Questions from College Accounting

Q: What effect does each item in Question 1 have on owner’s equity

What effect does each item in Question 1 have on owner’s equity?

Q: Why is it necessary to journalize and post adjusting entries?

Why is it necessary to journalize and post adjusting entries?

Q: What three amounts are reported on the balance sheet for a long

What three amounts are reported on the balance sheet for a long-term asset such as equipment?

Q: What is book value?

What is book value?

Q: Why is an accumulated depreciation account used in making the adjustment for

Why is an accumulated depreciation account used in making the adjustment for depreciation?

Q: Are the following assets depreciated? Why or why not?

Are the following assets depreciated? Why or why not? a. Prepaid Insurance b. Delivery Truck c. Land d. Manufacturing Equipment e. Prepaid Rent f. Furniture g. Store Equipment h. Prepaid Advertising i...

Q: How does the straight-line method of depreciation work?

How does the straight-line method of depreciation work?

Q: Name the steps of the accounting cycle.

Name the steps of the accounting cycle.

Q: 1. Why should management be concerned about paying its invoices on

1. Why should management be concerned about paying its invoices on a timely basis? 2. Why is it important for a firm to maintain a satisfactory credit rating? 3. Suppose you are the new controller of...

Q: What three procedures are performed at the end of each accounting period

What three procedures are performed at the end of each accounting period before the financial information is interpreted?