Consider the following questions:
1. What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
2. Immediately after a used truck is acquired, a new motor is installed and the tires are replaced at a total cost of $5,750. Is this a capital expenditure or a revenue expenditure?
3. Identify the federal taxes that most employers are required to withhold from employees.
4. What is the primary purpose of a stock split?
5. Explain the meaning of each of the following terms as they relate to a bond issue: (a) convertible, (b) callable, and (c) debenture.
6. What are the major advantages of the indirect method of reporting cash flows from operating activities?