Assignment
Read the Success on the OAES document for full instructions about how to use this system. Assigned questions for Module 1 are below.
1. Explain why stewardship is an important concept.
2. What three traditional functions does accounting fulfill?
3. What types of groups regulate financial accounting statements?
4. What is managerial accounting and how is it different from financial accounting?
5. Explain value based management and shareholder value.
6. What are some of the rights of shareholders in companies today?
7. What is a financial audit?
8. What elements or categories are on each of the financial statements? The OAES has two questions for this item, part a and part b.
9. Which general ledger accounts would be affected by the purchase of goods on credit for later resale?
10. Which general ledger accounts would be affected by the purchase of a computer for business on credit?
Use the following information to answer Questions 1 to 5
Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.
1. How much does inventory change?
2. How much does payables change?
3. What is the change in receivables?
4. What is the change in net profit?
5. How much does the bank account change?