ACC/543

Managerial Accounting & Legal Aspects Of

Business
The Latest Version A+ Study Guide

**********************************************
ACC 543 Entire Course Link
http://www.onlinehelp123.com/acc-543
**********************************************

ACC 543 Wk 1 - Practice: Ratio Analysis

Following is the balance sheet of Campbell Company for Year 3:

 
CAMPBELL COMPANY
Balance sheet
Assets     
Cash $ 15,350 
Marketable securities   7,580 
Accounts receivable   12,740 
Inventory   10,750 
Property and equipment  166,500 
Accumulated depreciation  (12,100)
Total assets $200,820 
Liabilities and Stockholders’ Equity     
Accounts payable $ 8,240 
Current notes payable   3,560 
Mortgage payable   4,900 
Bonds payable   21,420 
Common stock  113,900 
Retained earnings   48,800 
 Total liabilities and stockholders’ equity$200,820 

 
The average number of common stock shares outstanding during
Year 3 was 860 shares. Net income for the year was $15,400.
 
Required
Compute each of the following: (Round your answer to 2 decimal
places. For percentages, 0.2345 should be entered as 23.45.)
 

ACC 543 Wk 1 - Apply: Business Applications Case

Managerial accounting can be a complex job. As you learned in this week’s practice
assignment, many different calculations need to be completed to assist an organization
with its financial statements.

Write a 250-word response reflecting on your experience making the calculations from
the practice assignment. In your reflection, share your thoughts on the activities within
this week’s readings. Consider how calculating financial statements will help drive
effective business decisions.

Address the following questions within your response:

 Which calculations were challenging for you? Why?
 Which ratios were difficult to understand?
 What will you do differently in the following weeks?

If you did not have any challenges, respond to the following questions:
 What prepared you for these calculations?
 What advice would you give a classmate who needs assistance?

Submit your assignment.

ACC 543 Wk 2 - Practice: Planning for Capital Investments

Dwight Donovan, the president of Rundle Enterprises, is considering

two investment opportunities. Because of limited resources, he will
be able to invest in only one of them. Project A is to purchase a
machine that will enable factory automation; the machine is expected
to have a useful life of four years and no salvage value. Project B
 supports a training program that will improve the skills of employees
operating the current equipment. Initial cash expenditures for Project
A are $118,000 and for Project B are $33,000. The annual expected
cash inflows are $45,582 for Project A and $11,326 for Project B.
Both investments are expected to provide cash flow benefits for the
next four years. Rundle Enterprises’ desired rate of return is 8
percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the
tables provided.)

Required
a. Compute the net present value of each project. Which project should
be adopted based on the net present value approach?
b. Compute the approximate internal rate of return of each project.
Which one should be adopted based on the internal rate of return
approach?

ACC 543 Wk 2 - Apply: Signature Assignment: Net Present

Value and Internal Rate of Return

For this assignment, refer to the scenario located in “Problems – Series A” section 10-
19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial
Accounting Concepts. This scenario puts you at task as a Senior Accountant for
Donovan Enterprises to identify the preferred method and best investment opportunity for
the company.

Read the scenario in the textbook and complete the activity below.

Use Excel®—showing all work and formulas—to compute the following:

 Compute the net present value of each project.Round your computations to 2
decimal points.
 Compute the approximate internal rate of return for each project. Round your
rates to 6 decimal points

Create a PowerPoint® presentation showing the comparison of the net present value
approach with the internal rate of return approach calculated above. Complete the
following in your presentation:
 Analyze the results of the net present value calculations and the significance of
these results, supported with examples.
 Determine which project should be adopted based on the net present value
approach and provide rationale for your decision.
 Analyze the results of the internal rate of return calculation and the significance of
these results, supported with examples.
 Determine which project should be adopted based on the internal rate of return
approach and provide rationale for your decision.
 Determine the preferred method in the given circumstances and provide
reasoning and details to support the method selected.
 Synthesize results of analyses and computations to determine the best
investment opportunity to recommend to the president of Donovan Enterprises.

