1. What is the order in which the closing entries need to be prepared?
2. What types of accounts will appear in the Post-Closing Trial Balance?
3. Identify the four classes of assets that appear in a Classified Balance Sheet.
4. The total current assets of a business is $ 420,000 and the total current liabilities is 150,000. Calculate the current ratio. If the industry average Current Ration is 1.5 what could you infer about this business? (A reminder - do not be too brief !)
5. Financial Statements provide readers an opportunity to examine the performance of an entity over a given period of time. The end-of-cycle adjusting process assigns costs and revenues to the period in which they were incurred and earned respectively. Uninformed businesses could make the serious mistake of preparing period ending financial statements without adjusting accounts, misleading the reader.
Describe two circumstances (Internal / External) in which a decision, based on unadjusted data, could have a serious impact on the result. An example of an internal decision maker (management) and external decision maker (banker/investor).
1. Supplies is an asset and accounts payable is a liability.What kind of account is sales discounts and sales returns and allowances and what impact do they have on the gross sales of a business?
2. How do you calculate the Gross Margin Ratio?
3. Explain the difference between FOB shipping point and FOB destination.
4. In order for a service business to determine its Net Income it would subtract Expenses from Revenues. How does a merchandising business calculate its Net Income?
5. Record the journal entry for Maxwell Co to make the payment to Finneran Co on April 5, 2016 given the following information. Maxwell Company purchased $ 45,000 of merchandise from Finneran Company on March 22, 2016 with terms of 3/15 n 30.