EPIC

When Expenses are greater than Revenue a Company has

• Shareholder Equity

• Net Loss

• Net Profit

• Liabilities

A variance should be explained if

• Greater than $50

• It deals with HVAC

• The amount is Material

• It impacts the balance sheet

Financial Statements are?

• Reports by consultants who are hired to analyze operations

• Report that states who is responsible for the business

• Documents that tell us how well a business is performing

• Documents that tell us who the shareholders of the corp are

Prior Year adjustments are

• Any recovery adjustments relating to prior year received in the current year

• Always favourable

• The result of incorrect budgeting

• Can always be explained by Rental rate differences

An Income Statement includes which of the following

• Inventory & Cash

• Liquidity and Current Assets

• Assets Liabilities and Owners Equity

• Expenses, Revenue, Net Income, Net Loss

The statement that reports Net Cash Flows relating to Operating, Investing and Financing Activities

• Trial Balance

• Income Statement

• Statement of Cashflows

• Balance Sheet

The Bad debt Expense is result of

• A bank loan has been defaulted on

• A tenant has vacated the building after their lease had expired

• The landscape company overcharged for their services

• A tenant is unable/unwilling to pay their past rental obligations and there is no chance of collecting

When a company Capitalizes a cost

• Depreciation or Amortization will increase in future periods

• Liabilities decrease on its balance sheet

• Revenue’s will increase in the current period

• Assets will decrease in the current period

Epic Investment categorizes Capital assets as Non Recoverable if

• The project/expense is intended to reduce operating costs

• The project/expense results in higher future rental income

• Trick question, all Capital Assets are recoverable

• Capital assets are all expensed on the Income Statement when incurred

An Operations aging report is used to monitor its

• Accounts Payable

• Credit Application

• Cashflow Statement

• Accounts Receivable