Questions from General Accounting

Q: Define return and risk. Discuss the trade-off between them

Define return and risk. Discuss the trade-off between them.

Q: Craig Thorne works in a public accounting firm and hopes to eventually

Craig Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discuss...

Q: Describe the three major business activities in organizations.

Describe the three major business activities in organizations.

Q: Explain why investing (assets) and financing (liabilities and equity

Explain why investing (assets) and financing (liabilities and equity) totals are always equal.

Q: Technology is increasingly used to process accounting data. Why then must

Technology is increasingly used to process accounting data. Why then must we study and understand accounting?

Q: Identify four kinds of external users and describe how they use accounting

Identify four kinds of external users and describe how they use accounting information.

Q: What work do tax accounting professionals perform in addition to preparing tax

What work do tax accounting professionals perform in addition to preparing tax returns?

Q: Why is the revenue recognition principle needed? What does it demand

Why is the revenue recognition principle needed? What does it demand?

Q: Describe the three basic forms of business organization and their key attributes

Describe the three basic forms of business organization and their key attributes.

Q: Define (a) assets, (b) liabilities

Define (a) assets, (b) liabilities, (c) equity, and (d) net assets.