Cite references to support your assignment.

 
Format your citations according to APA guidelines.
 
Submit the Excel spreadsheet along with the presentation.

ACC 543 Wk 3 - Practice: Costing Systems and Analysis

Zachary Ski Company manufactures snow skis. During the most

recent accounting period, the company’s finishing department
transferred 4,000 sets of skis to finished goods. At the end of the
accounting period, 440 sets of skis were estimated to be 60 percent
complete. Total product costs for the finishing department amounted
to $213,200.

Required
a. Determine the cost per equivalent.
b. Determine the cost of the goods transferred out of the finishing
department.
c. Determine the cost of the finishing department’s ending work in
process inventory.

ACC 543 Wk 3 - Apply: Percentage of Completion

Refer to the scenario located in the “Analyze, Think, Communicate” section 12-5 of
Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of Fundamental
Managerial Accounting Concepts. This scenario involves an altercation between
Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and
comments on the matter.

Read the scenario in the textbook and complete the activity below.
 
Compute the equivalent cost per unit, assuming the ending inventory is considered to
be 40 percent complete.
 
Compute the equivalent cost per unit, assuming the ending inventory is considered to
be 60 percent complete.

Write a 350-word summary of your calculations and findings. Comment on Mr.

Sawyer’s motives for establishing the percentage of completion at 60 percent rather
than 40 percent.

Submit calculations and summary.

ACC 543 Wk 4 - Practice: Planning, Coordinating, and

Controlling Business Operations

The Adams Management Association held its annual public relations

luncheon in April Year 2. Based on the previous year’s results, the
organization allocated $21,842 of its operating budget to cover the
cost of the luncheon. To ensure that costs would be appropriately
controlled, Molly Hubbard, the treasurer, prepared the following
budget for the Year 2 luncheon.
 
The budget for the luncheon was based on the following
expectations:
 
1. The meal cost per person was expected to be $11.90. The cost
driver for meals was attendance, which was expected to be
1,410 individuals.
2. Postage was based on $0.46 per invitation and 3,050
invitations were expected to be mailed. The cost driver for
postage was number of invitations mailed.
3. The facility charge is $1,100 for a room that will accommodate
up to 1,600 people; the charge for one to hold more than 1,600
people is $1,600.
4. A fixed amount was designated for printing, decorations, the
speaker’s gift, and publicity.
 
ADAMS MANAGEMENT ASSOCIATION
Public Relations Luncheon Budget
April Year 2
Operating funds allocated $21,842 
Expenses     
Variable costs     
 Meals (1,410 × $11.90)  16,779 
Postage (3,050 × 0.46)   1,403 
Fixed costs     
Facility   1,100 
Printing   960 
Decorations   850 
Speaker's gift   140 
Publicity   610 
Total expenses  21,842 
Budget surplus (deficit) $ 0 

 
Actual results for the luncheon follow.
 
ADAMS MANAGEMENT ASSOCIATION
Actual Results for Public Relations
Luncheon
April Year 2
Operating funds allocated $ 21,842  
Expenses      
Variable costs      
Meals (1,630 × $12.60)   20,538  
Postage (4,050 × 0.46)   1,863  
Fixed costs      
Facility   1,600  
Printing   960  
Decorations   850  
Speaker's gift   140  
Publicity   610  
Total expenses   26,561  
Budget deficit $ (4,719)

 
Reasons for the differences between the budgeted and actual data
follow.
 
1. The president of the organization, Rodney Snow, increased the
invitation list to include 1,000 former members. As a result,
4,050 invitations were mailed.
2. Attendance was 1,630 individuals. Because of higher-than-
expected attendance, the luncheon was moved to a larger
room, thereby increasing the facility charge to$1,600
 3. At the last minute, Ms. Hubbard decided to add a dessert to the
menu, which increased the meal cost to $12.6 per person.
4. Printing, decorations, the speaker’s gift, and publicity costs
were as budgeted.
 
