A Variance is the difference between two numbers. Example: budget
10,000
-actual 12,000
=variance 2000
A static planning budget is a description based on one level of activity
A planning budget is a budget created BEFORE activity starts
A flexible budget

CASE 7.3
BUD CARRIKER, AUDIT SENIOR
Synopsis
Bud Carriker had a plan. After graduating from college with an accounting degree, Bud
intended to spend several years in public accounting working as an independent auditor. Then
he would seek a mid-level accou

CASE 6.3
HAMILTON WONG, IN-CHARGE ACCOUNTANT
Synopsis
Eating time is a taboo subject among public accountants. However, empirical research
suggests that auditors, particularly individuals near the bottom of the employment hierarchy of
major accounting fir

CASE 6.5
AVIS LOVE, STAFF ACCOUNTANT
Synopsis
While completing a cash receipts cutoff test, Avis Love, a staff accountant employed by one
of the large, international accounting firms, discovered several year-end cutoff errors in her
clients cash receipts

CASE 6.2
BILL DEBURGER,
IN-CHARGE ACCOUNTANT
Synopsis
Bill DeBurger is an in-charge accountant with a large national accounting firm. Within Bill's
firm, an in-charge accountant is typically an individual with one to three years' experience in
public acco

Section 6.2 Day 3
1.
Using the normal probability distribution to approximate the
binomial probability distribution:
a.
b.
2.
n p 5
n 5
q
Continuity Correction Factor
The value 0.5 subtracted or added, depending on the question, to
selected value when a d

Section 5.2
1.
Binomial Experiment
2.
Characteristics of a Binomial Experiment
3.
Binomial Probability Formula
The probability of exactly x successes in n trials is:
P x, n
n!
p x qn x
x ! n x !
Example 1
Suppose that 30% of all the automobiles in a shop

Section 4.2
1.
Contingency table
2.
Marginal Probability
3.
Intersection of Event A and B
4.
Union of Event A and B
5.
Addition Rule (Mutually Exclusive Events)
P A or B P A P B
Example 1
a. At a political rally, there are 20 Republicans 13 Democrats and

Section 6.4
1.
Uniform Probability Density Function
1
f ( x)
if a x b
b a
f ( x ) 0 otherwise
2.
Mean of the Uniform Distribution
3.
a b
2
Standard Deviation of the Uniform Distribution
b a
12
Example 1
According to the insurance Institute of America, a

Section 6.1 and 6.2 Day 1
1.
Continuous Random Variable
2.
Normal Probability Distribution
3.
Standard Normal Probability Distribution
4.
Using the Normal Probability Table
Example 1
Using the standard normal table, find the following probabilities associ

Section 5.1
1.
Discrete Random Variable
2.
Continuous Random Variable
3.
Discrete Probability Distribution
a.
b.
c.
3.
The probability of a particular outcome is between 0 and 1.
The outcomes are mutually exclusive events.
The sum of the probabilities of

Section 4.1
1.
Probability
2.
Experiment
3.
Sample Space
4.
Event
5.
Simple Event
6.
Classical Probability
Probability of an event
7.
Number of possibleoutcomes of event
Total number of possible outcomes in sample space
Collectively exhaustive
Example 1
I

Chapter 1 ACCT 2101 Lecture Notes
Accounting Information system that reports on the economic activities and financial condition of a business
or organization to Stakeholders
Stakeholders- anyone that cares about the financial activities of a business or o

CASE 3.5
GOODNER BROTHERS, INC.
Synopsis
Woody Robinson and Al Hunt were lifelong friends. Following graduation from college, Al
went to work for his father-in-law, who owned Curcios Auto Supply, a retail business located in
Huntington, West Virginia. Wit