TUTOR QUESTIONS FOR CHAPTERS 1, 2, 3

# TUTOR QUESTIONS FOR CHAPTERS 1, 2, 3 - TUTOR QUESTIONS FOR...

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Unformatted text preview: TUTOR QUESTIONS FOR CHAPTERS 1, 2, 3 Accounting I Instructor: Dr. Nguyen The Loc Tutor: Minh, MBA Group Members: Dang The Duong Vu Hoang Duong Nguyen Thi My Hanh Lam Vu Truc Thuy Pham Tuyet Nhung E 1-7 (p.23) Assume my grandparents have just given me \$20,000 on the condition that I invest the money in the stock market. As I contemplate making my investment choices, I will want to know this following accounting information to help identify companies that will have high future rates of return. Financial statements • Balance sheet • Income statement • Statement of cash flow And some information about Business plan, EPS, Dividend cash. With knowledge of market forecast and character of management, we could estimate how much and how long we can expect to receive money if we invest in a business. AA 1-25 (p.26) 1. Among its assets, GM lists more than \$218 billion in loan receivable. This represents loans that GM has made and expects to collect in the future. This is exactly the kind of asset reported among the assets of banks. Since GM’s business is about manufacturing and selling cars, this interesting info shows that GM also does its business as if it was a bank. I think the company acquired these loans receivable to cover for its lost in its main operating field, manufacturing and selling cars. There is the fact that GM has been losing its car market share in US as well as in over the world recently. 2. The difference (\$476.078 - \$460.442 = \$15.636) represent the owner’s equity of General Motor. It’s the residual amount which represent the net assets available after all obligations have been satisfied. (Assets = Liabilities + Owner’s Equity). E 2-20 (p.59) Classification of Financial Statement Elements. 1. Accounts Payable..........................BS – L 2. Sales Revenue...............................IS 3. Accounts Receivable.....................BS – A 4. Advertising Expense.....................IS 5. Cash..............................................BS – A 6. Supplies........................................BS – A 7. Consulting Revenue......................IS 8. Land..............................................BS – A 9. Capital Stock.................................BS – OE 10.Rent Expense................................IS 11.Equipment.....................................BS – A 12.Interest Receivable........................BS – A 13.Mortgage Payable.........................BS – L 14.Notes Payable...............................BS – L 15.Buildings.......................................BS – A 16.Salaries & Wages Expense............IS 17.Retained Earnings.........................BS – OE 18.Utilities Expense...........................IS E 2-25 (p.60) TAYLORSVILLE CONSTRUCTION BALANCE SHEET Assets Liabilities and Owners' Equity Current Asset Current Liabilities Cash 153,600 Account payable 74,300 Account Receivable 113,500 Supply 4,250 Long-term Liabilities Mortgage payable 423,400 Long-term Asset Total Liabilities \$497,700...
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## This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

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TUTOR QUESTIONS FOR CHAPTERS 1, 2, 3 - TUTOR QUESTIONS FOR...

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