week 9 Discussion

Cash Flows

For this week's discussion, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Review its most recent statement of cash flows and income statement on the company's Website. Be prepared to discuss.

Outline a strategy for companies to spend excess cash and maximize the value of that spend. Provide a rationale for your response.

Compare and contrast the selected company's statement of cash flows to its income statement. Suggest at least two (2) items from each statement that investors should analyze when deciding whether or not to purchase the company's stock. Justify your response.

ACC556 Financial Accounting for Managers

Week 10 Discussion

Sustainable Income and Ratio Analysis

Discussion: Sustainable Income and Ratio Analysis (20 points)

Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two (2) items or events that will affect sustainable income of a company.

Propose the manner in which you would disclose these items or events to investors. Justify your response.

ACC556 Financial Accounting for Managers

Week 11 Discussion

Sum It Up

Discussion: Sum It Up (Note: This discussion is not graded, but required.)

Provide two (2) examples that demonstrate a change in your theories of financial accounting for managers since the beginning of this course.

Rate the three (3) most important concepts that you have learned in this course in order of importance (one [1] being the most important; three [3], the least). Provide a rationale for your rating scheme.

ACC556 Financial Accounting for Managers

Budget Planning and Control

Before approaching this assignment, be sure that you have watched the following video.

Budgetary Planning featuring Babycakes *FULL VIDEO*. (2016). YouTube.

Babycakes, a specialty bakery, is the company that will be considered for all parts of your budget planning and control report. For this assignment, you will develop a three to four (3 – 4) page paper in which you address the following.

Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no budget at all. Be sure to use Babycakes as the company and any specific product details in your explanation.

Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter. Use one-half of the Valentine’s Day sales as the basis for a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each month for October, November, and December.

Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th quarter. Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.

The owner of Babycakes is interested in preparing a flexible budget rather than the static budget she currently uses. She does not understand why, when sales increase, her static budget often shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use the details of your newly prepared budget for the 4th quarter of 2016 to address her concern

Imagine that Babycakes is facing a financial challenge that is causing the actual amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenges.

Integrate relevant information from at least three (3) quality academic resources in this assignment. Note: Please do not use your textbook as an academic resource. Also, Wikipedia and other Websites that are unreliable do not qualify as academic resources.

Your assignment must follow these formatting requirements.

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

An abstract is not required.

The specific course learning outcomes associated with this assignment are:

Evaluate management control systems and examine their relationship with accounting and planning, including feedback and non-?nancial performance measurements.

Evaluate decision-making tools for capital investments, budgeting, and budgeting controls.

Analyze financial accounting tools and techniques that convert financial accounting data into information for decision making.

Use technology and information resources to research issues in financial accounting for managers.

Write clearly and concisely about financial accounting using proper writing mechanics.