For this discussion, assume the role of a financial manager in a company, and assume that you have just hired a new bookkeeper to join your team. You want to assess the new hire's understanding of the accounting processes as a whole, so you decide to ask a series of questions. Select three of the six questions listed below to ask your new bookkeeper, and describe the response you expect to hear:

•Define the accounting cycle.

•Explain the revenue principle and its implication on the financial statements.

•Define the matching principle and why it is critical in the preparation of the accrual-based financial statements.

•Compare and contrast a prepaid account and a deferred account. Give an example of each and how each affects the financial statements.

•Define and differentiate between the purpose of a journal entry, an adjusting entry, and a closing entry.

•Define the difference between a trial balance and a post-closing trial balance.

Answer rating: 100% (QA)

Answer o all parts is given below Ans 1Accounting cycle The sequence of six steps in the processing of financial transactions from the time they occur to their inclusion in financial statements pertai... View the full answer