1. How does Peter Drucker define profit?

2. Define the term “cash basis accounting”.

3. Define the “matching principle”

4. Describe the delivery company that purchased a truck in January and how it applies to the matching principle.

5. Explain why the Income Statement does not account for the inflows and outflows of cash.

6. Define the purpose of the Income Statement.

7. List three alternative names for the Income Statement

8. What time periods can the Income Statement cover?

9. Public companies must follow GAAP in compiling financial statements TRUE/FALSE

10. What is a Pro-forma Income Statement?

11. Sales and Revenue on the Income Statement mean the same thing TRUE/FALSE

12. Define the term “Cost of Sales”.

13. Why are footnotes considered to be an important part of the financial statements?

14. What is the “One Big Rule” when reading financial statements?

15. In its simplest form, when can a company recognize a sale?

16. In the example in the book, how did the software company manipulate revenue recognition?

17. What is “channel stuffing”?

18. “The most common source of accounting fraud has been and probably always will be _____________

19. Define “deferred revenue”.

20. “Above the line” on the Income Statement refers to what?

21. “Below the line on the Income Statement refers to what?

22. Define “Operating Expenses”

23. Operating expenses are often thought of and referred to as ________________

24. How did Waste Management Inc. use depreciation to manipulate earnings?

25. Why is depreciation and amortization considered a “non-cash expense”?

26. Give an example of a “one time charge”.

27. Expenses should be listed on the Income Statement to assist management in analyzing the business. TRUE/FALSE

28. Gross Profit varies by industry. TRUE/FALSE

29. Compare the gross profit of a grocery business to a jewelry store.

30. Define Operating Profit or EBIT

31. List three ways Operating Profit can measure how well or poorly a company is being managed

32. Define EBITDA

33. Why is EBITDA favored over EBIT by financial analysts?

34. Define “Net Profit”

35. List the three legitimate fixes to a low net Profit

36. What are the negative consequences of reducing Operating Expenses as a strategy to increase Net Profit?

37. How can “exchange rates” adversely affect Net Profit?
38. Can you answer all of the questions.

Suppose you can buy a new car for $15,000 and sell it for $6,000 after six years. Or, you can lease the car to $300 per month for three years and return it at the end of the three years. Assume that lease payments are made yearly instead of monthly (i.e., are $3,600 per year for each of the three years).

a.) If the interest rate, r, is 4 percent, should you lease or buy?

b.) What if the interest rate is 12 percent?

c.) At what interest rate would you be indifferent between buying and leasing the car?

Three recessive genes in dogs are linked on a chromosome. A dog heterozygous for all three recessive alleles is crossed with homozygous for all the recessive alleles in a three-point testcross.

(a) Determine the order of these genes on the chromosome and

(b) calculate the map distances between the genes.

The progeny of the testcross are:

r    T    W                 324

R    t   w                 319

R   t    W                880

r   T     w               887

R    T   W                2376

r    t     w                 2365

r   t     W                47

R    T     w                41

Total      7,239

Chapter 18

This module introduces us to managerial accounting. We discuss its purpose, concepts, and roles in helping managers gather and organize information for decisions. We also explain basic management principles.

Pick two of the three topics and discuss, please use proper grammar

-There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

-Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

-What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

You long a European call option on Info Systems Technology (IST) stock with a strike price of $25. The option will expire in exactly three months’ time. a. Briefly explain the difference between American and European options. b. What are the key determinants of option price? Briefly explain two of the key determinants: why they have a relationship with the option price. c. If the stock is trading at $35 in three months, what will be the payoff of the call option? d. If the stock is trading at $16 in three months, what will be the payoff of the call option? (2 marks

The six-month LIBOR rate observed three months ago was 4.85% with semi-annual compounding. Today's three- and nine-month LIBOR rates are 5.3% and 5.8% (continuously compounded), respectively.

(a) calculated that the forward LIBOR rate for the period between three and nine months with semi-annul compounding.

(b) A semi-annual pay interest rate swap where the fixed rate is 5% (with semi-annual compounding) has a remaining life of nine months. If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving a fixed rate of interest?

