Question 1. Describe how the financial statements (the income statement, statement of retained earnings, balance sheet and statement of cash flows) are interrelated. Provide at least two examples.
If you were an investor, would you place more emphasis on any one particular financial statement? Explain your answer.
Question 2. Describe how the bank reconciliation can be used as an internal control tool for cash. Also, should the same person that receives cash payments prepare the bank reconciliation? Give at least one reason to support your answer.
Question 3. Explain the difference between a capital expenditure and a revenue expenditure. Also, give an example of each and explain the difference in the method of accounting for each expenditure. Explain if there are times that it would be in management's best interest to "shift" an expenditure from a capital expenditure to a revenue expenditure?
Question 4. Identify a skill that you learned in this course and explain how you can apply it to increase success in your career in a real-world scenario.
Optional: Share with your classmates your future plans after you have earned this degree. What will be your next step in your professional journey?