Question: Select a company that you can visit in person or interview on the telephone. Call ahead to the company to arrange a time when you can interview an employee (preferably an accountant) who helps prepare the annual financial statements. Inquire about the following aspects of its accounting cycle:
1. Does the company prepare interim financial statements? What time period(s) is used for interim statements?
2. Does the company use the cash or accrual basis of accounting?
3. Does the company use a work sheet in preparing financial statements? Why or why not?
4. Does the company use a spreadsheet program? If so, which software program is used?
5. How long does it take after the end of its reporting period to complete annual statements?