Required:
a. Prepare a flexible budget and compute the sales and variable cost
volume variances based on a comparison between the master
budget and the flexible budget.
b. Compute flexible budget variances by comparing the flexible
budget with the actual  results.

ACC 543 Wk 4 - Apply: Signature Assignment: Flexible Budget

For this assignment, refer to the scenario located in “Problems – Series A,” section 8-
19A of Ch. 8, “Performance Evaluation,“ of Fundamentals of Managerial
Accounting Concepts. This scenario puts you in charge of preparing a budget for the
Redmond Management Association annual public relations luncheon.

Read the scenario in the textbook and complete the activity below.

Use Excel—showing all work and formulas—to complete the following:

 Prepare a flexible budget. 
 Compute the sales volume variance and the variable cost volume variances
based on a comparison between the master budget and the flexible budget.
 Compute flexible budget variances by comparing the flexible budget with the
actual results.

Create a 6- to 8-slide presentation for the budget committee meeting. Complete the
following in your presentation:
 Summarize the results of the sales volume and variable cost volume variances
computations based on the comparison between the master budget and the flexible
budget.
 Summarize the results of the flexible budget variances computations based on
the comparison between the flexible budget and the actual results.
 Justify the favorable or unfavorable budget variances.
 Since this is a not-for-profit organization, address why anyone should be
concerned with meeting the budget.
 Make recommendations for what can be done differently to stay on budget for
future luncheons. Provide specific examples to support your recommendations.

Cite references to support your assignment.

Format your citations according to APA guidelines. 

Submit your assignment.

ACC 543 Wk 5 - Practice: Business Ethics

Ethical relativism is a theory of ethics that denies the existence of _______ moral standards.
Multiple Choice
• objective
• subjective
• relevant
• individual

Acme Foods Inc. manufactures food products and is opening a subsidiary in United Cadvia. The
firm discovers that to obtain raw materials it has to make some facilitating payments to the local
officials and businesses in the host country. The second option is to import raw materials from its
own country, which will be expensive in the long run. The managers at Acme are unable to decide
which of the two options would be a better choice. Which of the following terms would best
describe the situation Acme Foods Inc. is experiencing?
Multiple Choice
• Ethical dilemma
• Causal ambiguity
• Moral lapse
• Culture shock

The human resource policy of a company states that the company aims to treat all humans
identically, regardless of race, class, gender, age, and sexual preference. Which of the following
values influencing business ethics does this best illustrate?
Multiple Choice
• Freedom
• Security
• Justice
• Efficiency

If a business asks “would the world be a better place if everyone followed my example,” that
company is following the _______.
Multiple Choice
• universalization test
• global inquiry test
• public disclosure test
• business ethics test
The _______ of business consists of expectations that the community imposes on firms doing
business inside its borders.
Multiple Choice
• social responsibility
• legal positivism
• ethics
• economics

A problem about what a firm should do for which no clear, right decision is available is called a(n)
_______.
Multiple Choice
• ethical guideline
• vaues
• ethical dilemma
• social complexity

The minimum standard to be an ethical business includes

Multiple Choice
• selling a products and services below cost price.
• paying employees above the minimum legal wage.
• hosting foreign companies to teach them new techniques.
• choosing a lawful way to compete against rival firms.

The value of efficiency includes which of the following meanings?

Multiple Choice
• To possess the capacity or resources to act as one wishes
• To possess a large-enough supply of goods and services to meet basic needs
• To maximize the amount of wealth in society
• To provide resources in proportion to need

The value of “security” includes all of the following alternative meanings except
Multiple Choice
•
access to a large enough supply of goods and services to meet your basic needs.
•
safety from those wishing to interfere with your property rights.
•
self-confidence to such an extent that risks are welcome.
• a citizen’s willingness to compromise basic constitutional freedoms in return for
government-provided security.

