Accounting Discussion Questions

Accounting Discussion Questions

1- Describe the main difference between Financial Accounting and Managerial Accounting2- ? What is it?3- Why are ethics important for accountants?4- Record the journal entry for the following transactions. Be sure to put the debit side and the credit side in proper form (i.e. debit listed first and not indented, credit listed 2nd and indented; do not draw T-accounts or do not use the horizontal model format) :a. Issued common stock for $75,000 cashb. Performed services worth $25,500 on account.c. Bought equipment for $90,000 with cash.d. Received a cash payment of $2,500 from a customer on account.5- What is meant by the Lower of Cost or market rule?Answer: 6- Why would a company use ratios to measure inventory turnover and days in inventory (why would they care how fast inventory is turning over or staying in the warehouse)?7- Record the following adjusting entries (record only the adjustment, not the original entry to purchase, etc. again record in proper journal entry form. Alsobe sure to put the debit side and the credit side in proper form (i.e. debit listed first and not indented, credit listed 2nd and indented; do not draw T-accounts or do not use the horizontal model format):a. Your business had $45,000 worth of unearned service revenue. At the end of the period it was determined that you earned 1/3 of the total.b. Your business paid $12,000 for insurance in advance. One month of this has now been used up, record the adjustment necessary.c. Your business originally purchased $1,500 of supplies. At the end of the period, only $500 worth of supplies are left. Please make the necessary adjustment.8. The following information applies to Westbest Company.Beginning inventory150 units @ $25 eachPurchases550 units @ $28 eachWestward sold 625 units of inventory during the year.a. Determine the cost of goods sold assuming a FIFO cost flow.b. Determine the cost of goods sold assuming a LIFO cost flow.c. Determine the cost of goods sold assuming a weighted average cost flow.9-The following information applies to Karcher Company.Beginning inventory200 units @ $15 eachPurchases375 units @ $20 eachKassouf sold 525 units of inventory during the year.a. Determine the ending inventory balance assuming a FIFO cost flow.FIFO Inventory Balanceb. Determine the ending inventory balance assuming a LIFO cost flow. LIFO Inventory Balancec. Determine the ending inventory balance assuming a weighted average cost flow.10- What are internal controls and why are they important? 11- Name and briefly describe 2 types of internal controls (these would be specific control procedures).Answer:


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