Chapter 1 Problem Session Exercise A Framework for Financial Accounting
Problem I: Indicate whether each of the following statements is true (T) or false (F).
Accounting is primarily a math course.
The focus of managerial accounting
Due Monday P3-1, P3-4, P3-7
Company earned $3000 for services that it did not bill to clients before 12/31/11.
Debit Accounts Receivable 3000
Credit Revenue 3000
Revenue is located on the income statement
Financial accounting is used to give information to outsiders
GAAP is what is followed in the United States
IFRS is followed worldwide
10k is the legal document that is filed with the SEC that includes the annual report
8k is a report that goes to the SE
Residual value is a lump sum.
Annual cash inflows of an equal amount is an annuity
For compound interest the formula is FV * factor found on chart
Annual tax savings from depreciation
X* tax rate= answer
Practical standard is the cos