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Questions and Answers of
College Accounting
What are assets, liabilities, and owner’s equity?
What are expenses?
What is revenue?
In recent years, there have been many charges, some of them substantiated, that large companies have manipulated business transactions and accounting records to move income from one year to another
Many times a negative cash flow is a potential problem in a business. Go to the website for the local banks in your community. Check the requirements for a line of credit or mortgage in case your
The Home Depot, Inc., reported the following data in its FY 2015 10-K (for the fiscal year ended January 31, 2016):Analyze:1. What percentage of total current liabilities is made up of accrued
On April 30, 2019, Chung Furniture Company prepared its state unemployment tax return for the first quarter of the year. The firm had taxable wages of $100,050. Because of a favorable experience
On January 31, AC Baking Company prepared its Employer’s Annual Federal Unemployment Tax Return, Form 940. During the previous year, the business paid total wages of $462,150 to its 14 employees.
What is the periodicity of income concept?
How does the materiality convention affect day-to-day accounting?
The Home Depot, Inc. reported the following data in its Form 10-K filing (for the fiscal year ended January 31, 2016):Number of employees at January 31,
Go to the Internal Revenue website at www.irs.gov. Does the website contain the necessary federal forms? Can you use these forms to submit your report? What reports must be obtained from the IRS in
Give an example of an expense that is classified as Other Expense in the income statement.
Gomez Company had a current ratio of 2.0 in 2018 and 2.2 in 2019. Does this signify an improvement or decline in Gomez Company’s liquidity from 2018 to 2019?
Why is a conceptual framework necessary in developing accounting standards and rules?
What are the two most important bodies or organizations involved in developing generally accepted accounting principles in the United States?
Why is it desirable to have a set of fundamental concepts to be used in developing accounting standards and rules?
How will U.S. companies be affected by IFRS?
What is meant by the concept of neutrality in accounting?
Identify the normal balance of the following accounts. Use “Dr.” for debit or “Cr.” for credit.1. _____ Merchandise Inventory2. _____ Sales Tax Payable3. _____ Sales4. _____ Sales Discounts5.
Income Summary amounts are extended to which statement columns on the worksheet?
The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the
The president of Murray Stainless Steel Corporation has told you to go out to the factory and count merchandise inventory. He said the stockholders were coming for a meeting and he wanted to put on a
Give examples of some current assets that usually are classified as Current Assets on the balance sheet.
What types of accounts, permanent or temporary, appear on the post-closing trial balance?
Kagan Company’s inventory turnover ratio was nine times in 2018 and eight times in 2019. Did Kagan Company sell its inventory more quickly, or more slowly, in 2019 compared to 2018?
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