Questions from College Accounting

Q: Identify the three primary components of return on common stockholders’ equity.

Identify the three primary components of return on common stockholders’ equity.

Q: Identify the two market measures calculated by FCI.

Identify the two market measures calculated by FCI.

Q: Briefly describe five limitations of financial statement analysis.

Briefly describe five limitations of financial statement analysis.

Q: List four items of information about each cash payment entered in the

List four items of information about each cash payment entered in the cash payments journal.

Q: Explain the procedure for verifying the accuracy of the statement of cash

Explain the procedure for verifying the accuracy of the statement of cash flows.

Q: What is the difference between a cost center and a profit center

What is the difference between a cost center and a profit center?

Q: Why was the increase in FCI’s operating income so much greater than

Why was the increase in FCI’s operating income so much greater than the increase in its net sales?

Q: What is the difference between direct and indirect operating expenses?

What is the difference between direct and indirect operating expenses?

Q: On what basis are direct expenses assigned to departments?

On what basis are direct expenses assigned to departments?

Q: On what basis are indirect expenses allocated to departments?

On what basis are indirect expenses allocated to departments?