Category Archives: Accounting

If a client of yours does not wish to report information on their tax return that you feel should be reported, how would you handle the situation?

Tax preparers often have a difference of opinion with their clients as to how some transactions should be treated on a tax return. If a client of yours does not wish to report information on their tax return that you feel should be reported, how would you handle the situation? Use the Bible as one […]

Analyze and record transactions for merchandise purchases using a perpetual system.

Perpetual system. P1: Analyze and record transactions for merchandise purchases using a perpetual system. P2: Analyze and record transactions for merchandise sales using a perpetual system. P3: Prepare adjustments and close accounts for a merchandising company. P4: Define and prepare multiple-step and single-step income statements. Record and compare merchandising transactions using both periodic and perpetual […]

 Explain generally accepted accounting principles and define and apply several accounting principles.

Explain the purpose and importance of accounting. Identify users and uses of accounting. Explain why ethics are crucial to accounting. Explain generally accepted accounting principles and define and apply several accounting principles. Define and interpret the accounting equation and each of its components.      

How does business risk affect management decision making?

The Role of Accounting Information in Management Decision Making Q1-What is the process of strategic management and decision making? Q2 – What types of control systems do managers use? Q3 – What is the role of accounting information in strategic management? Q4 – What information is relevant for decision making? Q5 – How does business […]

How are the margin of safety and operating leverage used to assess operational risk?

What is cost-volume-profit (CVP) analysis, and how is it used for decision making? Q2: How are CVP calculations performed for a single product? Q3: How are CVP calculations performed for multiple products? Q4: What assumptions and limitations should managers consider when using CVP analysis? Q5: How are the margin of safety and operating leverage used […]

How is regression analysis used to estimate a cost function?

The Cost Function Q1: What are the different ways to describe cost behavior? Q2: What process is used to estimate future costs? Q3: How are engineered estimates, account analysis, and two-point methods used to estimate cost functions? Q4: How does a scatter plot assist with categorizing a cost? Q5: How is regression analysis used to […]

What economic resource is affected by a commitment event?

Identify the events about which management wants to collect information. Identify the resources affected by each event and the agents who participate in those events. What economic resource is reduced by the “Give” event? What economic resource is acquired by the “Get” event? What economic resource is affected by a commitment event? Determine the cardinalities […]