Questions from College Accounting

Q: What is the function of the Purchases account?

What is the function of the Purchases account?

Q: Explain why salary and interest allowances are not expenses for a partnership

Explain why salary and interest allowances are not expenses for a partnership.

Q: Give an example of a fractional ratio.

Give an example of a fractional ratio.

Q: The statement of partners’ capital is a required report. Agree or

The statement of partners’ capital is a required report. Agree or disagree? Defend your position.

Q: What is meant by a “side transaction” when a new

What is meant by a “side transaction” when a new partner is admitted by an existing partner’s selling the new partner equity?

Q: Explain the account Paid-In Capital in Excess of Par Value

Explain the account Paid-In Capital in Excess of Par Value as it relates to exchange of stock for noncash assets.

Q: What is the purpose of the account Organization Costs?

What is the purpose of the account Organization Costs?

Q: In stock subscriptions, why does one credit Common Stock Subscribed?

In stock subscriptions, why does one credit Common Stock Subscribed?

Q: Who elects the board of directors?

Who elects the board of directors?

Q: Thad’s computer center’s business is picking up, so he has decided

Thad’s computer center’s business is picking up, so he has decided to expand his bookkeeping system to a general journal/ledger system. The balances from August hav...