Questions from Financial Accounting

Q: The following list of balance sheet items are in random order for

The following list of balance sheet items are in random order for Alexander Farms, Inc., at September 30, current year. Instructions: a. Prepare a balance sheet by using these items and computing...

Q: Why is the statement of financial position, or balance sheet,

Why is the statement of financial position, or balance sheet, a logical place to begin a discussion of financial statements?

Q: Why is the going-concern assumption an important consideration in understanding

Why is the going-concern assumption an important consideration in understanding financial statements?

Q: Can a business transaction cause one asset to increase without affecting any

Can a business transaction cause one asset to increase without affecting any other asset, liability, or owners’ equity?

Q: Give an example of business transactions that would: a.

Give an example of business transactions that would: a. Cause one asset to increase and another asset to decrease, with no effect on either liabilities or owners’ equity. b. Cause both total assets...

Q: Explain whether each of the following balance sheet items increases, reduces

Explain whether each of the following balance sheet items increases, reduces, or has no direct effect on a company’s ability to pay its obligations as they come due. Explain your reasoning. a. Cash....

Q: Professional judgment plays a major role in the practice of accounting.

Professional judgment plays a major role in the practice of accounting. a. In general terms, explain why judgment enters into the accounting process. b. Identify at least three situations in which ac...

Q: During the month of October, current year, Weller Company had

During the month of October, current year, Weller Company had the following transactions. 1. Revenues of $14,400 were earned and received in cash. 2. Bank loans of $3,600 were paid off. 3. Equipmen...

Q: Jiminez, Inc., had the following transactions during the month of

Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this information, being careful to include only those items that should appe...

Q: An inexperienced accountant for Prestwick Company prepared the following income statement for

An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. Prepare a revised income statement in accordance with generally accep...