OVERVIEW OF BUSINESS PROCESSES
1. Explain the basic activities companies engage in, the types of
decisions they must make and the types of information they need
to make those decisions.
2. Identify the maj
1. The AICPA and the CICA have created an evaluation service known as SysTrust.
SysTrust follows four principles to determine if a system is reliable. The reliability
principle that states that users must be able to enter, update
1. Perhaps the most striking fact about natural disasters in relation to AIS controls is that
many companies in one locale can be seriously affected at one time by a disaster.
losses are absolutely unpreventable.
1. What is the most popular type of database?
2. Using a file-oriented approach to data and information, data is maintained in
a central database.
1. The narratives, diagrams, charts, and other written materials that explain how a
system works are collectively called
2. One popular means of documenting a system is to dev
1. Which activity below is not performed by the HRM?
recruitment and hiring
2. In most companies the HRM/payroll cycle activities are accomplished by two
separate systems. Which task b
1. The credit manager reports to the _ and the treasurer reports to the
controller; vice president of finance
marketing manager; vice president of finance
treasurer; vice president of finance
1. What is one reason why AIS threats are increasing?
LANs and client/server systems are easier to control than centralized, mainframe systems.
Many companies do not realize that data security is crucial to their surv
Gross accounts receivable Allowance for Uncollectible Accounts = Accounts receivable (net)
Lower Cost of Market value of ending inventory cant exceed its current replacement cost. If this
happens, value of inventory gets lowered. (Inventory down
MULTINATIONAL CURRENCY EXCHANGE ISSUES
BASIC CURRENCY CONCEPTS
TYPES OF EXCI lRNGF. RATES:
CURRENT (SPOT) RATE:
The rate of exchange between two currencies at the current moment. These rates
fluctuate constantly due to many factors including intere
Report of Independent Registered Public Accounting Firm
Board of Directors and Shareowners
The Coca-Cola Company
We have audited the accompanying consolidated balance sheets of The Coca-Cola Company and
subsidiaries as of December 31, 2012 and 2011, and t
(M2) Information for Decision
Keep or Drop Product
Product Mix with Constraints
Make or Buy Decision
Kiwi Computers 3 products
Low Gross Margin %
How to improve profitability?
Gather more information?
(M3) Budgeting & Variance Analysis
Budget the profit consequences of alternative courses of
action (e.g. using knowledge of cost behavior and cost
drivers to predict consequences of make v buy)
2. RESOURCE PLANNING
- Introduction - Cost Volume Profit Analysis Notes (M1)
What is Managerial Accounting?
Managerial Accounting is the preparation and
reporting of information for use internally by
Used to support decisi
KEEP OR DROP: DUNDEE NOVELTIES
Dundee Novelties produces two products: Greetliks and Spuzzles. The following managerial accounting
income statement summarizes Dandees performance in 2005:
Product-specific fixed cost
For the year ended 12/31/12
Balance Sheet Equation
Use the accounting equation to answer each of the independent questions below.
a. Jenkins Company starts the year with $50,000 in assets and $40,000 in liabilities. Net income for
Differences between Managerial and Financial:
Helps managers make decisions to fulfill an
Managers of the organization
Under accrual accounting, revenue is recognized:
a. when cash is received, and expenses, when cash is paid.
b. when cash is received, and expenses, when they are incurred.
c. when it is earned, and expenses, wh
1. Data set basics - Elements, variables, observations, and measurements
An analyst collected data on some of the specifications for new vehicles produced for the 2004 model year.
The top and bottom portions of the data set are reproduced here; do
China & India
Population, Poverty and Development
Chinas population is projected to decline eventually, by 2065
Indias Population Policy
As fertility rates have fallen, a preference for male babies has emerged
-Similar to that in China
Chapter 1 QUIZ:
1. Which of the following underlying assumptions for the conceptual framework is the
reason the dollar is used in the preparation of financial statements?
- Monetary unit
2. Which of the following is an assumption made in the preparation o
1. Calculate change in balances and figure out what is in boxes (stuff that isnt
2. Making statement of cash flows
a. Make sure to include title and for the year #
b. Operating Activities
i. Net Income
ii. Add back depreciation expense (becau
AC221 - Financial Accounting
Price of a bond and whether the bond
was issued at par, discount or
Interest expense and amortization of
the discount or premium.
Record the following transactions:
Problem 1: Bonds
On January 1, 2007, James Bond Corporation issued bonds with a face value of $100K and an annual
coupon rate of 10%. The bonds pay interest semi-annually on June 30 and December 31, with the
principal to be paid in 2 years. The market int