Required: Identify the financial statement on which each of
the following items appears by making an X in the appropriate
column. The first one is done for you!
(15 points total, 1 point each)
Required: Express each income statement component as a percentage of
sales, and comment on the trends in each line from 2012 to 2013.
Cost of goods sold
Required: Identify each of the following as either a direct or indirect
Material used in production
Salary of manufacturing supervisor
Wages of manufacturing worker
Direct or Indirect?
Required: In the space below, describe the advantages of budgeting.
Budgeting has a lot of advantages! The main one that I see is actually thinking about what you need to spend and in return what you need
to make to cover those costs
Required: In the space below, describe the net present value method of capital budgeting.
The net present value method is a technique that takes into account the time value of money. It compares the net present value of a
1. Question :
(TCO 1) Suppose your company sold $50,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?
Student Answer: a 50,000 debit to cash asset, credit of 50,000 to stock holders equity