Explain the significance of the return on equity ratio who

Reference no: EM13588421

1. Name and briefly describe each of the four financial statements.

2. Briefly distinguish between financial accounting and managerial accounting.

3. Describe the difference between temporary and permanent accounts, and state which ones are closed. Describe the purpose of the closing process.

4. Explain the meaning of the term, "matching concept."

5. Explain the significance of the return on equity ratio. Who (what category or type of financial statement users) would normally be most interested in this ratio?

6. What is financial leverage? What financial ratio can be increased by using financial leverage?

7. Discuss the major differences between a perpetual inventory system and a periodic inventory system.

8. Why are cash discounts given, and who benefits by these discounts?

9. Define the terms FIFO and LIFO.

10. List the specific steps used in computing the estimated inventory balance using the gross margin method.

11. List the measures that a business can use to achieve strong internal controls.

12. Petty cash funds are maintained on an imprest basis. Explain the advantage of using the imprest basis in accounting for petty cash.

13. Rolla Company was founded in 2010. It acquired $30,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2010 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business. What amount of cash should Rolla Company have had on hand immediately before going out of business?

14. Why would a merchandising company need good internal controls related to its inventory?

15. Explain the term, "business liquidation."

16. Rolla Company was founded in 2010. It acquired $30,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2010 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business. What amount of cash will Rolla's creditors receive?

17. Rolla Company was founded in 2010. It acquired $30,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2010 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business. What amount of cash will Rolla's stockholders receive?

18. List the key elements of an internal control system that would apply to inventory, and explain how each of them does relate to inventory.

19. What is the purpose of closing entries?

20. What is the purpose of a journal in accounting?

Reference no: EM13588421

Questions Cloud

For each of the above items discuss any additional : for each of the above items discuss any additional disclosures in the financial statements and notes that the auditor

Installment sales450000 440000 cost of installment sales : charter corporation which began business in 2013 appropriately uses the installment sales method of accounting for its

A household pays 1850 per year for the supplied electricity : question a household pays 1850 per year for the supplied electricity. assuming the rate of 0.11 per kwh and 10 hours of

Flip enterprises produces miniature parasols each parasol : flip enterprises produces miniature parasols. each parasol consists of 1.20 of variable costs and .90 of fixed costs

Explain the significance of the return on equity ratio who : 1. name and briefly describe each of the four financial statements.2. briefly distinguish between financial accounting

Case development began operations in december 2013 when : case development began operations in december 2013. when property is sold on an installment basis case recognizes

Some say that bernard l madoff is the biggest financial : some say that bernard l. madoff is the biggest financial fraud in history. the new york times gives us some background

Refer to the original data assume again that polaski : polaski company manufactures and sells a single product called a ret. operating at capacity the company can produce and

Adjusting enteries are required at the end of the period to : adjusting enteries are required at the end of the period to ensure that accrual accounting principles are applied. at

User Account

All Pages