1: I just finished watching the video by Jim Stice, Review of the financial statements. Interesting refresher videos. A reminder of what we have learned in the last 4 weeks. “Accounts use the credits and debits recorded in ledgers or books prepared by bookkeepers to create a company’s financial statements.” According to the video, one the of the main results of bookkeeping is to provide information. The video explains that the three most common financial statements are the balance sheet, the income statement, and the statement of cash flows. 

It goes on to explain that the balance sheet aka fundamental financial statements, embodies the accounting equation (assets, liability, and owners equity). The accounting always balances

2:Everyone in business, small or large business, must keep good records. It is very important because good record keeping will helps us monitor and prepare financial statements, identify the sources of the business income, keeping track of deductibles expenses, and prepare tax returns. As Lisa mentioned in one of her comments, we must keeps records of all accounting transactions for auditing purposes for at least 7 years. As Stice said in one of his videos, “the most difficult aspect of accounting is determining which events are to be reflected in the accounting records and which are not.” It is important that the bookkeeper posts all journal entries to the appropriate accounts. Posting the chronological recording of transactions in a journal (showing dates of a transaction, amounts involved, and accounts affected by accounts) provides a company with a complete record of activities. 

3:Wouldn’t it be nice if all employers provided employees with the necessary tools to succeed? I have been at my current job for over 10 years and I have never been sent to any technology trainings to keep me updated with the new stuff, yet they expect me to familiarize myself with whats in with technology. And, after 10 years I decided that its time to do something for myself. I going back to school to get updated with the latest technology. In the three short weeks I have been in this class, I am applying what I have learned so far in Excel. Sadly, I am showing my fellow coworkers  a few things I am learning here. You are right, my employer themselves are still using old school technology and even writing and keeping transaction in paper ledger/journal. Technology is not very in my job.

4:Automation has greatly changed the way accounting is accomplished. The Microsoft Excel program changed the game, so to speak, and greatly improved the results of a financial statement. If a person can understand when to use which formula in Excel, it makes life way easier. It also makes the entire process more efficient. It used to take double the time to do half the work. Now it takes half the time to do double the work.

Question 15 

 

Suppose you are proving that an integer derived in a certain way is even, and that you are at a point in the proof that you have the integer expressed as 7(4k2 + 4k + 1) + 1. How should you rewrite this expression to show that the integer is even?

28k2 + 28k + 7 + 1

28k2 + 28k + 8

20(k2 + k) + 8(k2 + k + 1)

2(14k2 + 14k + 4)

 

 

Question 16 

 

Which one of the following gives a recursive algorithm for computing an, where n is a positive integer and a is a real number?

 

procedure power(a: real number, n: positive integer) if n = 1 then power(a, n) := a else power(a, n) := a∙power(a, n)

procedure power(a: real number, n: positive integer) for i = 1 to n power := a∙power

procedure power(a: real number, n: positive integer) power := a for i = 2 to n power := a∙power

procedure power(a: real number, n: positive integer) if n = 1 then power(a, n) := a else power(a, n) := a∙power(a, n – 1)

 

 

Question 17 

 

Let f be the function such that f(0) = 1, f(1) = 4, and

f(n) = f(n – 1)∙f(n – 2) + 1 for all integers n greater than 1. Which one of the following is true?

 

f(3) = 4 and f(4) = 105

f(3) = 5 and f(4) = 21

f(3) = 21 and f(4) = 106

f(3) = 20 and f(4) = 105

 

 

 

 

Question 18 

 

If {an} is the sequence defined by an = (n + 5)/2 for all positive integers n, which one of the following is a recursive definition for the sequence?

 

a1 = 1 and, for n = 2, 3, 4, . . . , an = an–1 + 5/2

a1 = 1 and, for n = 2, 3, 4, . . . , an = an–1 + 1/2

a1 = 3 and, for n = 2, 3, 4, . . . , an = an–1 + 5/2

a1 = 3 and, for n = 2, 3, 4, . . . , an = an-1 + 1/2

 

 

Question 19  

Use the graph below to match each quantity with the correct value.

 

:

total number of vertices?

number of edges connecting a and c?

number of edges connecting a and b?

degree of vertex e?

 

 

 

1. Which of the following statement completions is CORRECT?  If the yield curve is upward sloping, then the marketable securities held in a firm’s portfolio, assumed to be held for emergencies, should

consist mainly of long-term securities because they pay higher rates.

consist mainly of short-term securities because they pay higher rates.

consist mainly of U.S. Treasury securities to minimize interest rate risk.

consist mainly of short-term securities to minimize interest rate risk.

be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.

