ACCT 212 Course Project (Includes both Course project)
For more course tutorials visit www.acct212.com This course has two course projects due. The first, Course Project 1, reinforces the basic principles of accounting and application of the accounting information system. It is completed in two parts. The second, Course Project 2, is an opportunity to show the ability to analyze financial statements to arrive at conclusions based upon the analysis. Course Project 1 - Overview and Guidelines | Course Project 2 Overview and Guidelines Course Project 1 - Overview and Guidelines Course Project 1 consists of two parts, A and B, respectively. There are 10 requirements for you to complete in this exercise, Part A has 1-3 and Part B has 4-10. Part A is due at the end of Week 3. Part B is due at the end of Week 5. See Syllabus/"Due Dates for Assignments & Exams" for due date information. The Course Project 1 template has all of the information you will need to complete Parts A & B of the project. The template also includes: Detailed Project Instructions (with requirements) A reference list of October transactions A Chart of Accounts reference sheet A Grading
Rubric to help explain what is expected. Each worksheet has the Check Figures embedded as a comment. 1. Download the Excel template named ACCT212_CourseProject1 located on the Doc Sharing tab in the course shell. 2. To complete Part A (due at the end of Week 3): Complete Requirements 1-3 on the Journal Entries, General Ledger, and Trial Balance worksheets. Type your work directly into the worksheets. Save your workbook as "CourseProject1A_ ACCT212_YourLastName". Submit your workbook to the Dropbox under "Course Project 1-Part A" by the end of Week 3. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use theDropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial. 3. To complete Part B (due at the end of Week 5): Using feedback from your instructor and the worksheets from Part A, complete requirements 4-10. Type your work directly into the worksheets. Save your workbook as "CourseProject1B_ACCT212_YourLastName". Submit the workbook to the Dropbox under "Course Project 1-Part B" by the end of Week 5. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use theDropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial. Course Project 2 - Overview and Guidelines Course Project 2 consists of Problem 13-52A from your textbook. At the end of Course Project 2, you will be able to prepare common-size statements, analyze profitability; and make comparisons with the industry. Course Project 2 is due at the end of Week 7.
The Course Project 2 template has all of the information you will need to complete the project including: Detailed requirements A worksheet to enter your solutions A Grading Rubric to help explain what is expected. 1. Download the Excel template named ACCT212_CourseProject2 located on the Doc Sharing tab in the course shell. 2. To complete Course Project 2 (due at the end of Week 7): Using the requirements worksheet for reference, complete requirements 1-3 on the Your Solution worksheet. Type your work directly into the worksheet. Save your workbook as "CourseProject2_ACCT212_YourLastName". Submit your workbook to the Dropbox under "Course Project 2" by the end of Week 7. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use theDropbox, read these Stepby-Step Instructions or watch this Dropbox Tutorial. ==============================================
ACCT 212 Entire Course (Devry)
For more course tutorials visit www.acct212.com ACCT 212 Course Project
ACCT 212 Week 4 Midterm (includes all Sets available on our website) ACCT 212 Week 1-7 All DQs ACCT 212 Final Exam (3 Sets) ==============================================
ACCT 212 Final Exam (3 Different Sets)
For more course tutorials visit www.acct212.com This Tutorial contains 3 Different Sets, See Details Below
Set 1 At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry 2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance
(TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented 4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit 5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Acid-test (or Quick) Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. 1. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares. Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an
explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle ) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order. Account Balance Common stock $5,100 Accounts payable $4,400 Service revenue $17,100 Land $28,800 Note payable $9,500 Cash $5,200 Dividends $6,100 Utilities expense $2,100 Accounts receivable $10,600 Delivery expense $700 Retained earnings $25,600 Salary expense $8,200
Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on. Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions: Set 2 1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the (10 points) (Points : 20)2121212122121 2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how the debit/credit rules are used….. (10 points)(Points : 20) 3. (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the…... (10 points) (Points : 20) 4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the First in First out (FIFO) method is applied (10 points) and…... (10 points) (Points : 20) 5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business. (10 points) (Points : 20) 6. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service
4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. ……. (Points : 25) 7. (TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common…..(Points : 25) 8. (TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that …... 9. (TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented (Points : 25) 10. (TCO2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order…. (Points : 25) 11. (TCO4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:……(Points : 25)
Set 3 1. At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Utilities Expense in the form of a journal entry.
2. As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain which financial reports can be generated (10 points) and (2) provide an example of information that those financial reports would provide.
3. Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how proper approvals can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented.
4. Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Average Cost method is applied (10 points) and (2) provide an example of the application of this method.
5. To evaluate the financial operation and health of a business, ratio analysis is used. (1) Provide the formula for Accounts Receivable Turnover and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business.
