You have applied to work as an accountant in a small retail business. You have been invited for an interview by the owner who offered you to work as a finance manager after short interview. You will be responsible for all financial activities and management of cash in the business. He said, your job is easy as most of the

 You have applied to work as an accountant in a small retail business. You have been invited for an interview by the owner who offered you to work as a finance manager after short interview. You will be responsible for all financial activities and management of cash in the business. He said, your job is easy as most of the task is carried out by the cashier. He explained that the cashier is his brother who is responsible for collecting all cash from sales, pay for cash expenses, deposit the money at his convenience. You will be handling the recording of journal entries and preparing financial statements. He encouraged you to support the cashier when you have time. He offered you to start working in two days’ time if you are comfortable to accept the position. The only question he asked you is to express your views about the job and explain if you have any concerns. Briefly express your views about the job and list any concerns you have on the business.

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Question 2: What are the items that decrease owner’s equity? Give some examples.

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Question 3: A manager of a small online business believes that now most of their transactions take place using electronic transfer of funds rather than cash or cheques and they no longer need to do a bank reconciliation each month as almost all funds’ transfers are electronic anyway and go straight through the bank account. Explain (by giving at least two reasons) to the manager why a bank reconciliation is still necessary for their business. (3 Marks)

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Question 4: How do we record electricity consumed but not paid at the end of the month? Give what account should be debited and the one that should be credited to record the transaction.(1 Mark)

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Question 5: Why are adjusting entries needed? Explain their importance. (2 Mark)

Expert Answer

1. As to the actual job, there is no problem noted as the job description is just fitting for an Accountant. Also, you will not be that pressured as most of your tasks are performed by the cashier. Th View the full answer