Under deontology, _______ states that an action is moral only if it would be consistent for
everyone in society to act in the same way.
Multiple Choice
• the golden rule
• the categorical imperative
• the cost-benefit analysis
• the principle of rights

When employees in a firm asked for a pay hike, the management assessed the expenses involved
in it. It realized that the shareholders and customers would have to face more negative
consequences when compared to the benefits enjoyed by the employees. Thus, the management
decided to introduce employee stock options in order to keep both the employees and the
shareholders satisfied. Which of the following theories of business ethics does this best illustrate?
Multiple Choice
• Rule utilitarianism
• Ethical relativism
• Deontology
• Ethical fundamentalism

The value of justice includes all but which of the following alternative meanings?
Multiple Choice
•
Receiving the products of your labor.
•
Treating all humans identically, regardless of race, class, gender, age, and sexual preference.
• Escaping the cares and demands of this world entirely.
•
Providing resources in proportion to need.

Like ethical relativism, _______ requires that we evaluate the morality of an action by imagining
ourselves in the position of the person facing the ethical dilemma.
rev: 09_06_2019_QC_CS-177773
Multiple Choice
• the golden rule
• universalization
• consequentialism
• situational ethics

Which of the following considerations is not included in the “WH Framework” for business
ethics?
Multiple Choice
• Managerial decisions will affect particular groups of stakeholders in the operation of the firm
• Managerial decisions are made in pursuit of a particular purpose
• Managerial decisions are made in an attempt to circumvent the law
• Managerial decisions must meet the standards of action-oriented business behavior
All but which of the following people are affected by a firm’s business decisions?
Multiple Choice
• Consumers
• Mediators
• Community
• Future generations

______ requires individuals to follow a rigid set of rules regardless of the situation.
Multiple Choice
• Ethical relativism
• Absolutism
• Moralism
• Consequentialism

Values are _______ that capture one’s sense of what is good or desirable.
Multiple Choice
• positive abstractions
• legal ethics
• ethical abstractions
• realistic ideas

Business leaders must be sensitive to the differences in legal guidelines in different countries for
all but which of the following reasons?
Multiple Choice
• The United States has different laws for different countries regarding business dealings.
• Different ethical understandings prevail in different countries.
• Ethical conceptions shape business law and business relationships uniquely in each country.
• Ethical differences are based on somewhat different understandings of ethical behavior
among businesspeople in different countries.

The use of ethics and ethical principles to solve business dilemmas is called an ethical
Multiple Choice
•
syllogism.
•
delineation.
•
synergism.
•
dilemma.

The value of _______ includes the following alternative meanings: the ability to act without
restriction from rules imposed by others; the right to possess the capacity or resources to act as
 one wishes; and the choice to escape the cares and demands of this world entirely
Multiple Choice
•
security
•
freedom
•
justice
•
efficiency

ACC 543 Wk 5 - Apply: Signature Assignment: WH Framework

Refer to section “The WH Framework for Business Ethics” of Ch. 2, "Business Ethics," of
Dynamic Business Law for information on the WH Framework.
 
For this assignment, refer to the scenario located in the “Questions & Problems”
section of Ch. 2, “Business Ethics” in Dynamic Business Law. This scenario
involves Steven J. Trzaska, the head of L'Oreal USA's regional patent team, and ethical
rules and core values of the company.

Read the scenario in the textbook and complete the following activity.

Create a WH Framework chart, similar to Exhibit 2.1. Refer to L'Oreal’s core values and
the primary values in Exhibit 2.3 to determine the guidelines to include in the WH
Framework.

Write an explanation of how you decided on the list of stakeholders and guidelines to
include in your WH Framework. Address the following questions in your explanation:
 Which stakeholders did Traszka and the management of L’Oreal cater to? Why?
 What values did L’Oreal’s management choose when they made the decision to
fire Trzaska? Why?

