Errol Clarke Assignment 1-0 You just got done spending 3 ½ months of your life taking a course called “Fundamentals of Financial Accounting”

Errol Clarke

Assignment 1-0

1. You just got done spending 3 ½ months of your life taking a course called “Fundamentals of Financial Accounting”.  In your own words, what was the course all about?  What was the purpose? What’s financial accounting?
2. What (are/is) Generally Accepted Accounting Principles (GAAP)?  Why are they needed?
3. Are ethics important in financial accounting?  Yes or no and WHY.  Give a SPECIFIC EXAMPLE of how this area is important to YOU as a member of society?
4. What’s managerial accounting?
5. Do you think that something similar to GAAP is needed for Managerial Accounting?  Why or why not?
6. What’s inventory?  How was that accounted for in Financial Accounting?  WHY was that the correct treatment? For a merchandiser, what types of things were included in inventory?
7. What are sales?  What are revenues?  Are they different?  If so, how?
8. What is meant by cost of goods sold?
9. NOW ASSUME we were a manufacturer instead of a retailer – how would your answers #6-#8 be different?  WHY?
10. What is managerial accounting and how does it differ from financial accounting?
11. In your opinion, what are the two most significant differences between the two disciplines?  WHY are these so important?
12. What are the three major areas of management responsibility (information needs) that managerial accounting addresses?  Say we have a company that manufactures and sells chairs.  Give an example of each of these areas?
13. Explain the term “product costing”?  What do you think it means to “cost a product”?  WHY do you think managers need this?  WHY do accountants need this?
14. Are ethics important in managerial accounting?  Yes or no and WHY?  Give a specific example of how ethics might apply.
15. What is meant by the “value chain”?  Why is it important?