Questions from General Accounting

Q: How does a company that uses a perpetual inventory system determine the

How does a company that uses a perpetual inventory system determine the amount of inventory shrinkage?

Q: What is the difference between a sales discount and a purchase discount

What is the difference between a sales discount and a purchase discount?

Q: Why would a company’s manager be concerned about the quantity of its

Why would a company’s manager be concerned about the quantity of its purchase returns if its suppliers allow unlimited returns?

Q: Does the sender (maker) of a debit memorandum record a

Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient’s account? What entry (debit or credit) does the recipient record?

Q: Provide the names of two (a) asset accounts,

Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.

Q: Identify the four financial statements of a business.

Identify the four financial statements of a business.

Q: What information is reported in a balance sheet?

What information is reported in a balance sheet?

Q: Key figures for the recent two years of both Apple and Google

Key figures for the recent two years of both Apple and Google follow. Required 1. Compute profit margins for (a) Apple and (b) Google for the two years of data shown. 2. Which company is more succes...

Q: What information is reported in an income statement?

What information is reported in an income statement?

Q: What is the difference between the cash basis and the accrual basis

What is the difference between the cash basis and the accrual basis of accounting?