Questions from College Accounting

Q: 1. Why should management be concerned about the efficiency of the

1. Why should management be concerned about the efficiency of the end-of-period procedures? 2. Spectrum Company had an increase in sales and net income during its last fiscal year, but cash decreased...

Q: What account is credited for a cash discount taken by the purchaser

What account is credited for a cash discount taken by the purchaser when (a) the periodic system is used and (b) the perpetual system is used?

Q: Give some reasons why the bank balance and the book balance of

Give some reasons why the bank balance and the book balance of cash might differ.

Q: What is the book balance of cash?

What is the book balance of cash?

Q: What procedures are used to achieve internal control over banking activities?

What procedures are used to achieve internal control over banking activities?

Q: What information is shown on the bank statement?

What information is shown on the bank statement?

Q: What is a check?

What is a check?

Q: What type of information is entered on a check stub? Why

What type of information is entered on a check stub? Why should a check stub be prepared before the check is written?

Q: Why are MICR numbers printed on deposit slips and checks?

Why are MICR numbers printed on deposit slips and checks?

Q: How does the Fair Labor Standards Act affect the wages paid by

How does the Fair Labor Standards Act affect the wages paid by many firms? What types of firms are regulated by the act?