Questions from Financial Accounting

Q: Indicate the most likely effect of the following changes in credit policy

Indicate the most likely effect of the following changes in credit policy on the receivables turnover ratio (+ for increase, - for decrease, and NE for no effect). a. Granted credit with shorter payme...

Q: Indicate whether the following items would be added (+) or subtracted (-)

Indicate whether the following items would be added (+) or subtracted (-) from the company’s books or the bank statement during the construction of a bank reconciliation.

Q: Briefly explain how the total amount of cash reported on the balance

Briefly explain how the total amount of cash reported on the balance sheet is computed.

Q: What is a credit card discount? How does it affect amounts

What is a credit card discount? How does it affect amounts reported on the income statement?

Q: What is a sales discount? Use 1/10, n

What is a sales discount? Use 1/10, n/30 in your explanation.

Q: What is the distinction between sales allowances and sales discounts?

What is the distinction between sales allowances and sales discounts?

Q: Define cash and cash equivalents in the context of accounting. Indicate

Define cash and cash equivalents in the context of accounting. Indicate the types of items that should be included and excluded.

Q: Summarize the primary characteristics of an effective internal control system for cash

Summarize the primary characteristics of an effective internal control system for cash.

Q: Why should cash-handling and cash-recording activities be separated

Why should cash-handling and cash-recording activities be separated? How is this separation accomplished?

Q: Describe the roles and responsibilities of management and independent auditors in the

Describe the roles and responsibilities of management and independent auditors in the financial reporting process.