Strayer university acc 566 (2)

Strayer-University ACC 566 Complete Course (2)Get help for Strayer-University ACC 566. We provide assignment, homework, discussions and case studies help for all subject Strayer-University for Session 2015-2016

ACC 556 WEEK 1 DISCUSSION 1

"Financial Statements" Please respond to the following:

• From the e-Activity, analyze Apple’s most recent financial statements. Based on your analysis, predict whether Apple’s financial health will likely improve or deteriorate over the next five (5) years. Provide a rationale for your response.

• From the e-Activity, examine Apple’s statement of cash flows. Recommend at least two (2) actions that Apple could take in order to maximize the use of its cash flows. Provide a rationale for your response.

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"Accounting Systems and Accruals" Please respond to the following:

• From the e-Activity, examine the greatest threats to a computerized accounting system. Suggest two (2) preventive measures or remedies to protect the system and / or mitigate negative impact to the system. Provide a rationale for your response.



• Pretend that you are a criminal and want to commit fraud by altering your company’s accruals. Create a brief (one [1] paragraph) plan for committing the fraud. Predict the major potential resulting damage to the company’s financial statements from the fraud.

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ACC 556 WEEK 1 HOMEWORK CHAPTER 2

• Question 1

Cash and supplies are both classified as current assets.

• Question 2

Earnings per share measures the net income earned on each share of common stock.

• Question 3

Net cash provided by operating activities takes into account that a company must invest in capital expenditures just to maintain its current level of operations.

• Question 4

In order for information to be relevant, it must be reported on a monthly basis.

• Question 5

For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business.

• Question 6

In a classified balance sheet, assets are usually classified as

Selected Answer: current assets; long-term investments; property, plant, and equipment; and intangible assets.

• Question 7

Equipment is classified on the balance sheet as

• Question 8



Use the following data to determine the total dollar amount of assets to be classified as current assets.

Koonce Office Supplies

Balance Sheet

December 31, 2014

Cash $ 130,000 Accounts payable $ 140,000

Accounts receivable 100,000 Salaries and wages payable 20,000

Inventory 110,000 Mortgage payable 160,000

Prepaid insurance 60,000 Total liabilities $320,000

Stock investments 170,000

Land 180,000

Buildings $210,000 Common stock $240,000

Less: Accumulated Retained earnings 500,000

depreciation (40,000) 170,000 Total stockholders’ equity $740,000

Trademarks 140,000 Total liabilities and

Total assets $1,060,000 stockholders’ equity $1,060,000

• Question 9

N3 Corporation has assets of $3,000,000, common stock of $780,000, and retained earnings of $475,000. What are the creditors’ claims on their assets?

• Question 10

The following information is available for Bradshaw Corporation and Newell Corporation:

(in millions) Bradshaw Corporation Newell Corporation

2014 2013 2014 2013

Preferred dividends 25 10 0 30

Net income 500 480 490 520

Shares outstanding at the end of the year 200 180 150 200

Shares outstanding at the beginning of the year 180 150 200 220

Based on this information, the earnings per share calculations (rounded to two decimals) suggest

• Question 11

Reporting a net income of $95,000 will

• Question 12

Based on the following data, what is the amount of current assets?

Accounts payable……………………………………………………….. $62,000

Accounts receivable…………………………………………………….. 100,000

Cash………………………………………………………………………. 50,000

Intangible assets………………………………………………………… 100,000

Inventory…………………………………………………………………. 138,000

Long-term investments…………………………………………………. 160,000

Long-term liabilities……………………………………………………… 200,000

Short-term investments…………………………………………………. 80,000

Notes payable……………………………………………………………. 56,000

Property, plant, and equipment…………………………………………… 1,340,000

Prepaid insurance……………………………………………………….. 2,000

• Question 13

Using the following balance sheet and income statement data, what is the debt to assets ratio?

Current assets $ 14,000 Net income $ 21,000

Current liabilities 8,000 Stockholders’ equity 39,000

Average assets 80,000 Total liabilities 21,000

Total assets 60,000

Average common shares outstanding was 10,000.

• Question 14

Which of the following is not considered a measure of liquidity?

• Question 15

Free cash flow provides an indication of a company’s ability to

• Question 16

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

•Question 17

Accounting information should be neutral in order to enhance

•Question 18

The principle that indicates that assets should be reported at the price received to sell an asset is the

•Question 19

Garrison Company prepares quarterly reports, which it distributes to all stockholders and other entities that rely on its accounting information. Which of the following is the best term for the key assumption in financial reporting that Garrison is following?

•Question 20

Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Write the letter in the blank next to each statement corresponding to the quality involved.

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Question Selected Match

Consistency E.

A company uses the same accounting principles from year to year.

Verifiable B.

Information that is free from error.

Understandability A.

Information presented in a clear and concise fashion.

Relevance C.

Information that makes a difference in a decision.

Faithful representation D.

Information accurately depicts what really happened.

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• Question 1

Economic events that require recording in the financial statements are called accounting transactions.

• Question 2

An account is often referred to as a T-account because of the way it is constructed.

• Question 3

Revenues are a subdivision of stockholders’ equity.

• Question 4

Salaries and wages payable is a type of expense.

• Question 5

Operating activities are the types of activities the company performs to generate profits.

• Question 6

If total liabilities decreased by $4,000, then

.• Question 7

An expense

.• Question 8

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?



• Question 9

Which statement about an account is true?

• Question 10

Which one of the following represents the expanded basic accounting equation?