  

2. Other things held constant, which of the following will cause an increase in net working capital?

Cash is used to buy marketable securities.

A cash dividend is declared and paid.

Merchandise is sold at a profit, but the sale is on credit.

Long-term bonds are retired with the proceeds of a preferred stock issue.

Missing inventory is written off against retained earnings.

  

3. Which of the following statements is CORRECT?

Other things held constant, the higher a firm’s days sales outstanding (DSO), the better its credit department.

If a firm that sells on terms of net 30 changes its policy to 2/10 net 30, and if no change in sales volume occurs, then the firm’s DSO will probably increase.

If a firm sells on terms of 2/10 net 30, and its DSO is 30 days, then the firm probably has some past-due accounts.

If a firm sells on terms of net 60, and if its sales are highly seasonal, with a sharp peak in December, then its DSO as it is typically calculated (with sales per day = Sales for past 12 months/365) would probably be lower in January than in July.

If a firm changed the credit terms offered to its customers from 2/10 net 30 to 2/10 net 60, then its sales should increase, and this should lead to an increase in sales per day, and that should lead to a decrease in the DSO.  

 

4. Which of the following statements is NOT CORRECT?

A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales, profits, and cash flows during the coming year.

Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.

The cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans.

If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10 net 30 to net 60.

Managing working capital is important because it influences financing decisions and the firm’s profitability. 

 

1. A government places an order for a particular item of equipment and encumbers $5,500. The item arrives accompanied by an invoice for $5,200. The entries that the government should make should include (but no necessarily be limited to):
a. A debit to expenditures for $5,200, a debit to fund balance for $300, and a credit to reserve for encumbrances for $5500
b. A debit to expenditures for $5200, a credit to encumbrances for $5200, and a credit to accounts payable for $5200
c. A debit to expenditures for $5200, a credit to encumbrances for $5500, and a credit to accounts payable for $5200
d. A debit to expenditures for $5200, a credit to reserve for encumbrances for $5200, and a credit to accounts payable for $5200

2. Per GASB Statement No. 34, governments must..
a. Prepare a general fund budget on a cash basis
b. Prepare a general fund budget on a modified accrual basis
c. Prepare a schedule that reconciles any differences between amounts reported on a GAAP basis and a budgetary basis
d. Prepare a schedule that reconciles any differences between the original budget and the amended budget

3. The amount that a government has available to spend for a particular purpose in a particular year would be indicated by
a. Encumbrances minus the sum of appropriations, expenditures and net adjustments
b. Reserve for encumbrances plus appropriations minus the sum of expenditures and net adjustments
c. Appropriations plus encumbrances minus the sum of expenditures and net adjustments
d. Appropriations minus the sum of expenditures, encumbrances and net adjustments

4. Upon ordering supplies a government should…
a. Debit encumbrances and credit reserve for encumbrances
b. Debit reserve for encumbrances and credit encumbrances
c. Debit expenditures and credit encumbrances
d. Debit expenditures and credit vouchers payable

1. By having a “good will,” Kant fundamentally meant that one:
Should use one’s conscience and intuition to determine morality.
Should have the strength and will-power to get power and position and to achieve one’s goals.
Should have the strength of character to do what is morally right and not do what is morally wrong.
Should always be the first to buy a “round of drinks” for one’s friends at Happy Hour.

2. Kantian ethics can best be characterized by:
The consultation of an outside source, such as a person or a book, for guidance.
The belief that a person must decide what course of action is proper based on that person’s own set of beliefs and feelings.
Determining which course of action produces the greatest amount of good for society.
A set of universal moral rules based on reasoning that must be applied in all situations and characterized by consistency and rationality.

3. World Development Corporation suggests that its employees apply the Categorical Imperative to ethical issues that arise at work. This theory requires that the employees
Seek to overthrow unjust governments by any means at their disposal
Categorize the issues according to profitability and legality
Evaluate their actions in light of how they treat human beings
Take whatever steps are necessary to survive since one can say categorically that it is a “moral jungle” in the business world.

 

4. Consumer Products, Inc., asks its employees, many of whom are unionized, to apply the Utilitarian theory of ethics. This theory does NOT require
A choice among alternatives that will produce maximum social utility
A determination of what individuals will be affected by an action
An assessment of the positive and negative consequences of alternative actions on individuals affected
The acquiring of the means of production and distribution by the workers.