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Posted: March 3rd, 2020
M1 A3
M1 OAES Assigned Questions
Read the Success on the OAES document for full instructions about how to use this system. Assigned questions for Module 1 are below.
The following will be 2 points each:
1-1: Explain why stewardship is an important concept.
1-2: What three traditional functions does accounting fulfill?
1-3: What types of groups regulate financial accounting statements?
1-4: What is managerial accounting and how is it different from financial accounting?
2-1: Explain value based management and shareholder value.
2-2: What are some of the rights of shareholders in companies today?
2-3: What is a financial audit?
3-1: What elements or categories are on each of the financial statements? The OAES has two questions for this item, part a and part b.
3-2: Which general ledger accounts would be affected by the purchase of goods on credit for later resale?
3-3: Which general ledger accounts would be affected by the purchase of a computer for business on credit?
Use the following information to answer Questions 3-4 to 3-8 (6 points each)
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.
3-4: How much does inventory change?
3-5: How much does payables change?
3-6: What is the change in receivables?
3-7: What is the change in net profit?
3-8: How much does the bank account change?
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