Accounting & Bookkeeping & Small Business Forum

vita · Joined: 14 Apr 2006 Posts: 17

i know i'm being anal retentive in this respect, but on page 7.9 in volume I, where you fill in the blanks, the last line:

____, 190.00, ____, ____, ____, 4.8

the answers should be:

5%, 190.00, 9.58, 199.58, 9.58, 4.8%

the book gives the answers:

5%, 190.00, 9.50, 199.50, 9.50, 4.8%

i realize "my" answers have also been rounded out, but you cannot possibly come out to what the book gives as answers given the provided data. it's nice when you make the question and can just take away items that can theoretically be answered, but it doesn't come out smoothly.

it might be a good idea to change what data is provided. in this case, give cost and markup % or cost and markup$, or actually solve the problem and use the answers you have as a result of your rounding process.

just a consideration, that is all. thanks,

Tom

BillBro · Joined: 23 Mar 2006 Posts: 50

Tom,

I know exactly what you mean. When I took the course I arrived at the same answers you did. It isn't that the Answer Key in this exercise is in error. Here, as elswhere in the PB course, UAC has chosen to round their answers for the sake of simplicity. As long as you understand the concept, know the steps and can solve the problems presented, those are the desired outcomes. So congratulations on finding the right answers!--lots of students get stopped in their tracks on that last line on page 7.9.

In real world applications, as I can attest by personal experience, determining markup amounts, reporting gross profit percentages, etc., is often a "round figure" exercise. As you keep a client's books, you will want to be correct to the penny, but in sending him a summary report, it is acceptable (and often preferable) to round your answers, because in grasping "big picture" concepts, unnecessary detail can be confusing. I once had a boss who insisted that he wanted no data that wasn't rounded to the nearest thousand (e.g. 59,000, not 59,152.77).

Hope that helps.

vita · Joined: 14 Apr 2006 Posts: 17

while i can agree with your points, i would think that the numbers should be as accurate as possible and use the same rounding principles as the rest of the exercise.

it's plainly obvious that the problem was laid out with answers first, but not "solved" before publishing. the other problems in the exercise do not have this issue. the answers given by the book work when applied to calculations alone, yet given the data provided to solve the problem do not work out. you cannot solve the problem by "rounding."

i merely recommend altering the answers for the next revision of the course, if or when that happens.

vita · Joined: 14 Apr 2006 Posts: 17

i'd also like to add that in this particular exercise, it is NOT helpful to "round" the answer when a miscalculation can lead to very similar answers. that is NOT conductive to a learning environment.

one could easily attempt to solve the problem with an incorrect solution, and "round" the numbers to what is shown.

again, consistency is key in this regard, and when the rest of the problems in the same exercise follow one convention of "rounding" this particular example should follow suit.

i will re-state that it clearly was a result of the answers being "pre-fabricated" and certain fields being blanked out for the sake of the workbook. there is a readily available solution and it is clear that the answer key IS in error when compared to the other problems in the same exercise, regardless of conventions used throughout the course...

Ken · Joined: 17 Aug 2005 Posts: 146

Thank you for your comments; we are always trying to keep this the best course available. We will add this to our suggestions for the next update.

vita · Joined: 14 Apr 2006 Posts: 17

thanks for the consideration. it could honesty matter less to me, but the guy above gave the impression he designed the course and had the answers as to why the numbers are off, so i think i got a bit snippy.

i don't mean for my posts to be offensive, so i hope they don't come off that way. i just wanted to make you guys aware of it since i know the process in which textbooks are usually assembled can often result in situations such as this.

BillBro · Joined: 23 Mar 2006 Posts: 50

Boy! I could not be further from being the one who designed the course. :lol: And I can't address how the textbook was originally put together, as it predates my association with Universal by many, many years. But I do help students as they study the course, and I meant what I said in my original post: I got the same answers you did the first time I went through it, and it raised a question in my mind, too--until someone explained to me that they were being rounded.

Then I realized that in my business experience, whenever I computed markup prices, I always rounded them off, too. Now I tell all my students who struggle with this exercise what I told you: Don't get hungup on the exact answers, just understand the process. This is one of many accounting skills where double-decimal precision is optional. Income taxes is another--most returns are processed to the nearest dollar, right?

vita · Joined: 14 Apr 2006 Posts: 17

regardless, one example is a set of problems should follow the same conventions the rest of the set use, no matter how you look at it. you may have been told one thing, but it's clear as to "why" the answer key is as it is by evaluating the problem set as a whole.

i was merely pointing out something that should be reviewed. again, using improper calculations can lead to similar answers and can be misleading to someone who wants to understand the problem properly. not to mention money is always rounded up...

BillBro · Joined: 23 Mar 2006 Posts: 50

I wouldn't agree that money is always rounded up. Tax returns aren't; I think most tax prep programs round them to the nearest dollar, whether up or down.

However, your main point is still valid, and the best thing you can take away from all this is that someone who participates in updating the manuals has noted your concerns and promised to address them.

My role is to help students understand the curriculum as it exists now, and that's what I have tried to do. As I said earlier, lots of students struggle with this exercise, and I would be thrilled for some of them if they could understand it well enough, as you have, to recognize the difference between an answer taken to the nearest hundredth and one that has been rounded. So I commend you again.

vita · Joined: 14 Apr 2006 Posts: 17

i understand now why you've taken the stance you do. sorry if i seem snippy about things, it's my natural tendancy.

i take that back, when it's other people's money, it's usually rounded up, unless you're the bank. you don't want to charge 250.5 when your business plan indicates 250.58. you'd charge 250.6, or 251.0.

like i said, i'm being overly anal. i do agree though, the important part is to understand the concept of how to get to the anser, and not necessarily the answer itself.

BillBro · Joined: 23 Mar 2006 Posts: 50

Thanks for understanding what I am trying to do. I think you are in very good shape on this because you grasped the concept so well. Good luck as you proceed with the course. I just got off the phone with a student I wish I could have you teach it to! :wink:

vita · Joined: 14 Apr 2006 Posts: 17

thanks for the compliment!

i have a question about the course...

am i able to complete it independent of the DVDs without missing anything aside from personal stories told by the instructor?

i just had a DVD skip, and i'm worried i might miss some things. i like to think i've got a good grasp of this (always have been good with money and numbers) but i just don't want to think i'm going to miss out on what i was hoping to get out of this course (as much education as it'll provide).

if you could answer me, i'd really appreciate it as i don't have a "coach" to call about it.

much appreciated if you can answer,

Tom

BillBro · Joined: 23 Mar 2006 Posts: 50

Tom, I am Universal's accounting and tax coach. You can call me with questions anytime. 800-413-8168.

Yes, the DVDs play an important part in the course, and sometimes cover in greater detail things that are only briefly mentioned in the books.

Also, the stories illustrate the kinds of situations that arise for which the common skills we teach you are designed. Many pages in the books are nothing but exercises in certain bookkeeping practices; Allen's stories in the DVDs describe the practical business applications these practices are for.

So if you have a DVD that skips, contact me and lets get it replaced--that's part of our guarantee.

Bill