Exam 1 - Review Thursday 9/22/11 Tuesday 9/27/11 Classes 8 & 9

Study Material  Class Notes & Power Point Slides On Website  Collins Chapters  1 Foundations of Business  2 Business Ethics & CSR  3 Business in a Global Environment  12 Accounting in Business  13 Managing Financial Reources

Exam Layout Total Possible Points: 70 True / False Questions: 20 worth 1 point each Multiple Choice Questions: 25 worth 2 points each

Exam Questions Overview Basics of a Corporation Structure Federal Reserve Accounting Finance Ethics Global Business Environment

Income Statement Questions

Balance Sheet Questions ($ooo) Assets Liabilities  Cash + Liquid Securities  Account Receivables  Inventory  Total Current Assets 1,000 2,000 1,000  Wages Payable  Taxes Payable  Interest Payable $(000)  Total Current Liabilities4,0002,000  Notes Receivable 1,000  Property & Equipment 6,000  Intangible Assets [GW & TM] 1,000  Total Long Term Assets 8,000  Total Assets 12,000  Long Term Debt 2,000  Common Stock 4,000  Retained Earnings 4,000 Total Shareholder Equity 8,000  Total Liabilities & Stockholder Equity 12,000

Breakeven Analysis

Questions Relating to Your understanding of Financial Statements Income Statements Balance Sheets Breakeven Analysis

Questions Relating to Your Understanding of Measuring Financial Performance Profit Margin Ratios – how much of each sales $ is left after certain costs are covered Management Efficiency – how efficiently your assets are being managed [Asset Utilization] Management Effectiveness – how effective management is at running the business. Financial Condition – helps assess the company financial strength