ECE4001_Exam_2_Fall08_Solutions_VerA

ECE4001_Exam_2_Fall08_Solutions_VerA - ECE 4001 Project...

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ECE 4001 -- Project Engineering and Professional Practice EXAM #2 Version A Solutions November 19, 2008 Page 1 of 8 Problem 1. General Questions (20 points) A. What it meant by the term: "double entry bookkeeping?" (2 pts) Two entries are made for every monetary transaction. One entry is referred to as a debit and the other as a credit. One of the entries points to what the item is and the other entry to who has a claim on it. B. Write two different forms for the basic accounting equation. (2 pts) Assets = Liabilities + Net Worth $ That you have = $ Owned - $ Owed C. What does the abbreviation GAAP stand for? (1 pts) General and accepted accounting practices For each of the following questions, circle either DEBIT or CREDIT to represent the best answer according to GAAP. D. A DEBIT CREDIT entry increases your cash account. (2 pts) E. A DEBIT CREDIT entry increases an accounts payable. (2 pts) F. An increase in inventory is shown on the books as a DEBIT CREDIT entry. (2 pts) G. Your accountant has just completed your company's books for FY2008, and has provided the following information: Accounts payable $ 21,834.00 Liability Cash on hand $ 52,315.00 Asset Loan balance for equipment $145,524.00 Liability Note payable to bank $ 27,000.00 Liability Accounts receivable $ 12,300.00 Asset Book value of equipment owned $130,288.00 Asset Treasury stock $ 14,000.00 Part of your net worth Calculate your Net Worth using the above information. (5 pts) Clearly show how you arrived at your answer. Net worth = Assets - Liabilities = (52,315 + 12,300 + 130,288) - (21,834 + 145,524 + 27,000) = 194,903 - 194,358 = $545 However, Net worth = Treasury stock + non-stock net worth = $545 Non-stock net worth = Net worth - Treasury stock = 545 - 14,000 = ($13,455) Either of the above answers is acceptable.
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ECE 4001 -- Project Engineering and Professional Practice EXAM #2 Version A Solutions November 19, 2008 Page 2 of 8 2 Problem 1. General Questions (Continued) H. Ethics Question: (4 pts) Briefly state two items explicitly covered in the IEEE code of ethics. List any two of the IEEE code of ethics items which may be found at: http://www.ieee.org/portal/pages/iportals/aboutus/ethics/code.html
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ECE 4001 -- Project Engineering and Professional Practice EXAM #2 Version A Solutions November 19, 2008 Page 3 of 8 3 96 97 95 99 00 98 02 03 01 05 06 04
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ECE4001_Exam_2_Fall08_Solutions_VerA - ECE 4001 Project...

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