1. Describe the main difference between Financial Accounting and Managerial Accounting. 2. List 3 different users (stakeholders) of financial statement information. 3. True or False - Accounting is not important to not-for-profit organizations. 4. What does GAAP stand for? What is it? 5. The ___________ ___________ ____________ Board establishes the rules for financial accounting. 6. There are 4 main financial statements. Name and describe 1 briefly. 7. What is the accounting equation? 8. The _______________ ________________ concept states that assets must be recorded in the financial statements at their original cost. 9. True or false – the collection of all accounts and their ending balances is the trial balance. This shows whether the company’s total debits equals its total credits. 10. Assets on the Balance Sheet are listed in the order of ____________________. 11. True or false - every transaction has two sides and both sides must be in balance at all times. 12. Cash flows are broken into 3 sections for the Statement of Cash flows. Which one is not correct: a. financing activities b. operating activities c. investing activities d. ongoing activities 13. The main source of cash for a business stems from: a. entity activities b. financing activities c. operating activities d. investing activities 14. True or false – Closing the books is the process of closing and transferring the temporary accounts to Retained Earnings to reset them to $0 for the next period. 15. True or false – The permanent accounts are also closed at the end of the period. 16. Which of the following accounts does not normally have a credit balance (think of the accounting equation)? a. Liabilities b. Equity c. Assets d. Revenues 17. Draw a T-account and label the sides as debit side and credit side: 18. Identify the financial statement/statements on which each of the following titles or accounts would appear. If it appears on more than one statement, list all statements (income statement, statement of changes in equity, balance sheet, statement of cash flows): Title or Account Financial Statement(s) a. Retained Earnings b. Revenue c. Common Stock d. Financing Activities e. Salaries Expense f. Land g. Ending Cash Balance h. Notes Payable 19. Classify items for the statement of cash flows. Indicate how each of the following activities would be classified on the statement of cash flows as operating activities (OA), investing activities (IA) or financing activities (FA): Event Classification a. Borrowed cash from the bank. b. Paid cash for salary expense. c. Performed services for cash. d. Paid cash to purchase land. e. Paid cash for utilities expense. f. Sold land for cash. g. Paid cash on principal of loan. h. Received cash from the issuance of stock. 20. Classify the following as an Asset (A), Liability (L), or Owner’s Equity (E) item: a. ______ accounts receivable b. ______ accounts payable c. ______ equipment ...

1. 1. Describe the main difference between Financial Accounting
and Managerial Accounting.
2. List 3 different users (stakeholders) of financial statement
information.
3. True or False - Accounting is not important to not-for-profit
organizations.
4. What does GAAP stand for? What is it?
5. The ___________ ___________ ____________ Board
establishes the rules for financial accounting.
6. There are 4 main financial statements. Name and describe 1
briefly.
7. What is the accounting equation?
8. The _______________ ________________ concept states that
assets must be recorded in the financial statements at their
original cost.
9. True or false – the collection of all accounts and their ending
balances is the trial balance. This shows whether the
company’s total debits equals its total credits.
10. Assets on the Balance Sheet are listed in the order of
____________________.
11. True or false - every transaction has two sides and both
sides must be in balance at all times.
12. Cash flows are broken into 3 sections for the Statement of
Cash flows. Which one is not correct:

2. a. financing activities
b. operating activities
c. investing activities
d. ongoing activities
13. The main source of cash for a business stems from:
a. entity activities
b. financing activities
c. operating activities
d. investing activities
14. True or false – Closing the books is the process of closing
and transferring the temporary accounts to Retained Earnings to
reset them to $0 for the next period.
15. True or false – The permanent accounts are also closed at
the end of the period.
16. Which of the following accounts does not normally have a
credit balance (think of the accounting equation)?
a. Liabilities
b. Equity
c. Assets
d. Revenues
17. Draw a T-account and label the sides as debit side and credit

3. side:
18. Identify the financial statement/statements on which each of
the following titles or accounts would appear. If it appears on
more than one statement, list all statements (income statement,
statement of changes in equity, balance sheet, statement of cash
flows):
Title or Account
Financial Statement(s)
a.
Retained Earnings
b.
Revenue
c.
Common Stock
d.
Financing Activities
e.
Salaries Expense
f.
Land
g.
Ending Cash Balance
h.
Notes Payable