Self-Reflection
In addition to your explanation, address the following self-reflection questions:
 How did the WH Framework help you analyze the situation?
 Now that you’ve put together the framework, how does the WH Framework help
managers with making business decisions?
 What type of decisions would the WH Framework chart help you make as a
manager?

Submit your chart and answers.

ACC 543 Wk 6 - Practice: International and Comparable Law

_________is a multilateral free trade agreement between the U.S., Mexico, and Canada.
Multiple Choice
• NAFTA
• NATO
• WHO
• CAFTA

Systems that are considered adversarial in nature because opposing parties present their arguments
before a neutral fact finder, who determines which side met its burden of proof, are known as
_______ systems.
Multiple Choice
• civil law
• common law
• socialist
• public law

Which country is not a party to the Central American Free Trade Agreement?
Multiple Choice
• Costa Rica
• United States
• Honduras
• Canada

The commercial sale of goods is best defined by which of the following descriptions.
Multiple Choice
• Foreign free trade between member states in which value exchanged between merchants of
the member states.
• The international sale of goods between countries in return for consideration.
• The exchange of tangible personal property between merchants in return for consideration.
• The exchange of personal property between businesses in different countries in return for
consideration.

For a practice to be deemed a custom and a source of international law, it should

Multiple Choice
• hold religious eminence among people.
• be merely advisory and not legally binding.
• have originated within the last decade.
• be general and consistent among states.

The __________ is an international agreement governing the arbitration of private international

disputes. This agreement applies when an award is made and one party seeks enforcement in the
territories of the contracting states, and requires that each state recognize written arbitration
agreements and arbitral awards as enforceable in its national courts.
Multiple Choice
• New York Convention
• New York Accord
• New York Summit
• Chicago Convention

The arrangement between the United States, Canada, and Mexico to reduce and gradually
eliminate tariffs and other trade barriers is an example of a(n) _____.
Multiple Choice
• multilateral free trade agreement.
• nonactionable subsidy.
• nontariff barrier.
• pan-American union.

Which of the following is an example of an actionable subsidy?

Multiple Choice
• Expenditures incurred on research and development.
• Monetary aid provided to underdeveloped regions within a state.
• Subsidies paid to encourage firms to use domestic rather than imported inputs.
• Subsidies paid to firms to foster compliance with environmental standards.

A multimillion dollar U.S. project to construct a suspension bridge is in progress. Landmark, Co.
in Sweden shares both profits and responsibilities for the project with Liberty Bridges, Inc., a firm
based in the United States. This scenario is an example of a
Multiple Choice
• franchise agreement.
• horizontal acquisition.
• licensing agreement.
• joint venture.

The Southern Countries Group is comprised of ten countries. Together, these countries have
decided to charge a common external tariff on all aluminum that comes from countries that are not
a part of the Southern Countries Group. The Southern Countries Group is an example of a _____.
Multiple Choice
• customs union
• multilateral restrictive trade organization
• regional tariff organization
• multilateral subsidy union

Basic types of regional trade agreements include

Multiple Choice
• multilateral free trade agreements and customs unions.
• custom unions and bilateral free trade agreements.
• multilateral and bilateral free trade agreements.
• multilateral free trade agreements, bilateral free trade agreement, and custom unions.

