Accounting Question

Overview

The following is guidance on the essay to reflect on concepts covered and discussed this semester.

The essay is not timed and does not require Lockdown. It must, however, be complete by the same deadline as the multiple-choice part. It should be 2 pages double spaced (https://support.microsoft.com/en-us/office/double-... ).

Font should be size 12 or less. You can choose the style. I recommend one of the following: 1. Times New Roman, 2. Arial, 3. Calibri, 4. Georgia, or 5. Aptos.

Citations do not need a bibliography. In-text is fine with either (parentheses) or [Brackets] within the text. In the assignment, I included some examples that you can cite. You just need to include the article number, (1) or [3] for example. You may cite points raised in class by either your peers or my discussion of a given topic. For example, [chapter 2 discussion]. Websites can be cited in a very casual manner such as [https://ramp.com/blog/what-is-cash-budget].

o If you decide to include a citation bibliography: it will not count towards the required 2 pages.

I do not want text that is copied and pasted from the internet, this includes text generated by artificial intelligence. Points will be deducted if such issues are detected.

Submissions should be in a typical Word or PDF format this includes (.doc,.docx,.rtf or .pdf,.xps)

The following are questions to reflect on some of the course material.

1. What is meant by cost-volume-profit (CVP) analysis?

a. How do sales volume, sales prices and variable costs, on one end, work towards coverage of fixed expenses?

b. What is meant by break-even point?

i. In class, we looked at unit sales break even (e.gCh.2 slides 23 and 24) and dollar sales break even (e.g Ch.2 slide 25). Both are valuable measures. Which one is better suited for internal inferences as opposed to the one better suited for external presentation? Please explain your reasoning.

2. What is meant by a cash budget?

a. In class, we considered having liquid cash to be analogous with being royal. Why is having a steady cash flow preferred over debt or equity financing?

b. Article [3] states that cash is the “most important account in the general ledger”. Will the revenue we generate always be equal to the cash collection for a given accounting period? Please explain your reasoning by citing either article [3] or another credible resource.