Acct 301 Final Exam (Devry)

Front 1

ACCT 301 Final Exam (Devry)

http://www.fres-courses.com/product/acct-301-final-exam-devry

Back 1

ACCT 301 Final Exam (Devry)

1. (TCO 10) Not all pricing methods apply to the market place. In manufacturing it is common practice to determine the cost of a product as it moves through it transformation to a finished product. (1) Explain how a transfer price could be used to make other financial decisions (10 points) and (2) provide an example of the application of transfer price data (10 points). (Points : 20)

2. (TCO 11) Terry LeMay is unclear as to the difference between the income statement of a merchandising company and a manufacturing company. (1) Describe and provide an example of an income statement of a merchandising company and (2) compare to an example of an income statement of a manufacturing company (10 points). (Points : 20)

3. (TCO 3) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how proper approvals can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented (10 points). (Points : 20)

4. (TCO 7) To promote better management control of business centers financial responsibilities are assigned to managers. There are three basic types of responsibility centers. (1) Explain how a investment center operates (10 points) and (2) provide an example of its application in business. (10 points). (Points : 20)

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision making in business (10 points). (Points : 20)

1. (TCO 8) Planning for capital investments is an important function of management. You are responsible for considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $55,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period. (1) Explain the pros and cons of using this method to evaluate a capital expenditure (10 points) and (2) show all computations required to arrive at the correct solution. (15 points). (Points : 25)

2. (TCO 6) To adequately plan for the success of the business a budget must be developed. (1) Indicate the benefits of budgeting (10 points) and (2) state the essentials of effective budgeting (15 points). Include textbook page references to identify where the correct answer was located. (Points : 25)

3. (TCO 4) Financial statement analysis is used by investors, creditors and managers of business to evaluate the operation and health of the business. This information is in part the basis for decision making. (1) Identify ratios use to evaluate the ability to pay current and long-term liabilities (10 points) and (2) provide an example of how the results of this analysis could be used to make business decisions. (15 points). (Points : 25)

4. (TCO 2) There are three different forms of business; sole-proprietor, partnership and corporation. (1) Explain why a corporation’s taxation may not be considered a positive (10 points) and (2) as a stockholder explain why a stockholder would want to own common stock. (15 points). (Points : 25)

5. (TCO 5) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. Compute the required sales in units to achieve its target net income. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)

6. (TCO 9) Warsaw Products has a factory machine with a book value of $90,000 and a remaining useful life of 4 years. A new machine is available at a cost of $250,000. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $600,000 to $500,000. Prepare an analysis showing whether the old machine should be replaced or retained. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)

Front 2

ACCT 301 Final Exam (Devry)

http://www.fres-courses.com/product/acct-301-final-exam-devry

Back 2

ACCT 301 Final Exam (Devry)

1. (TCO 10) Not all pricing methods apply to the market place. In manufacturing it is common practice to determine the cost of a product as it moves through it transformation to a finished product. (1) Explain how a transfer price could be used to make other financial decisions (10 points) and (2) provide an example of the application of transfer price data (10 points). (Points : 20)

2. (TCO 11) Terry LeMay is unclear as to the difference between the income statement of a merchandising company and a manufacturing company. (1) Describe and provide an example of an income statement of a merchandising company and (2) compare to an example of an income statement of a manufacturing company (10 points). (Points : 20)

3. (TCO 3) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how proper approvals can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented (10 points). (Points : 20)

4. (TCO 7) To promote better management control of business centers financial responsibilities are assigned to managers. There are three basic types of responsibility centers. (1) Explain how a investment center operates (10 points) and (2) provide an example of its application in business. (10 points). (Points : 20)

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision making in business (10 points). (Points : 20)

1. (TCO 8) Planning for capital investments is an important function of management. You are responsible for considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $55,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period. (1) Explain the pros and cons of using this method to evaluate a capital expenditure (10 points) and (2) show all computations required to arrive at the correct solution. (15 points). (Points : 25)

