ACCT 3309 FINAL CHIKARVARTHY UTA EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

ACCT 3309 FINAL CHIKARVARTHY UTA EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Managerial Accounting/ Nature of Business - Answers 1. Obtain Capital 2. Make Investments 3. Generate a positive future return Corporate Finance - Answers informs capital acquisition/maintenance Managerial Accounting - Answers informs investment decisions Financial Accounting - Answers Measures returns Strategic Planning - Answers defines a broad set of goals for a organization and selects primary approaches that organizations will take to achieve its mission Long-range planning - Answers plans the details for major activities in the next 3-5 years needed to accomplish goals Annual Budgets - Answers provide specific itemization of resources to be generated and used Forward Looking - Answers Helps managers look ahead Backward Looking - Answers helps managers effectively evaluate Operating Budget - Answers provides all information necessary for an income statement. It provides more detail than the income statement departmental budget - Answers each department must compile its budgets based on its SPECIFIC projected costs and revenues. Are the requests reasonable? Do they need resources or are they building fat into the budget? Flexible Budget - Answers workload refers to the VOLUME of goods or services the organization will provide. Provides a plan for varying workload levels Cash Budget - Answers the cash budget is a plan for expected cash receipts, inflows, and outflows Beginning Cash+Cash Receipts=Available Cash Available Cash-Cash payments+borrowing -investments=ending cash balance Budget Preparation - Answers 1. Create an environmental statement 2. Develop policies and objectives 3. Create assumptions 4. Smart Goals (specific goals) Environmental Statement - Answers what actions do we expect our competitors to make? will supplies increase prices? will new sources of raw materials be available will there be significant shifts in consumer demand new techonologies? Set Assumptions - Answers How will inflation affect throughout the years? How much of a raise will there be for employees? Are we raising prices? Forecasting - Answers A critical step in the budget process is the preparation of forecasts of what would happen under a variety of alternatives. What if price increases? What if we imported partially assembled parts What if we automated? How much will we sell, at what price, and at what costs? Historical Data - Answers historical patterns must be adjusted for the future Personal Budget & Business Budget Similarities - Answers helps stay on track with long-term goals benefit is in the DETAIL provided disaggregated data to separate and understand why forces you to think ahead evaluates budget VARIANCES after cash DEFICITS are a very large cost Personal Budget & Business Budgetes - Answers Less uncertainties, less exposures to risks (personal pro) Businesses have a higher risk tolerance Fewer assumptions to make budgets (personal pro) No agency costs (personal pro) No second party building fat in the budget (personal con) Business Plans - Answers a business plan should help you estimate whether a proposed venture is sensible, whether it goes with the mission, and if it will be FINANCIALLY VIABLE -helps supports ideas with EVIDENCE -eliminated bad ventures -find whats critical to success -to CONVINCE OTHERS -WHY WOULD our organizations liked to do it? -how long until profitability? -how long till level cash flow Market Analysis - Answers must be conducted to share that there exists some demand for the product/service -SWOT -Why isn't there current competition, ex:carfax -will COMPETITION arise if we are successful Financial Feasibility Analysis - Answers to determine if the proposed venture is financially feasible -forecasts profits & CASH FLOWS Revenue Forecast - Answers requires we anticipate -Demand and Prices -Start up lag -Growth Rates -Seasonal Factors factors are expecting START UP costs, capital equipments, ongoing operating costs Cash Flows - Answers it is possible for a profitable venture to because running out of cash large amounts of cash are needed for start ups more sales means more cash is need (operating & direct labor & variable costs) Cash Account - Answers reflects a company's cash balance, fixed and variable Marginal Costing - Answers short term, additional costs to create an additional unit, fixed units are irrelevant. changes in revenue/changes in cost=marginal cost Cost Allocation - Answers is the process by which we allocate a share of our overhead to each product unit 1. determine an allocation base 2. allocate overhead to products allocates the cost of labor directly located with the production of a specific product or service (direct labor) everything besides direct labor is overhead overhead is rent, salaries, maintenance, utilities, legal, and security Activity Based Costing - Answers most costs of production have consisted of direct materials and labor if total overhead costs are relatively minor the DISTORTION OF ARBITRARY ALLOCATIONS are not important Process Costing - Answers a firm that makes large quantities of one product keeps track of costs. Total Cost/ Units= Cost per Unit Job Order Costing - Answers firms that take special orders must account raw material and time spent per employee Standard Costing - Answers industrial engineering analysis to determine how much of our various resources we expect of each product to consume and how much we expect resources to cost Bill of Materials - Answers A document that shows the quantity of each type of direct material required to make a product. includes all labor inputs allocation of overhead costs Accounting - Answers A system for providing financial information the process of recording summarizing and analyzing financial transactions -to help people make economic transactions Managerial Accounting - Answers for decision makers WITHIN the company -demand arises for accountinga s soon as the business is formed -to help guide exchange Financial Accounting - Answers decision makers outside the company Returns - Answers must be in excess of the cost of capital used to create and acquire assets for shareholder value Cost of Capital - Answers is a function of cost of equity, cost of debt, capital structure Bonds - Answers is a DEBT instrument in which investors lend money to the company They can extend for LONG PERIODS of time providing stability Equity vs Debt - Answers Equity based companies increase cost of capital debt decreases cost of equity which is less risky Debt has tax benefits and has control until the company claims bankruptcy Equity dilutes shares.