Beruflich Dokumente
Kultur Dokumente
Paid$135,000forsalaries.
Paid$60,000topurchaseofficeequipment.
Paid$15,000forutilities.
Paid$6,000individends.
Collected$245,000fromcustomers.
Whatarethefourbasicfinancialstatements?Whatistheprimary
purposeofeachofthefourbasicfinancialstatements?Inyouropinion,
whichfinancialstatementisthemostimportant?Explainwhy.How
wouldthefinancialstatementsbeusefultomanagersandemployees?
Howwouldthefinancialstatementsbeusefultoinvestorsand
creditors?
Whataredebitsandcredits?Howaredebitsandcreditsusedtorecordbusiness
transactions?Whydoaccountantsdebitassetaccountstoincreasethembutcredit
liabilityaccountstoincreasethem?Whydoaccountantsdebitexpensestoincrease
thembutcreditrevenuestoincreasethem?
Question 1
Currentassetsareexpectedtobeconvertedtocashorconsumedwithinthe
nextyearorthenormaloperatingcycle,whicheverislonger.
Whatistherevenuerecognitionprinciple?Whatistheexpenserecognitionprinciple?
Whyaretheyimportanttofinancialreporting?
Whatareadjustingentriesandwhyaretheynecessary?
Whatareaccruals?Provideexamplesofaccruals.Whydoaccrualsrequireadjusting
entries?
Whataccountsaresubjecttoadjustingjournalentriesandwhy?
Howwouldyouexplainthepurposeoftheadjustedtrialbalance?
DiscusstheobjectivesforACC290WeekTwo.
Whatdoyouthinkwillbethemostimportantoftheskillslearnedwhenyouareinan
accountingposition?
Differentiatebetweenaccrualbasisandcashbasisofaccounting.
CreateAdjustingEntries.
Question 1
Expensesdecreaseretainedearnings.
Question 2
During2014,GibsonCompanyassetsdecreased$50,000anditsliabilities
decreased$90,000.Itsstockholdersequity
Question 3
Resource: WileyPLUS
BYP2-2
BrowsetheInternettoacquireacopyofthemostrecentannualreportforapublicly
tradedcompany.Analyzetheinformationcontainedinthecompanysbalancesheet
andincomestatementtoanswerthefollowingquestions:
Whatarethestepsincompletingtheaccountingcycle?Howdothedifferentsteps
affectthefinancialstatements?Whatistheeffectonthefinancialstatementsof
missingastepwhencompletingtheaccountingcycle?Whatarethefourclosing
journalentries?Whyaretheynecessary?Whatarereversingentries?Whyarethey
used?Whataretheprosandconsofusingreversingentries?Whyarereversing
entriesoptional?
Whataretheprosandconsofusingreversingentries?Whyarereversingentries
optional?Whatisthemainpurposeofafinancialstatementworksheetandits
benefits?Howhasautomationaidedthepreparation,accuracy,anduseofthe
financialstatementworksheet?
Question 1
Therevenuerecognitionprincipledictatesthatrevenueisrecognizedintheperiodin
whichthecashisreceived.
Question 2
Thegenerallyacceptedaccountingprinciplewhichdictatesthatrevenuebe
recognizedintheaccountingperiodinwhichtheperformanceobligationissatisfiedis
the
Resource:WileyPLUS
BriefExercise4-1
Problem4-2A
Accesstheinternettoacquireacopyofthemostrecentannualreportforthepublic
tradedcompanyusedtocompletetheFinancialReportingProblem,Part1
assignmentdueinACC290WeekFour.Analyzetheinformationcontainedinthe
companysbalancesheetandincomestatementtoanswerthefollowingquestions:
Aretheassetsincludedunderthecompanyscurrentassetslistedintheproper
order?Explainyouranswer.
Howwouldyoucalculatecostofgoodssold?Whatitemsmakeupcostofgoods
sold?Howdoesbeginningandendinginventoryaffectcostofgoodssold?Whatare
thejournalentriesamerchandisingorganizationwouldusetorecordthepurchase
andsubsequentsaleofmerchandise?Howwouldthesetransactionsdifferwitha
periodicversusaperpetualinventorysystem?Whyareperpetualinventorysystems
somuchmorepopulartodaythanbackintheearly1960sandearlier?Whywoulda
companyemployingaperpetualinventorysystemstilltakeaphysicalinventory
periodically?
Whatarethethreedifferentinventorycostflowassumptionscommonlyusedin
commercetodayandallowedbygenerallyacceptedaccountingprinciples?Howdoes
acompanydeterminewhatcostflowassumptiontheyshoulduse?
Question 1
Aservicecompany'soperatingcycleisordinarilyshorterthanthatofa
merchandisingcompany.
Theoperatingcycleofamerchandisingcompanyisordinarilyshorterthanthatofa
servicecompany.
Whatisthecontrolenvironment?Howdoesthecontrolenvironmentaffecta
companysinternalcontrols?Whatarethenegativeandpositiveelementsofacontrol
environment?Whataretwoexamplesofstrongandweakinternalcontrols
IFRS 2-1:Inwhatwaysdoestheformatofastatementoffinancialofpositionunder
IFRSoftendifferfromabalancesheetpresentedunderGAAP?
DiscusstheobjectivesforACC290WeekFour.Inthewakeofaccountingscandals
overthepastseveralyears,howhastheSarbanes-OxleyAct(SOX)of2002affected
thepracticeofaccounting?WhatistheroleofinternalcontrolsincomplyingwithSOX
(2002)?Writea350to500wordsummaryofyourLearningTeamsdiscussion
Resource:WileyPLUS