Notes, summaries, assignments, exams, and problems for Mathematics

Working Capital

Working Capital measures the capacity for payment in the ordinary course of business activity. It's calculated as: Current Assets (CA) - Current Liabilities (CL)

• CA > CL: Positive Working Capital. The business has the potential for investment. Working Capital should never exceed 10% of CA, as these are idle funds.
• CA < CL: Negative Working Capital. This may indicate a suspension of payments or insolvency. It usually signifies mismanagement in the negotiation of ordinary business activity, but it doesn't always mean a bad situation.

Acid Test

The Acid Test measures a company's capacity to meet all of its short-term debts. It's calculated as: (Current Liabilities - Treasury) / Available. This indicates immediate liquidity;... Continue reading "Understanding Key Financial Ratios for Businesses" »

Valuation Criteria

Historical Cost

For Assets: The purchase price or production cost. This includes the amount of cash paid or payable, plus the fair value of any other consideration given for the acquisition. All costs directly related to the acquisition and necessary to bring the asset to operating condition are included.

For Liabilities: The value corresponding to the consideration received in exchange for incurring the debt. In some cases, it is the amount of cash expected to be paid to settle the liability in the ordinary course of business.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable, willing market participants at the measurement date. It is determined... Continue reading "Understanding Asset and Liability Valuation Concepts" »

Sampling Stage

Sample Size:

• Depends on population size
• The type of sample
• Feature (parameter) of the population that is analyzed
• The maximum permissible error in the estimation of the parameters

The Form: The information collected can be classified as:

• Acts or behaviors that can be compared
• Information: analyzes the degree of respondents' knowledge on specific topics
• Opinions or Judgments: such as perceived service quality
• Attitudes or predispositions of mind: We are looking for what is thought in relation to something
• Motives or explanations for specific behaviors: the question is, why certain views or acts?
• Possible future behavior: it may ask whether or not to consume a prepared product.

Concept and Structure of Questionnaires

The questionnaire is a way... Continue reading "Effective Questionnaire Design for Market Research" »

Food and Nutrition

Food is the act of providing sustenance to the human body, while nutrition encompasses the physiological processes by which the body receives, transforms, and utilizes the chemical components in food.

Inherited Diseases

• Hemophilia
• Huntington's disease
• Cystic fibrosis
• Color blindness
• Phenylketonuria

Measures of Dispersion

Measures of dispersion indicate how close the data are to the average.

Vaccines

Vaccines are preparations containing killed or attenuated microorganisms. They are introduced into our bodies to produce antibodies that kill the organism, providing immunity.

Common Pathogens

Pathogens such as bacteria and fungi are the most common causes of infectious diseases.

Health and Disease

Health is a state of complete physical, mental,... Continue reading "Key Concepts in Health, Nutrition, and Statistics" »

Exercise 01: Call Center Call Time

Suppose that the time needed for customer service calls in a telephone call center follows a Normal distribution with a mean of 8 minutes and a standard deviation of 2 minutes.

1. What is the probability that a call lasts less than five minutes?
2. What is the probability that a call lasts more than 9.5 minutes?
3. What is the probability that a call lasts between 7 and 10 minutes?
4. 75% of calls require at least how long for service?

Exercise 02: Rabbit Weight Classification

The distribution of the weights of rabbits raised on a farm may well be represented by a Normal distribution with a mean of 5 kg and a standard deviation of 0.9 kg. An abattoir buys 5000 rabbits and intends to classify them according to weight as follows:... Continue reading "Statistics Exercises: Normal Distribution" »

Working Papers

These are the documents in which the auditor records the data and information obtained during their review, as well as the results of the tests performed.

Summary Warrant

A sample of major accounts that are an item.

Worksheet

This is the card that shows the groups or items that comprise the financial statements.

Decree of Detail

The items that comprise an account balance of a major account or any other account.

Certificates of Verification

The work performed to verify the correctness of an item or transaction.

Situations for Audit Work Plan

• Ensure that the service is clearly controlled.
• Be fully aware of what is being offered.

Conditions to Perform the Audit

• Maintain independence of mind regarding the specific client.
• Possess the ability to

Types of Auditor Opinions

Unqualified Opinion

An unqualified opinion is issued when:

• The audit was performed without limitations in scope and in accordance with the National Technical Standards (NTA).
• The annual accounts have been prepared in accordance with accounting rules and Generally Accepted Accounting Principles (GAAP), consistent with prior years.
• The information, including supporting documentation, is sufficient for adequate comprehension.
• The financial statements, taken as a whole, fairly represent the company's business in accordance with the information available to the auditor.

Qualified Opinion

A qualified opinion is issued when the auditor concludes that there are significant circumstances that prevent the annual accounts from presenting... Continue reading "Auditor's Opinions: Types and Implications" »

• Rating Alphabetical: Documents are classified based on the name of the person or the reason for the company shown in the document.
• Geographical Breakdown: Documents are classified by place of residence of the person or entity, as the province-city-street and finally the name.
• Classification of Materials: Documents are grouped according to the topic at hand, understood as a common feature field.
• Alphabetical Materials as Logical Categories:

a) Number: Each field is assigned a number, and each subdivision a number.
b) Alphanumeric: Each field is assigned a letter or number, and subdivisions another letter or number that is added to the first component.

• Rating Chronological: Ordering progressively, by date of entry or maturity.
• Decimal Classification:

Adverbs

An adverb is a word that acts as the core of an adverbial phrase. It modifies a verb, an adjective, or another adverb.

Classification of Adverbs

• Place: out there, here, up close, in front, within, above, across, away, etc.
• Time: now, before, even yesterday, after, today, then, tomorrow, never, soon, always, yet, etc.
• Quantity: something, pretty, almost, too much, well, nothing, just, so, so much.
• Manner: agile, well, good, bad, fair, bravely, and so on.
• Order: before, after, later, first, respectively, and so on.
• Affirmation: true, certainly, of course, actually, probably, yes, indeed, and so on.
• Negation: never, no, never, no, etc.
• Doubt: perhaps, possibly, probably, maybe, perhaps, etc.
• Question: how, when, where.
• Relative: how, when, where.

Prepositions

A... Continue reading "Adverbs, Prepositions, Verbs, Pronouns & Conjunctions" »

Identification of Financial Statements

The financial statements shall be clearly identified and distinguished from any other information published in the same document.

Characteristics of Financial Statements

• Accuracy: Displaying information in a clear, precise, and true manner.
• Opportunity: Must be submitted on time.
• Relevance: Only present information unique to the company's operations.
• Integrity: The information submitted must be complete and not incomplete or unreliable.
• Frequency: Financial statements should be made with a fixed periodicity.

Notes to Financial Statements

Clarifications or explanations of events or situations, quantifiable or not, are an integral part of every financial statement. They must be read together for correct interpretation.... Continue reading "Financial Statements: Identification, Characteristics, and Inventory Accounting" »