ACCO 400 Study Guide - Final Guide: Earnings Management, Belief Revision, Capital Structure

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12 Apr 2018

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Chapter 2: accounting under ideal conditions 3. Chapter 5 : information approach to decision usefulness 8. Chapter 6: measurement approach to decision usefulness 12. Chapter 9: an analysis of conflict 16. Chapter 8: economic consequences and positive accounting theory 22. Chapter 12: standard setting & economic issues 25. Relevant financial information gives information to investors about the firm"s future economic prospects (future cash flows). Information is reliable; cash flows and interest rates are known. Net income has no role in firm valuation since it is predictable. Future cash flows are known with certainty and risk-free rates are given. Future cash flows can be discounted; b/s contains all relevant information while the i/s contains none. *under ideal conditions, future cash flows are known with certainty and there is a given interest rate in the economy. It is possible to prepare completely relevant and reliable financial statements.

Related Questions

Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:

(1) Determine Rock Slideâs cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;

(2) Determine Rock Slideâs gross profit (margin) using the inventory costing methods of

FIFO, LIFO and Weighted Averages;

S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide

Assembly Activity	Units	Cost/Unit	Total Cost
Beginning Inventory 1/1/12	70	$105	$7,350
Assembly Units Placed Into Inventory
2/15/12	85	$110	$9,350
4/20/12	90	$112	$10,080
9/18/12	65	$112	$7,280
11/16/12	110	$112	$12,320
12/20/12	80	$120	$9,600
Total Assembled Units Available for Sale- 2012	500		$55,980

Schedule B

Sales of Power Units Rock Slide

Sales Activity	Units	Unit Sales Price	Total Sales
1/15/12	60	$145	$8,700
3/20/12	80	$150	$12,000
5/2/12	100	$150	$15,000
10/8/12	60	$150	$9,000
11/30/12	110	$150	$16,500
12/28/12	30	$175	$5,250
Total 2012 Sales	440		$66,450

rubypig230

ACC202 Financial Statement Report( Information has to be takenfrom the website provided with the current year, My company is NikeNKE)( Link to datahttps://www.sec.gov/cgi-bin/viewer?action=view&cik=320187&accession_number=0000320187-16-000336&xbrl_type=v#) ( A, B C, and D has already been done, need another 8 from therequirements and the questions that follow.)

Go to www.sec.gov . Under the heading âFilings and Formsâ chooseâsearch for company filingsâ. Enter your company name. Find thecompanyâs form 10K Annual Report. Print the balance sheet, incomestatement, statement of cash flows, and statement of stockholdersâequity (Only print these 4 pages. Do not print the entire10K)

Using Excel calculate 12 of the following for the currentyear:

a.)Earnings Per Share

b.)Working Capital

c.)Current Ratio

d.)Quick Ratio

e.)Receivables Turnover

f.)Days in Receivable

g.)Inventory Turnover

h.)Days in Inventory

i.)Profit Margin Ratio

j.)Gross Profit Ratio

k.)Return on assets

l.)Return on common stockholdersâ equity

m.)Price-earnings Ratio

n.)Payout Ratio

o.)Debt to total assets

p.)Times interest earned

q.)Free Cash Flow

3.) Choose 3 from the above list and calculate for the prioryear. Compare the change from current year to prior year anddiscuss.

4.)Locate the Notes to the Financial Statements and choose 5 ofthem. Describe them in your own words. I strongly recommend youchoose topics you are familiar with (Depreciation, RevenueRecognition, Accounts Receivable, PP&E, etc)

5.)Which accounting firm performed the audit?

6.)Prepare a vertical analysis of the balance sheet usingExcel.

7.)Prepare a horizontal analysis of the income statement usingExcel.

Submit a paper copy and an email copy (Excel & Worddocuments as attachments).

bronzerhinoceros273

FILL IN THE CORRECT TERMINOLOGIES IN THE BLANK SPACES
_____ 1.		a. A method of internal (managerial accounting) reporting that emphasizes the distinction between variable and fixed costs.

_____ 2.		b. A discounted cash flow approach to capital budgeting that computes the present value of all future cash flows.

_____ 3.		c. Determination of the maximum cost a company can spend to make a product given a set volume, selling price and desired operating profit.

_____ 4.		d. An analysis of the additional costs and benefits of a proposed alternative compared with the current situation.

_____ 5.		e. A historical cost that the company has already incurred which is irrelevant to the decision making process.

_____ 6.		f. Costs that will not continue if an ongoing operation is changed or deleted.

_____ 7.		g. An already owned production site that is not currently in use.

_____ 8.		h. The maximum available benefit foregone by using a resource for a particular purpose.

_____ 9.		i. The predicted future costs and revenues that will differ among alternative courses of action.

_____ 10.		J. The time it will take to recoup, in the form of cash inflows from operations, the initial dollars invested in a project

_____ 11.		k. Those costs of facilities and services that are shared by users

_____ 12.		l. The juncture of manufacturing where separate products developed in the same process become individually identifiable.

_____ 13.		m. A costing approach that considers all indirect manufacturing costs (both variable and fixed) to be product (inventoriable) costs.

_____ 14.		n. Purchasing products or services from a supplier outside the company.

_____ 15.		o. Capital budgeting models that focus on cash inflows and ouflows while taking into account the time value of money

_____ 16.		p. Calculation of a selling price sufficient to cover the cost of producing a product as well as desired operating income

_____ 17		q. The long-term planning for investment commitments with returns spread over multiple years

_____ 18.		r. A decision process that compares the differential revenues and costs of alternatives.

_____ 19.		s. Costs that will continue even if a company discontinues one of its current operations

_____ 20.		t. The increase in expected average annual operating income divided by the original required investment

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ACCO 400 Study Guide - Final Guide: Earnings Management, Belief Revision, Capital Structure

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