California State University, Chico
MAJOR ACADEMIC PLAN (MAP)
Major: The Bachelor of Science in Business Information Systems
Option: Business Information Systems (Management Information Systems)
Degree Units: 120
Major Units: 75
Answer Key for HW2
ROE = Profit margin TA turnover Equity multiplier
= NI/Sales Sales/TA TA/Equity.
Now we need to determine the inputs for the DuPont equation from the data that
were given. On the left we set up an income statement, and we put numbe
A) The annual report of UCD Corporation provides the following stockholders equity data:
Preferred Stock, $100 par (each
share is convertible into 5 common
Common Stock, $10 par
Additional Paid in Capital
Additional Paid i
Human Resource & Payroll
Which of the following is NOT one of the five major business
processes or transaction cycles?
All of the above are major
Which of the following is NOT a characteristic of useful inf
EXAM 2, STRAWSER ACCT 3230
Ch. 15, 16
Part I True-False (20 pts)
Part II Multiple Choice (30 pts)
Part III Short Answers (20 pts)
Part IV Problems (30 pts)
TURN OFF ALL CELL PHONES!
WRITE LEGIBLY! Sloppy work does not make
Accounting for Book-Tax Differences
1. Understand when and why book income and tax income will not be in sync over time.
2. Understand how differences in book and tax income give rise to the need to report
deferred tax assets/liabiliti
Chapter 18: Shareholders Equity
1) Recall basic concepts of equity and contributed capital
2) Understand accounting for equity issuance and repurchase.
3) Understand accounting for various transactions that influence retained earnings
The following data relate to Markes Corporation:
Pre-Tax Accounting Income
Deferred Tax Asset (current) on Balance Sheet
Deferred Tax Liability (non-current) on Balance Sheet
Municipal Bond Interest
Booking Deferred Tax Liabilities/Assets
When you are working with deferred tax problems, it can be beneficial to set up a schedule of the
differences over years
Suppose a company has pretax income of $100 million. In 2011, the company acquired an asset
Extra Practice Exam 3
Worldwide Co. implemented a defined benefit pension plan for its employees on January 1, 2010.
During 2010 and 2011, Worldwides contributions fully funded the plan. The following data are
provided for Year 2012:
Projected Benefit Obl
1. Billing errors include pricing mistakes and sending the wrong merchandise to the customer.
2. A back order is created when inventory doesn't exist to fill a customer order.
3. A sales order triggers the ship
1. The Sarbanes Oxley Act is the most important business-oriented legislation in the past 75 years. Which of
the following are elements of the Sarbanes Oxley Act?
a. the establishment of the Public Company Accounting Oversight Board.
b. the proh
1. In the underwriter/brokerage model, the investment bank acts as an intermediary between the
issuer of securities and the investing public (Investopedia). The underwriter assumes financial risks on
behalf of another by agreeing to purchase securities on
1) Variable Overhead
Meals on Weels (May 2012)
Output units (number of deliveries)
Hours per delivery
Hours of delivery time
Variable overhead cost per hour of delivery time
Variable overhead costs
Fixed overhead costs
Chapter 1-Role of Financial Markets and Institutions
Financial Market- a market in which financial assets (securities) such as stocks and bonds can be
purchased or sold.
a. facilitate the flow of funds and thereby allow financing and investing by house