6. Depreciation is a process to allocate the cost of long-life assets to each period's income statement and adjusts the value of the asset on the balance sheet. (1) Explain how the Double-declining balance method is computed (10 points) and (2) provide an example of how this method
could be used on a new delivery truck purchased for $25,000 to be used for 4 years with a salvage value of $0 for year one only.
7. To raise capital, companies might sell bonds. This allows them to bypass lenders such as banks and go directly to the investing public. Your company is planning to sell bonds with a face amount of $10,000 and paying 5% annual interest. (1) The day the bonds hit the market, the bond price is quoted at 100. What is the bond's selling price? (10 points) and (2) how does the company record this sale in its accounting information system? Use journal entries to support your answer.
8. There are three different forms of business; sole-proprietor, partnership, and corporation. (1) Explain why a corporation's separation of ownership and management may be a benefit (10 points) and (2) as a stockholder explain why pre-emption may be a benefit.
9. Inventory valuation methods allow management to select a method that best fits their business model. Given the following data, what is the value of the cost of goods sold as determined by the First in First out (FIFO) method? Show all computations.
Sales revenue
300 units at $15 per unit
Purchases
240 units at $10 per unit
Beginning inventory
120 units at $8 per unit
==============================================
ACCT 212 Week 1-7 All Discussion Questions (Devry)
For more course tutorials visit www.acct212.com Week 1 DQ1 Financial Statements Week 2 DQ1 Prepaid Expenses vs. Unearned Revenue Week 2DQ2 Accrual vs. Cash Accounting Week 3DQ1 Ethical Business Decisions Week 3DQ2 Trade Credit - Accounts Payable Week 4DQ1 Inventory Management Week 4DQ2 LIFO Week 5DQ1 Non-current Assets and Related Liabilities Week 5DQ2 Raising Capital (Cash) Week 6DQ1 Stockholders Equity Week 6DQ2 Net Income vs. Net Operating Cash Week 7DQ1 Financial Statement Analysis ==============================================
ACCT 212 Week 4 Midterm (Devry)
For more course tutorials visit www.acct212.com Please See all the Question Details below, This Tutorial contains 5 Different Sets
Set 1 1. (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what assets value would be if Liabilities are $12,000 and Owners' Equity is $50,000 by showing the Accounting Equation (10 points) and (2) provide an example of two asset accounts that could contain the value. (10 points) (Points : 20) 2. (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement should be prepared first and why (10 points) and (2) explain what information this financial statement provides. (10 points) (Points : 20) 3. (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of its application. (10 points) (Points : 20)
4. (TCO 2) Transaction analysis results in the development of a journal entry. A building is purchased for $535,000. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (Points : 20) 5. (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1,350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month $500 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (Points : 20) 1. (TCO 5) E-commerce creates its own risks and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points) (Points : 25) (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for J & J Flooring, Inc. (Use the format shown on page 255 of your textbook) (25 points)
Set 2
Question : (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what liabilities are (10 points) and (2) provide an example of a liability account. (10 points) 2. Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies how well the company performed during the year (10 points) and (2) explain what information this financial statement provides. (10 points) 3. Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Entity Assumption is (10 points) and (2) provide an example of its application. (10 points) 4. Question : (TCO 2) Transaction analysis results in the development of a journal entry. A building is purchased for $35,000. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) 5.
Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month $100 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) 1. Question : (TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the five components of internal control (10 points) and (2) provide examples of how your two selected components of internal control will meet the goal of safeguarding assets and promoting ethical business practices. (15 points) 2. Question : (TCO 5) The bank account as a control device that helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for Acorn Plumbing, Inc. (Use the format shown on page 255 of your textbook) (25 points)
The bank statement indicated a service charge of $56.
Acorn made a deposit on May 31, but this deposit did not appear on the bank statement, $1,451. A credit memo in the bank statement indicated a bank collection of a note for $1,300 with interest received of $16. This item was dated May 18. Also included in the bank statement was a debit memo for a NSF check for $314 from Barney Smythe. Checks #1406 for $1,342, #1610 for $1,609, and #1825 for $857 were written by Acorn and sent to he respective companies, but these checks do not appear on the bank statement. The balance on the bank statement as of May 31 was $13,119. The Cash account on Acorn’s books showed an amount of $9,816.
Set 3 1. Question : (TCO 1) The Accounting Equation is used to develop the organization's financial reports. (1) Describe what liabilities value would be if Assets are $50,000 and Owners' Equity is $25,000 by showing the Accounting Equation (10 points) and (2) provide an example of two liability accounts. (10 points) Question 2.Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement should be prepared first and why (10 points), and (2) explain what information this financial statement provides. (10 points)
Question 3.Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Going-concern Assumption is (10 points) and (2) provide an example of its application. (10 points) Question 4.Question : (TCO 2) Transaction analysis results in the development of a journal entry. In the start-up of a business, the owner contributes $750,000 of cash. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) Question 5.Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month, $1,350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month, $500 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the seven internal control procedures (10 points) and (2) provide examples of how your two selected internal control procedures will meet the goal of safeguarding assets and promoting ethical business practices. (15 points)
Question 2. Question : (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for J & J Flooring, Inc. (Use the format shown on page 251 of your textbook.) (25 points)
·
The bank statement indicated a service charge of $56.