4. 19. Classify items for the statement of cash flows. Indicate how
each of the following activities would be classified on the
statement of cash flows as operating activities (OA), investing
activities (IA) or financing activities (FA):
Event
Classification
a.
Borrowed cash from the bank.
b.
Paid cash for salary expense.
c.
Performed services for cash.
d.
Paid cash to purchase land.
e.
Paid cash for utilities expense.
f.
Sold land for cash.
g.
Paid cash on principal of loan.
h.
Received cash from the issuance of stock.
20. Classify the following as an Asset (A), Liability (L), or
Owner’s Equity (E) item:

5. a. ______ accounts receivable
b. ______ accounts payable
c. ______ equipment
d. ______ unearned revenue
e. ______ common stock
f. ______ supplies
g. ______ land
h. ______ retained earnings
i. ______ prepaid expenses
j. ______ inventory
21. Why is it required by GAAP that we use accrual accounting?
22. The account unearned revenue is
a. An asset
b. A liability
c. An expense
d. Revenue
23. A prepaid expense is ________ when it is initially recorded
a. An asset
b. A liability
c. An expense

6. d. Revenue
24. Which of the following accounts is not closed out during the
closing process?
a. Land
b. Depreciation expense
c. Interest revenue
d. Salary expense
25. The ___________- __________ Act changed how
corporations look and account for internal controls. This act
was in direct response to the Enron/Arthur Andersen scandal.
26. The ______________ principle states that expenses should
be recognized in the month they helped generate revenue (i.e.
match expenses to the revenues they help generate).
27. State whether the following transaction increased totalassets
(I), decreased totalassets (D), or had no effect on total assets
(NE).
a. _____ borrowed $50,000 from the bank
b. _____ purchased land for $40,000 cash
c. _____ received $20,000 cash and issued stock to a
shareholder
d. _____ paid $60,000 cash on accounts payable
e. _____ purchased equipment for $100,000 and signed a
promissory note to pay for it later

7. f. _____ received $1,000 cash from a customer on account
28. Why are ethics important for accountants?
29. A (deferral or accrual) is recorded when an expense has
been incurred or revenue has been earned, but cash has not yet
been received/ paid.
30. A (deferral or accrual) is recorded when cash has been
received/ paid but and expense has not yet been incurred or
revenue has not yet been earned.
31. Identify each of the following events as an accrual, deferral,
or neither.
a. Incurred other operating expenses on account
_________________
b. Recorded expense for salaries owed to employees
_______________
c. Paid a cash dividend to stockholders__________________
d. Paid cash to purchase supplies to be used in the next several
months ______________
e. Purchased a delivery van with a 5 year life _______________
f. Provided services on account ____________________
g. Paid 1 year’s rent in advance ______________
h. Collected cash in advance for services to be performed over
the next year ______________
32. True or false – the notes to the financial statements are an
integral part of the financial statements and should be reviewed
to gain a complete picture of the company’s financial situation.

8. 33. True or false – the external auditors are responsible for
reviewing and giving an opinion on the notes to the financial
statements as well as the overall financial statements.
34. True or false – the external auditors are responsible for
reviewing and giving an opinion on the management discussion
and analysis section (MD&A) of the annual report.
35. Record the journal entry for the following transactions. Be
sure to put the debit side and the credit side in proper form (i.e.
debit listed first and not indented, credit listed 2nd and
indented; do not draw T-accounts) :
a. Bought land for $40,000 with cash.
b. Purchased office supplies for $700 on account.
c. Received a cash payment of $6,000 from a customer as
payment on their account (services were already performed).
36. Record the following adjusting entries (record only the
adjustment, not the original entry to purchase, etc. – again
record in proper journal entry form):
a. A business purchased supplies for $700. At the end of the
month a physical inventory count revealed that only $300 of
supplies remain. Record the adjustment for the month.
b. Your business paid $6,000 for 6 months worth of rent in
advance. After 1 month, record the adjustment necessary.
c. Your business has $10,000 worth of unearned service
revenue. At the end of the month it was determined that you
earned 1/5th of the total. Record the necessary adjustment.
37. Sales – Cost of Goods sold = ________________________.
38. Which inventory system measures inventory continually,

9. periodic or perpetual?
39. What do the terms 2/10, n/30 mean?
40. For each of the following events, indicate whether the
freight terms are FOB destination or FOB shipping point.
a.
Sold merchandise and paid the freight costs.
string
b.
Purchased merchandise and paid the freight costs.
string
c.
Sold merchandise and the buyer paid the freight costs.
string
d.
Purchased merchandise and the seller paid the freight costs
41. What is meant by the Lower of Cost or market rule?
42. Why would a company use ratios to measure inventory
turnover and days in inventory (why would they care how fast
inventory is turning over or staying in the warehouse)?
The following information applies to Westward Company.
Beginning inventory

