Exam Preparation Handouts
Financial Statement: Income statement and Balance sheet
(Review of financial statements) Prepare a balance sheet and income statement as of December
31, 2013, for Belmond, Inc., from the following information.
1. The estimated costs of producing 6,000 units of a component are:
Applied Variable Factory Overhead
Applied Fixed Factory Overhead
$1.5 per direct labor dollar
1) Compare partnership and corporate form of business. Why would you prefer to form a company
than a partnership?
2) Define accounting. Briefly explain benefits and limitations of accounting.
3) Evaluate the performance and financial