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Posted: February 21st, 2022
Complete the following 4 questions from the text, each question worth 25 points. Submit as an attachment, using the attached Answer Sheet.
Question 1
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Chapter 1; Question 1 (page 26 of your text)
Rubric: Each line "a" through "j" is worth 1/2 a point.
Match the Branch of Accounting that would be best used to answer the following questions:
Question Branch of Accounting
a. How should I record transactions associated with cash, payroll, and short-term debt?
b. How much does it cost to pay for maintenance for my swimming pool this year?
c. What occupancy tax is owed by the hotel this month?
d. How should I record transactions associated with revenue, expenses, and profit?
e. How much sales tax should we have collected this month?
f. Are all food purchases made this month documented with legitimate invoices?
g. If I wanted to achieve a profit of $10,000 in the month of April, how many pizzas will I need to sell?
h. Are all bonuses paid to managers supported by documented revenue performance measures?
i. What were the total costs of salaries and wages incurred by the restaurant this month?
j. Would it be more profitable if I made my potato salad by scratch or purchased it pre-prepared?
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A. Auditing
B. Tax Accounting
C. Cost Accounting
D. Managerial Accounting
E. Financial Accounting
Question 2
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Chapter 1; Question 2 (page 27 of your text)
Rubric: Table worth 2 points, each question "a" through "c" worth 1 point each.
Read the question in your text, then complete the following table: and answer the subsequent questions:
Week Revenue Expenses Profit / Loss
1 $ 956.34 $1,258.75
2 $2,286.45 $1,687.54
3 $2,678.91 $2,563.87
4 $1,875.23 $1,378.95
Month
a. In which week did Richard have the most profit?
b. Did Richard show a profit for all four weeks? If not, which week(s) did he experience a loss?
c. As the owner, Richard wanted a profit of $1,000 for the month. Did he reach his goal?
Question 3
Chapter 2; Question 1 (page 57 of your text):
Rubric:
Table filled out correctly = 5 points
Table filled out, but amounts filled into the wrong boxes = 3 points
Table filled out incorrectly, and incorrect amounts in the boxes = 0 points
Read the scenario in question 1, pg 57 of your text, then complete the following Accounting Formulas.
a. The restaurant started with a $1,200,000 check from its owner.
Assets = Liabilities + Owners' Equity Revenue - Expenses
b. The restaurant generated revenues of $5,000 on accounts receivable.
Assets = Liabilities + Owners' Equity Revenue - Expenses
c. The restaurant purchased a $400,000 building with $40,000 cash and a $360,000 mortgage.
Assets = Liabilities + Owners' Equity Revenue - Expenses
d. The restaurant paid $550 cash for the utilities bill.
Assets = Liabilities + Owners' Equity Revenue - Expenses
Question 4
Chapter 2; Question 4 (page 59 of your text):
Rubric: Table worth 2 points, each question "a" through "f" worth 1/2 point each.
Read question 4 on page 59, then complete the following table and answer the subsequent questions:
Lisa's Accrual Accounting Laura's Cash Accounting
Revenue
Expenses:
Cost of Food Sold
Salaries and Wages
Utilities
Maintenance
Marketing
Rent
Net Profit or (Loss)
a. Which accounting method, Lisa's accrual accounting or Laura's cash accounting, shows a higher net profit?
b. Which accounting method shows the most accurate amount of money on hand to pay bills?
c. Which accounting method most accurately shows the revenues generated regardless of when they were received?
d. Which accounting method most accurately shows the expenses incurred regardless of when they were paid?
e. Which accounting method most accurately shows actual cash inflows and outflows?
f. Which accounting method shows the most accurate reflection of their restaurant’s true profitability?
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