Questions from Intermediate Accounting

Q: What are adjusting entries and why are they necessary?

What are adjusting entries and why are they necessary?

Q: Why are revenue and expense accounts called temporary or nominal accounts?

Why are revenue and expense accounts called temporary or nominal accounts?

Q: Is it necessary that a trial balance be taken periodically? What

Is it necessary that a trial balance be taken periodically? What purpose does it serve?

Q: (a) How are the components of revenues and expenses different

(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.  

Q: What differences are there between the trial balance before closing and the

What differences are there between the trial balance before closing and the trial balance after closing with respect to the following accounts? (a) Accounts Payable. (b) Expense accounts. (c) Rev...

Q: What are closing entries and why are they necessary?

What are closing entries and why are they necessary?  

Q: Jay Hawk, maintenance supervisor for Boston InsuranceCo., has

Jay Hawk, maintenance supervisor for Boston Insurance Co., has purchased a riding lawnmower and accessories to be used in maintaining the grounds around corporate headquarters. He has sent the...

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why

Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis accounting acceptable for most businesses and the cash-basis unacceptable in the preparation of an income...

Q: When salaries and wages expense for the year is computed, why

When salaries and wages expense for the year is computed, why are beginning accrued salaries and wages subtracted from, and ending accrued salaries and wages added to, salaries and wages paid during...

Q: List two types of transactions that would receive different accounting treatment using

List two types of transactions that would receive different accounting treatment using (a) strict cash-basis accounting, and (b) a modified cash basis.