Questions from Financial Accounting

Q: Explain how the matching principle is applied to the valuation of inventories

Explain how the matching principle is applied to the valuation of inventories.

Q: You have received goods from trader X who invoiced you and delivered

You have received goods from trader X who invoiced you and delivered the invoice with the goods. You have just received a debit note for £100. a. What is a debit note? b. How should the £100 be accoun...

Q: Explain the circumstances in which inventories might be shown in the financial

Explain the circumstances in which inventories might be shown in the financial statements at a value different from their historical cost.

Q: Explain fully the basis on which finished goods and work-in

Explain fully the basis on which finished goods and work-in-progress inventories should be valued in final financial statements.

Q: a. What is a perpetual inventory system? b.

a. What is a perpetual inventory system? b. Describe three methods of calculating the cost of fungible inventories. c. Explain the circumstances in which each of these methods may be justifiable.

Q: Explain the purpose of a bank reconciliation statement.

Explain the purpose of a bank reconciliation statement.

Q: Describe the procedures involved in the collection of the data needed to

Describe the procedures involved in the collection of the data needed to prepare a bank reconciliation statement.

Q: Explain the main purposes of control accounts.

Explain the main purposes of control accounts.

Q: Describe the types of errors that: a. cause a

Describe the types of errors that: a. cause a trial balance to disagree; b. do not cause a trial balance to disagree.

Q: Describe the two main uses of a suspense account.

Describe the two main uses of a suspense account.