Assignment

Read the Success on the OAES document for full instructions about how to use this system.

The following will be 2 points each:

1: Explain why stewardship is an important concept.
2: What three traditional functions does accounting fulfill?
3: What types of groups regulate financial accounting statements?
4: What is managerial accounting and how is it different from financial accounting?
5: Explain value based management and shareholder value.
6: What are some of the rights of shareholders in companies today?
7: What is a financial audit?
8: What elements or categories are on each of the financial statements? The OAES has two questions for this item, part a and part b.
9: Which general ledger accounts would be affected by the purchase of goods on credit for later resale?
10: Which general ledger accounts would be affected by the purchase of a computer for business on credit?

Use the following information to answer Questions 1 to 5

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.

1: How much does inventory change?
2: How much does payables change?
3: What is the change in receivables?
4: What is the change in net profit?
5: How much does the bank account change?