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Scan the articles in a recent copy of one of the popular business periodicals for examples of the use of financial accounting data.
Distinguish between reporting on a calendar-year and on a fiscal-year basis.
Explain why accrual-basis accounting is more appropriate than cash-basis accounting for most businesses.
The analysis process for preparing adjusting entries involves two basic steps. Identify the two steps and explain why both are necessary.
Cash is not one of the accounts increased or decreased in an adjusting entry. Why?
What is the purpose of the post-closing trial balance? Explain where the information for the post-closing trial balance comes from.
At December 31, the company still owed $29,000 for additional expenses incurred which have not yet been paid in cash.
Make the journal entry necessary on Greg's books on December 10 to record the receipt of this cash, assuming that Greg did not make any adjusting entry.
One of your friends reports that he took accounting last year and that actually there isn't just one accounting equation.
You have been hired to prepare the financial reports for White River Building Supply, a proprietorship owned by Bill Masters.
You were at dinner with some family and friends when one of them started talking about the long hours he has been putting in at work-a local waste management.
Do the notes to the financial statements add value to investors, or have they evolved from tradition?
If you could have access to only one of the primary financial statements, which would it be and why?
What are the advantages of a computer-based accounting system? Does such a system eliminate the need for human judgment? Explain.
In what ways are dividend and expense accounts similar, and in what ways are they different?
How does understanding the mechanics of accounting help a businessperson who has no intention of practicing accounting?
If a trial balance appears to be correct (debits equal credits), does that guarantee complete accuracy in the accounting records? Explain.
For each account, indicate how much the transaction increased or decreased the account.
Collected cash of $47,000 from the $60,000 receivable on account; the remaining $13,000 is expected to be collected later.
The fundamental accounting equation can be applied to your personal finances.
Why are owners' equity and liabilities considered the "sources" of assets?
What are the limitations of the balance sheet? Why is it important to be aware of them when evaluating a company's growth potential?
Some people feel that the income statement is more important than the balance sheet. Do you agree? Why or why not?
Why is it important to classify cash flows according to operating, investing, and financing activities?
Assume that the revenues for the year were $830,000. Compute the expenses incurred for the year.