DEVRY ACCT 301 F INAL E XAM Check this A+ tutorial guideline at For more classes visit

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BUSINESS HIGH SCHOOL-ACCOUNTING I

Accounting Overview Financial Accounting Managerial Accounting

Topics Covered Business Costs Revenue Profit Expenditure

Financial Statement Analysis

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DEVRY ACCT 301 F INAL E XAM Check this A+ tutorial guideline at For more classes visit ACCT 301 Final Exam 1. (TCO 1) What is the accounting equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? (Points : 17) 2. (TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important

Q3What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why Q4What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? 1. (TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated? (Points : 26) Q3What is the Sarbanes-Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why Q4What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? 1. (TCO 8) Why is capital budgeting important? What is the IRR method? How is it calculated? (Points : 26) in completing an operating budget? (Points : 26) 3. (TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? (Points : 26)

(1) What is the accounting equation? Suppose your company paid $6,000 in cash for its rent. 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 the accounting profession? (4) How does vertical analysis of financial statements differ from horizontal analysis? Which method do you think is a better analysis tool? (5) Why is capital budgeting important? What is the net present value method? How do you know whether to accept a project using this method? (Points : 26)