Business Finance Help for College and University Students

Income statement

What types of questions are answered by the income statements and the balance sheets?

Statement of cash flows

What three types of activities are summarized in the statement of cash flows?

Financial statement analysis

Why do decision-makers use financial statement analysis?

Contribution Margin

Is the following statement correct? If so, please explain why. "The Contribution Margin is always equal to the Gross Margin."

"Prime Costs" and "Conversion Costs"

Explain the differences between "Prime Costs" and "Conversion Costs."

Activity Based Costing

Why are more and more organizations adopting Activity Based Costing (ABC) Systems?

Price decisions

Why are customers one of the factors influencing price decisions?

Benefits of budgeting

What are the major benefits of budgeting?

Control System

Is the following statement correct? If so, please explain why. "A good Control System places the blame for every unfavorable variance upon someone in the organization. Without affixing the blame, no one will take responsibility for Cost Controls."

Income tax liability

A corporation sells computer. During the past year, the company's sales were $3,000,000. The cost of merchandise sold came to $2,000,000, and operating expenses was $500,000. The firm paid $150,000 in interest on its bank loan. It received $50,000 as cash dividend income. It paid dividends of $25,000. Please calculate t ...continues