List and Briefly Describe the Three General Areas of Responsibility

question 66

Essay

List and briefly describe the three general areas of responsibility for a financial manager.

Apply knowledge of accounting principles to prepare adjusting entries for accrued and deferred amounts.

Understand the concept of unearned revenue and its treatment in financial statements.

Recognize the significance of post-closing trial balance in ensuring the accuracy of accounts after closing entries.

Understand the process for preparing adjusting entries in accounting.

---

Definitions:

Salvage Value

The expected market value an asset will achieve when it is disposed of after its life cycle.

Payback Period

The length of time it takes for an investment to recover its initial cost out of the cash inflows that it generates.

Simple Rate of Return

A method of investment appraisal that calculates the annual incremental net operating income as a percentage of the initial investment.

Cash Operating Costs

Costs that a company incurs during its normal business operations, paid in cash, such as wages, utilities, and rent.