5 Simple Ways to Create a
by Rochelle Bailis
7 min read
A balance sheet is an essential way to evaluate a
business financial health, and can be calculated every month,
quarter or half-year to create a snapshot of a companys net
Managerial Accounting and Cost Concepts
Cost classifications for assigning costs to cost objects
Cost Object is anything for which cost data are desiredincluding products, customers, jobs, and
Exam 1 Review (CH. 1-4)
A Framework for Financial Accounting
Accounting is the language of business
It is a system of maintaining records of a companys operations and communicating that information to
Chapter 12: Differential Analysis: The key to
Differential analysis: the cost and benefits of one alternative must be compared to
the costs and benefits of other alternatives.
Relevant cost: difference in cost between any two alternatives.
What is a budget?
Budget: is a detailed plan for the future that is usually expressed in
formal quantitative terms.
*Budget has to have these two things to be effective
1. Planning: involves developing goals and preparing various budgets to
Oil and Gas- Exam 1 Crib Sheet
CH 1: Classification of O&G companies: Upstream (E&P): exploration, acquisition, drilling, developing, and producing oil & gas. Finding & producing oil &
gas up to the initial point that the oil or gas is capable of being so
Exam 3 Study Guide
Ch 7: capitalize both unsuccessful and successful costs under full cost accounting. This
included Development, exploration, and acquisition. This includes, G&G studies, delay
rentals, exploratory dry holes impairment, abandonment, and G
Chapter 4 presents a detailed discussion of the concepts and techniques that underlie
the preparation of the Income Statement and the reporting of other comprehensive
income. The requirements for adequate presen
SOLUTIONS TO EXERCISES
EXERCISE 19-1 cfw_15-20 minutes
Pretax nancial income for 2004 $300,000
Temporary difference resulting in future taxable
amounts in 2005 (55,000)
in 2005 (50.000)
in 200? cfw_55,0001
Taxable income tor 2004 5
EXERCISE 19-5 (Continued
Note to instructor: Because of the flat tax rate for all years, the amount
of cumulative temporary difference existing at the beginning of the
year can be calculated by dividing the $40,000 balance in Deferred Tax
Liability by 40%
EXERCISE 19-3 (Continued)
Deferred tax liability at the end of 2004 $140,000
Deferred tax liability at the beginning of 2004 92,000
Deferred tax expense for 2004 (increase
required in deferred tax liability) 40,000
Current tax expense for 2004 162 000
EXERCISE 19-2 (15-20 minutes)
(a) Pretax financial income for 2003 $300,000
Excess of tax depreciation over book depreciation cfw_40,000
Rent received in advance 20 000
Taxable income m
(b) Income Tax Expense cfw_$300,000 X .40J . 120,000
Name:_ Section Letter:_ Row #:_ ID: A
Financial Accounting Exam 2
Identify the choice that best completes the statement or answers the question.
Tina creates the following accounts receivable aging report at the end of the year.
1. Until now, weve talked mostly about
companies that produce their own
products. Here, we will also discuss firms
that purchase their inventory. Inventory
has several types of costs.
Costs of Quality and Theory of Constraints
1. Remember the balance scorecard?
a. Firms should determine its competitive strategy and then
choose performance measures to measure strategy.
Spoilage and Rework
What is Spoilage?
1. Spoilageunits damaged/ruined during production
a. Cant be sold as regular product
b. Costs the firm money
2. Two types of spoilage:
a. Normala normal part of the production process
PROCESS COSTING VS JOB COSTING
We discussed job costing in chapter 4
that it is used when jobs are different from
Audit firm clients, Movie studio productions
Were moving on the other end of the
Joint and Byproducts
Note: Well be taking a step back towards more of a lecture as opposed to
what weve done for the past two weeks. This chapter is mostly simple math
its understanding the differences between formulas that matters!
Allocating Support Costs
Allocating Support Costs
1. Weve done allocation before: e.g. allocating
a. We can allocate more than just MOHe.g.
janitorial dept. costs to the other departments
b. Issues regarding the allocation of sup
How does GE achieve its goals?
What problems do they encounter?
Avoiding Information Overload
Two ways to avoid information overload
1. Managerial reports are as brief as possible
Focus on Key Performance Indicators (KPI)
Variable and Absorption Costing
Variable Costing: inventory costing method in which all
variable manufacturing costs (Direct and indirect) are
included as inventoriable costs.
Because it is variable, changes in period-to-period ope
Chapter 4: Job Costing
For costing, there are two different kinds - job and process.
1. Job costing is used by companies whose products are identiﬁable in
batches or “jobs”
a. For example, in auditing ﬁrms, no two audits are exactly th