MS6010 – M1A3 OAES 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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