10. 200 units @ $23 each
Purchases
600 units @ $25 each
Westward sold 700 units of inventory during the year.
a. Determine the cost of goods sold assuming a FIFO cost flow.
b. Determine the cost of goods sold assuming a LIFO cost flow.
c. Determine the cost of goods sold assuming a weighted
average cost flow.
44.
The following information applies to Kassouf Company.
Beginning inventory
100 units @ $10 each
Purchases
400 units @ $12 each
Kassouf sold 420 units of inventory during the year.
a. Determine the ending inventory balance assuming a FIFO
cost flow.
b. Determine the ending inventory balance assuming a LIFO
cost flow.
c. Determine the ending inventory balance assuming a weighted
average cost flow.
45. Craft Company carries three inventory items. The
following information pertains to the ending inventory:
Item
Quantity
Unit Cost
Unit Market Value
A
150

11. $
10
$
8
B
250
18
14
C
175
5
10
Determine the value of the ending inventory using the lower-of-
cost-or-market rule applied to each individual inventory item.
46. What are internal controls and why are they important?
47. Name and briefly describe 2 types of internal controls.
48. True or false – Adjustments to the bank balance require
journal entries.
49. Identify which of the following items are added to or
subtracted from the unadjusted bank balance to arrive at the true
cash balance. (Yes, No)
Deposits in transit
Certified checks
Petty cash voucher
NSF check from customer
Interest revenue
Bank service charge
Outstanding checks

12. 50. Identify which of the following items are added to or
subtracted from the unadjusted book balance to arrive at the
true cash balance.
Interest revenue
Deposits in transit
Bank service charge
Charge for checks
NSF check from customer
Note receivable collected by bank
Outstanding checks
_1424209967.unknown
_1424209968.unknown
_1424209966.unknown
TECH 331 – Technology Problem
Analysis & Design II
Department of Engineering and Design
Eastern Washington University
Winter Quarter 2013
Homework 12 (50 Points)
Assignment:
Select a business of your own choosing (restaurant, deli,
bakery, print shop, hardware store, or other business) and get
approval from the manager/owner to determine the problems
faced by the employees. Select two problems, analyze, generate,
and evaluate potential solutions for each problem. Use the
appropriate K.T. methods as covered in Chapter 7 in our
textbook, “Strategies for Creative Problem Solving” (general
summary on pages 168 & 169) and include them in the turned in
homework. Include an introductory paragraph detailing the type
of business that you chose and how many problems that you
uncovered. You may do this assignment in Word or Excel.

13. Formatting:
Text Size: All of the text in this assignment needs to be set in
12-point size. Please resist the temptation to mix and match
point sizes. If you doubt your applications intentions, just select
all of your text and insure that it is in 12-point size.
Margins: One-inch margins mean one (1”) on all sides. The only
text that ends up on the outside of the one-inch margin is the
page number.
Name Block: Place the name block in the upper right corner of
the page for Word, upper left for Excel. In this class, the name
block only needs to be on the first page. Put your name first,
then the class title and then the date. Example:
Your Name
TECH 331 –Technology Problem Analysis II
March 12, 2013
Title: All homework assignments have a title. Please place the
title just below the name block. The title for this assignment is
“Homework 12”.
Spelling/Grammar Checking: Remember to do your spelling and
grammar checking before turning your assignments in. When
doing the spelling/grammar checking keep in mind that some
words such as mush and must, woods and words, or here and
cow, will not be caught by either check. To correct these
problems, you will need to proofread your work.
Paragraphs: The first word of the first sentence in a paragraph
needs to be indented. At the end of a paragraph, do not insert an
extra blank line. The indentation serves as the visual clue that
there is a new paragraph. Remember to place a number in front
of each section that matches your response to each question.

14. Page Numbers: Any homework that has more than one page,
needs to have page numbers on it. Please place your page
numbers on the bottom of the page. In MS Word, use the footer
selection and place the page number in the bottomcenter or
bottom right of the page.
Saving/Naming Your File:
When you save your file, make sure that your name and the
project number are included in it.
Example:
YourName331HW12
Because of problems with Blackboard, please use only letters
and numbers in the file name.
Due Date: March 12, 2013.
Revised 01/01/2013 JM
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