UNISEMINAR
Accounting
Maastricht
2nd Edition
Academic Year 12/13
Accounting
Table of Contents
Accounting
Chapter 01: [FA] Financial Statements
Chapter 02: [FA] Transaction Analysis
Chapter 03: [FA] Accrual Accounting
Chapter 04: [MA] Accounting and Costs
Chapter 05: [MA] Job Costing
Chapter 06: [MA] Process Costing
Chapter 07: [MA] Cost Allocation
Chapter 10: [MA] Cost Behavior
Chapter 08: [MA] Activity Based Costing
Table of Contents
Chapter 09: [MA] Absorption versus Variable Costing
Chapter 11: [MA] Cost-‐Volume-‐Pro�it Analysis
Chapter 12: [MA] Relevant Information and Decision Making Chapter 13: [MA] Preparing Budgets and Variance Analysis
012 – 041
042 – 069
070 – 099
100 – 154
155 – 178
179 – 194
195 – 211
212 – 231 232 – 248
249 – 271
272 – 295 296 – 321
322 – 367
Uniseminar
Accounting
Learning Card Types Part 1
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Accounting Card Types
In order to prepare you as good as possible for your exam, we tried to integrate various question types.
The cards can be categorized according to the following “types“: De�initions Concepts
Formulas
Calculations
Multiple Choice Questions True/False Questions
Uniseminar
Accounting
Learning Card Types Part 2
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Accounting Card Types
In order to make the different types clear, we have included the following recognition features for you:
De�initions are framed and grey.
Formulas are framed.
Examples are printed in italic.
Numerations are illustrated by bullet points.
Continuative thoughts are marked by an à.
Uniseminar
Accounting
Sample Front
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Accounting Sample Front
On the front of a learning card you will �ind the following:
In the header: the course title, the corresponding chapter as well as the topic The question as well as an information about the card type In the footer on the left: the dif�iculty of the question: easy
medium
hard
In the footer on the right: the number of the current card as well as the total number of cards.
Uniseminar
Accounting
Sample Back
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Accounting Sample Back
On the back of a learning card, you will �ind the following:
In the header (middle): the topic as well as the question in short
In the header (right): the corresponding page, where to �ind the topic in the Uniseminar T Theory SScript ffor A Accounting
In the footer (left): if available, the corresponding chapter in the Accounting textbook of the course
The correct answer(s) to the question on the front
Uniseminar
Accounting
Chapter 01: Financial Statements
Since we live in a global economy, all countries have adopted the same accounting standards for business transactions. -‐ True/False -‐
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Accounting Standards Same Accounting Standards?
False. Even though businesses becomes more global, many countries have their own accounting standards. IFRS is a solution to overcome fragmented accounting standards, but it is not yet adopted by every country. Harrison et al. (FA), chapter 1
Uniseminar
Accounting
Chapter 01: Financial Statements
List seven users of accounting information. -‐ 7 Points -‐
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Conceptual Framework of Accounting List seven users of accounting information.
Investors Employees Creditors Suppliers and trade creditors Customers Government and its agencies
Harrison et al. (FA), chapter 1
Uniseminar
Accounting
Chapter 01: Financial Statements
At the end of the accounting period, account balances were as follows: cash $180,000, accounts receivable $75,000, common stock $20,000, retained earnings $65,000. Liabilities for the period were $ 210,000. -‐ True/False -‐
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Accounting Equations
Application of Accounting Equation
P. 7
False. Use the accounting equation and solve for liabilities: $180,000 + $75,000 -‐ $20,000 -‐ $65,000 = $170,000 Harrison et al. (FA), chapter 1
Uniseminar
Accounting
Chapter 02: Transaction Analysis
The normal balance of an expense account is a __________ because expenses decrease __________. a) debit, assets b) debit, expenses c) debit, shareholders’ equity d) credit, shareholders’ equity -‐ Multiple Choice -‐
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Recording Transactions Expense Accounts
Correct aanswer: C C The normal balance of an expense account is a debit because expenses decrease shareholders’ equity. Harrison et al. (FA), chapter 2
Uniseminar
Accounting
Chapter 02: Transaction Analysis
What is a journal? -‐ De�inition -‐
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Recording Transactions De�inition journal
P. 13
A jjournal is the chronological accounting record of an entitiy‘s transactions.
