Questions from College Accounting

Q: What is impairment?

What is impairment?

Q: Identify three types of businesses according to activities.

Identify three types of businesses according to activities.

Q: What is the purpose of accounting?

What is the purpose of accounting?

Q: What information is entered in the Posting Reference column of the journal

What information is entered in the Posting Reference column of the journal as an amount is posted to the proper account in the ledger?

Q: Explain why the ledger can still contain errors even though the trial

Explain why the ledger can still contain errors even though the trial balance is in balance. Give examples of two such types of errors.

Q: What is a slide error?

What is a slide error?

Q: Give three reasons why a corporation may distribute a stock dividend.

Give three reasons why a corporation may distribute a stock dividend.

Q: What two factors are taken into account by the weighted-average

What two factors are taken into account by the weighted-average method of merchandise cost allocation?

Q: Identify four user groups normally interested in financial information about a business

Identify four user groups normally interested in financial information about a business.

Q: Explain the purpose of a chart of accounts.

Explain the purpose of a chart of accounts.