3. In a completely randomized design, 7 experimental units were used for each of the three levels of the factor.


Source of Variation Sum of Squares Degrees of Freedom Mean Square F
Between Treatment
Error(within treatment) 432076.5
Total 675643.3

a. Complete the ANOVA table.

b. Find the critical value at the 0.05 level of significance from the F table for testing whether the population means for the three levels of the factors are different.

c. Use the critical value approach and α = 0.05 to test whether the population means for the three levels of the factors are the same.

The Webster National Bank (WNB), a small Midwestern bank is reviewing its service charges and interest­ paying policies on checking accounts. The bank presently has a total of 5,000 checking accounts. Tue bank has found that the average daily balance on all of its personal checking accounts is $550 with a standard deviation of $150. In addition, the average daily balances have been found to be normally distributed. Listed below you will find current balance information on just 20 randomly sampled accounts maintained at WNB.

1) Determine the mean average account balance based upon the sample data.

2) If you were to draw another random sample of 20 observations from the same population, what is the likelihood (probability) that you would find a larger sample mean than the value you calculated in question 1?

3) WNB has conducted some analysis that reveals that approximately 5 percent of its accounts have an average daily balance below $304. Based upon this information, in a randomly drawn sample of 2,000 accounts, what percentage of accounts could be expected to have au average daily balance below $304?

4) Based upon the population data, what percentage of customers carry average daily balances above

$800?

5) Based upon the population data, what is the daily balance level that would you would expect only 25

percent of the customers to exceed?

6) Based upon the population data, what percentage of customers carry average daily balances below

$200?

7) Based upon the population data, what is the daily balance level that would you would expect 90 percent of the customers to exceed?

8) Based upon the population data, what percentage of customers carry average daily balances between

$200 and $700?

9) WNB has conducted some analysis in consideration of invoking minimum balance requirements because some of its clients maintain unprofitable account balances. If WNB is considering a minimum account balance of $127, how many customers would be expected to have a balance below this value?

10) If WNB chose to model the distribution of average daily balances with the discrete distribution shown below, what is the probability of a customer carrying an average daily balance below $751?

daily balance percent of customers               daily balance percent of customers

Days 1 to 120: Number of New Cases

0 1 0 0 2 0 3 0 0 0 0 14 2 1 0 27 80 51 18 26 216 81 37 117 167 108 151 178 111 414 337 195 706 214 300 68 118 160 190 209 154 193 170 154 166 68 119 152 146 101 98 159 175 195 195 157 130 129 161 116 133 217 209 75 298 240 205 196 233 76 339 170 224 236 188 243 244 151 74 286 261 228 239 211 56 388 363 241 335 337 483 163 332 320 314 312 324 380 210 504 425 450 395 1187 1135 179 1994 1374 1365 1231 1238 908 113 1453 693 1437 1249 1208 597 684

Number of ICU hospitalizations in Houston trauma area (cumulative numbers) (84 data points)

214 134 234 260 237 261 179 235 230 230 219 204 200 202 208 198 197 187 195 207 192 145 193 192 205 200 199 187 187 169 197 178 185 174 172 170 179 191 193 225 207 172 190 195 182 187 199 199 196 205 214 230 221 225 236 224 229 240 240 264 233 231 237 226 264 247 297 319 380 362 374 391 393 430 473 499 540 516 570 596 624 654 667 677

For comparisons with the new cases data set align the two data arrays starting from the end. Data for ICU were not maintained for the same time length as new cases. If we use the previous data sets we have two samples (I would not call them random. They are census data). Define the random variables related to these data sets. What kind of RVs those two are? Using the data above examine if there is an association between these two RVs? If there is one. this would be a linear correlation. Would you call this correlation negative or positive and why? What is the interpretation of your findings in simple words?

A student conducted an experiment to determine what factors are important in the rate of a reaction between potassium carbonate and hydrochloric acid. The student diluted 2.000 mL of 4.000 M K2CO3 to 75.00 mL, then combined that solution with 75.00 mL of 2.000 M HCl.

The student tabulated the amount of CO2 gas collected over time and recorded the results in the columns to the left.

1. Use a rearrangement of PV = nRT to solve for the number of moles of CO2 produced. You may assume atmospheric pressure and room temperature. Enter (and fill down) your formula in column C.

This is suppose to be an excel file bt i do not know how to manipulate the formula where I can put it into excel and what information to extract from the problem to use in order to help solve the problem.

HELP PLEASE !!