Acc 9993 Midterm 1-3

Qualitative Characteristics The following is a list of qualitative characteristics of useful accounting information identified in the FASB's and the IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities. A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness Required: Select the appropriate letter identifying each quality on the statement describing the quality. 1. Different knowledgeable and independent observers can reach consensus that a particular representation is faithful.     2. Making information available to decision makers before it loses its capacity to influence decisions.     3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations.     4. Overall objective of…

Under current GAAP, most resources of a business entity are to be valued in its financial statements  at a. a value that is most relevant to the needs of users of the financial statements b. histotical cost c. the current cost of replacing the resources d. current appraisal values

State whether the following questions is True (T) or False (F): a) Management accounting is future oriented. b) Management accounting is required to follow generally accepted accounting principles. c) Financial accounting examines monetary and non-monetary events. d) Cost accounting is used as a means of fixing a selling price.

Which of the following statements are true?   a. Screening projects of the company and determining whether they are profitable or not is part of the financial manager’s investing role.   b. A financial manager emphasizes that one of the roles of their department is to transact in the financial markets.   c. In an organizational chart, a financial manager who is concerned with determination of product cost and cost control function must be under the Treasurer’s Function.   d. A financial manager who is tasked to assessment the company’s credit capacity. In an organizational chart, he must be under the controller.

Identify each of the following statements as related to either the objective (O) of financial information or a qualitative (Q) characteristic of accounting information: a . Information about business resources, claims to those resources, and changes in them should be provided. b . Decision makers must be able to interpret accounting information. c . Information that is useful in making investment and credit decisions should be furnished. d . Accounting information must exhibit relevance and faithful representation. e . Information useful in assessing cash flow prospects should be provided.

(Usefulness, Objective of Financial Reporting) Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position.(a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements.(b) General-purpose financial reports are most useful to company insiders in making strategic business decisions.(c) Accounting standards based on individual conceptual frameworks generally will result in consistent and comparable accounting reports.(d) Capital providers are the only users who benefit from general-purpose financial reporting.(e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company.(f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

Financial statements, which are a major component of a company’s financial analysis, provideuseful information about a company. These statements assess the financial strengths andweaknesses of the company; analyse non-financial and financial performance; compare thecompany’s performance with its past performance, its competitors and the industry as a whole;and provide useful information for decision-making and strategic planning.Instructions: Your team was hired to conduct an independent assessment of the performance ofSargassum Caribbean Incorporated (SCI). SCI is an agriculture startup that manufactures andsupplies several types of fertiliser and soil amendment products. The company provided yourteam with the following data:Sargassum Caribbean IncorporatedBalance Sheet as of December 31, 2020Assets LiabilitiesCurrent Assets: Current Liabilities:Cash 200,000 Accounts Payable 600,000Accounts Receivable 400,000 Notes Payable 300,000Inventory 900,000Total Current Assets 1,500,000 Total…

As the financial analysts of Mezza Holding Company you are required to write a Memo to the Financial Manager describing the performance of the company and your suggestions on future improvements based on the following financial statements. . State the purpose of your Memo. Describe and interpret ratio results and provide company’s performance analysis based on them.  Describe the weaknesses and strength of the company’s financial data. Provide suggestions on how to improve company’s performance.

The following are considered purpose of valuation EXCEPT a. Financial reporting b. Litigation and ownership diputes c. Corporate executives' recreational incentives d. Business planning

Income reported for a business entity depends on the proper recognition of revenues and expenses. In certain cases, costs are recognised as expenses at the time of product sale and in other situations costs are capitalised if they bring future benefits.In around 250 words, comment on the above statement. Your comments should include valid examples and illustrations.

WRITE and submit a prepare on your perspective to the statements: Financial management should include not only a concern for profit maximization but also for maximization of societal value.”

An accountant must be familiar with the concepts involved in determining earnings of a business entity. The amount of earnings reported for a business entity is dependent on the proper recognition, in general, of revenues and expenses for a given time period. In some situations, costs are recognized as expenses at the time of product sale. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. Instructions a.    Explain the rationale for recognizing costs as expenses at the time of product sale. b.    What is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain. c.    In what general circumstances would it be appropriate to treat a cost as an asset instead of as an expense? Explain. d.    Some expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the underlying rationale…

A. Operating expenses are a function of:      a. The cost of equity and the cost of debt      b. The interest rates on debt and the amount of debt      c. Design(s) of the value propositions, the skill level and processes for spending money to operate the company, and the loan term bond yield + the equity risk premium + risks specific to the company      d. Design(s) of the value propositions, processes used to produce the value proposition(s), and the skill level and processes for spending money to operate the company   B. Which of the following is most closely associated with margin as a %?      a. Sales revenue      b. The processes used to produce the company’s value proposition(s)      c. The proportion of debt and equity in the company’s capital structure      d. The average operating assets of the company   C. Which of the following is most closely associated with asset utilization?      a. The cost of equity      b. Expenses      c. Operating assets…

_______________________________ is generally referred as a parameter to check/test the efficiency of the business concern. Select one: A. Assets B. Liabilities C. Profit D. Capital

Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position. a.    Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. b.    General-purpose financial reports are most useful to company insiders in making strategic business decisions. c.    Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. d.    Capital providers are the only users who benefit from general-purpose financial reporting. e.    Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. f.    The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

Accounting information helps key stakeholders of the business to make decisions.From the following options,which one is the decision that an internal stakeholder is unlikely to make? A.Make decisions about how toset product selling price,whether to advertise and how much to spend on advertising B.Decide which products to continue to sell and when to add new products or drop old ones C.Identify what resources and employees the business needs,and to set benchmarks against which they can later measure the business's progress towards its goals D.Analyse the business's financial reports to decide whether to purchase shares of the company

Based on the historical company financial information and business description is given below answer the following: (a) Identify three key ratios you would use as a guide (and why) to help you determine which business you would prefer to invest in?(b) What further information might you consider or need before making a final investment decision?

What are the two fundamental qualitative characteristics identified by the Financial Accounting Standards Board’s (FASB) conceptual framework? a. Relevance and faithful representation.b. Materiality and efficiency.c. Comparability and consistency.d. Costs and benefits.

Accounting is the process of matching Select one: a. Revenues and Costs b. Potential and Real performance c. Cash inflows and outflows d. Benefits and Costs         Accounting provides information on Select one: a. All of the answers are correct b. Financial conditions of an institution c. Company's tax liability for a particular year d. Cost and income for managers           Public Accounting, as a sub-discipline of accounting, includes: Select one: a. Management Accounting b. Cost accounting c. Internal auditing d. Managerial Advisory services

Which comes the EARLIEST in valuation procedures? a. Determine the premise of value b. Analyze the company's financial information c. Gather information about the company's assets d. Understand the client's use of the valuation

actions related to the primary business activities of the company, such as selling goods and services to customers and the associated costs of doing so, are referred to as: Multiple Choice O Management activities. Financing activities. Investing activities. Operating activities.

Fill in the blanks below with the accounting principle, assumption, or related item that best completes the sentence. ________________________ and _______________________ are the two fundamental qualities that make accounting information useful for decision making.   Information that helps users confirm or correct prior expectations has _________________            ___________________.   ________________________ enables users to identify the real similarities and differences in economic events between companies.   _________________ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.   Information is _______________________ if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information.   The ________________________ characteristic requires that the same accounting method be used from one accounting…