2. (TCO 6) To adequately plan for the success of the business a budget must be developed. (1) Indicate the benefits of budgeting (10 points) and (2) state the essentials of effective budgeting (15 points). Include textbook page references to identify where the correct answer was located. (Points : 25)

3. (TCO 4) Financial statement analysis is used by investors, creditors and managers of business to evaluate the operation and health of the business. This information is in part the basis for decision making. (1) Identify ratios use to evaluate the ability to pay current and long-term liabilities (10 points) and (2) provide an example of how the results of this analysis could be used to make business decisions. (15 points). (Points : 25)

4. (TCO 2) There are three different forms of business; sole-proprietor, partnership and corporation. (1) Explain why a corporation’s taxation may not be considered a positive (10 points) and (2) as a stockholder explain why a stockholder would want to own common stock. (15 points). (Points : 25)

5. (TCO 5) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. Compute the required sales in units to achieve its target net income. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)

6. (TCO 9) Warsaw Products has a factory machine with a book value of $90,000 and a remaining useful life of 4 years. A new machine is available at a cost of $250,000. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $600,000 to $500,000. Prepare an analysis showing whether the old machine should be replaced or retained. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)

Front 3

ACCT 301 Final Exam (Devry)

http://www.fres-courses.com/product/acct-301-final-exam-devry

Back 3

ACCT 301 Final Exam (Devry)

1. (TCO 10) Not all pricing methods apply to the market place. In manufacturing it is common practice to determine the cost of a product as it moves through it transformation to a finished product. (1) Explain how a transfer price could be used to make other financial decisions (10 points) and (2) provide an example of the application of transfer price data (10 points). (Points : 20)

2. (TCO 11) Terry LeMay is unclear as to the difference between the income statement of a merchandising company and a manufacturing company. (1) Describe and provide an example of an income statement of a merchandising company and (2) compare to an example of an income statement of a manufacturing company (10 points). (Points : 20)

3. (TCO 3) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how proper approvals can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented (10 points). (Points : 20)

4. (TCO 7) To promote better management control of business centers financial responsibilities are assigned to managers. There are three basic types of responsibility centers. (1) Explain how a investment center operates (10 points) and (2) provide an example of its application in business. (10 points). (Points : 20)

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision making in business (10 points). (Points : 20)

1. (TCO 8) Planning for capital investments is an important function of management. You are responsible for considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $55,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period. (1) Explain the pros and cons of using this method to evaluate a capital expenditure (10 points) and (2) show all computations required to arrive at the correct solution. (15 points). (Points : 25)

2. (TCO 6) To adequately plan for the success of the business a budget must be developed. (1) Indicate the benefits of budgeting (10 points) and (2) state the essentials of effective budgeting (15 points). Include textbook page references to identify where the correct answer was located. (Points : 25)

3. (TCO 4) Financial statement analysis is used by investors, creditors and managers of business to evaluate the operation and health of the business. This information is in part the basis for decision making. (1) Identify ratios use to evaluate the ability to pay current and long-term liabilities (10 points) and (2) provide an example of how the results of this analysis could be used to make business decisions. (15 points). (Points : 25)

4. (TCO 2) There are three different forms of business; sole-proprietor, partnership and corporation. (1) Explain why a corporation’s taxation may not be considered a positive (10 points) and (2) as a stockholder explain why a stockholder would want to own common stock. (15 points). (Points : 25)

5. (TCO 5) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. Compute the required sales in units to achieve its target net income. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)

6. (TCO 9) Warsaw Products has a factory machine with a book value of $90,000 and a remaining useful life of 4 years. A new machine is available at a cost of $250,000. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $600,000 to $500,000. Prepare an analysis showing whether the old machine should be replaced or retained. (1) Explain how the analysis is to be performed (10 points) and (2) Show all computations required to arrive at the correct answer. (20 points). (Points : 30)