Comparative Statements for Financial Analysis

Course Number: BAM110
Course Title: INTRODUCTION TO ACCOUNTING
Unit: 1 to 4
Textbook:
• Survey of Accounting
• Carl S. Warren, 2018
• Cengage
• ISBN.13: 978-1-305-96188-3

Grading Criteria:
• On each page: Student Name, ID Number, Course Number, Course Title, and Unit Number.
• Responses typed, using a standard font, 12-point type size, double-spaced, with overall neatness and readability.
• Restatement of the question and question number (exactly as stated in the Study Guide).

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Writing Instructions:
• Each question must be written in a standard essay format.
• Use standard essay format: Introduction/Body/Conclusion.
• Demonstrate proper use of grammar, spelling, punctuation, citation style, etc.
• Demonstrate an understanding of course content and key concepts, as discussed in the text.
• Demonstrate ability to examine, assess, evaluate, and/or analyze course content and key concepts.
• Provided a clear and well-developed response to the question.
• Each question should be between 350 to 550 words or 1 to 2 pages.

Citation Styles:
• The majority of your response should be your own original writing based on what you have learned from the textbook. Be sure to provide a citation and a reference for any materials used, including the required textbook. The following points are designed to help you understand how to provide proper citations and references for your work:
o Sources are listed in two places.
o The first, a citation, is briefly listed within your answer. This includes identifying information that directs the reader to your list of references at the end of your writing assignment.
o The second, a reference, is at the end of your work in the list of references section.
o All sources cited should follow APA style and provide enough identifying information so that the reader can access the original material.

Choose only one of the study questions below to use for each writing assignment:
Writing assignment 1
• How do businesses make money? What strategies can they use to gain a competitive advantage?
• Differentiate between the cash and accrual bases of accounting.
• When are sales recognized under the cash basis of accounting? When are expenses recognized? Explain.

Writing assignment 2
• Describe the features of a voucher system and list typical supporting documents for a voucher.
• How are manufacturing inventories different from those of a retailer?
• Distinguish between the accounting for capital expenditures and revenue expenditures.
Writing assignment 3
• What is the advantage of using comparative statements for financial analysis rather than statements for a single date or period?
• How does the use of the materials requisition help control the issuance of materials from the storeroom?
• Describe how total variable costs and unit variable costs behave with change in the level of activity.
Writing assignment 4
• How do computerized budgeting systems aid firms in the budgeting process?
• Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?
• Discuss the principal limitations of the cash payback method for evaluating capital investment proposals. For more information on Comparative Statements for Financial Analysis see this: https://en.wikipedia.org/wiki/Financial_analysis

Comparative Statements for Financial Analysis

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