Harrison et al. (FA), chapter 2
Uniseminar
Accounting
Chapter 03: Accrual Accounting
State the formula for the current ratio. -‐ Formula -‐
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Preparing Financial Statements Formula Current Ratio
Total Current Assets Current Ratio = Total Current Liabilities
Harrison et al. (FA), chapter 3
Uniseminar
Accounting
Chapter 04: Accounting and Costs
List three different types of inventories in manufacturing companies. -‐ 3 Points -‐
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Manufacturing-‐Sector Companies
Different types of inventories in manuf. companies
P. 25
Direct materials Work-‐in-‐progress Finished goods Bhimani et al. (MA), chapter 2
Uniseminar
Accounting
Chapter 05: Job-‐Costing
The following information was gathered for Rogers Company for the year ended December 31, 20X5. Budgeted Actual Direct labor-‐hours 75,000 77,500 Factory overhead $525,000 $558,000 Assume that direct labor-‐hours are the cost-‐allocation base.
Compute the budgeted factory overhead rate. -‐ Calculation -‐
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Job-‐Costing Using Normal Costing Budgeted Factory Overhead Rate
P. 31
Correct aanswer: $ $7.00 p per h hour Apply the formula for budgeted indirect rate: $525,000/75,000 hrs. = $7.00 per hour Bhimani et al. (MA), chapter 3
Uniseminar
Accounting
Chapter 07: Cost Allocation
Give a brief de�inition of the direct method. -‐ De�inition -‐
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Direct Method
De�inition Direct Method
P. 43
The d direct m method allocates support department costs to operating departments only. Bhimani et al. (MA), chapter 5
Uniseminar
Accounting
Chapter 11: Cost–Volume–Pro�it Analysis
Which formula determines the operating leverage? -‐ Formula -‐
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Cost Planning and CVP Formula Operating Leverage?
Contribution Margin Degree o of �� = Operating L Leverage Net Operating Pro�it
Bhimani et al. (MA), chapter 8
Uniseminar
Accounting
Chapter 12: Relevant Information and Decision Making
Name two essential differences when pricing for the long run relative to the short run. -‐ 2 Points -‐
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One-‐Off Special Orders
P. 111 Two differences when pricing for the long run/short run Costs that are often irrelevant for short-‐run pricing decisions (�ixed costs) are often relevant in the long run. Pro�it margins in long-‐run pricing decisions are often set to earn a reasonable return on investment. Bhimani et al. (MA), chapter 12
Uniseminar
Accounting
Chapter 12: Relevant Information and Decision Making
Recap: What is the decision rule for special orders? -‐ Concept -‐
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One-‐Off Special Orders
Decision Rule for Special Orders
P. 101
Decision rrule: Accept the order if the differential revenue is greater than the differential cost. Bhimani et al. (MA), chapter 10
Uniseminar
Accounting
Chapter 13: Preparing Budgets and Variance Analysis
Bates Inc. used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 495,000 500,000 Variable costs $1,250,000 $1,500,000 Fixed costs $ 925,000 $ 900,000 What is the static-‐budget variance for variable costs? � -‐ Calculation -‐
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Static Budgets and Flexible Budgets Calculation static-‐budget variance of revenues
P. 118
Correct aanswer: $ $250,000 F F Use the formula for the static budget variance. $1,250,000 -‐ $1,500,000= $250,000 F Uniseminar
Accounting
Chapter 13: Preparing Budgets and Variance Analysis
A favorable variance results when budgeted revenues exceed actual revenues. -‐ True/False -‐
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Static Budgets and Flexible Budgets Favorable Variances
P. 118
False. An unfavorable variance results when budgeted revenues exceed actual revenues. Uniseminar