• Question 11

Which of the following is not an example of a source document that provides evidence of a transaction?

• Question 12

The primary purpose of the trial balance is to

• Question 13

Which of the following statements is not true?

Question 14

All of the following are characteristics of every accounting information system except it is a system

• Question 15

On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

Selected Answer: $5,000 debit balance

• Question 16

All of the following statements regarding the double-entry system are true except

• Question 17

Borrowing money and issuing shares of stock are

• Question 18

The purpose of the ledger is to

• Question 19

Which statement is incorrect?

• Question 20

Match the items below by entering the appropriate code letter in the space provided.

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Account H.

An accounting record of increases and decreases in specific assets, liabilities, and stockholders’ equity items.

Normal account balance F.

The side which increases an account.

Debit B.

Left side of an account.

Revenue account C.

Has a credit normal balance

Ledger A.

The entire group of accounts maintained by a company.

Journal D.

Shows the debit and credit effects of specific transactions.

PostingE.

Transferring journal entries to ledger accounts.

Chart of accounts H.

An accounting record of increases and decreases in specific assets, liabilities, and stockholders’ equity items.

Trial balance J.

A list of accounts and their balances at a given time.

Source document I.

A list of all the accounts used by a company.

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ACC 556 WEEK 2 CHAPTER 4

•Question 1

The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.

•Question 2

An adjusting entry to a prepaid expense is required to recognize expired expenses.

•Question 3

Unearned revenue is a prepayment that requires an adjusting entry when services are performed.

•Question 4

When closing entries are prepared, each income statement account is closed directly to retained earnings.

•Question 5

The accounting cycle begins with the journalizing of the transactions.

•Question 6

Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.

•Question 7

A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?

•Question 8

Which statement is correct?

•Question 9



Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting.

Cash received from customers $48,000

Accounts receivable 12,000

Cash paid for expenses 26,000

Accounts payable (related to expenses) 3,000

Prepaid rent for next period 7,000

•Question 10

Accrued expenses are:

•Question 11

If a resource has been consumed but a bill has not been received at the end of the accounting period, then:

•Question 12

Depreciation is the process of:

•Question 13

If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements?

•Question 14

Why do generally accepted accounting principles require the application of the revenue recognition principle?

•Question 15

Which of the following would not result in unearned revenue?

•Question 16

Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause:

•Question 17

At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?

•Question 18

Can financial statements be prepared directly from the adjusted trial balance?

•Question 19

Which statement is correct concerning the adjusted trial balance?

•Question 20


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Periodicity assumption H.

The economic life of a business can be divided into artificial time periods

Cash basis B.

Events recorded only in periods the company receives or pays cash

Revenue recognition principle D.

Revenue is recognized when the performance obligation is satisfied.

Prepaid expenses E.

Expenses paid before they are incurred

Expense recognition principle C.

Efforts are related to accomplishments

Accrued revenues A.

Revenues earned but not yet received

Depreciation F.

A cost allocation process

Post-closing trial balance G.

Includes only permanent—balance sheet—accounts

Accrued expenses I.

Expenses incurred but not yet paid

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Accounting for Inventories" Please respond to the following:

• Suggest which type of income statement a retailer should use. Defend your suggestion.

• Analyze inventory valuation methods discussed in the textbook. Based on your analysis, recommend the most accurate valuation method that reflects current economic conditions. Provide a rationale for your recommendation.

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• Question 1

An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.

• Question 2

The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period.

• Question 3

Sales allowances and Sales discounts are both designed to encourage customers to pay their accounts promptly.

• Question 4

Freight-out appears as an operating expense in the income statement.

• Question 5



With the periodic inventory system, goods available for sale must be calculated before cost of goods sold.

• Question 6

Merchandising companies that sell to retailers are known as

Selected Answer: wholesalers.

• Question 7

The primary source of revenue for a wholesaler is

• Question 8

Which of the following is a true statement about inventory systems?

• Question 9

Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?

• Question 10

Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?

• Question 11

As the president of Harter Company, you notice that no discounts have been taken when settling accounts payables. What would be an acceptable explanation?

• Question 12

A sales invoice is prepared when goods

• Question 13

The Sales Returns and Allowances account does not provide information to management about

• Question 14

The collection of a $700 account beyond the 2 percent discount period will result in a

• Question 15

Which statement is incorrect?

• Question 16

Multiple-step income statements show

• Question 17

Financial information is presented below:

Operating expenses $ 28,000

Sales returns and allowances 7,000

Sales discounts 3,000

Sales revenue 150,000

Cost of goods sold 91,000

The gross profit rate would be

Selected Answer: .35.

• Question 18

What is an advantage of using the multiple-step income statement?

• Question 19

Which of the following provides the best rationale regarding analysts' views about the information value of the gross profit rate versus the gross profit amount?

• Question 20


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Net sales I.

Sales less sales returns and allowances and sales discounts.

Sales discount E.

A reduction given by the seller for prompt payment of a credit sale.

Credit terms H.

Specifies the amount of cash discount and time period during which it is offered.

Periodic inventory system D.

Requires a physical count of goods on hand to compute cost of goods sold.

Gross profit rate G.

Gross profit divided by net sales.

Contra revenue A.

An account that is offset against a revenue account on the income statement.

Freight-out C.

Freight cost to deliver goods to customers reported as an operating expense.

Gross profit J.

Net sales less cost of goods sold.

Sales invoice B.

Provides support for a credit sale.

Purchase discount F.

A cash discount claimed by a buyer for prompt payment of a balance due.

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Strayer university acc 566 (2)