ACC 400 Complete Course

Week 1

Individual E-text Individual Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso

a) Chapter 7: Problem Set B: P7-3B

Prepare responses to the following assignment from the e-text, Financial and Managerial Accounting: The Basis for Business Decisions 13th ed., by Williams, Haka, and Bettner

b) Chapter 9: Exercise E9.4 & Exercise 9.8

Discussion Questions

What is a current asset? What is a non-current asset? What is the difference between the two types of assets? In which financial statement would you find these assets?

What is an example of a significant accounting estimate? What is the importance of these estimates? How do ethics play into the decision-making process? Which financial statements include significant accounting estimates? Why?

What are internal controls? Why do companies need them? What are some examples of internal controls? Who is responsible for developing internal controls? What are some limitations of internal controls?

What are intangible assets? How does a business obtain intangible assets? What is goodwill? Why would a business have an account for goodwill?

Week 2

Individual E-text Individual Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso

1) Chapter 8: Questions 3 and 4

2) Chapter 8: Exercise E8-5

Prepare responses to the following assignment from the e-text, Financial and Managerial Accounting: The Basis for Business Decisions 13th ed., by Williams, Haka, and Bettner

1) Chapter 9: Exercise E9.9

Team E-text Learning Team Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso

1) Chapter 7: Exercise E7-2

2) Chapter 7: Problem Set B: P7-2B

Discussion Questions

Explain what a current liability is and identify the major types of current liabilities. Explain what a long term liability is and provide examples. In which financial statement would you find these liabilities?

What are the types of equity accounts? What is the role of equity accounts in raising capital? Under what circumstances would you not pay a dividend? Under what circumstances would you pay a dividend?

Identify and discuss the major characteristics of a corporation, including the advantages and disadvantages of being a corporation.

Week 3

Individual E-text Individual Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso

1) Chapter 10: Questions 1, 7, 8, and 19

2) Chapter 10: Brief Exercise: BE 10-1

3) Chapter 10: Financial Reporting Problem: BYP10-1

4) Chapter 11: Ethics Case: BYP11-10

Prepare responses to the following assignment from the e-text, Financial and Managerial Accounting: The Basis for Business Decisions 13th ed., by Williams, Haka, and Bettner

1) Chapter 11: Internet Assignment 11-1

Team E-text Learning Team Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso Chapter 13: 13-4A

Discussion Questions

What is horizontal analysis? What is the value in using horizontal analysis? Why would a company use this analysis? What does this analysis tell you?

What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the organization is responsible for the application of a change in an accounting principle? Why?

What are the three most common types of ratios? Why are they important? Which ratios would you use to determine the long-term viability of an organization? Why?

Week 4

Individual Debt vs. Equity Financing

Debt Vs. Equity Financing Paper

Prepare a 500-700-word paper in which you compare and contrast lease verses purchase options. In your paper, discuss the following questions:

1) What is debt financing? Give at least two examples.

2) What is equity financing? Give at least two examples.

3) Which alternative capital structure is more advantageous? Why?

Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

Team Interpreting Financial Statements Report

Interpreting Financial Statements Presentation: (This is a report and a presentation)

The CEO of your organization has asked your Learning Team to analyze the companies listed in Problem BYP13-4, located in Chapter 13 of the text, Financial Accounting: Tools for Business Decision Making. Based on your analysis, create a Microsoft PowerPoint presentation to your CEO that answers the following items listed below, also included in the report structure outlined in Section 4.2 of Chapter 4 from the text, Communication Skills: Handbook for Accounting 2nd ed., by Fleet, Summers, and Smith your responses.

Note the problem starts:

"Interpreting Financial Statements

1. The Coca-Cola Company and PepsiCo, Inc. provides refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc., is presented here (in millions). "

1) Provide your calculated ratios and the commentaries derived from the ratios.

2) What information outside the annual report may be useful to you as an investor? Why?

3) Which company is more profitable? Why?

4) Which companys stock would you purchase? Why?

Your presentation to the CEO should include 5-7 Microsoft PowerPoint slides with speaker notes evaluating the profitability of the organization.

Discussion Questions

What are some of the various lease options? When would you use one option over the others? What could be the financial impact of this decision?

Under which circumstances would you lease versus purchase? What are the criteria that you would use to make this decision? What is the financial impact of this decision?

What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of the capital structure?

Week 5

Individual E-text Individual Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting Theory and Analysis: Text Readings and Cases 8th ed., by Schroeder, Clark, and Cathey

1) Chapter 13: Case 13-4 Application of SFAC No. 13

Prepare responses to the following assignment from the e-text, Financial and Managerial Accounting: The Basis for Business Decisions 13th ed., by Williams, Haka, and Bettner

2) Chapter 23: Case 23.1 budgeting in a nutshell

3) Chapter 23: Case 23.2 an ethical dilemma

Team E-text Learning Team Assignments

Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso

1) Chapter 13: Communication Activity: BYP 13-7

Include a 500-700-word memo addressing the problem in BYP 13-7

Prepare responses to the following assignment from the e-text, Financial and Managerial Accounting: The Basis for Business Decisions 13th ed., by Williams, Haka, and Bettner

2) Chapter 23: Exercises 23.10 and 23.12

Final Exam

ACC 400 Final Examination

1. Zelma Company's last financial statements provided the following ratios:

Current ratio 3:2

Quick ratio 1:2

Accounts receivable turnover 9.0 times

Inventory turnover 8.0 times

Net income percentage 12.5%

Return on equity 22.6%

Return on assets 9.8%

To the nearest day, what is the operating cycle for Zelma?