· J & J made a deposit on May 31, but this deposit did not appear on the bank statement, $1,451. · A credit memo in the bank statement indicated a bank collection of a note for $1,300 with interest received of $16. This item was dated May 18. · Also included in the bank statement was a debit memo for a NSF check for $314 from Barney Smythe. · Checks #1406 for $1,342, #1610 for $1,609, and #1825 for $857 were written by J & J and sent to the respective companies, but these checks do not appear on the bank statement. ·
The balance on the bank statement as of May 31 was $13,019.
·
The Cash account on Janus’ books showed an amount of $9,716.
Set 4
1. Question : (TCO 1) The Accounting Equation is used to develop the organization's financial reports. (1) Describe what liabilities value would be if Assets are $50,000 and Owners' Equity is $25,000 by showing the Accounting Equation (10 points) and (2) provide an example of two liability accounts. (10 points)
2. Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10points), and (2) identify the three major parts of this statement. (10 points)
3. Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of its application. (10 points)
4. Question : (TCO 2) Transaction analysis results in the development of a journal entry. In the start-up of a business, the owner contributes $750,000 of cash. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points)
5. Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of
$14,000. Develop the adjusting entry for year end. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points)
1. Question : (TCO 5) E-commerce creates its own risks, and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points)
2. Question : (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251of your textbook.) (25 points)
Set 5
1. Question : (TCO 1) The Accounting Equation is used to develop the organization's financial reports. (1) Describe what liabilities value would be if Assets
are $50,000 and Owners' Equity is $25,000 by showing the Accounting Equation (10 points) and (2) provide an example of two liability accounts. (10 points) Question 2. Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement requires input from the Income Statement and Statement of Retained Earnings (10 points), and (2) explain what information this financial statement provides. (10 points) Question 3. Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of its application. (10 points) Question 4. Question : (TCO 2) Transaction analysis results in the development of a journal entry. In the start-up of a business, the owner contributes $750,000 of cash. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) Question 5.
Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Develop the adjusting entry for year end. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) 1. Question : (TCO 5) E-commerce creates its own risks, and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points) Question 2. Question : (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251 of your textbook.) (25 points)
Use the information below to prepare the bank reconciliation for Collier Cleaners for the month of September.
The bank statement indicated bank service charges of $63.
Outstanding checks as of September 30 amounted to $1,405. Deposits in transit as of September 30 amounted to $2,769. The ending balance per the September bank statement is $40,753. Collier Cleaners bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402. The bank mistakenly recorded a deposit of $2,800 as $280 on February 17. The bank made an EFT payment on behalf of the company for Insurance for $3,200. Bank collected rent of $3,000 and a note, for $16,450, including interest of $450. The ending cash balance per the books for September before any adjustments was 28,900. ==============================================
ACCT 212 Week 4 Midterm (Set 2)
For more course tutorials visit www.acct212.com
1. (TCO 1) Suppose your company sold $50,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? 2. (TCO 2) Suppose your company paid $12,000 in cash for a used car. How does this transaction impact the accounting equation? 3. (TCO 3) Pressure is one of the components of the fraud triangle. What types of pressures do people face that could lead to fraud? Give an example of how pressure could lead to fraud 4. (TCO 4) How does vertical analysis of financial statements differ from horizontal analysis? Which method do you think is a better analysis tool? 1. (TCO 3) Physical control is a key feature in an internal control system. Why is physical control such an important internal control? Give an example of physical control as an internal control. 2. (TCO 1) Describe the income statement. Why is this statement important to the company, creditors, and investors? 3. (TCO 4) Name and describe one liquidity ratio. What does this ratio measure? What is the formula for this ratio? ==============================================
ACCT 212 Week 4 Midterm (Set 3)
For more course tutorials visit
www.acct212.com 1. (TCO 1) Suppose your company paid $12,000 in cash for its rent. How does this transaction impact the accounting equation? 2. (TCO 2) Suppose your company sold $25,000 in merchandise to a customer for credit. How does this transaction impact the accounting equation? 3. (TCO 3) Opportunity is one of the components of the fraud triangle. How can a company reduce opportunity as a fraud risk? Give an example of how someone could use opportunity to commit fraud and how the company could reduce this risk. 4. (TCO 4) What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? 1. (TCO 3) Prenumbered documents are a key feature in an internal control system. Why are prenumbered documents such an important internal control? Give an example of prenumbered documents as an internal control. 2. (TCO 1) Describe the balance sheet. Why is this statement important to the company, creditors, and investors? 3. (TCO 4) Name and describe one profitability ratio. What does this ratio measure? What is the formula for this ratio? ==============================================