Problem 1: Identify and describe the steps in the accounting process.
Problem 2:
(a) Who are internal users of accounting data?
(b) How does accounting provide relevant data to these users?
Problem 3: What is the monetary unit assumption? What impact does inflation have on the monetary unit assumption?
Problem 4: For the following transactions, indicate the account debited and the account credited.
(a) Supplies are purchased on account.
(b) Cash is received on signing a note payable.
(c) Employees are paid salaries in cash.
Problem 5: What are the advantages of using the journal in the recording process?
Problem 6: (a) What are generally accepted accounting principles (GAAP)? (b) What bodies provide authoritative support for GAAP?
Problem 7: (a) What are the objectives of financial reporting? (b) Identify the qualitative characteristics of accounting information.