ACCT 301 Week 8 Final Exam

ACCT 301 Week 8 Final Exam

Author: Christine Farr


1.What is the accounting equation? Suppose your company sold $25,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?
2. What are the four basic financial statements? Describe the statement of cash flows, and explain why it is important.
3. What is the Sarbanes-Oxley Act? Why is it important to accounting investors?
4. What is horizontal analysis of financial statements? Which analysis do you think is better—horizontal or vertical?
Essay Questions:
Why is capital budgeting important? What is the cash payback period? How is it calculated?
What are five different types of decisions that could use incremental analysis? What are the relevant costs in a make-or-buy decision?
How is a transfer price determined? What are the two methods to determine transfer price? Which do you think is better?
What is manufacturing overhead? Give an example of manufacturing overhead. What is a product cost?
What is CVP analysis? Why is this an important analysis for a company to perform?
What is an operating budget? What does it result in? What is the first step in completing an operating budget?
What is a profit center? What is the controllable margin used for? How does a profit center differ from a cost center?

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