a) 80 days

b) 86 days

c) 172 days

d) 129 days

1. The following events have been projected:

   A. Cash sales and collections from customers totaling $980,000

   B. Cash payments for operating expenses of $560,000

   C. Cash payments for income taxes and interest expense of $45,000

   D. Cash payments of prior period accruals of $80,000

   E. Borrowed $50,000 cash by issuing a note payable

   F. Cash dividends of $20,000

The beginning balance of cash is $45,000. What is the budgeted ending balance of cash?

a. $325,000

b. $370,000

c. $275,000

d. $245,000

    3. On January 1, a business exchanged a plant asset with a cost of $18,000 and accumulated depreciation of $16,500 for a similar asset that had a list price of $23,000. The business received a trade-in allowance of $2,100 on the old plant asset. What was the result of the exchange?

a. A $600 gain on the disposal of a plant asset.

b. A $1,000 unrecognized gain on the exchange of a plant asset.

c. A cost basis of $22,400 for the new plant asset

d. A cost basis of $23,600 for the new plant asset

1. Which one of the following is not an objective of a system of internal controls?

a. Safeguard company assets

b. Overstate liabilities in order to be conservative

c. Enhance the accuracy and reliability of accounting records

d. Reduce the risks of errors

1. A companys past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5 % in the second month after the sale; the remainder is never collected. Budgeted credit sales were:

July $120,000

August 72,000

September 180,000

The cash inflow in the month of September is expected to be

a. $135,600

b. $102,600

c. $108,000

d. $129,600

1. A check for $275 is incorrectly recorded by a company as $257. On the bank reconciliation, the $18 error should be

a. Added to the balance per books.

b. Deducted from the balance per book.

c. Added to the balance per bank.

d. Deducted from the balance per bank.

1. The Allowance for Doubtful Accounts is necessary because

a. when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay.

b. uncollectible accounts that are written off must be accumulated in a separate account.

c. a liability results when a credit sale is made.

d. management needs to accumulate all the credit losses over the years.

1. Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited

a. when a credit sale is past due.

b. at the end of each accounting period.

c. whenever a pre-determined amount of credit sales have been made.

d. when an account is determined to be uncollectible

1. Manning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,000 and credit sales are $1,000,000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?

a. Bad Debts Expense 10,000

Allowance for Doubtful Accounts 10,000

b. Bad Debts Expense 8,000

Allowance for Doubtful Accounts 8,000

c. Bad Debts Expense 8,000

Accounts Receivable 8,000

d. Bad Debts Expense 10,000

Accounts Receivable 10,000

1. The receivables turnover ratio

a. Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.

b. Can be used to compute the average collection period.

c. Is a method of evaluating the solvency of net accounts receivable.

d. Is only important to internal users of accounting information.

1. A measure of a companys solvency is the

a. acid-test ratio.

b. current ratio.

c. times interest earned ratio.

d. asset turnover ratio.

1. The times interest earned ratio is computed by dividing

a. net income by interest expense.

b. income before income taxes by interest expense.

c. income before interest expense by interest expense.

d. income before interest expense and income taxes by interest expense.

1. The 2007 financial statements of Shadow Co. contain the following selected data (in millions).

Current Assets $ 75

Total Assets 120

Current Liabilities 40

Total Liabilities 85

Cash 8

Interest Expense 5

Income Taxes 10

Net Income 16

The debt to total assets ratio is

a. 70.8%

b. 53.3%

c. 1.41%

d. 6.2 times

1. The statement "Bond prices vary inversely with changes in the market rate of interest" means that if the

a. market rate of interest increases, the contractual interest rate will decrease.

b. contractual interest rate increases, then bond prices will go down.

c. market rate of interest decreases, then bond prices will go up.

d. contractual interest rate increases, the market rate of interest will decrease.

1. A company would not acquire treasury stock

a. in order to reissue shares to officers.

b. as an asset investment.

c. in order to increase trading of the companys stock.

d. to have additional shares available to use in acquisitions of other companies.

1. Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

a. Retained Earnings

Cash

b. Dividends Payable

Cash

c. Paid-in Capital

Dividends Payable

d. Retained Earnings

Dividends Payable

1. Allstate, Inc., has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2007. If the board of directors declares a $50,000 dividend, the

a. preferred stockholders will receive 1/10th of what the common stockholders will receive.

b. preferred stockholders will receive the entire $50,000.

c. $50,000 will be held as restricted retained earnings and paid out at some future date.

d. preferred stockholders will receive $25,000 and the common stockholders will receive $25,000.

1. When a change in accounting principle occurs

a. prior years' financial statements should not be changed to reflect the newly adopted principle.

b. the new principle should be used in reporting the results of operations of the current year.

c. the cumulative effect of the change in principle should be reflected on the income statement as of the beginning of the next year.

d. the cumulative effect of the change in accounting principle should be classified as an extraordinary item on the income statement.

1. Which of the following is not an irregular item on the income statement?

a. Discontinued operations

b. Extraordinary items

c. Other revenues and expenses

1. Vertical analysis is a technique that expresses each item in a financial statement

a. in dollars and cents.

b. as a percent of the item in the previous year.

c. as a percent of a base amount.

d. starting with the highest value down to the lowest value.