Just taking a break in studies before bed.
I’ve spent the day gathering notes together and assembling snippets to answer 5 of 10 questions for the open-book, accounting exam. Each question seems to drive a pretty strong integration of the semester’s work. Even if I were to flunk the exam I’d have learned a lot!
Here’s a couple of examples: 1) The Sarbanes-Oxley Act is a legislative response to perceived threats to the integrity of US financial reporting. Identify some of the most significant threats and discuss how Sarbanes-Oxley addresses each. 2) Given the following data, prepare an income statement in as much detail (how much detail is enough?) as possible (should I construct plausible scenarios to bridge the gaps?). For the year, Murray’s, a retailing company, shows outstanding common shares of 215,094,330 and there are no dilutive securities. Round all numbers to the nearest million dollars.
Income tax rate 40% (On what? How can DS leave us with such a chicken/egg scenario?)
Times Interest Earned 10.5 (How do you get EBIT? argh)
Gross margin 37% (yeah)
Earnings per share $1.06 (PTL for that)
Return on Sales 6.69% (giveaway)
I think I got all the ”possible” stuff but… I’m no accountant … And then, this is only part one; part two consist of two, ninety minute, CBT, multiple choice tests that have to be completed by Thursday so wish me luck.