The Income Statement Case Assignment
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
The Income Statement Case Assignment
Module 3 – Case
THE INCOME STATEMENT
Assignment Overview
The background material for this module explains and shows examples of income statements. Pay attention to the layout and definitions of the income statement before reviewing the income statement for ABC Company shown below.
Case Assignment
The Income Statement Case Assignment
The background information for the module includes the basic ideas, but for more ideas go to the optional background source principlesofaccounting.com . The site also offers multiple videos that you may find relevant. You may also use other sites to for ideas to complete the table. Do not forget to reference the sources used.
Answer the questions below and explain your answer with numbers, computations, or a sentence or two.
- Explain the term cost of sales in your own words. Is likely that the balance sheet of this company includes inventory?
- Gross profit (margin) is a key piece of financial information. Why is it so important?
- Explain operating expenses? What does the term mean?
- Does ABC Company have any employees? Explain.
- There is an error in the income statement. Property taxes are overstated by $10,000. How is the income statement affected by a correction of property taxes?
- What happens to net income if the company hires a new manager at a salary of $80,000?
- Does the company own any equipment? Is it informative to also check the balance sheet to answer this question? Explain.
- Does the company have debt? How much debt? Explain how the income statement and balance sheet provide answers to the questions?
- How do we know that ABC Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.
- What happens to income statement at the end of the period? Is it continuous or does it close (terminate)?
Assignment Expectations
Respond to all questions showing your computations and/or using your own words. Do not use an essay format.
Show sources when appropriate and APA format is suggested, but not required.
- The objective for this assignment is to evaluate accounting concepts of income statement.
The Income Statement Case Assignment
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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