Assignment
Questions:
1. If you were the accounting manager of a very large company, what type of process would you have in place to be extra certain that if an expense was incurred by any of the company employees, this expense was properly captured during the accounting closing process? (e.g. would you email the entire company, would you work with various other department heads, etc.)
Now I ask this question because it's good for everyone to understand that accounting is not just "numbersa' and "calculations". We have to have good and efficient internal processes that allow us to collect data, paper work for transactions, etc.
Let me know your thougthts with this question, ok?
2. Remember, the balance at the end of a given period should be reconciled. That just means that you are looking/searching for transactions that maybe were not captured as the period was going on and you then have to use adjusting entries to capture that transaction. Now when you say "more money" are you getting "cash" transactions mixed up with "accounts payable"? Let me know. Sometimes it's confusing of whether the cash account should be used versus AP.
3. Under perpetual inventory, inventory and the cost of goods are updated for each sale/purchase and return transaction. Under perpetual inventory system, a purchase is recorded by debiting inventory account and crediting accounts payable assuming that the purchase is on credit. Under perpetual inventory system it provides a running balance of cost of goods available for sale and cost of goods sold. Under this system, no purchases account is maintained because inventory account is directly debited with each purchase of merchandise. The expenses that are incurred to obtain merchandise inventory increase the cost of merchandise available for sale, these are also debited to the inventory account.