Member states that have ratified the _____ have agreed to recognize arbitration awards as
enforceable in its national courts.
Multiple Choice
• New York Convention
• Conventional on the International Sale of Goods
• International Arbitration Convention
• International Dispute Protocol

Due to certain political conflicts, the country Miapeke decided to place a ban on all steel imports
from the country Lebatar. Miapeke has instituted a(n) _____ on Lebatar’s steel imports.
Multiple Choice
• embargo
• compound tariff
• tariff
• unquantitative restriction

U.S. company Candlon, Inc. is seeking to establish its business in a foreign country. The foreign
country’s current government is not inclined to let Candlon open a factory there. A candidate for
prime minister of the country, however, is friendly toward U.S. businesses and is likely to allow
Candlon to establish its business there. Candlon makes a large contribution to this candidate’s
campaign. Candlon has likely violated which of the following laws?
Multiple Choice
• The Foreign Corrupt Practices Act (FCPA)
• The New York Convention (NYC)
• The Convention on the International Sale of Goods (CISG)
• The General Agreement on Tariffs and Trade (GATT)

_________ law governs the conduct of states and international organizations and their
relationships with one another and natural and juridical persons, while __________ law is the
study of legal systems of different nation states
Multiple Choice
• Uniform; jurisdictional
• Jurisdictional; uniform
• Comparative; international
• International; comparative

In _____ systems, the legislative branch has the ultimate authority.

Multiple Choice
• socialist law
• common law
• public law
• civil law

What is the mission of the World Trade Organization (WTO)?

Multiple Choice
• To serve as an international “war-crimes” tribunal.
• To facilitate international cooperation in opening markets, and to provide a forum for future
trade negotiations and the settlement of international trade disputes.
• To provide economic development funds to lesser-developed countries (LDCs).
• All of these are .

__________ is the practice wherein an exporter sells products in a foreign state for less than the
price charged for the same or comparable goods in the exporter’s home market.
Multiple Choice
• Free trade
• Geo-capitalism
• Fair trade
• Dumping

If a United States company has a dispute with a company from Norway and conciliation does not
resolve the dispute, the two businesses may pursue an adversarial option to resolve the dispute.
Which of the following methods may the companies choose?
Multiple Choice
• Mediation
• Monitored settlement agreements
• Arbitration.
• Mandatory conciliation

A Canadian company has a business arrangement with a U.S. toy company, Imagination. The
arrangement permits the Canadian company to sell Imagination's products directly to consumers
under the same brand name in Canada. At the end of the first year, the Canadian company pays
Imagination 20 percent of its net sales. Which of the following methods of entering a foreign
market has been best illustrated in this scenario?
Multiple Choice
• Franchise agreement.
• Joint venture.
• Exporting.
• Turnkey contract.

ACC 543 Wk 6 - Apply: Foreign Corrupt Practices Act

 Review the scenario and complete the activity below. This scenario can also be found in
the “Questions & Problems” section of Ch. 6, “International and Comparative Law” in
Dynamic Business Law.

In an interview published by The New York Times in February 1976, former Lockheed
President A. Carl Kotchian defended the payment of bribes by the company as follows:

“Some call it gratuities. Some call them questionable payments. Some call it extortion.
Some call it grease. Some call it bribery. I look at these payments as necessary to sell a
product. I never felt I was doing anything wrong.”

More than 30 years later, Reinhard Siekaczek, an accountant employed by Siemens who
oversaw an annual budget for questionable payments in excess of $50 million, stated:

“I never thought I would go to jail for my company. …We thought we had to do it.
Otherwise, we would ruin the company. …People will only say about Siemens that they
were unlucky and that they broke the Eleventh Commandment. The Eleventh
Commandment is, ‘Don’t get caught.’”

You have been hired to assist ABC Multinational Company to help educate employees
on ethical practices and corporate culture. More specifically, related to the Foreign
Corrupt Practices Act, your role is to prevent situations described in the above scenario.

Create either a handout, job-aid, poster, or flier to educate employees on the Foreign
Corrupt Practice Act. Complete the following for your educational tool:
 Explain what the employees should know regarding the Foreign Corrupt
Practices Act.
 Provide examples of Foreign Corrupt Practices Act violations.
 Identify company actions or red flags that might indicate violations of the Act.
 List any consequences of the violations.
 Recommend actions to report possible violations.
 Describe protections for whistleblowers. Why are they important? How do the
protections impact the Act?

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit your assignment.